Spring Real Estate Investment (1426) AI Stock Analysis

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Spring Real Estate Investment

(HKEX:1426)

Select Model

Rating:56Neutral

Price Target:HKD 1.50▲(8.70% Upside)

Action:reiterated

Date:10/01/26

The score is driven primarily by moderate financial performance: stable positive operating/free cash flow is offset by recurring net losses and meaningful leverage. Technicals are supportive (price above key moving averages, positive MACD) but are tempered by overbought signals (RSI/Stoch). Valuation is mixed, with a strong dividend yield but a negative P/E reflecting loss-making results.

Positive Factors

Recurring Cash GenerationConsistently positive operating and free cash flow indicate that the property portfolio is generating cash despite reported accounting losses. This supports ongoing operations and provides an internal funding base, although the recent weakening in free cash flow means the strength should not be treated as unlimited.

Negative Factors

Persistent Net LossesRepeated net losses, including a notably larger loss in 2025, indicate that positive operating activity is not translating into bottom-line profitability. This weakens retained capital generation, keeps shareholder returns under pressure, and makes future performance more sensitive to below-the-line volatility.

Spring Real Estate Investment (1426) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 2.06B
Dividend Yield: 5.51%
Average Volume (3M): 136.38K
Price to Earnings (P/E): -3.1
Beta (1Y): 0.00
Revenue Growth: 8.69%
EPS Growth: -216.81%
Country: Hong Kong
Employees: 11
Sector: Real Estate
Sector Strength: 65
Industry: REIT - Diversified

Spring Real Estate Investment Business Overview & Revenue Model

Company Description

Spring Real Estate Investment Trust (Spring REIT), identifiable by its stock code 1426, operates as a real estate investment trust dedicated to acquiring high-quality, income-generating properties. Since its listing on the Hong Kong Stock Exchange on...

Spring Real Estate Investment Financial Statement Overview

Summary

Cash flow is a key strength with consistently positive operating and free cash flow, supporting underlying asset cash generation. However, profitability is a major constraint: revenue has been flat to down recently and net results have been loss-making in 2023–2025 with a larger loss in 2025. Leverage is meaningful (debt-to-equity ~0.66–0.87) and ROE has turned negative, adding sensitivity to financing and valuation conditions.

Income Statement

44Neutral

Balance Sheet

58Neutral

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	872.52M	691.33M	747.48M	732.45M	577.85M	600.63M
Gross Profit	766.52M	495.71M	565.32M	478.08M	440.43M	396.37M
EBITDA	-214.34M	149.72M	348.61M	281.17M	515.94M	406.21M
Net Income	-650.26M	-195.47M	-49.61M	-77.54M	32.97M	509.95M
Balance Sheet
Total Assets	13.17B	13.15B	12.64B	14.07B	12.93B	9.88B
Cash, Cash Equivalents and Short-Term Investments	723.05M	751.40M	270.08M	604.92M	202.43M	582.60M
Total Debt	5.19B	5.16B	5.11B	5.07B	4.87B	2.97B
Total Liabilities	5.96B	5.88B	5.79B	6.25B	5.42B	3.21B
Stockholders Equity	6.06B	6.16B	5.89B	6.75B	7.42B	8.19B
Cash Flow
Free Cash Flow	215.83M	239.96M	402.45M	483.82M	389.90M	347.44M
Operating Cash Flow	215.83M	239.96M	402.45M	483.82M	389.90M	347.44M
Investing Cash Flow	-3.12M	232.09M	-9.68M	-30.51M	-758.05M	-1.12M
Financing Cash Flow	-317.48M	-315.71M	-348.55M	-290.23M	376.01M	-338.83M

Spring Real Estate Investment Technical Analysis

Technical Analysis SentimentPositive

Last Price1.38

Price Trends

50DMA1.32Positive

100DMA1.25Positive

200DMA1.36Positive

Market Momentum

MACD0.01Positive

RSI50.88Neutral

STOCH63.47Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1426, the sentiment is Positive. The current price of 1.38 is below the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.32, and above the 200-day MA of 1.36, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 63.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1426.

Spring Real Estate Investment Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

HK:1426 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HK:0808	59Neutral	HKD 2.17B	-111.57	-0.29%	8.37%	-7.14%	85.78%
HK:1426	56Neutral	HKD 2.06B	-3.09	-10.74%	5.51%	8.69%	-216.81%
HK:1503	55Neutral	HKD 1.14B	-7.58	-4.64%	8.09%	-17.95%	-41.45%
HK:0435	53Neutral	HKD 3.71B	-13.19	-2.22%	8.52%	-5.15%	-145.75%
HK:87001	46Neutral	CNY 2.09B	-2.63	-3.88%	1.38%	1.62%	-1.59%
HK:0405	39Underperform	HKD 3.16B	-5.38	-3.65%	8.91%	-10.89%	22.45%

* Real Estate Sector Average

Performance Comparison

HK:1426 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1426	Spring Real Estate Investment Trust	1.38	-0.17	-11.08%
HK:0808	Prosperity Real Estate Investment Trust	1.35	0.07	5.06%
HK:0435	Sunlight Real Estate Investment Trust	2.10	-0.07	-3.09%
HK:0405	Yuexiu Real Estate Investment Trust	0.58	-0.25	-30.37%
HK:1503	China Merchants Commercial Real Estate Investment Trust	1.01	-0.16	-13.76%
HK:87001	Hui Xian Real Estate Investment Trust	0.32	-0.17	-35.22%

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: Oct 01, 2026

Spring Real Estate Investment AI Stock Analysis

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