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Fortune Real Estate Investment
(0778)
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Rating:61Neutral
Price Target:
HK$5.00
▲(10.62% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily held back by weak financial performance driven by sustained net losses and weakening equity, despite stable revenue and positive cash flows. Technicals are relatively constructive with price above major moving averages and positive MACD, while valuation is mixed: a high dividend yield supports the profile but negative earnings (negative P/E) materially increase risk.
Positive Factors
Consistent Cash Generation
Persistent positive operating and free cash flow indicates that the retail property portfolio continues to generate cash despite reported accounting losses, supporting ongoing operations and financial resilience over the medium term.
Negative Factors
Sustained Net Losses
Multi-year losses and deeply negative 2025 margins show that the asset base is not currently translating into sustainable bottom-line profitability, increasing uncertainty around earnings quality and distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Persistent positive operating and free cash flow indicates that the retail property portfolio continues to generate cash despite reported accounting losses, supporting ongoing operations and financial resilience over the medium term.
Read all positive factors
Fortune Real Estate Investment (0778) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$9.22B
Dividend Yield7.66%
Average Volume (3M)3.36M
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-10.26%
EPS Growth92.30%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.05
Shares Outstanding2,066,724,000
10 Day Avg. Volume2,304,924
30 Day Avg. Volume3,360,995
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.40
Price to Sales (P/S)5.96
P/FCF Ratio14.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.84Price Target Upside29.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.29
Revenue Forecast (FY)HK$1.66B
Fortune Real Estate Investment Business Overview & Revenue Model
Company Description
Launched in 2003, Fortune REIT operates as a real estate investment trust, structured under a trust deed that may be updated periodically. It is recognized as the first REIT to hold assets in Hong Kong and is currently listed on the Main Board of ...
How the Company Makes Money
Fortune REIT primarily makes money by owning retail properties and leasing space to tenants. Its core revenue stream is rental income under lease agreements with retailers and other occupants; this typically includes base rent and may include turn...
Fortune Real Estate Investment Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.65B | 1.68B | 1.75B | 1.79B | 1.76B | 1.81B |
| Gross Profit | 1.05B | 1.09B | 1.15B | 1.20B | 1.17B | 1.21B |
| EBITDA | 1.01B | 1.08B | 1.14B | 1.16B | 1.17B | 1.22B |
| Net Income | -86.65M | -1.16B | -518.98M | -154.92M | 502.64M | 1.32B |
Balance Sheet | ||||||
| Total Assets | 36.91B | 36.75B | 38.46B | 39.51B | 40.34B | 39.72B |
| Cash, Cash Equivalents and Short-Term Investments | 109.61M | 65.74M | 96.65M | 106.72M | 206.86M | 117.96M |
| Total Debt | 9.89B | 9.86B | 9.81B | 9.66B | 9.58B | 8.84B |
| Total Liabilities | 11.67B | 11.61B | 11.53B | 11.43B | 11.41B | 10.54B |
| Stockholders Equity | 25.24B | 25.14B | 26.93B | 28.08B | 28.93B | 29.18B |
Cash Flow | ||||||
| Free Cash Flow | 312.52M | 703.06M | 1.03B | 1.05B | 1.17B | 1.02B |
| Operating Cash Flow | 338.86M | 741.15M | 1.03B | 1.16B | 1.17B | 1.09B |
| Investing Cash Flow | -26.34M | -38.08M | -84.68M | -113.09M | -672.93M | -66.97M |
| Financing Cash Flow | -330.06M | -733.97M | -957.16M | -1.15B | -409.93M | -1.08B |
Fortune Real Estate Investment Technical Analysis
Negative
4.52
Price Trends
4.48
Negative
4.55
Negative
4.62
Negative
Market Momentum
-0.02
Positive
45.46
Neutral
39.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0778, the sentiment is Negative. The current price of 4.52 is above the 20-day moving average (MA) of 4.48, above the 50-day MA of 4.48, and below the 200-day MA of 4.62, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 39.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | HK$9.22B | -89.60 | -0.34% | 7.66% | -10.26% | 92.30% | |
58 Neutral | HK$2.24B | -116.94 | -0.29% | 7.99% | -7.14% | 85.78% | |
56 Neutral | HK$13.18B | -12.07 | -2.71% | 5.52% | -8.47% | 59.18% | |
55 Neutral | HK$102.61B | -13.59 | -4.80% | 6.55% | -3.07% | 17.04% | |
42 Neutral | HK$13.07B | -9.19 | -2.23% | 0.28% | -20.78% | -318.43% | |
41 Neutral | HK$1.06B | 7.48 | 1.19% | 2.75% | 0.14% | ― |
* Real Estate Sector Average
HK:0778
Fortune Real Estate Investment
4.48
-0.20
-4.38%
HK:2778
Champion Real Estate Investment
2.19
0.19
9.58%
HK:0823
Link Real Estate Investment
38.72
-0.32
-0.83%
HK:0808
Prosperity Real Estate Investment
1.42
0.16
12.57%
HK:1881
Regal Real Estate Investment
0.32
-0.08
-19.19%
HK:0123
Yuexiu Property Co
3.32
-1.56
-32.01%
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.