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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, 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 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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
62.36B3.73B73.56B73.63B73.70B52.48B
Gross Profit
6.01B1.33B8.48B11.31B13.50B11.66B
EBIT
2.28B820.78M4.31B6.83B8.02B6.53B
EBITDA
2.69B925.81M4.62B7.04B8.90B7.78B
Net Income Common Stockholders
507.36M-2.06B913.58M3.58B5.30B4.33B
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.34B1.17B22.03B21.88B26.29B19.74B
Total Assets
0.009.72B201.58B251.94B288.52B283.75B
Total Debt
0.00833.67M38.17B48.61B56.55B58.88B
Net Debt
11.34B-200.28M20.61B26.80B30.26B40.28B
Total Liabilities
0.004.64B151.46B201.62B240.71B243.54B
Stockholders Equity
3.09B4.90B25.31B24.86B23.51B22.07B
Cash FlowFree Cash Flow
-1.85B0.003.43B2.84B3.05B-2.08B
Operating Cash Flow
-1.66B0.003.63B3.04B3.21B-2.03B
Investing Cash Flow
3.78B0.004.65B5.38B3.44B-7.25B
Financing Cash Flow
-9.17B0.00-12.58B-12.95B1.06B8.80B

Midea Real Estate Holding Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.07
Price Trends
50DMA
3.87
Positive
100DMA
3.44
Positive
200DMA
3.14
Positive
Market Momentum
MACD
0.04
Negative
RSI
69.46
Neutral
STOCH
89.21
Negative
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 4.07 is above the 20-day moving average (MA) of 3.88, above the 50-day MA of 3.87, and above the 200-day MA of 3.14, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 89.21 is Negative, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.83B10.980.41%8438.90%5.81%-21.06%
52
Neutral
€6.03B10.602.05%163.61%-22.91%-52.76%
$274.25M
$260.41M-90.47%
$23.72B6.179.66%6.59%
$1.38B-341.41%
$468.57M-71.13%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3990
Midea Real Estate Holding Limited
4.07
3.20
367.28%
EGRNF
China Evergrande Group
0.01
-0.01
-50.00%
AGPYF
Agile Group Holdings
0.08
0.00
0.00%
CRBJF
China Resources Land
3.08
-0.64
-17.20%
CTRYF
Country Garden Holdings Co
0.01
-0.11
-91.67%
GZUHF
Guangzhou R&F Properties Co
0.12
0.02
20.00%

Midea Real Estate Holding Limited Corporate Events

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.

Midea Real Estate Announces Executive Leadership Changes
Mar 28, 2025

Midea Real Estate Holding Limited announced significant changes in its executive team effective March 28, 2025. Mr. Lin Ge has resigned from his roles as executive director and vice president to focus on other business operations within the group. Concurrently, Ms. Liu Min has been appointed as an executive director, bringing extensive experience in financial management and investor relations from her tenure at Midea Group. This leadership transition is expected to strengthen the company’s financial and strategic operations.

Midea Real Estate Reports Revenue Growth Amidst Core Net Loss
Mar 28, 2025

Midea Real Estate Holding Limited reported a significant increase in operating revenue from continuing operations for the year ending December 31, 2024, with a 33.3% year-on-year growth. Despite the increase in revenue and gross profit, the company faced a core net loss from both continuing and discontinued operations, amounting to RMB2,284.27 million. The Board recommended a final dividend of HK$0.27 per share based on the core net profit from continuing operations, indicating a strategic focus on rewarding shareholders amidst challenging financial results.

Midea Real Estate Announces Final Dividend for 2024
Mar 28, 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 payment date is set for August 21, 2025, with other key dates such as the ex-dividend date and record date to be announced. This dividend declaration reflects the company’s financial performance and commitment to returning value to its shareholders.

Midea Real Estate Projects Significant Loss Amidst Stable Retained Business Growth
Mar 25, 2025

Midea Real Estate Holding Limited has issued a supplemental announcement regarding a significant expected financial loss for the year ending December 31, 2024. The company anticipates a loss attributable to owners ranging from RMB1,985 million to RMB2,085 million, primarily due to property impairment linked to a distribution in specie. Despite this, the retained businesses are projected to show steady growth with a core net profit between RMB450 million and RMB550 million, indicating stable and healthy operations.

Midea Real Estate Issues Profit Warning Amidst Property Impairment
Mar 21, 2025

Midea Real Estate Holding Limited has issued a profit warning for the year ended December 31, 2024, anticipating a core net loss attributable to owners ranging from RMB1,950.00 million to RMB2,050.00 million due to property impairment. Despite this, the company’s retained businesses, including property management and real estate technology, are expected to show steady growth with a core net profit ranging from RMB450.00 million to RMB550.00 million, indicating a stable and healthy overall financial performance.

Midea Real Estate Announces Board Meeting to Approve Annual Results
Mar 14, 2025

Midea Real Estate Holding Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the financial year ending December 31, 2024. The board will also consider recommending a final dividend, which could impact shareholder returns and reflect the company’s financial health.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.