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

• Market Cap: HK$619.20M
• Dividend Yield: N/A
• Average Volume (3M): 217.51K
• Price to Earnings (P/E): 55.2
• Beta (1Y): 0.95
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$0.35 ▲(28.15% Upside)

The score is driven primarily by mixed financial performance: a strong, low-leverage balance sheet supports stability, but sharply weaker margins and missing 2024 operating/free cash flow raise material execution and liquidity concerns. Technical indicators are constructive (price above key moving averages with positive MACD and RSI), but valuation is a notable headwind given the very high P/E and no dividend yield data.

Positive Factors

Balance sheet strength

Very low leverage and a high equity ratio give SCE durable financial flexibility to absorb cyclical shocks and fund operations or investments without relying on external debt. This stability supports continued service delivery and optionality for strategic spending over the medium term.

Recurring fee-based model

A core business of property and commercial operations management generates recurring service fees across property/asset management, commercial operations and value‑added services. That fee-based model provides a structurally steady revenue base less sensitive to short-term market trading moves, supporting medium-term predictability.

Positive operating margins

Despite margin compression, the company still reports positive EBIT and EBITDA margins, indicating underlying operating profitability. Positive operating margins provide a foundation to cover fixed costs, invest in service quality, and recover margins if occupancy or pricing conditions stabilize over a multi‑month horizon.

Negative Factors

Zero operating / free cash flow

The absence of operating and free cash flow in 2024 severely reduces internal funding for capex, working capital, dividends or acquisitions. Even with a strong balance sheet, persistent zero FCF would force reliance on external financing or equity, constraining strategic flexibility and capital allocation over time.

Revenue decline and margin compression

Sequential revenue decline and a sharp drop in net margin materially weaken earnings power and cash generation. This deterioration suggests pricing, mix or cost pressures that, if persistent, reduce reinvestment capacity, impair competitive positioning, and strain returns to shareholders over the medium term.

Falling return on equity

A steep ROE decline signals lower efficiency in converting equity into profits and may reflect structural operational or margin issues. Persistently weak ROE undermines shareholders' long‑term returns, limits access to growth capital, and raises the bar for management to restore profitable growth.

SCE Intelligent Commercial Management Holdings Limited Business Overview & Revenue Model

Company Description

SCE Intelligent Commercial Management Holdings Limited provides property management services for commercial and residential properties in the People's Republic of China. Its portfolio of commercial properties includes shopping malls and office buildings. The company provides property management services under Cippon Tai Wo, SCE FUNWORLD, and SCE PLAZA brands. As of December 31, 2021, it had 128 residential projects under management with an aggregate gross floor area (GFA) under management of approximately 20.8 million square meters; 16 commercial properties under management with a total GFA under management of approximately 1.6 million square meters; and 255 commercial and 144 residential contracted projects under management with a total contracted (GFA) of approximately 46.1 million square meters. The company was formerly known as China SCE Commercial Holdings Limited and changed its name to SCE Intelligent Commercial Management Holdings Limited in November 2020. SCE Intelligent Commercial Management Holdings Limited was founded in 2003 and is headquartered in Shanghai, the People's Republic of China.

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

Mixed fundamentals: the balance sheet is strong with very low leverage (debt-to-equity 0.07) and a high equity ratio (77.2%), but profitability weakened sharply in 2024 with declining revenue and a net margin drop (20.6% to 4.7%). Cash flow is a key risk, with operating and free cash flow absent in 2024 and free cash flow falling from $197.6M in 2023 to $0.

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: Positive
• Last Price: 0.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.27 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.28, and below the 200-day MA of 0.28, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.25 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9928	68 Neutral	HK$510.81M	17.33	1.96%	7.09%	1.97%	-67.03%
0606	66 Neutral	HK$619.20M	55.17	0.38%	―	-5.91%	-94.58%
2205	66 Neutral	HK$959.00M	22.80	5.26%	4.14%	-5.08%	27.33%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$305.02M	7.16	3.28%	6.60%	-14.43%	-77.55%
0021	52 Neutral	HK$353.80M	-10.11	-4.27%	―	1303.01%	-45.00%
0727	45 Neutral	HK$890.29M	-36.46	-7.00%	―	-49.07%	94.90%

SCE Intelligent Commercial Management Holdings Limited Corporate Events

SCE Intelligent Commercial Management Redirects IPO Proceeds Toward Property and Project Company Acquisitions

SCE Intelligent Commercial Management Holdings Limited has clarified that the portion of its IPO net proceeds originally earmarked for strategic acquisitions and investments in other property management companies and service providers will instead be used to acquire properties or project companies holding properties, as part of its broader strategy to solidify its market position through portfolio expansion and operational efficiency. Citing the continued slowdown in China’s real estate and property management sectors but the emergence of attractive asset opportunities, the company expects higher financial returns and stronger market positioning by owning and operating project companies or assets, and it has committed to update shareholders on the deployment of these funds through its annual and interim reports, with further announcements to be made in line with listing and legal requirements.

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 Redirects Remaining IPO Funds to Strategic Project Investments

SCE Intelligent Commercial Management Holdings Limited has announced a further change in the allocation and timing of the use of its remaining net proceeds from its 2021 Hong Kong listing. Of the approximately HK$2,037.5 million originally raised, about HK$1,482.3 million had been used by 30 November 2025, leaving HK$555.2 million unutilised. The board has resolved to reallocate this remaining amount—HK$447.7 million originally earmarked for investment in technology and HK$107.5 million originally intended for expanding value-added services—towards strategic acquisitions and investments in project companies and/or assets, and to extend the expected deadline for full utilisation of these funds to on or before 31 December 2027. This shift indicates a strategic pivot from internal technology and service expansion to external growth via project and asset investments, which could reshape the Group’s growth profile, capital deployment priorities and risk-return mix for shareholders and other stakeholders.

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.