Tern Properties Co. Ltd. (0277) AI Stock Analysis

Tern Properties Co. Ltd.

(HKEX:0277)

Select Model

Rating:49Neutral

Price Target:HKD 1.00▼(-7.41% Downside)

Action:reiterated

Date:10/23/26

The overall score is constrained primarily by chronic losses and negative earnings-based valuation, followed by weak technical momentum. A conservative balance sheet and improving recent cash generation provide meaningful support but are not sufficient to offset the company's poor profitability.

Positive Factors

Low leverage and substantial equityThe very low debt burden and stable equity base provide financial flexibility for a property-services company, reducing balance-sheet pressure during weaker periods. This supports the ability to fund operations and absorb volatility, although sustained losses could gradually erode that advantage.

Negative Factors

Persistent net losses and negative returnsPersistent net losses show that the business has not established a dependable earnings base, despite its strong gross margins. Negative profitability also weakens returns on the substantial equity balance and could gradually reduce financial strength if losses continue.

Tern Properties Co. Ltd. (0277) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 306.34M
Dividend Yield: 1.55%
Average Volume (3M): 48.75K
Price to Earnings (P/E): -11.1
Beta (1Y): 0.04
Revenue Growth: -1.19%
EPS Growth: 51.58%
Country: Hong Kong
Employees: 18
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Services

Tern Properties Co. Ltd. Business Overview & Revenue Model

Company Description

Tern Properties Company Limited operates as an investment holding company, with its core activities centered on real estate and financial asset investments, predominantly in Hong Kong. The firm maintains a diverse property portfolio comprising commer...

Tern Properties Co. Ltd. Financial Statement Overview

Summary

The balance sheet is strong, supported by modest debt and substantial equity, while cash flow has recently improved. However, persistent net losses, negative operating results, and weak returns on equity materially limit the financial performance score.

Income Statement

32Negative

Balance Sheet

78Positive

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	74.59M	72.59M	50.40M	56.03M	51.88M	57.13M
Gross Profit	69.42M	67.42M	45.16M	51.11M	49.62M	55.28M
EBITDA	-27.24M	-25.08M	-46.79M	-3.00M	-68.30M	-45.49M
Net Income	-26.36M	-26.36M	-54.46M	-9.80M	-75.20M	-55.08M
Balance Sheet
Total Assets	2.62B	2.62B	2.63B	2.68B	2.75B	2.84B
Cash, Cash Equivalents and Short-Term Investments	412.48M	412.48M	375.37M	331.83M	202.20M	169.12M
Total Debt	38.72M	38.72M	42.18M	45.54M	47.68M	51.00M
Total Liabilities	104.34M	104.34M	105.05M	108.09M	109.31M	109.58M
Stockholders Equity	2.52B	2.52B	2.52B	2.58B	2.64B	2.73B
Cash Flow
Free Cash Flow	26.50M	26.50M	7.17M	14.62M	21.20M	17.65M
Operating Cash Flow	26.50M	26.50M	7.17M	15.63M	21.20M	17.65M
Investing Cash Flow	59.23M	59.23M	-34.55M	20.80M	42.97M	182.66M
Financing Cash Flow	-8.25M	-8.25M	-9.55M	-8.93M	-10.18M	-204.27M

Tern Properties Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1.08

Price Trends

50DMA1.13Negative

100DMA1.24Negative

200DMA1.38Negative

Market Momentum

MACD-0.02Positive

RSI0.00Positive

STOCH85.71Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0277, the sentiment is Negative. The current price of 1.08 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.13, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 0.00 is Positive, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0277.

Tern Properties Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

HK:0277 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HK:0224	59Neutral	HKD 680.88M	13.02	0.71%	3.28%	-7.15%	―
HK:0089	51Neutral	HKD 526.44M	-91.50	-0.09%	4.37%	-2.16%	98.09%
HK:0277	49Neutral	HKD 299.41M	-11.10	-1.04%	1.55%	-1.19%	51.58%
HK:0367	48Neutral	HKD 341.20M	-0.95	-4.84%	―	36.56%	45.41%
HK:0432	44Neutral	HKD 397.46M	0.25	108.51%	―	-17.31%	97.25%
HK:0519	42Neutral	HKD 375.78M	-0.77	-86.99%	―	-34.45%	-5333.33%

* Real Estate Sector Average

Performance Comparison

HK:0277 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:0277	Tern Properties Co. Ltd.	1.08	-0.31	-22.25%
HK:0519	Applied Development Holdings	0.12	-0.13	-51.76%
HK:0367	Chuang's Consortium International	0.20	-0.14	-40.00%
HK:0224	Pioneer Global Group Limited	0.59	0.03	5.36%
HK:0089	Tai Sang Land Development Limited	1.83	-0.39	-17.42%
HK:0432	Pacific Century Premium Developments Limited	0.20	-0.01	-2.50%

Tern Properties Co. Ltd. Corporate Events

Tern Properties Shareholders Back All AGM Resolutions, Approve Dividend and Mandates

Aug 19, 2026

Tern Properties Company Limited reported that all resolutions at its annual general meeting on 19 August 2026 were duly passed, including acceptance of the audited financial statements for the year ended 31 March 2026 and declaration of a final divid...

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: Oct 23, 2026

Tern Properties Co. Ltd. AI Stock Analysis