<div id="readability-page-1"><div><p>CSI Properties (SEHK:497) just posted its H1 2026 financials, reporting revenue of HK$501.8 million and a basic EPS loss of HK$0.16. The company has seen revenue move from HK$1.40 billion in H1 2025 to HK$501.8 million over the trailing twelve months, while EPS remained negative throughout. Margins have stayed deeply in the red, underscoring persistent operational challenges for investors watching this turnaround story.</p> <p>See our full analysis for CSI Properties.</p><p>Now let’s dig in and see how this latest performance stacks up against the main narratives simmering on Simply Wall St. Consider whether they reinforce expectations or require a fresh perspective.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/60a2812b-7ff6-4e4e-bee3-3a5989b6830f/chart/earnings-and-revenue-history?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/60a2812b-7ff6-4e4e-bee3-3a5989b6830f/chart/earnings-and-revenue-history"/><figcaption>SEHK:497 Earnings &amp; Revenue History as at Nov 2025</figcaption></figure> <h2>Losses Deepen as Net Income Slides to -HK$1.34 Billion</h2> <ul> <li>For the past twelve months, net income stood at negative HK$1,344.1 million, worsening from negative HK$904.1 million in H1 2025 and negative HK$1,387.3 million earlier in the year.</li> <li>Despite earlier hopes that recurring revenue from diversified properties could buffer cyclical headwinds, the ongoing losses highlight just how difficult it has been for CSI Properties to achieve stability.         <ul> <li>Bears point to the net loss increasing at an average rate of 60.1% per year over the last five years, reinforcing concerns about the sustainability of the business as losses mount.</li> <li>While the company maintains a geographically mixed portfolio, the consistent negative net income challenges the notion that diversification alone is enough to offset tough sector fundamentals.</li> </ul> </li> </ul> <h2>Price-to-Sales Ratio Flags Valuation Challenge</h2> <ul> <li>CSI’s price-to-sales ratio comes in at 4.6x, notably higher than the Hong Kong real estate industry average of 0.7x and the peer average of 2.1x.</li> <li>For investors comparing valuation metrics, the elevated ratio exposes a significant disconnect.         <ul> <li>Consensus narrative notes that, while the current share price of HK$0.18 trades 37.6% below the DCF fair value of HK$0.29, making the stock appear discounted, it remains expensive when viewed through traditional multiples.</li> <li>This tension between apparent value and high relative pricing prompts many to look more closely at whether operational turnaround is realistic before interpreting the stock as a bargain.</li> </ul> </li> </ul><p> Curious if the market is missing the bigger picture for CSI Properties? <strong>📊 Read the full CSI Properties Consensus Narrative.</strong></p><h2>Debt Coverage Falls Short of Comfort Zone</h2> <ul> <li>The company’s debt is not well covered by operating cash flow according to the most recent analysis, and recent financial periods show no signs of improvement in coverage ratios.</li> <li>General market opinion emphasizes that this ongoing stress on the balance sheet is a heightened risk.         <ul> <li>Substantial shareholder dilution occurred during the year, intensifying pressure on remaining shareholders and calling financial resilience into question.</li> <li>The lack of clear progress in generating operating cash flow makes debt management a persistent concern, even as management emphasizes long-term recovery themes.</li> </ul> </li> </ul> <h2> Next Steps</h2> <p>Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on CSI Properties's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.</p> <h2>See What Else Is Out There</h2> <p>CSI Properties' deepening net losses, weak debt coverage, and shareholder dilution highlight serious balance sheet risks and ongoing financial instability.</p> <p>If financial stress like this is a concern, you can target companies with robust liquidity and lower debt by checking out solid balance sheet and fundamentals stocks screener (1934 results) before making your next move.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

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<p>CSI Properties (SEHK:497) reported a deepening net loss of HK$1.34 billion for H1 2026, with revenue dropping to HK$501.8 million. The company's EPS loss was HK$0.16, and its price-to-sales ratio is significantly higher than industry averages, indicating valuation challenges. Debt coverage remains weak, and shareholder dilution has intensified financial instability. Despite hopes for a turnaround, persistent losses and operational challenges continue to undermine stability.</p>

CSI Properties (SEHK:497): Net Loss Deepens to HK$1.34 Billion, Undercutting Turnaround Hopes