Wharf Real Estate Investment Company Limited (1997.HK) stock analysis

In our weekly check, Wharf Real Estate Investment Company Limited is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 12 pass, warnings: 4, red flags: 7.

About Wharf Real Estate Investment Company Limited

Wharf Real Estate Investment Company Limited is a Real Estate company (Real Estate - Services) based in Hong Kong, listed on HKSE as 1997.HK.

What our checks show for 1997.HK

Red flags

• Operating profit does not cover the interest bill (0.8x): interest is paid from cash or new debt.
• The net margin fell by 60.6 points over 5 years, to -33.2%: the company keeps less of each sale as profit.
• Earnings per share fell 21.7% a year over the last 3 years.
• The company is losing money: the net margin is -33.2%.
• Wharf Real Estate Investment Company Limited pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 74% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 4.3%.

Warning signs

• Net debt is 3.3x a year of EBITDA (debt/equity 0.17). That limits room in a downturn and raises refinancing risk.
• Analysts expect only about 0.4% a year of growth in revenue.
• Revenue grew only 1.1% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• The gross margin is 78.3% and has risen by 13.6 points: pricing power is holding.
• Operating cash flow is 1.59x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 18.2% a year over the next years.
• Analysts expect the net margin to improve by 87.2 points from today's -33.2%.
• Free cash flow is 52.5% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $12.07 billion.

Similar companies

1209.HK · AZRG.TA · CBRE · BEKE · JLL · VNA.DE

Questions

What grade does Wharf Real Estate Investment Company Limited (1997.HK) have?

In our weekly check, Wharf Real Estate Investment Company Limited is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 12 pass, warnings: 4, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1997.HK stock?

This week's biggest flags for Wharf Real Estate Investment Company Limited: Weak interest cover, Margins falling, Weak EPS growth. In total 11 of 23 checks show a warning or a red flag.

What does Wharf Real Estate Investment Company Limited do?

Wharf Real Estate Investment Company Limited is a Real Estate company (Real Estate - Services) based in Hong Kong, listed on HKSE as 1997.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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