Modern Living Investments Holdings Limited (8426) AI Stock Analysis

• Market Cap: HK$212.00M
• Dividend Yield: 6.32%
• Average Volume (3M): 86.67K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.46
• Revenue Growth: 8.17%
• EPS Growth: 7.81%
• Country: HK
• Employees: 1,588
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 2,000
• 30 Day Avg. Volume: 86,666
• PEG Ratio: -3.35
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 7.28
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$0.35 ▲(8.75% Upside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

The score is driven primarily by solid financial strength (low leverage and revenue growth) but held back by weak cash flow generation and a relatively low net margin. Technicals add support as price is above key moving averages with constructive momentum. Valuation is mixed, supported by a ~4.9% dividend yield but offset by a mid-range P/E (~19.3).

Positive Factors

Balance Sheet Strength

The company's minimal leverage and high equity financing indicate strong financial stability, reducing financial risk and enhancing resilience.

Revenue Growth

Solid revenue growth reflects positive sales momentum and market demand, supporting long-term business expansion and profitability.

Gross Profit Margin

A high gross profit margin indicates efficient cost management, which can sustain profitability and competitive advantage over time.

Negative Factors

Cash Flow Generation

Weak cash flow generation poses liquidity challenges, limiting the company's ability to reinvest in growth and manage financial obligations.

Net Profit Margin

A low net profit margin suggests higher operational costs, which can hinder profitability and require cost management improvements.

Cash Flow Variability

Significant variability in cash flow growth indicates potential instability in cash generation, affecting financial planning and stability.

Modern Living Investments Holdings Limited Business Overview & Revenue Model

Company Description

Modern Living Investments Holdings Limited, an investment holding company, provides property management services for public housing in Hong Kong. It offers property management services, such as entailing general, tenancy, financial, and project management services, as well as repair and maintenance services; and security and cleaning services. The company was founded in 2002 and is headquartered in Sha Tin, Hong Kong. Modern Living Investments Holdings Limited is a subsidiary of R5A Group Limited.

How the Company Makes Money

The company generates revenue primarily through rental income from its property holdings, which include a mix of residential and commercial real estate. Additionally, it earns profits from property development projects, which involve the sale of developed properties. Modern Living Investments may also engage in joint ventures or partnerships with other real estate developers to expand its portfolio and capabilities, further contributing to its revenue streams. The company capitalizes on market trends and demand for real estate to optimize its earnings, leveraging its expertise in property management and investment strategies.

Modern Living Investments Holdings Limited Financial Statement Overview

Summary

Strong balance sheet (very low leverage with Debt-to-Equity of 0.009, Equity Ratio 70%) and solid revenue growth (+13.4%). Profitability is mixed: very high gross margin (98.5%) but low net margin (4.5%), and cash generation is a key weakness with zero operating and free cash flow in the latest year.

Income Statement

The company has shown a robust Gross Profit Margin of 98.5% for the latest year, indicating efficient cost management. However, its Net Profit Margin is relatively lower at 4.5%, suggesting higher operational costs. Revenue grew by 13.4% from the previous year, reflecting positive sales momentum. EBIT and EBITDA margins are moderate at 4% and 3.8%, respectively, indicating operational efficiency but room for improvement in operational leverage.

Balance Sheet

The company maintains a strong balance sheet with a Debt-to-Equity Ratio of 0.009, indicating minimal leverage and financial risk. The Return on Equity is solid at 11%, showing effective use of equity to generate profits. The Equity Ratio stands at 70%, reflecting a healthy proportion of equity financing and low reliance on debt.

Cash Flow

The cash flow situation presents a mixed picture. While the company had zero Operating Cash Flow and Free Cash Flow in the latest year, indicating possible liquidity challenges, historical data shows positive Free Cash Flow Growth Rate of -99.8% from the previous year, which highlights significant variability. The absence of Operating and Free Cash Flow to Net Income ratios points to areas needing improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	387.81M	379.11M	334.24M	405.99M	479.76M	459.42M
Gross Profit	384.25M	375.54M	32.50M	399.88M	453.99M	458.47M
EBITDA	14.00M	21.84M	22.32M	25.50M	32.38M	24.53M
Net Income	16.53M	16.96M	17.77M	21.18M	25.46M	19.44M
Balance Sheet
Total Assets	201.63M	220.11M	209.53M	201.98M	209.29M	190.34M
Cash, Cash Equivalents and Short-Term Investments	61.17M	94.60M	71.96M	73.52M	47.68M	29.79M
Total Debt	919.00K	1.39M	2.27M	6.96M	3.20M	6.54M
Total Liabilities	50.12M	66.11M	53.35M	51.69M	64.55M	57.66M
Stockholders Equity	151.51M	154.00M	156.18M	150.29M	144.74M	132.68M
Cash Flow
Free Cash Flow	-12.78M	35.18M	18.40M	41.40M	32.94M	7.28M
Operating Cash Flow	-12.52M	35.40M	18.70M	41.96M	33.43M	9.44M
Investing Cash Flow	42.58M	-5.34M	-751.00K	-54.65M	-5.42M	7.58M
Financing Cash Flow	-23.35M	-17.18M	-18.00M	-14.38M	-15.80M	-2.68M

Modern Living Investments Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 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:8426, the sentiment is Negative. The current price of 0.32 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.30, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 31.20 is Neutral, neither overbought nor oversold. The STOCH value of 16.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8426.

Modern Living Investments Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1538	74 Outperform	HK$452.91M	1.31	8.72%	6.25%	2.42%	10.16%
1895	73 Outperform	HK$290.59M	1.06	15.77%	11.22%	11.13%	142.00%
8426	71 Outperform	HK$212.00M	10.93	10.58%	6.32%	8.17%	7.81%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2376	56 Neutral	HK$360.02M	3.99	7.09%	3.90%	-3.62%	26.66%
2168	50 Neutral	HK$166.44M	1.12	2.01%	―	-8.64%	―
0183	45 Neutral	HK$98.64M	-0.69	-3.74%	―	30.19%	72.49%