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Fortune Real Estate Investment (HK:0778)
:0778
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Fortune Real Estate Investment
(0778)
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Rating:61Neutral
Price Target:
HK$5.00
▼(-1.57% Downside)
The overall stock score is influenced primarily by the company's operational efficiency and strong technical indicators, which suggest positive market sentiment. However, the negative P/E ratio and profitability challenges weigh down the score. The high dividend yield offers some compensation for these risks.
Positive Factors
Negative Factors
Fortune Real Estate Investment (0778) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
$10.22B
Dividend Yield7.04%
Average Volume (3M)2.71M
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-4.20%
EPS Growth-138.86%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.32
Shares Outstanding2,052,860,600
10 Day Avg. Volume2,028,117
30 Day Avg. Volume2,707,640
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)0.30
Price to Sales (P/S)4.63
P/FCF Ratio7.84
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue11.33
Enterprise Value/Gross Profit17.27
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.59Price Target Upside10.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Fortune Real Estate Investment Business Overview & Revenue Model
Company DescriptionEstablished in 2003, Fortune REIT is a real estate investment trust constituted by a trust deed (as amended, supplemented or otherwise modified from time to time). It is the first REIT to hold assets in Hong Kong and is currently listed on the Main Board of The Stock Exchange of Hong Kong Limited. Fortune REIT currently holds a portfolio of 16 private housing estate retail properties in Hong Kong, comprising of 3 million sq. ft. of retail space and 2,713 car parking spaces. The retail properties are Fortune City One, +WOO, Ma On Shan Plaza, Metro Town, Fortune Metropolis, Belvedere Square, Laguna Plaza, Waldorf Avenue, Caribbean Square, Jubilee Square, Smartland, Tsing Yi Square, Centre de Laguna, Hampton Loft, Lido Avenue and Rhine Avenue. They house tenants from diverse trade sectors such as supermarkets, food and beverage outlets, banks, real estate agencies, and education providers.
How the Company Makes MoneyFortune Real Estate Investment makes money through a variety of revenue streams, primarily driven by rental income from its portfolio of commercial and residential properties. The company also benefits from property appreciation, which contributes to capital gains upon the sale of assets. Additionally, the firm may engage in property development projects, generating revenue through the sale of newly developed units. Strategic partnerships with other real estate developers and financial institutions further enhance its revenue-generating capabilities, enabling Fortune Real Estate Investment to leverage market opportunities and optimize returns on its investments.
Fortune Real Estate Investment Financial Statement Overview
Summary
Fortune Real Estate Investment shows operational efficiency with strong gross and EBIT margins, but faces challenges in profitability with consistent net losses impacting overall financial health. The balance sheet is robust with moderate leverage, but negative returns on equity highlight profitability issues. Cash flows remain positive, providing some stability, but the inconsistency in growth and negative net income are areas of concern.Income Statement
The company has experienced a decline in revenue over recent years, with a negative net profit margin due to significant net losses in the latest period. The gross profit margin remains strong at approximately 66%, but the net income has been negative for the past two years, indicating challenges in profitability. EBIT and EBITDA margins are relatively high, suggesting operational efficiency, but the bottom line is impacted by other expenses.45
Neutral
Balance Sheet
The balance sheet shows a solid equity base with a debt-to-equity ratio of approximately 0.36, indicating moderate leverage. The equity ratio is around 70%, reflecting a strong capital structure. However, the return on equity is negative due to net losses, which is a concern for shareholders.60
Neutral
Cash Flow
The company maintains positive operating and free cash flows, which is a positive sign of liquidity and operational strength. However, the free cash flow growth rate has been inconsistent, and the operating cash flow to net income ratio is skewed due to negative net income, indicating potential volatility in cash generation relative to earnings.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.73B | 1.75B | 1.79B | 1.76B | 1.81B | 1.84B |
| Gross Profit | 1.13B | 1.15B | 1.20B | 1.17B | 1.21B | 1.24B |
| EBITDA | 0.00 | 1.14B | 1.16B | 1.17B | 1.22B | 1.03B |
| Net Income | -1.14B | -518.98M | -154.92M | 502.64M | 1.32B | -3.19B |
Balance Sheet | ||||||
| Total Assets | 37.54B | 38.46B | 39.51B | 40.34B | 39.72B | 39.34B |
| Cash, Cash Equivalents and Short-Term Investments | 83.27M | 96.65M | 106.72M | 206.86M | 117.96M | 177.17M |
| Total Debt | 9.81B | 9.81B | 9.66B | 9.58B | 8.84B | 8.76B |
| Total Liabilities | 11.59B | 11.53B | 11.43B | 11.41B | 10.54B | 10.70B |
| Stockholders Equity | 25.94B | 26.93B | 28.08B | 28.93B | 29.18B | 28.63B |
Cash Flow | ||||||
| Free Cash Flow | 884.71M | 1.03B | 1.05B | 1.17B | 1.02B | 925.08M |
| Operating Cash Flow | 964.79M | 1.03B | 1.16B | 1.17B | 1.09B | 980.00M |
| Investing Cash Flow | -80.08M | -84.68M | -113.09M | -672.93M | -66.97M | -54.76M |
| Financing Cash Flow | -893.89M | -957.16M | -1.15B | -409.93M | -1.08B | -884.45M |
Fortune Real Estate Investment Technical Analysis
Positive
5.08
Price Trends
5.02
Positive
4.86
Positive
4.41
Positive
Market Momentum
<0.01
Positive
53.60
Neutral
59.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0778, the sentiment is Positive. The current price of 5.08 is above the 20-day moving average (MA) of 5.05, above the 50-day MA of 5.02, and above the 200-day MA of 4.41, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0778.
Fortune Real Estate Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $10.22B | ― | -4.25% | 7.04% | -4.20% | -138.86% | |
58 Neutral | HK$6.39B | 7.19 | 6.94% | 4.73% | 590.98% | 538.64% | |
53 Neutral | HK$10.71B | ― | -3.35% | 6.34% | 1.37% | -157.43% | |
52 Neutral | $12.88B | -4.87 | -6.12% | 6.26% | -6.99% | -176.18% | |
52 Neutral | HK$12.10B | -4.51 | -2.93% | ― | -11.68% | -3002.05% | |
49 Neutral | $6.97B | 23.50 | 0.73% | 3.17% | 66.68% | -38.14% |
* Real Estate Sector Average
HK:0778
Fortune Real Estate Investment
5.08
1.22
31.61%
HK:2778
Champion Real Estate Investment
2.10
0.35
20.07%
HK:0041
Great Eagle Holdings
14.44
3.70
34.46%
HK:0173
K Wah International Holdings
2.23
0.48
27.07%
HK:0754
Hopson Development Holdings Limited
3.19
-0.31
-8.86%
HK:0258
Tomson Group Limited
2.75
0.38
16.03%
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.