Tree Holdings Ltd. (8395) AI Stock Analysis

• Market Cap: HK$337.39M
• Dividend Yield: N/A
• Average Volume (3M): 624.67K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.11
• Revenue Growth: 52.73%
• EPS Growth: N/A
• Country: HK
• Employees: 79
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 1,584,000,000
• 10 Day Avg. Volume: 706,000
• 30 Day Avg. Volume: 624,666
• PEG Ratio: -3.02
• Price to Book (P/B): 14.44
• Price to Sales (P/S): 5.35
• P/FCF Ratio: 171.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Tree Holdings Ltd. shows strong revenue growth and improved operational efficiency, which are positive indicators for future performance. However, the stock faces challenges with profitability and cash flow generation. Technical analysis suggests mixed signals with bearish momentum, and the valuation indicates the stock may be overvalued. These factors combine to give a moderate overall stock score.

Tree Holdings Ltd. Business Overview & Revenue Model

Company Description

Tree Holdings Ltd. (8395) is a diversified investment holding company based in [Location], primarily focused on the real estate and property management sectors. The company engages in the acquisition, development, and management of residential, commercial, and industrial properties. Tree Holdings also explores opportunities in related sectors such as infrastructure and renewable energy, aiming to create sustainable value through strategic investments and asset management.

How the Company Makes Money

Tree Holdings Ltd. generates revenue through several key streams. Primarily, the company earns income from rental and lease agreements associated with its portfolio of properties, which includes residential apartments, office spaces, and retail outlets. Additionally, revenue is derived from property sales, where the company capitalizes on market appreciation and development projects. Management fees from third-party property management services represent another significant source of income. The company may also engage in joint ventures or partnerships with other developers and investors to undertake larger projects, sharing profits from these collaborations. Strategic investments in infrastructure and renewable energy projects may further bolster revenue, as these sectors are increasingly being prioritized for sustainable growth.

Tree Holdings Ltd. Financial Statement Overview

Summary

Tree Holdings Ltd. demonstrates strong revenue growth and improved operational efficiency. The balance sheet reflects a stable capital structure with reduced leverage, though profitability remains a concern. Cash flow challenges persist, with declining free cash flow growth, but the company maintains efficient conversion of net income to free cash flow.

Income Statement

Tree Holdings Ltd. has shown a strong revenue growth rate of 64.35% in the latest period, indicating a robust recovery from previous declines. The gross profit margin is healthy at 69.33%, reflecting efficient cost management. However, the net profit margin is relatively low at 1.62%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved significantly, indicating better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has decreased to 0.62, showing improved leverage management compared to previous years. The equity ratio remains stable, indicating a solid capital structure. However, the return on equity is low, reflecting limited profitability relative to shareholder equity.

Cash Flow

The free cash flow growth rate is negative, indicating a decline in cash generation. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not keeping pace with net income. However, the free cash flow to net income ratio is nearly 1, indicating that the company is converting its net income into free cash flow efficiently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.37M	99.22M	64.97M	78.19M	95.91M	120.55M
Gross Profit	38.05M	68.79M	38.59M	51.58M	63.52M	74.22M
EBITDA	-5.54M	26.20M	-4.89M	1.79M	19.07M	32.73M
Net Income	-5.97M	1.61M	-17.27M	-11.05M	5.23M	14.56M
Balance Sheet
Total Assets	108.76M	118.71M	106.81M	99.79M	114.97M	138.27M
Cash, Cash Equivalents and Short-Term Investments	33.30M	961.00K	12.19M	9.48M	22.18M	29.14M
Total Debt	28.78M	22.83M	32.82M	19.34M	20.94M	22.56M
Total Liabilities	74.96M	81.97M	71.54M	46.99M	52.29M	67.88M
Stockholders Equity	33.80M	36.75M	35.27M	52.71M	62.68M	70.39M
Cash Flow
Free Cash Flow	12.94M	3.09M	-75.00K	-2.02M	26.21M	34.77M
Operating Cash Flow	13.09M	3.14M	78.00K	-1.50M	26.77M	35.22M
Investing Cash Flow	3.11M	-2.90M	-1.27M	-522.00K	-7.61M	-12.78M
Financing Cash Flow	-17.52M	-11.36M	3.98M	-10.73M	-25.82M	-10.12M

Tree Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8395, the sentiment is Positive. The current price of 0.21 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.22, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 52.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8395.

Tree Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8395	―	HK$337.39M	30.87	31.07%	―	52.73%	―
1572	―	HK$167.36M	36.21	-0.06%	―	-14.12%	-104.76%
1545	―	HK$148.00M	―	-4.46%	5.14%	-27.20%	-195.83%
1711	―	HK$120.00M	―	-92.80%	―	-10.85%	-64.42%
2122	―	HK$241.09M	―	―	―	-15.54%	16.04%
0620	―	HK$632.81M	-19.85	-3.08%	―	-33.28%	91.18%