Kerry Properties (0683) AI Stock Analysis

• Market Cap: $25.51B
• Dividend Yield: 7.69%
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.83
• Revenue Growth: 46.64%
• EPS Growth: -75.09%
• Country: HK
• Employees: 7,500
• Sector: Real Estate
• Sector Strength: 77
• Industry: Real Estate - Development
• EPS (TTM): 0.56
• Shares Outstanding: 1,451,305,800
• 10 Day Avg. Volume: 1,485,578
• 30 Day Avg. Volume: 2,467,547
• PEG Ratio: 0.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.07
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: $20.41
• Price Target Upside: 16.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Kerry Properties exhibits strong revenue growth but is challenged by declining profitability and negative cash flows. Although the balance sheet shows moderate leverage, cash flow issues need addressing. The technical analysis indicates bearish momentum, and the valuation suggests overvaluation despite a high dividend yield. Overall, these factors result in a moderate stock score.

Positive Factors

Debt Management

Mont Verra in Hong Kong and Jinling Residence in Shanghai are set to boost sales, lowering net gearing from 43% in 2024 to 31% by 2026.

Financial Performance

FY24 underlying profit grew 25% y/y, indicating strong financial performance.

Sales Performance

Overwhelming response to launch of Jinling Residences in Shanghai with first batch of 158 units sold out within three hours.

Negative Factors

Market Demand

Any deterioration in property demand in Hong Kong & China could drag its earnings and share price performance.

Market Position

The stock is trading at 0.22x P/B, the lowest among peers.

Kerry Properties Business Overview & Revenue Model

Company Description

Kerry Properties Limited (0683) is a leading property investment and development company based in Hong Kong. The company is engaged in the development, investment, and management of premium residential, commercial, retail, and hotel properties across key cities in Hong Kong, Mainland China, and the Asia-Pacific region. Kerry Properties is known for its high-quality developments and strong brand reputation, catering to affluent customers seeking luxury living and working environments.

How the Company Makes Money

Kerry Properties makes money primarily through its property development and investment activities. The company's key revenue streams include the sale of residential and commercial properties, rental income from its investment properties, and management fees from property management services. Additionally, Kerry Properties benefits from strategic partnerships and joint ventures, which enable the company to expand its market reach and leverage local expertise. The company also invests in urban mixed-use developments, which integrate residential, commercial, and retail components, allowing for diversified revenue generation. Factors such as property market conditions, economic trends, and government policies in the regions where Kerry Properties operates significantly influence its earnings.

Kerry Properties Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
12.90B	13.09B	14.75B	15.45B	14.65B	18.15B
	Gross Profit
6.67B	6.72B	7.14B	8.87B	8.51B	9.11B
	EBIT
4.92B	5.50B	4.90B	6.87B	6.89B	7.51B
	EBITDA
5.35B	8.13B	5.39B	7.39B	7.37B	7.98B
	Net Income Common Stockholders
2.29B	3.24B	2.75B	10.36B	5.40B	6.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.69B	13.54B	11.70B	17.43B	17.00B	12.26B
	Total Assets
104.66B	208.43B	201.47B	200.06B	195.77B	177.88B
	Total Debt
20.68B	55.22B	54.99B	37.85B	45.28B	40.38B
	Net Debt
10.21B	41.68B	43.31B	20.46B	28.84B	28.17B
	Total Liabilities
37.18B	87.28B	78.99B	67.74B	71.11B	62.50B
	Stockholders Equity
57.71B	107.26B	108.79B	116.83B	109.87B	101.70B
Cash Flow		Free Cash Flow
-2.64B	-5.34M	-23.36B	11.23B	1.38B	905.35M
	Operating Cash Flow
2.33B	4.98B	1.33B	11.93B	6.99B	5.19B
	Investing Cash Flow
-9.12B	-2.45B	-19.32B	1.74B	-5.29B	-11.98B
	Financing Cash Flow
2.02B	-47.18M	13.55B	-13.13B	1.91B	5.30B

Kerry Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0683, the sentiment is Positive. The current price of 17.58 is below the 20-day moving average (MA) of 17.79, above the 50-day MA of 17.16, and above the 200-day MA of 15.51, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 99.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0683.

Kerry Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0011	76 Outperform	$180.79B	10.30	11.23%	6.63%	-2.77%	4.04%
0016	71 Outperform	HK$209.65B	12.01	2.88%	5.13%	20.91%	-29.29%
0083	70 Outperform	$71.55B	18.72	2.17%	7.63%	-30.38%	-43.73%
0012	63 Neutral	HK$104.33B	16.42	1.94%	8.99%	-7.64%	-32.01%
Sector *	59 Neutral	$2.72B	11.59	0.11%	8770.69%	5.44%	-16.52%
0683	52 Neutral	$25.51B	32.73	0.76%	7.69%	46.64%	-75.09%
0017	44 Neutral	HK$12.08B	―	-10.34%	10.85%	-56.64%	-3398.20%

Kerry Properties Corporate Events

Kerry Properties Proposes Bye-law Amendments for Enhanced Flexibility

Kerry Properties Limited has announced proposed amendments to its existing bye-laws, aiming to align with recent changes in the Hong Kong Stock Exchange’s Listing Rules. These amendments will allow the company to acquire shares as treasury shares and facilitate electronic corporate communications. The changes are subject to shareholder approval at the upcoming annual general meeting in May 2025.

Kerry Properties Reports 18% Revenue Growth Amid Challenging Market

Kerry Properties announced its final results for the year ended December 31, 2024, reporting a combined revenue increase of 18% year-on-year, driven by higher sales recognition for development properties. Despite a challenging property market environment in Hong Kong and Mainland China, the company achieved encouraging operational performance, particularly in Hong Kong, where development properties sold well. The company maintained its dividend per share and reported an underlying profit increase of 25%, although profit attributable to shareholders saw a significant decline due to one-off provisions.

Kerry Properties Declares Final Dividend for 2024

Kerry Properties Limited announced a final cash dividend of HKD 0.95 per share for the year ending December 31, 2024, with payment scheduled for June 10, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, potentially enhancing its attractiveness to investors.

Kerry Properties Schedules Board Meeting for Financial Results and Dividend Decision

Kerry Properties Limited has announced that its board of directors will meet on March 19, 2025, to approve the company’s final financial results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns for shareholders, impacting its market positioning and stakeholder interests.