Want to see HK:2778 full AI Analyst Report?
Champion Real Estate Investment (2778) AI Stock Analysis
Champion Real Estate Investment
(HKEX:2778)
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.
Champion Real Estate Investment (2778) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 1.67B
- Dividend Yield
- 5.42%
- Average Volume (3M)
- 1.40M
- Price to Earnings (P/E)
- -12.2
- Beta (1Y)
- 0.60
- Revenue Growth
- -8.47%
- EPS Growth
- 59.18%
- Country
- Hong Kong
- Employees
- 0
- Sector
- Real Estate
- Sector Strength
- 65
- Industry
- REIT - Retail
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 prime...
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 the...
Champion Real Estate Investment Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Balance sheet leverage appears moderate and operating/free cash flow remain consistently positive, but fundamentals are pressured by multi-year revenue decline and widened net losses in 2024–2025. Overall, cash flow provides some cushion, yet income statement weakness and earnings volatility are the primary drag.
Income Statement
32NegativeBalance Sheet
66PositiveCash Flow
58Neutral| 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 | 1.81B | 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 | 761.63M | 736.90M | 872.40M | 1.17B | 1.29B | 1.60B |
| Operating Cash Flow | 761.63M | 736.90M | 872.40M | 1.17B | 1.29B | 1.60B |
| Investing Cash Flow | -7.07M | -18.88M | 65.02M | 195.30M | -208.17M | 1.12B |
| Financing Cash Flow | -673.12M | -818.68M | -1.11B | -1.13B | -2.05B | -2.63B |
Champion Real Estate Investment Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2778, the sentiment is Positive. The current price of 2.23 is above the 20-day moving average (MA) of 2.16, above the 50-day MA of 2.11, and below the 200-day MA of 2.24, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2778.
Champion Real Estate Investment Peers Comparison
Overall Rating
HK:077862Neutral
HK:080859Neutral- HK:277856Neutral
HK:082355Neutral
HK:142653Neutral
HK:040539Underperform
Financial Indicators
| 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:0778 | 62Neutral | HKD 9.15B | -88.40 | -0.34% | 7.76% | -9.28% | 92.30% |
| HK:0808 | 59Neutral | HKD 2.14B | -110.33 | -0.29% | 8.46% | -7.14% | 85.78% |
| HK:2778 | 56Neutral | HKD 13.68B | -12.15 | -2.71% | 5.42% | -8.47% | 59.18% |
| HK:0823 | 55Neutral | HKD 105.15B | -14.03 | -4.80% | 6.34% | -3.07% | 17.04% |
| HK:1426 | 53Neutral | HKD 1.40B | -2.05 | -10.74% | 8.31% | 8.69% | -216.81% |
| HK:0405 | 39Underperform | HKD 3.19B | -5.52 | -3.65% | 8.69% | -10.89% | 22.45% |
* Real Estate Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:2778 | Champion Real Estate Investment Trust | 2.23 | 0.14 | 6.68% | |
| HK:0778 | Fortune Real Estate Investment Trust | 4.46 | -0.31 | -6.58% | |
| HK:0823 | Link Real Estate Investment Trust | 40.14 | 1.62 | 4.20% | |
| HK:0808 | Prosperity Real Estate Investment Trust | 1.35 | 0.05 | 3.61% | |
| HK:1426 | Spring Real Estate Investment Trust | 1.00 | -0.55 | -35.57% | |
| HK:0405 | Yuexiu Real Estate Investment Trust | 0.60 | -0.24 | -28.74% |
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: Aug 20, 2026