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Champion Real Estate Investment
(2778)
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Rating:56Neutral
Price Target:
HK$2.50
â–²(12.61% Upside)
Action:Reiterated
Date:08/20/26
The score is held back primarily by weakening financial performance (declining revenue and recent net losses) despite supportive cash generation and moderate leverage. Technical indicators are moderately constructive in the near term but mixed longer term. Valuation is helped by a solid dividend yield, though losses (negative P/E) and earnings/cash-flow uncertainty limit upside. Earnings call signals stabilization and improved refinancing/liquidity, but operating income and distributions are still declining and recovery is expected to be gradual.
Positive Factors
Positive operating and free cash flow
Consistent positive cash generation supports debt servicing, property operations and distributions, giving the REIT financial flexibility even while reported earnings are weak. The cushion is valuable if leasing recovery remains gradual.
Negative Factors
Rental income and distributable income are declining
Declines in rental income, net property income and distributable income directly weaken the REIT’s earnings base and distribution capacity. Continued pressure would limit internal funding, reduce investor returns and slow recovery in fundamental performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive operating and free cash flow
Consistent positive cash generation supports debt servicing, property operations and distributions, giving the REIT financial flexibility even while reported earnings are weak. The cushion is valuable if leasing recovery remains gradual.
Read all positive factors
Champion Real Estate Investment (2778) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$13.21B
Dividend Yield5.9%
Average Volume (3M)1.61M
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-8.47%
EPS Growth59.18%
CountryHK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.18
Shares Outstanding6,174,054,700
10 Day Avg. Volume2,359,955
30 Day Avg. Volume1,609,722
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.39
Price to Sales (P/S)6.89
P/FCF Ratio21.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.45Price Target Upside10.36% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.12
Revenue Forecast (FY)HK$2.14B
Champion Real Estate Investment Business Overview & Revenue Model
Company Description
Champion Real Estate Investment Trust operates as an investment vehicle specifically established to acquire and manage income-generating office and retail real estate. Its investment strategy prioritizes Grade-A commercial properties located in pr...
How the Company Makes Money
Champion REIT makes money primarily by earning recurring rental and property-related income from its investment properties. Key revenue streams typically include: (1) Base rent from office and retail tenants under lease agreements, which provides ...
Champion Real Estate Investment Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Neutral
The call highlighted meaningful operational stabilization (central rents stabilizing, positive rental reversions in some cases), successful liability management (refinancing all 2026 maturities, HKD 3bn sustainability-linked loan, HKD 2.56bn undrawn facilities) and a retail rebound at Langham Place Mall with high occupancy. Offsetting these positives are material year‑on‑year declines in revenue and income (rental income -7.8%, NPI -9.3%, distributable income -9.1%) and lingering negative reversion/vacancy at Three Garden Road and some tenant downsizing in offices. Management expects gradual improvement but retains a conservative outlook for the rest of 2026.Positive Updates
Refinancing Secured and Liquidity Buffer
Secured credit facilities to refinance all 2026 maturing debt, including a HKD 3,000 million sustainability-linked loan supported by eight banks; broadened lender base with a new bilateral facility; undrawn committed facilities of HKD 2,560 million as of 30 June 2026, providing flexibility for 2027 repricing.
Negative Updates
Decline in Rental Income
Total rental income decreased 7.8% year-on-year to HKD 949 million for H1 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Refinancing Secured and Liquidity Buffer
Secured credit facilities to refinance all 2026 maturing debt, including a HKD 3,000 million sustainability-linked loan supported by eight banks; broadened lender base with a new bilateral facility; undrawn committed facilities of HKD 2,560 million as of 30 June 2026, providing flexibility for 2027 repricing.
Read all positive updates
Company Guidance
Management guided that central office rents are stabilizing—Three Garden Road has seen positive reversion in some renewals with negative reversion narrowing, passing rent HKD71.1/ft² and occupancy 82.2% (expiring rents cited in the 80s, confirmed deals largely in the 70s–80s), and they expect potential neutral reversion by 2027 if momentum holds; Langham Place Office remains resilient with 86.2% occupancy and passing rent HKD41.7/ft², while Langham Place Mall’s sales rebounded to positive territory in H1 2026 (double‑digit fashion growth), occupancy 99.5% and passing rent HKD153.1/ft². On finance and capital guidance, the group has refinanced all 2026 maturities (including a HKD3.0bn sustainability‑linked loan from eight banks), broadened its lender base, holds HKD2,560m undrawn committed facilities as at 30 June 2026, and will maintain disciplined liability management with gearing at 25.4%, fixed‑rate debt 47.4% and an average effective interest rate of 3.6%; AEI on Three Garden Road is planned (to be funded by internal resources/standby facilities) with only a limited, slight upward impact to gearing.Champion Real Estate Investment Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.20B | 2.26B | 2.46B | 2.51B | 2.65B | 2.85B |
| Gross Profit | 1.38B | 1.46B | 1.82B | 1.67B | 1.79B | 1.99B |
| EBITDA | 1.55B | 1.41B | -1.26B | 1.74B | 1.76B | 1.91B |
| Net Income | -1.07B | -3.27B | -2.09B | 220.62M | -749.32M | -831.36M |
Balance Sheet | ||||||
| Total Assets | 57.76B | 57.30B | 61.35B | 64.47B | 65.23B | 67.87B |
| Cash, Cash Equivalents and Short-Term Investments | 844.53M | 625.57M | 726.22M | 980.58M | 734.93M | 1.63B |
| Total Debt | 14.53B | 14.39B | 14.37B | 14.51B | 14.52B | 15.29B |
| Total Liabilities | 17.88B | 17.70B | 17.80B | 18.05B | 18.00B | 18.91B |
| Stockholders Equity | 39.87B | 39.60B | 43.55B | 46.42B | 47.23B | 48.96B |
Cash Flow | ||||||
| Free Cash Flow | 314.86M | 736.90M | 872.40M | 1.17B | 1.29B | 1.60B |
| Operating Cash Flow | 314.86M | 736.90M | 872.40M | 1.17B | 1.29B | 1.60B |
| Investing Cash Flow | 1.61M | -18.88M | 65.02M | 195.30M | -208.17M | 1.12B |
| Financing Cash Flow | -430.08M | -818.68M | -1.11B | -1.13B | -2.05B | -2.63B |
Champion Real Estate Investment Technical Analysis
Negative
2.22
Price Trends
2.23
Negative
2.28
Negative
2.33
Negative
Market Momentum
-0.03
Positive
36.84
Neutral
28.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2778, the sentiment is Negative. The current price of 2.22 is below the 20-day moving average (MA) of 2.22, below the 50-day MA of 2.23, and below the 200-day MA of 2.33, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2778.
Champion 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% | |
62 Neutral | HK$9.03B | -87.40 | -0.34% | 7.85% | -10.26% | 92.30% | |
59 Neutral | HK$2.21B | -114.05 | -0.29% | 8.19% | -7.14% | 85.78% | |
58 Neutral | HK$100.07B | -13.28 | -4.80% | 6.70% | -3.07% | 17.04% | |
58 Neutral | HK$1.89B | -2.84 | -10.74% | 8.84% | 8.69% | -216.81% | |
56 Neutral | HK$13.21B | -11.82 | -2.71% | 5.90% | -8.47% | 59.18% | |
49 Neutral | HK$3.35B | -5.74 | -3.65% | 8.41% | -10.89% | 22.45% |
* Real Estate Sector Average
HK:2778
Champion Real Estate Investment
2.14
0.06
2.93%
HK:0778
Fortune Real Estate Investment
4.37
-0.46
-9.60%
HK:0823
Link Real Estate Investment
37.84
-1.37
-3.50%
HK:0808
Prosperity Real Estate Investment
1.38
0.09
6.65%
HK:1426
Spring Real Estate Investment
1.27
-0.35
-21.36%
HK:0405
Yuexiu Real Estate Investment
0.62
-0.27
-30.74%
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.