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Prosperity Real Estate Investment Trust (HK:0808)
:0808
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Prosperity Real Estate Investment
(0808)
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Rating:59Neutral
Price Target:
HK$1.50
▲(7.91% Upside)
Prosperity Real Estate Investment's overall stock score is primarily affected by its mixed financial performance and concerning valuation. Despite strong technical momentum, the challenges of negative earnings, declining revenue, and uncertain cash flows present significant risks. The high dividend yield provides some investor appeal, but sustainability is in question given the current financial pressures.
Positive Factors
Negative Factors
Prosperity Real Estate Investment (0808) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
$2.16B
Dividend Yield8.24%
Average Volume (3M)2.11M
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-7.79%
EPS Growth-73.32%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.11
Shares Outstanding1,573,996,600
10 Day Avg. Volume1,083,135
30 Day Avg. Volume2,114,536
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.29
Price to Sales (P/S)4.49
P/FCF Ratio7.71
Enterprise Value/Market Cap2.10
Enterprise Value/Revenue10.86
Enterprise Value/Gross Profit17.12
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.71Price Target Upside23.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Prosperity Real Estate Investment Business Overview & Revenue Model
Company DescriptionProsperity Real Estate Investment (0808) is a dynamic company specializing in property investment and development. The firm operates in various sectors within the real estate market, including residential, commercial, and industrial properties. Prosperity Real Estate Investment focuses on acquiring undervalued properties, enhancing their value through strategic renovations and improvements, and subsequently leasing or selling these assets to generate returns for its investors and stakeholders.
How the Company Makes MoneyThe company generates revenue primarily through several key streams. Firstly, it earns income from rental properties by leasing residential and commercial spaces to tenants, providing a steady cash flow. Secondly, Prosperity Real Estate Investment profits from the sale of renovated properties at a higher market value than their acquisition price, capitalizing on the appreciation of real estate over time. Additionally, the company may engage in joint ventures or partnerships with other real estate firms or investors, allowing for shared risks and increased access to capital and resources. Furthermore, it may also explore revenue through property management services for third-party owners, creating an additional stream of income. Overall, the combination of rental income, property sales, and strategic partnerships contributes significantly to the company's financial success.
Prosperity Real Estate Investment Financial Statement Overview
Summary
While Prosperity Real Estate Investment demonstrates strong EBITDA margins and a stable balance sheet with manageable leverage, the declining revenue and negative net income raise concerns about profitability. The lack of recent cash flow data further exacerbates liquidity concerns.Income Statement
Prosperity Real Estate Investment has experienced declining revenue over the past years, with a 2.73% decrease from 2023 to 2024. The Gross Profit Margin for 2024 stood at 64.7%, a slight decrease from previous years. The company has faced negative Net Income in recent years, indicating challenges in profitability. EBITDA margin remains strong at 87.06% in 2024, although net losses highlight underlying issues in operations.55
Neutral
Balance Sheet
The company's balance sheet shows a strong Equity Ratio of 69.33% in 2024, indicating a solid capital structure. The Debt-to-Equity ratio is manageable at 0.36, suggesting reasonable leverage. Return on Equity has been negative due to recent net losses, reflecting profitability challenges. Overall, the balance sheet remains stable with good equity levels.70
Positive
Cash Flow
The cash flow situation is concerning with no operating or free cash flow reported for 2024, indicating potential liquidity issues. Previous years demonstrated positive free cash flow, but the lack of recent data questions the company's ability to generate cash from operations. Cash flow metrics need to be improved to support financial stability.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 416.18M | 425.37M | 437.31M | 434.01M | 444.98M | 452.89M |
| Gross Profit | 263.96M | 275.16M | 299.31M | 280.04M | 276.57M | 306.10M |
| EBITDA | 0.00 | 370.38M | 278.36M | 377.17M | 23.89M | 208.27M |
| Net Income | -133.64M | -74.64M | -5.67M | 74.89M | 57.02M | -874.50M |
Balance Sheet | ||||||
| Total Assets | 9.42B | 9.63B | 9.81B | 9.98B | 10.19B | 10.51B |
| Cash, Cash Equivalents and Short-Term Investments | 49.91M | 47.32M | 61.01M | 100.37M | 205.96M | 351.79M |
| Total Debt | 2.43B | 2.40B | 2.35B | 2.31B | 2.32B | 2.33B |
| Total Liabilities | 2.98B | 2.95B | 2.92B | 2.88B | 2.92B | 2.97B |
| Stockholders Equity | 6.44B | 6.68B | 6.89B | 7.10B | 7.26B | 7.54B |
Cash Flow | ||||||
| Free Cash Flow | 208.30M | 247.65M | 283.91M | 222.63M | 260.51M | 236.10M |
| Operating Cash Flow | 208.30M | 269.51M | 306.86M | 243.14M | 267.03M | 239.95M |
| Investing Cash Flow | -17.55M | -21.57M | -21.75M | -20.50M | -6.52M | -3.86M |
| Financing Cash Flow | -251.22M | -261.63M | -324.47M | -328.23M | -406.34M | -271.39M |
Prosperity Real Estate Investment Technical Analysis
Positive
1.39
Price Trends
1.38
Positive
1.35
Positive
1.26
Positive
Market Momentum
<0.01
Negative
55.59
Neutral
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0808, the sentiment is Positive. The current price of 1.39 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.38, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0808.
Prosperity Real Estate Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | $2.16B | ― | -2.04% | 8.24% | -7.79% | -73.32% | |
| ― | $3.95B | ― | ― | 7.86% | ― | ― | |
| ― | $4.74B | ― | -4.08% | 7.07% | -6.57% | -390.60% | |
| ― | HK$2.41B | ― | -2.11% | 9.33% | -10.55% | -314.81% | |
| ― | €1.43B | -13.57 | -3.25% | 8.49% | -5.78% | 61.05% | |
| ― | ¥3.33B | ― | -3.62% | 0.54% | -8.25% | -55.79% |
* Real Estate Sector Average
HK:0808
Prosperity Real Estate Investment
1.39
0.19
15.74%
HK:1426
Spring Real Estate Investment
1.62
-0.20
-10.94%
HK:0435
Sunlight Real Estate Investment
2.30
0.54
30.68%
HK:0405
Yuexiu Real Estate Investment
0.90
-0.08
-8.44%
HK:1503
China Merchants Commercial Real Estate Investment Trust
1.27
0.11
9.20%
HK:87001
Hui Xian Real Estate Investment Trust
0.50
-0.06
-10.71%
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.