Sunlight Real Estate Investment (0435) AI Stock Analysis

• Market Cap: $3.89B
• Dividend Yield: 8.21%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 137
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.10
• Shares Outstanding: 1,738,437,300
• 10 Day Avg. Volume: 1,417,482
• 30 Day Avg. Volume: 1,837,399
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 9.71
• Enterprise Value/Gross Profit: 12.36
• Enterprise Value/Ebitda: 15.00
• 1Y Price Target: $2.80
• Price Target Upside: 26.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: HK$2.50 ▲(12.61% Upside)

Sunlight Real Estate Investment's strong technical indicators and high dividend yield are the primary strengths, offsetting some concerns about cash flow management. The financial performance is stable, supported by strong profitability margins and a solid balance sheet, although operational efficiency and cash flow sustainability require attention.

Positive Factors

Negative Factors

Sunlight Real Estate Investment Business Overview & Revenue Model

Company Description

Sunlight REIT (Stock code: 435) is a real estate investment trust authorized by the Securities and Futures Commission and constituted by the trust deed dated 26 May 2006 (as amended and supplemented by six supplemental deeds) (the "Trust Deed"), and has been listed on The Stock Exchange of Hong Kong Limited on 21 December 2006. Sunlight REIT offers investors the opportunity to invest in a diversified portfolio of 11 office and five retail properties in Hong Kong with a total gross rentable area of over 1.2 million sq. ft.. The office properties are primarily located in core business areas, including Wan Chai and Sheung Wan, as well as in decentralized business areas such as Mong Kok and North Point. The key retail properties are situated in regional transportation hubs and new towns including Sheung Shui, Tseung Kwan O and Yuen Long.

How the Company Makes Money

Sunlight Real Estate Investment generates revenue through multiple streams, including rental income from its portfolio of leased properties, capital appreciation from the strategic acquisition and development of real estate projects, and management fees from overseeing property operations. Additionally, the company may engage in partnerships or joint ventures to co-develop projects, which can lead to additional income from project sales or profit-sharing arrangements. Key factors contributing to its earnings include the quality and location of its properties, occupancy rates, and the overall economic and market conditions influencing real estate demand and pricing.

Sunlight Real Estate Investment Financial Statement Overview

Summary

Sunlight Real Estate Investment exhibits a stable financial position with strong profitability margins and a conservative balance sheet. The company has shown resilience in revenue growth and profitability recovery, yet faces challenges in cash flow management. Monitoring operational efficiency and cash flow sustainability will be crucial for future financial health.

Income Statement

Sunlight Real Estate Investment has shown stable revenue growth with a 5.42% increase from the previous year. The gross profit margin remains strong at 78.55%, and the net profit margin has improved significantly from a negative value to 18.67% in 2024. However, the EBIT and EBITDA margins are slightly lower compared to previous years, indicating increased operational costs.

Balance Sheet

The company's balance sheet is stable, with a debt-to-equity ratio of 0.36, indicating conservative leverage. The equity ratio is strong at 70.81%, suggesting a solid financial foundation. However, there is a slight decline in stockholders' equity over time, which may need to be monitored.

Cash Flow

Operating cash flow has decreased, yet remains positive, reflecting the company's ability to generate cash from operations. Free cash flow growth is negative, indicating challenges in maintaining cash reserves. The operating cash flow to net income ratio is positive, suggesting efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2021	Dec 2021	Dec 2019
Income Statement
Total Revenue	852.88M	783.27M	809.00M	808.06M	811.13M	865.35M
Gross Profit	669.95M	626.62M	649.53M	648.40M	650.07M	695.47M
EBITDA	551.85M	172.54M	517.39M	-71.42M	543.98M	-563.58M
Net Income	159.24M	-28.43M	-28.43M	-233.68M	102.94M	-751.39M
Balance Sheet
Total Assets	19.06B	19.22B	19.22B	19.20B	18.96B	19.67B
Cash, Cash Equivalents and Short-Term Investments	445.49M	485.24M	485.24M	623.30M	630.99M	499.43M
Total Debt	4.83B	4.87B	4.87B	4.40B	4.29B	4.24B
Total Liabilities	5.56B	5.55B	5.55B	5.08B	4.91B	4.90B
Stockholders Equity	13.50B	13.67B	13.67B	14.12B	14.05B	14.77B
Cash Flow
Free Cash Flow	317.79M	501.87M	404.01M	452.12M	409.26M	386.31M
Operating Cash Flow	317.79M	524.65M	404.06M	452.21M	409.27M	439.03M
Investing Cash Flow	14.03M	-664.91M	-684.37M	-318.22M	100.25M	32.45M
Financing Cash Flow	-350.26M	65.99M	206.03M	-274.55M	-416.65M	-456.01M

Sunlight Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.22
• 50DMA: Positive
• 100DMA: Positive
• 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:0435, the sentiment is Positive. The current price of 2.22 is below the 20-day moving average (MA) of 2.23, below the 50-day MA of 2.23, and above the 200-day MA of 1.94, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 16.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0435.

Sunlight Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0435	74 Outperform	$3.89B	20.53	1.17%	8.21%	―	―
1426	64 Neutral	2.57B	-18.75	-0.84%	9.54%	-10.55%	-314.81%
0405	64 Neutral	4.85B	-7.13	-2.16%	6.89%	-6.57%	-390.60%
0808	59 Neutral	2.19B	-16.33	-1.12%	8.24%	-7.79%	-73.32%
87001	50 Neutral	3.33B	-4.26	-3.44%	0.53%	-8.25%	-55.79%
2191	50 Neutral	2.33B	-3.44	-8.00%	9.15%	4.47%	-885.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%