Powerlong Real Estate Holdings Ltd. (1238) AI Stock Analysis

• Market Cap: HK$1.28B
• Dividend Yield: N/A
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.70
• Revenue Growth: -11.33%
• EPS Growth: -7.70%
• Country: HK
• Employees: 8,152
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.70
• Shares Outstanding: 4,140,403,000
• 10 Day Avg. Volume: 1,973,100
• 30 Day Avg. Volume: 1,987,766
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$0.50
• Price Target Upside: 61.29% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: HK$0.50 ▲(61.29% Upside)

The overall stock score of 39 reflects significant financial challenges, including declining revenue and profitability, high leverage, and negative cash flow. Technical indicators suggest a bearish trend, and the negative P/E ratio indicates unattractive valuation. These factors collectively contribute to a low stock score, highlighting the need for strategic management and potential restructuring.

Powerlong Real Estate Holdings Ltd. Business Overview & Revenue Model

Company Description

Powerlong Real Estate Holdings Limited, an investment holding company, invests in, develops, operates, and manages commercial real estate projects in the People's Republic of China. The company operates through four segments: Property Development, Property Investment, Commercial Operation and Residential Property Management, and Other Property Development Related Businesses. It develops commercial and residential properties. The company also operates hotels; and provides residential property management services, as well as construction services. As of December 31, 2021, it developed, owned, and operated 220 property development projects; operated investment properties primarily shopping malls with a total gross floor area (GFA) of approximately 7,286,508 square meters; had a land bank with a total GFA of 36.5 million square meters; and owned and managed eight international branded hotels and twelve self-owned branded chain hotels. The company was incorporated in 2007 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

Powerlong Real Estate Holdings Ltd. generates revenue primarily through the sale and lease of its developed properties. The company's key revenue streams include the sales of residential properties, leasing of commercial spaces within its shopping malls, and operational income from its hotel properties. Additionally, Powerlong benefits from property management fees for services provided to residential and commercial properties. Strategic partnerships with local governments and businesses also contribute to its earnings by facilitating developments in prime urban locations, thereby increasing the value and attractiveness of its properties.

Powerlong Real Estate Holdings Ltd. Financial Statement Overview

Summary

Powerlong Real Estate Holdings Ltd. is facing significant financial challenges, with declining revenue, profitability, and cash flow. The balance sheet is burdened with high debt, and recent losses have impacted equity returns. While the company has a substantial asset base, the overall financial health is concerning, highlighting the need for strategic management and potential restructuring.

Income Statement

The company exhibits a declining trend in revenue and profitability, with a significant drop in gross profit margin from 27.8% in 2020 to 9.1% in 2024. The net profit margin has turned negative, indicating losses. Revenue growth is negative as well, with a substantial contraction seen in recent years. The negative EBIT and EBITDA margins underscore operational challenges.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 1.78 in 2024, indicating potential risk. However, the equity ratio stands at 17.2%, demonstrating some level of stability. Return on equity has turned negative due to losses, but the company maintains a substantial asset base.

Cash Flow

The cash flow statement reveals a challenging situation with zero operating and free cash flow in 2024. Previous periods showed some free cash flow generation, but the recent lack of cash flow raises concerns about liquidity and sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.76B	22.90B	31.38B	39.90B	35.50B
Gross Profit	2.35B	2.45B	9.88B	12.52B	12.82B
EBITDA	527.34M	-538.26M	7.27B	9.27B	10.25B
Net Income	-5.77B	-2.59B	445.75M	6.03B	6.14B
Balance Sheet
Total Assets	192.02B	214.81B	233.75B	245.06B	195.13B
Cash, Cash Equivalents and Short-Term Investments	6.11B	7.85B	9.73B	19.60B	25.65B
Total Debt	58.97B	61.68B	65.87B	75.50B	67.46B
Total Liabilities	142.62B	159.49B	171.15B	182.65B	143.33B
Stockholders Equity	33.04B	37.59B	41.63B	41.21B	36.74B
Cash Flow
Free Cash Flow	1.54B	5.06B	4.07B	1.48B	-12.40B
Operating Cash Flow	1.71B	5.56B	4.44B	1.94B	-12.01B
Investing Cash Flow	-274.89M	3.91B	-1.65B	-22.86B	-5.24B
Financing Cash Flow	-3.07B	-11.32B	-12.55B	15.10B	22.36B

Powerlong Real Estate Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1238, the sentiment is Negative. The current price of 0.31 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.35, and below the 200-day MA of 0.39, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1238.

Powerlong Real Estate Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1321	61 Neutral	1.51B	16.70	9.57%	―	-54.44%	120.18%
0563	51 Neutral	1.60B	-2.71	-2.54%	8.66%	23.54%	-204.92%
0230	44 Neutral	1.12B	-0.37	-218.83%	―	-26.58%	-40.96%
0095	40 Underperform	1.57B	-0.25	-28.67%	―	-58.04%	-65.03%
1238	39 Underperform	HK$1.28B	―	-17.55%	―	-11.33%	-7.70%
1668	38 Underperform	1.22B	-0.14	0.00%	―	0.00%	0.00%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Powerlong Real Estate Holdings Ltd. Corporate Events

Powerlong Real Estate Reports August 2025 Sales Figures

Powerlong Real Estate Holdings Limited reported unaudited operating statistics for August 2025, revealing a contracted sales value of approximately RMB602 million and a contracted sales area of 54,820 square meters. For the first eight months of 2025, the company achieved a total contracted sales value of RMB4,906 million and a total contracted sales area of 428,625 square meters. These figures, based on preliminary internal data, highlight the company’s ongoing sales activities, though investors are advised to exercise caution as the data may vary from future audited reports.

The most recent analyst rating on (HK:1238) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Reports Revenue Decline but Improved Profit Margins in H1 2025

Powerlong Real Estate Holdings Limited reported a decrease in revenue by 15.3% to approximately RMB13,251 million for the first half of 2025 compared to the same period in 2024. Despite the revenue decline, the company saw an increase in gross profit margin by 2.4 percentage points to 15.3%, indicating improved operational efficiency.

The most recent analyst rating on (HK:1238) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Powerlong Real Estate Holdings Ltd. stock, see the HK:1238 Stock Forecast page.

Powerlong Real Estate Schedules Board Meeting to Review Interim Results

Powerlong Real Estate Holdings Limited has announced a board meeting scheduled for August 29, 2025, to consider and approve the interim results for the first half of the year ending June 30, 2025. This meeting is significant as it will address the company’s financial performance and potential business transactions, impacting its operational strategy and stakeholder interests.

Powerlong Real Estate Issues Profit Warning Amid Challenging Market Conditions

Powerlong Real Estate Holdings Limited has issued a profit warning, indicating an expected loss between RMB2,600 million and RMB2,900 million for the first half of 2025, compared to a loss of RMB2,047 million in the same period of 2024. The increased losses are attributed to impairment provisions for property projects and a decrease in the fair value of investment properties, reflecting the challenging conditions in the real estate sector.

Powerlong Real Estate Announces July 2025 Sales Figures

Powerlong Real Estate Holdings Ltd. reported unaudited operating statistics for July 2025, revealing a contracted sales value of approximately RMB582 million and a contracted sales area of 57,086 square meters. For the first seven months of 2025, the total contracted sales value reached approximately RMB4,305 million, with a total contracted sales area of 373,804 square meters. These figures, based on preliminary internal data, may vary from future audited reports, and investors are advised to exercise caution.

Powerlong Real Estate Announces Board Changes

Powerlong Real Estate Holdings Ltd. announced a change in its board, with Mr. Ngai Wai Fung resigning as the independent non-executive director and chairman of the Audit Committee, effective August 1, 2025. Mr. Au Yeung Po Fung, who has extensive experience in the real estate sector and has held senior management roles in various companies, will replace him. This leadership transition may impact the company’s strategic direction and governance, given Mr. Au Yeung’s substantial background in the industry.

Powerlong Real Estate Announces Board Composition and Roles

Powerlong Real Estate Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement highlights the company’s governance structure and may impact its strategic decision-making and stakeholder relations.

Powerlong Real Estate Adjourns Liquidation Hearing for Restructuring

Powerlong Real Estate Holdings Limited announced that the liquidation application against its wholly-owned subsidiary, Powerlong Real Estate (BVI) Holdings Limited, has been further adjourned to allow more time for restructuring its offshore indebtedness. This move indicates the company’s efforts to stabilize its financial position and suggests a strategic approach to managing its liabilities, which could impact its market positioning and stakeholder confidence.

Powerlong Real Estate Announces June 2025 Sales Figures

Powerlong Real Estate Holdings Ltd. reported unaudited operating statistics for June 2025, revealing a contracted sales value of approximately RMB554 million and a contracted sales area of 43,380 square meters. For the first half of 2025, the total contracted sales value reached RMB3,723 million with a total contracted sales area of 316,718 square meters. These figures are based on preliminary internal data and may differ from future audited reports, urging investors to exercise caution.

Powerlong Real Estate Enhances Governance with Revised Nomination Committee Terms

Powerlong Real Estate Holdings Ltd. has revised and approved the terms of reference for its Nomination Committee, emphasizing the inclusion of independent non-executive directors and gender diversity. This move is likely to enhance corporate governance and ensure diverse perspectives in decision-making, potentially strengthening the company’s industry position and stakeholder confidence.