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Powerlong Real Estate Holdings Ltd. (HK:1238)
:1238
Hong Kong Market
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Powerlong Real Estate Holdings Ltd. (1238) AI Stock Analysis

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HK:1238

Powerlong Real Estate Holdings Ltd.

(1238)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
HK$0.50
▲(72.41% Upside)
Powerlong Real Estate Holdings Ltd. is facing significant financial and operational challenges, reflected in its poor financial performance and negative valuation metrics. The technical analysis also indicates bearish momentum, with the stock trading below key moving averages and showing weak momentum indicators. These factors collectively contribute to a low overall stock score.

Powerlong Real Estate Holdings Ltd. (1238) vs. iShares MSCI Hong Kong ETF (EWH)

Powerlong Real Estate Holdings Ltd. Business Overview & Revenue Model

Company DescriptionPowerlong Real Estate Holdings Ltd. is a prominent property development and investment company based in China. Established in 2005, the company operates primarily in the real estate sector, focusing on residential, commercial, and mixed-use properties. Powerlong's core products include the development of large-scale urban complexes, retail properties, and residential communities, catering to the growing demand for real estate in China's rapidly urbanizing landscape. The company also engages in property management and leasing services, enhancing its portfolio and service offerings.
How the Company Makes MoneyPowerlong Real Estate Holdings Ltd. generates revenue primarily through the sale of residential and commercial properties, which constitutes a significant portion of its income. The company develops and sells a variety of real estate projects, including apartments, office buildings, and shopping malls, effectively capitalizing on the booming property market in China. In addition to property sales, Powerlong also earns revenue from leasing commercial properties, which provides a steady stream of income. Furthermore, the company engages in property management services for its developments, adding another layer to its revenue model. Strategic partnerships with local governments and other developers help facilitate land acquisition and project financing, which are crucial for the company's growth and profitability.

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
30
Negative
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
45
Neutral
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
20
Very Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.36B25.76B22.90B31.38B39.90B35.50B
Gross Profit2.36B2.35B2.45B9.88B12.52B12.82B
EBITDA507.76M545.06M-538.26M7.27B9.27B10.25B
Net Income-5.79B-5.77B-2.59B445.75M6.03B6.14B
Balance Sheet
Total Assets181.09B192.02B214.81B233.75B245.06B195.13B
Cash, Cash Equivalents and Short-Term Investments6.03B6.11B7.85B9.73B19.60B25.65B
Total Debt57.14B58.97B61.68B65.87B75.50B67.46B
Total Liabilities134.24B142.62B159.49B171.15B182.65B143.33B
Stockholders Equity29.96B33.04B37.59B41.63B41.21B36.74B
Cash Flow
Free Cash Flow905.47M1.54B5.06B4.07B1.48B-12.40B
Operating Cash Flow933.53M1.71B5.56B4.44B1.94B-12.01B
Investing Cash Flow-192.41M-274.89M3.91B-1.65B-22.86B-5.24B
Financing Cash Flow-1.06B-3.07B-11.32B-12.55B15.10B22.36B

Powerlong Real Estate Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.29
Price Trends
50DMA
0.30
Negative
100DMA
0.32
Negative
200DMA
0.36
Negative
Market Momentum
MACD
-0.01
Positive
RSI
27.35
Positive
STOCH
14.29
Positive
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 0.29 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.30, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 27.35 is Positive, neither overbought nor oversold. The STOCH value of 14.29 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
58
Neutral
€1.27B14.051.84%-54.44%120.18%
52
Neutral
HK$1.58B-2.67-4.51%8.53%23.54%-204.92%
46
Neutral
HK$3.18B-114.48%-26.58%-40.96%
44
Neutral
HK$1.36B-0.21-28.76%-58.04%-65.03%
41
Neutral
HK$1.08B-17.55%-11.33%-7.70%
38
Underperform
€1.22B-0.14
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1238
Powerlong Real Estate Holdings Ltd.
0.26
-0.37
-58.73%
HK:0095
LVGEM (China) Real Estate Investment Company Limited
0.30
-0.43
-58.90%
HK:0230
Minmetals Land Limited
0.95
0.55
137.50%
HK:1668
China South City Holdings Limited
0.11
-0.12
-52.86%
HK:1321
China New City Commercial Development Ltd
0.67
-0.18
-21.18%
HK:0563
Shanghai Industrial Urban Development Group Ltd
0.34
-0.10
-22.73%

Powerlong Real Estate Holdings Ltd. Corporate Events

Powerlong Real Estate Advances Restructuring to Address Liquidity Challenges
Oct 12, 2025

Powerlong Real Estate Holdings Ltd. has announced significant progress in its efforts to address liquidity issues related to its Scheme Debt. The company has entered into a Restructuring Support Agreement (RSA) with holders of approximately 31% of the Scheme Debt, aiming to implement a holistic solution that includes various options for creditors, such as cash, shares, and bonds. The company is seeking broader support from all debt holders to ensure the successful implementation of the restructuring plan, which is crucial for stabilizing its financial position and complying with regulatory requirements.

The most recent analyst rating on (HK:1238) stock is a Sell 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 September 2025 Sales Figures
Oct 9, 2025

Powerlong Real Estate Holdings Ltd. reported unaudited operating statistics for September 2025, revealing a contracted sales value of approximately RMB524 million and a sales area of 42,389 square meters for the month. For the first nine months of 2025, the total contracted sales value reached RMB5,431 million with a total sales area of 471,014 square meters. These figures are preliminary and may differ from future audited financial statements, and investors are advised to exercise caution.

The most recent analyst rating on (HK:1238) stock is a Sell 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 Updates on Liquidity and Restructuring Efforts
Sep 26, 2025

Powerlong Real Estate Holdings Ltd. has announced updates on its plans to address liquidity issues and resolve a disclaimer of opinion from its auditor regarding its going concern status. The company is actively engaging in restructuring discussions with offshore creditors, refinancing existing borrowings, and implementing cost-control measures, including workforce optimization. These efforts aim to stabilize the company’s financial position and ensure business continuity.

The most recent analyst rating on (HK:1238) stock is a Sell 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 August 2025 Sales Figures
Sep 8, 2025

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
Aug 29, 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
Aug 19, 2025

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
Aug 19, 2025

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
Aug 8, 2025

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
Aug 1, 2025

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
Aug 1, 2025

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.

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.Date of analysis: Nov 01, 2025