ITC Properties Group (SEHK:199) Loss Narrows, Challenging Bearish Margin Narratives

ITC Properties Group (SEHK:199) has posted a subdued set of H1 2026 numbers, with revenue at HK$3.5 million and a basic EPS loss of HK$0.13, keeping the story firmly in loss making territory. Over the past year, the company has seen revenue move from just HK$4.6 million in H1 2025 to HK$384.9 million in H2 2025 and then to HK$3.5 million in the latest half. Basic EPS has shifted from a loss of HK$0.56 in H1 2025 to a loss of HK$0.34 in H2 2025 and HK$0.13 in H1 2026, leaving investors focused on how durable any margin stabilization might be from here. With that backdrop, the latest print reads like a margin story in progress rather than a completed turnaround, and the quality of those margins will be front and center for investors digesting these results.

See our full analysis for ITC Properties Group.

With the headline figures on the table, the next step is to weigh them against the dominant narratives around ITC Properties Group, highlighting where the fresh numbers reinforce the consensus view and where they start to push back against it.

Curious how numbers become stories that shape markets? Explore Community Narratives

Losses Narrow, But Still Heavy At HK$121m

• Net income excluding extra items was a loss of HK$120.7 million in H1 2026, versus a HK$308.7 million loss in H2 2025 and a HK$504.3 million loss in H1 2025. The company is still burning a lot of money even though the size of the loss has stepped down each half.
• Bears focus on the five year trend of losses widening around 24.6 percent per year. That longer history is still visible in the trailing twelve month loss of HK$429.4 million even after the recent improvement in half year numbers.
  • Critics highlight that trailing twelve month basic EPS of negative HK$0.47 is still worse than the latest single half year run rate of negative HK$0.13. This suggests that the business has not yet proven a sustained path back to profitability.
  • What stands out is that net profit margins have shown no clear improvement over the last year according to the risk summary, despite the sharp reduction in periodic losses. More than one better half year will likely be needed to convince cautious investors.

Revenue Swings From HK$385m To HK$3.5m

• Total revenue dropped from HK$384.9 million in H2 2025 to only HK$3.5 million in H1 2026. Trailing twelve month revenue is still a relatively high HK$388.4 million because it includes that very strong H2 2025 period.
• From a bearish perspective, the risk section notes no improvement in net margins over the last year, and this big revenue swing reinforces worries that the business model is lumpy and that profitability has not tracked the revenue spikes in a reliable way.
  • Consensus narrative style thinking would point out that despite nearly HK$389 million of trailing twelve month revenue, the company still posted a HK$429.4 million loss over that same period. Scale alone has not translated into earnings quality.
  • Investors who hoped the H2 2025 revenue strength signaled a structural shift now have to reconcile that view with the much lower H1 2026 revenue base, which keeps the margin story looking fragile.

📊 Read the full ITC Properties Group Consensus Narrative.

Valuation: DCF Upside Versus Rich Sales Multiple

• The DCF fair value of HK$1.77 per share sits about 41.4 percent above the current share price of HK$1.04. The stock also trades at a 2.4 times price to sales multiple compared with 1.3 times for peers and 0.7 times for the Hong Kong real estate industry.
• General market opinion has to juggle two different messages. The DCF framework suggests potential upside from HK$1.04 toward HK$1.77, but the higher than average price to sales ratio and the history of a 24.6 percent yearly decline in earnings over five years both argue that the shares are not obviously cheap on simpler comparison metrics.
  • Supporters of the DCF based view might note that the trailing twelve month revenue of HK$388.4 million gives the company a real top line base. Yet the negative HK$429.4 million net income means most of that cash generation argument is still theoretical until margins improve.
  • Skeptics instead emphasize that paying 2.4 times sales for a business that remains loss making on a trailing basis, with no margin improvement flagged in the risk summary, could leave investors exposed if the expected earnings recovery does not materialize.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on ITC Properties Group'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.

See What Else Is Out There

ITC Properties Group still faces heavy, recurring losses alongside volatile revenue, signaling an unproven and unstable path to sustainable profitability and cash generation.

If this unpredictability makes you uneasy, use our stable growth stocks screener (2125 results) to quickly focus on businesses with steadier revenue and earnings trends that are built for more reliable long term compounding.

This article by Simply Wall St is general in nature. 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. 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.

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