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): 1.07
• 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

• Rating: 59 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The overall stock score is primarily influenced by the company's financial performance, which shows stability in equity but faces challenges with declining revenue and cash flow issues. Technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, further impacting the score.

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

SCE Intelligent Commercial Management Holdings Limited generates revenue primarily through service fees charged for its property management services. These services include facility management, leasing, security, cleaning, and maintenance, as well as value-added services that enhance tenant experience and property value. The company leverages technology to deliver intelligent management solutions, thereby optimizing operational costs and enhancing service quality. Significant partnerships with property developers and building owners contribute to a steady stream of management contracts, providing a stable revenue base. Additionally, the company's focus on innovation and technology-driven solutions enables it to offer premium services, which can command higher fees and thus boost revenue.

SCE Intelligent Commercial Management Holdings Limited Financial Statement Overview

Summary

The company shows 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	8.21M	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: Neutral
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and above the 200-day MA of 0.27, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$469.00M	11.15	5.26%	8.66%	-5.08%	27.33%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9928	65 Neutral	HK$530.45M	17.67	1.96%	6.96%	1.97%	-67.03%
3662	63 Neutral	HK$326.81M	7.67	3.28%	6.31%	-14.43%	-77.55%
0606	59 Neutral	HK$532.13M	47.41	0.38%	―	-5.91%	-94.58%
0021	48 Neutral	HK$389.57M	28.14	-4.27%	―	1303.01%	-45.00%
0727	42 Neutral	HK$352.94M	14.93	6.51%	―	-39.27%	―

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.