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Midea Real Estate Holding Limited (HK:3990)
:3990

Midea Real Estate Holding Limited (3990) AI Stock Analysis

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HK

Midea Real Estate Holding Limited

(Frankfurt:3990)

Rating:52Neutral
Price Target:
Midea Real Estate's stock score reflects a challenging financial performance with negative profitability and cash flow issues. Despite these challenges, technical analysis shows bullish market sentiment, and valuation metrics suggest potential undervaluation with a high dividend yield. The lack of earnings call data means these financial and market factors primarily drive the score.

Midea Real Estate Holding Limited (3990) vs. iShares MSCI Hong Kong ETF (EWH)

Midea Real Estate Holding Limited Business Overview & Revenue Model

Company DescriptionMidea Real Estate Holding Limited (3990) is a leading real estate company based in China, primarily engaged in property development and sales. The company focuses on residential properties, including high-rise apartment buildings and villas, as well as commercial properties such as shopping centers and office buildings. Midea Real Estate is part of the larger Midea Group, a global leader in consumer appliances, HVAC systems, and robotics, which provides synergy and support to its real estate operations.
How the Company Makes MoneyMidea Real Estate Holding Limited generates revenue primarily through the development and sale of residential and commercial properties. The company acquires land, develops it into residential complexes, office buildings, or retail spaces, and then sells these properties to individuals or businesses. Additionally, the company may generate recurring income through the leasing of commercial spaces and property management services. Strategic partnerships with local governments and other developers, combined with its affiliation with the Midea Group, provide a significant advantage in acquiring prime real estate and accessing financing. Midea Real Estate also benefits from China's rapid urbanization and growing middle class, which drive demand for new housing and commercial spaces.

Midea Real Estate Holding Limited Financial Statement Overview

Summary
Midea Real Estate faces significant financial challenges with a net loss in 2024 and declining revenue growth, impacting profitability. Though the balance sheet shows moderate stability due to substantial equity, high leverage poses a risk. Cash flow issues highlight potential liquidity problems, necessitating urgent corrective actions.
Income Statement
30
Negative
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
45
Neutral
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
20
Very Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue62.36B3.73B73.56B73.63B73.70B52.48B
Gross Profit6.01B1.33B8.48B11.31B13.50B11.66B
EBITDA2.69B925.81M4.62B7.04B8.90B7.78B
Net Income507.36M-2.06B913.58M3.58B5.30B4.33B
Balance Sheet
Total Assets179.00B9.72B201.58B251.94B288.52B283.75B
Cash, Cash Equivalents and Short-Term Investments15.55B1.17B22.03B21.88B26.29B19.74B
Total Debt37.20B833.67M38.17B48.61B56.55B58.88B
Total Liabilities131.85B4.64B151.46B201.62B240.71B243.54B
Stockholders Equity25.20B4.90B25.31B24.86B23.51B22.07B
Cash Flow
Free Cash Flow-1.85B-2.37B3.43B2.84B3.05B-2.08B
Operating Cash Flow-1.66B-2.26B3.63B3.04B3.21B-2.03B
Investing Cash Flow3.78B-14.25B4.65B5.38B3.44B-7.25B
Financing Cash Flow-9.17B-6.04M-12.58B-12.95B1.06B8.80B

Midea Real Estate Holding Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.96
Price Trends
50DMA
3.96
Negative
100DMA
3.65
Positive
200DMA
3.39
Positive
Market Momentum
MACD
<0.01
Positive
RSI
49.27
Neutral
STOCH
33.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3990, the sentiment is Positive. The current price of 3.96 is below the 20-day moving average (MA) of 4.02, below the 50-day MA of 3.96, and above the 200-day MA of 3.39, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3990.

Midea Real Estate Holding Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
HK$3.79B10.3718.58%5.58%-9.07%-33.13%
79
Outperform
HK$18.51B11.5016.04%4.34%6.53%4.78%
63
Neutral
$6.99B18.83-1.16%6.86%4.65%-25.28%
58
Neutral
HK$9.08B8.202935.68%0.27%-35.07%
53
Neutral
HK$5.35B-8.05%8.91%-2.43%-7.97%
52
Neutral
HK$5.68B10.312.05%158.08%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3990
Midea Real Estate Holding Limited
3.96
2.66
205.08%
HK:6666
Evergrande Property Services Group Ltd.
0.84
0.18
27.27%
HK:6049
Poly Property Services Co., Ltd. Class H
33.45
5.51
19.72%
HK:2156
C&D Property Management Group Co., Ltd.
2.66
-0.05
-1.85%
HK:1516
Sunac Services Holdings Ltd.
1.75
0.18
11.46%

Midea Real Estate Holding Limited Corporate Events

Midea Real Estate Approves Dividend and Director Re-elections at AGM
May 23, 2025

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.

Midea Real Estate Announces Annual General Meeting and Key Resolutions
Apr 29, 2025

Midea Real Estate Holding Limited has announced its upcoming annual general meeting scheduled for May 23, 2025. Key agenda items include the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, the meeting will consider granting a mandate to the directors to issue additional shares, which could impact the company’s capital structure and shareholder value.

Midea Real Estate Declares Final Dividend for 2024
Apr 29, 2025

Midea Real Estate Holding Limited has announced a final cash dividend of HKD 0.27 per share for the financial year ending December 31, 2024. The dividend will be paid on August 21, 2025, following shareholder approval on May 23, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025