SCE Intelligent Commercial Management Holdings Limited (0606) AI Stock Analysis

• Market Cap: HK$532.13M
• Dividend Yield: N/A
• Average Volume (3M): 217.51K
• Price to Earnings (P/E): 47.4
• Beta (1Y): 1.09
• Revenue Growth: -5.91%
• EPS Growth: -94.58%
• Country: HK
• Employees: 4,893
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.02
• Shares Outstanding: 1,935,000,000
• 10 Day Avg. Volume: 326,000
• 30 Day Avg. Volume: 217,508
• PEG Ratio: -0.10
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 1.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The overall stock score reflects mixed financial performance with strong equity but declining revenue and cash flow issues. Technical indicators suggest a lack of strong momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Equity Base

A strong equity base with low leverage indicates financial stability, providing the company with resilience against economic downturns and the ability to invest in growth opportunities.

Recurring Revenue Model

A business model focused on recurring revenue from long-term contracts enhances predictability and stability of cash flows, supporting sustainable growth and operational planning.

Product Diversification

Diverse product offerings in technology and commercial management can cater to various industries, reducing dependency on a single market and enhancing competitive positioning.

Negative Factors

Declining Revenue

A decline in revenue indicates potential challenges in market demand or competitive pressures, which could impact long-term growth and profitability if not addressed.

Shrinking Profit Margins

Decreasing profit margins suggest rising costs or pricing pressures, which can erode profitability and limit the company's ability to reinvest in its business.

Lack of Cash Flow

The absence of cash flow indicates potential liquidity issues, which can constrain the company's ability to meet obligations and invest in growth, posing risks to financial health.

SCE Intelligent Commercial Management Holdings Limited Business Overview & Revenue Model

Company Description

SCE Intelligent Commercial Management Holdings Limited (0606) is a Hong Kong-based company specializing in intelligent commercial management solutions. The company operates primarily in the sectors of technology and commercial management, offering a range of products and services designed to enhance operational efficiency and decision-making for businesses. Core offerings include software solutions for data analytics, workflow automation, and commercial management, tailored to meet the needs of various industries.

How the Company Makes Money

The company generates revenue through a multi-faceted model that includes software licensing fees, subscription services for its cloud-based platforms, and consultancy fees for implementation and support. Key revenue streams consist of recurring income from long-term contracts with clients who utilize their management software, as well as one-time fees from project-based services. SCE Intelligent Commercial Management Holdings Limited may also benefit from strategic partnerships with technology providers and industry leaders, enhancing its product offerings and expanding its market reach.

SCE Intelligent Commercial Management Holdings Limited Financial Statement Overview

Summary

The company shows a mixed financial performance with strong equity and low leverage, which is positive for stability. However, declining revenue, shrinking profit margins, and lack of cash flow in 2024 indicate potential operational and profitability challenges.

Income Statement

The company experienced a decline in revenue from $1.25 billion in 2023 to $1.21 billion in 2024, indicating a negative revenue growth rate. Gross profit margin decreased from 32.8% in 2023 to 29.3% in 2024. The net profit margin also declined from 20.6% in 2023 to 4.7% in 2024. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, though both have decreased compared to previous years, impacting overall profitability.

Balance Sheet

The company has a strong equity base with a debt-to-equity ratio of 0.07, indicating low leverage. The equity ratio is robust at 77.2%, suggesting a stable financial position with significant shareholder equity relative to total assets. Return on equity decreased from 9.7% in 2023 to 2.1% in 2024, indicating reduced profitability for shareholders.

Cash Flow

Cash flow metrics show some concerns with an absence of operating and free cash flow in 2024. In previous years, operating cash flow was positive, but the lack of cash flow in 2024 could indicate operational challenges. Free cash flow also shows a decline from $197.6 million in 2023 to $0 in 2024, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	1.21B	1.25B	1.18B	1.23B	805.28M
Gross Profit	327.81M	354.91M	409.74M	429.96M	580.87M	356.58M
EBITDA	48.02M	66.88M	223.87M	298.85M	395.71M	228.74M
Net Income	10.64M	56.96M	257.05M	208.07M	280.61M	155.73M
Balance Sheet
Total Assets	3.54B	3.51B	3.40B	3.18B	3.06B	1.12B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.30B	1.16B	1.23B	2.90B	503.94M
Total Debt	573.00K	5.42M	665.00K	665.00K	61.04M	0.00
Total Liabilities	768.96M	778.52M	719.89M	596.98M	616.23M	579.97M
Stockholders Equity	2.75B	2.71B	2.66B	2.57B	2.43B	521.71M
Cash Flow
Free Cash Flow	259.08M	261.97M	197.61M	96.50M	435.05M	293.38M
Operating Cash Flow	281.09M	277.12M	215.41M	109.00M	462.51M	301.98M
Investing Cash Flow	449.87M	519.85M	-84.09M	-2.62B	398.41M	554.88M
Financing Cash Flow	-3.15M	-2.79M	-192.87M	-139.98M	1.57B	-426.41M

SCE Intelligent Commercial Management Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0606, the sentiment is Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.28, and above the 200-day MA of 0.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0606.

SCE Intelligent Commercial Management Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2205	73 Outperform	HK$497.00M	11.81	5.26%	8.79%	-5.08%	27.33%
9928	68 Neutral	HK$540.28M	18.33	1.96%	6.09%	1.97%	-67.03%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$334.08M	7.84	3.28%	6.38%	-14.43%	-77.55%
0606	63 Neutral	HK$532.13M	47.41	0.38%	―	-5.91%	-94.58%
0021	54 Neutral	HK$345.85M	-10.00	-4.27%	―	1303.01%	-45.00%
0727	45 Neutral	HK$254.37M	10.85	-7.00%	―	-49.07%	94.90%

SCE Intelligent Commercial Management Holdings Limited Corporate Events

SCE Intelligent Commercial Management Reports Interim Results for H1 2025

SCE Intelligent Commercial Management Holdings Limited announced its interim results for the six months ended June 30, 2025, reporting a revenue of approximately RMB588.3 million and a gross profit margin of 30.9%. The profit attributable to the owners was RMB34.1 million, reflecting a decrease compared to the previous year. The company managed a total gross floor area of 35.0 million sq.m., indicating its continued strong market presence despite a decline in profit before tax and total comprehensive income compared to the same period in 2024.

The most recent analyst rating on (HK:0606) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on SCE Intelligent Commercial Management Holdings Limited stock, see the HK:0606 Stock Forecast page.

SCE Intelligent Commercial Management Announces Upcoming Board Meeting

SCE Intelligent Commercial Management Holdings Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the unaudited interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial health and potential returns on investment.

SCE Intelligent Commercial Management Issues Profit Warning Amid Economic Challenges

SCE Intelligent Commercial Management Holdings Limited has issued a profit warning, indicating a significant decrease in profit for the first half of 2025 compared to the same period in 2024. The expected profit drop is attributed to reduced revenue from high-margin value-added services and impairment losses on trade receivables due to an unfavorable macroeconomic environment. The company’s interim financial results are anticipated to be released by the end of August 2025.