Hui Xian Real Estate Investment Trust (87001) AI Stock Analysis

• Market Cap: ¥3.39B
• Dividend Yield: 0.52%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -8.25%
• EPS Growth: -55.79%
• Country: HK
• Employees: 899
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.06
• Shares Outstanding: 6,523,199,000
• 10 Day Avg. Volume: 1,771,794
• 30 Day Avg. Volume: 2,007,166
• PEG Ratio: -0.19
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 4.00
• 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: ¥0.50
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ¥0.50 ▼(-1.96% Downside)

The overall stock score of 52 reflects significant financial challenges, including declining revenues and net losses, which weigh heavily on the score. Technical analysis shows mixed signals with short-term bullish momentum but potential weakness ahead. The high dividend yield is a positive aspect, but the negative P/E ratio highlights valuation concerns.

Hui Xian Real Estate Investment Trust Business Overview & Revenue Model

Company Description

Hui Xian Real Estate Investment Trust ("Hui Xian REIT") is a Hong Kong collective investment scheme authorised under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Hui Xian REIT was established on 1 April 2011 and had not carried on any operation prior to 29 April 2011 (date of listing), and its units were listed on The Stock Exchange of Hong Kong Limited (the "HKSE") since that date. Hui Xian REIT is governed by the Deed of Trust constituting Hui Xian REIT dated 1 April 2011 as amended by four supplemental deeds dated 24 May 2013, 16 May 2014, 28 May 2015 and 19 May 2017 (the "Trust Deed") made between Hui Xian Asset Management Limited (the "Manager") and DB Trustees (Hong Kong) Limited (the "Trustee"), and the Code on Real Estate Investment Trusts (the "REIT Code") issued by the Securities and Futures Commission (the "SFC"). The principal activity of Hui Xian REIT and its controlled entities (the "Group") is to own and invest in high quality commercial properties with the objective of producing stable and sustainable distributions to unitholders and to achieve long term growth in the net asset value per unit.

How the Company Makes Money

Hui Xian Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of commercial properties. The trust leases out office spaces, retail areas, and hospitality venues to a diverse range of tenants, securing a steady stream of rental income. In addition to rental income, Hui Xian REIT may also earn from property management services and asset appreciation. The REIT's management team focuses on maintaining high occupancy rates and negotiating favorable lease terms to ensure consistent cash flow. Strategic partnerships and collaborations with commercial tenants and hospitality operators further enhance the trust's revenue potential. Additionally, Hui Xian REIT may engage in property sales or acquisitions to optimize its portfolio, thereby potentially realizing capital gains and increasing long-term value for its investors.

Hui Xian Real Estate Investment Trust Financial Statement Overview

Summary

Hui Xian Real Estate Investment Trust is facing significant financial challenges, with declining revenues, persistent net losses, and fluctuating cash flows. While the balance sheet shows a stable equity position and improving leverage, the company's ability to generate cash and return to profitability remains in question.

Income Statement

The company has faced declining revenues over the past years, with total revenue decreasing from HKD 3.169 billion in 2019 to HKD 2.404 billion in 2024. The net profit margin is negative, indicating a net loss position, which has been consistent for several years. Although gross and EBIT margins have shown improvement in 2024, the persistent net losses are a concern.

Balance Sheet

The balance sheet shows a relatively stable equity position, with the equity ratio remaining strong at around 60% in 2024. The debt-to-equity ratio has been decreasing, indicating improved leverage, but total assets have been declining, which could signal potential issues with asset management.

Cash Flow

Free cash flow has been fluctuating, with a concerning drop to zero in 2024. This indicates potential liquidity issues or reinvestment challenges. The lack of operating cash flow in 2024 compared to previous years further exacerbates concerns about cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.34B	2.40B	2.31B	2.20B	2.56B	2.50B
Gross Profit	2.13B	2.19B	1.73B	1.86B	2.17B	2.10B
EBITDA	1.04B	1.11B	1.24B	675.00M	1.84B	2.17B
Net Income	-775.00M	-737.00M	-562.00M	-1.31B	-219.00M	-672.00M
Balance Sheet
Total Assets	33.94B	34.47B	36.26B	38.40B	41.09B	42.75B
Cash, Cash Equivalents and Short-Term Investments	3.20B	2.98B	3.47B	4.76B	5.88B	5.72B
Total Debt	5.76B	5.78B	6.60B	7.84B	8.47B	8.88B
Total Liabilities	12.80B	12.95B	14.05B	15.52B	16.43B	17.46B
Stockholders Equity	21.04B	21.42B	22.08B	22.73B	24.45B	25.05B
Cash Flow
Free Cash Flow	521.00M	796.00M	859.00M	712.00M	1.01B	918.00M
Operating Cash Flow	544.00M	873.00M	1.00B	894.00M	1.10B	1.01B
Investing Cash Flow	-566.00M	-711.00M	2.45B	373.00M	-88.00M	-375.00M
Financing Cash Flow	59.00M	-1.35B	-2.15B	-1.97B	-997.00M	-2.15B

Hui Xian Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:87001, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.52, and above the 200-day MA of 0.50, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:87001.

Hui Xian Real Estate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0435	74 Outperform	HK$3.88B	-42.16	―	8.25%	―	―
1426	64 Neutral	HK$2.55B	-18.64	-0.84%	8.79%	-10.55%	-314.81%
0405	64 Neutral	HK$4.85B	-7.13	-2.16%	6.84%	-6.57%	-390.60%
0808	59 Neutral	HK$2.20B	-16.45	-1.12%	8.18%	-7.79%	-73.32%
87001	52 Neutral	¥3.39B	―	-3.62%	0.52%	-8.25%	-55.79%
1503	49 Neutral	HK$1.44B	-13.68	-5.76%	8.42%	-5.78%	61.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%