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

• Market Cap: HK$551.47M
• Dividend Yield: N/A
• Average Volume (3M): 434.53K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.04
• Revenue Growth: -4.66%
• EPS Growth: -77.08%
• Country: HK
• Employees: 4,893
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): -0.01
• Shares Outstanding: 1,935,000,000
• 10 Day Avg. Volume: 265,500
• 30 Day Avg. Volume: 434,533
• PEG Ratio: -0.15
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.73
• 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

• Rating: 67 Neutral
• Price Target: HK$0.50 ▲(78.57%Upside)

The overall stock score of 67 reflects mixed financial performance due to declining revenue and profit margins, despite a strong equity base. Technical analysis suggests bullish momentum but highlights potential overbought conditions. Valuation is reasonable, but the lack of dividends reduces attractiveness for income investors.

SCE Intelligent Commercial Management Holdings Limited Business Overview & Revenue Model

Company Description

SCE Intelligent Commercial Management Holdings Limited (0606) operates within the commercial property management sector, providing a comprehensive range of services tailored to enhance the value and efficiency of commercial properties. The company specializes in offering intelligent and innovative solutions for property management, focusing on improving operational efficiencies and customer satisfaction through technology-driven approaches.

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

SCE Intelligent Commercial Management Holdings Limited shows mixed financial performance with strong equity and low leverage. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.25B	1.18B	1.23B	805.28M
Gross Profit	354.91M	409.74M	429.96M	580.87M	356.58M
EBITDA	66.88M	223.87M	298.85M	395.71M	228.74M
Net Income	56.96M	257.05M	208.07M	280.61M	155.73M
Balance Sheet
Total Assets	3.51B	3.40B	3.18B	3.06B	1.12B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.16B	1.23B	2.90B	503.94M
Total Debt	5.42M	665.00K	665.00K	8.21M	0.00
Total Liabilities	778.52M	719.89M	596.98M	616.23M	579.97M
Stockholders Equity	2.71B	2.66B	2.57B	2.43B	521.71M
Cash Flow
Free Cash Flow	261.97M	197.61M	96.50M	435.05M	293.38M
Operating Cash Flow	277.12M	215.41M	109.00M	462.51M	301.98M
Investing Cash Flow	519.85M	-84.09M	-2.62B	398.41M	554.88M
Financing Cash Flow	-2.79M	-192.87M	-139.98M	1.57B	-426.41M

SCE Intelligent Commercial Management Holdings Limited Technical Analysis

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

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 0.28 is below the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.27, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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
2205	75 Outperform	HK$497.00M	9.47	6.75%	8.17%	0.99%	18.86%
3662	75 Outperform	HK$413.96M	3.97	8.37%	9.35%	-14.98%	-39.71%
0606	67 Neutral	HK$551.47M	8.93	2.12%	―	-4.66%	-77.08%
Sector *	62 Neutral	AU$2.95B	8.45	2.58%	5.09%	18.21%	47.14%
0021	55 Neutral	HK$516.78M	30.23	2.08%	―	450.21%	―
9928	55 Neutral	HK$550.10M	107.69	0.35%	6.96%	-5.18%	―
0727	46 Neutral	HK$419.71M	17.91	6.51%	―	-39.27%	―

SCE Intelligent Commercial Management Holdings Limited Corporate Events

SCE Intelligent Commercial Management Announces Nomination Committee Changes

SCE Intelligent Commercial Management Holdings Limited has announced changes to its Nomination Committee, effective from June 23, 2025. These changes include the appointment of Ms. Ku Weihong as a member, the redesignation of Mr. Wang Yongping as chairman, and the cessation of Mr. Wong Lun as a member and chairman. The adjustments align with amendments to the Hong Kong Stock Exchange’s Listing Rules and Corporate Governance Code, aiming to enhance the committee’s effectiveness, diversity, and overall corporate governance practices.

SCE Intelligent Commercial Management Holdings Announces Board Composition

SCE Intelligent Commercial Management Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of both executive and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making processes within the organization.

SCE Intelligent Commercial Management Holdings Forms Nomination Committee to Enhance Governance

SCE Intelligent Commercial Management Holdings Limited has established a Nomination Committee as part of its governance structure. This committee, composed mainly of independent non-executive directors, is tasked with reviewing the board’s composition and recommending qualified individuals for board membership. The committee’s formation aims to enhance the company’s corporate strategy by ensuring a diverse and skilled board, potentially impacting its governance and stakeholder relations positively.

SCE Intelligent Commercial Management Announces Change of Business Location

SCE Intelligent Commercial Management Holdings Limited has announced a change in its principal place of business in Hong Kong, effective June 18, 2025. This move may indicate a strategic shift or operational adjustment within the company, potentially affecting its stakeholders and market positioning.

SCE Intelligent Commercial Management Approves AGM Resolutions

SCE Intelligent Commercial Management Holdings Limited announced that all resolutions proposed at its Annual General Meeting were approved by shareholders. Key resolutions included the approval of audited financial statements, re-election of directors, re-appointment of auditors, and granting of mandates to the board for share issuance and repurchase. These approvals are expected to strengthen the company’s governance and operational capabilities, potentially enhancing its market position and stakeholder confidence.