Midea Real Estate Holding Limited (3990) AI Stock Analysis

• Market Cap: €6.42B
• Dividend Yield: 6.04%
• Average Volume (3M): 3.73M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 9,213
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.23
• Shares Outstanding: 1,435,411,500
• 10 Day Avg. Volume: 2,052,226
• 30 Day Avg. Volume: 3,733,235
• PEG Ratio: 0.11
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -1.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €5.47
• Price Target Upside: 22.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: HK$5.00 ▲(11.86% Upside)

The overall stock score of 58 reflects significant financial challenges faced by Midea Real Estate, including a net loss, declining revenue, and cash flow issues. While technical indicators show bullish momentum, the high RSI suggests caution. The valuation is reasonable, but financial distress poses risks to future performance.

Midea Real Estate Holding Limited Business Overview & Revenue Model

Company Description

Midea Real Estate Holding Limited, an investment holding company, operates as a property developer in the People's Republic of China. The company operates through four segments: Property Development and Sales; Property Management Services; Investment and Operation of Commercial Properties; and Real Estate Technologies. It develops and sells residential and industrial properties, as well as provides property management services; and invests in and operates commercial properties, such as urban complexes, community centers, long-term rental apartments, hotel, and cultural-tourism projects. The company also offers smart home and smart communities services; and process design consultation and integrated design services. In addition, it is involved in prefabricated construction. Midea Real Estate Holding Limited was founded in 2004 and is headquartered in Foshan, the People's Republic of China. Midea Real Estate Holding Limited is a subsidiary of Midea Development Holding (BVI) Limited.

How the Company Makes Money

Midea Real Estate Holding Limited makes money primarily through the sale and lease of residential and commercial properties. The company generates revenue by developing and selling real estate projects, including residential communities and commercial buildings. Additionally, Midea Real Estate earns income from property management services, which include managing residential communities, commercial properties, and providing value-added services to property owners and tenants. The company also invests in real estate assets to generate rental income and capital appreciation. Strategic partnerships with local governments and other real estate developers, as well as a strong brand reputation, contribute to its revenue streams by enhancing project visibility and market reach.

Midea Real Estate Holding Limited Financial Statement Overview

Summary

Midea Real Estate is facing significant financial challenges. The company reported a net loss in 2024 after a profitable 2023, with declining revenue and reduced operational efficiency. The balance sheet shows high leverage, and cash flow issues are evident with zero operating and free cash flows, indicating potential liquidity problems.

Income Statement

The income statement presents several challenges for Midea Real Estate. There is a significant net loss in 2024 after a previously profitable year in 2023, indicating potential financial distress. Revenue growth is negative, showing a decline from 2023 to 2024, which affects overall profitability metrics. The gross profit margin and EBIT margins have fallen compared to prior years, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet reflects a moderately stable financial position with substantial equity relative to total assets, resulting in a healthy equity ratio. However, the company has a high debt load, which is a concern given the current negative net income, posing a risk to financial stability if revenues continue to decline. The debt-to-equity ratio is relatively high, indicating leverage that could impact future financial flexibility.

Cash Flow

The cash flow statement reveals significant issues, with operating and free cash flows both at zero in 2024, highlighting potential cash management problems. This lack of cash generation, coupled with a large net loss, suggests that the company might face liquidity challenges moving forward. The absence of positive cash flows indicates difficulty in sustaining operations and meeting obligations without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.36B	3.73B	73.56B	73.63B	73.70B	52.48B
Gross Profit	6.01B	1.33B	8.48B	11.31B	13.50B	11.66B
EBITDA	2.69B	925.81M	4.62B	7.04B	8.90B	7.78B
Net Income	507.36M	-2.06B	913.58M	3.58B	5.30B	4.33B
Balance Sheet
Total Assets	179.00B	9.72B	201.58B	251.94B	288.52B	283.75B
Cash, Cash Equivalents and Short-Term Investments	15.55B	1.17B	22.03B	21.88B	26.29B	19.74B
Total Debt	37.20B	833.67M	38.17B	48.61B	56.55B	58.88B
Total Liabilities	131.85B	4.64B	151.46B	201.62B	240.71B	243.54B
Stockholders Equity	25.20B	4.90B	25.31B	24.86B	23.51B	22.07B
Cash Flow
Free Cash Flow	-1.85B	-2.37B	3.43B	2.84B	3.05B	-2.08B
Operating Cash Flow	-1.66B	-2.26B	3.63B	3.04B	3.21B	-2.03B
Investing Cash Flow	3.78B	-14.25B	4.65B	5.38B	3.44B	-7.25B
Financing Cash Flow	-9.17B	-6.04M	-12.58B	-12.95B	1.06B	8.80B

Midea Real Estate Holding Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3990, the sentiment is Neutral. The current price of 4.47 is below the 20-day moving average (MA) of 4.68, below the 50-day MA of 4.53, and above the 200-day MA of 3.59, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.30 is Neutral, neither overbought nor oversold. The STOCH value of 7.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3990.

Midea Real Estate Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	79 Outperform	HK$18.71B	11.36	15.19%	4.30%	6.54%	3.26%
2156	73 Outperform	HK$4.27B	10.91	18.36%	4.95%	-7.78%	-29.31%
3990	58 Neutral	€6.42B	11.64	2.05%	6.04%	―	―
6666	58 Neutral	HK$11.89B	11.09	―	―	4.74%	-21.33%
1516	53 Neutral	HK$4.86B	31.61	-8.74%	9.81%	-1.14%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Midea Real Estate Holding Limited Corporate Events

Midea Real Estate Approves Dividend and Director Re-elections at AGM

Midea Real Estate Holding Limited held its Annual General Meeting on May 23, 2025, where all proposed resolutions were passed, including the approval of a final dividend of HK$0.27 per share for the year ending December 31, 2024. The resolutions also included the re-election of several directors and the authorization for the board to manage share allotments and buy-backs, reflecting strong shareholder support and strategic continuity for the company.

The most recent analyst rating on (HK:3990) stock is a Buy with a HK$6.85 price target. To see the full list of analyst forecasts on Midea Real Estate Holding Limited stock, see the HK:3990 Stock Forecast page.