Shimao Services Holdings Limited (0873) AI Stock Analysis

• Market Cap: HK$1.53B
• Dividend Yield: N/A
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: -8.22%
• EPS Growth: -248.87%
• Country: HK
• Employees: 35,633
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): <0.01
• Shares Outstanding: 2,468,173,000
• 10 Day Avg. Volume: 2,430,823
• 30 Day Avg. Volume: 2,792,834
• PEG Ratio: 0.04
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -19.60
• 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: HK$0.67
• Price Target Upside: 12.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: HK$0.50 ▼(-15.25% Downside)

Shimao Services Holdings Limited faces significant financial challenges, with declining revenues and profitability, and negative cash flow from operations. The technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Strong Balance Sheet

A strong equity position with a high equity ratio provides financial stability and flexibility, allowing the company to navigate economic challenges and invest in growth opportunities.

Strategic Partnerships

Strategic partnerships enhance service offerings and expand the customer base, supporting long-term growth through increased market reach and diversified revenue streams.

Industry Demand

Rising demand for property management services driven by urbanization and higher living standards provides a strong market tailwind, supporting sustained revenue growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or competitive positioning, potentially impacting long-term profitability and growth prospects.

Negative Cash Flow

Negative cash flow from operations suggests difficulties in generating cash, which may hinder the company's ability to fund operations and growth without external financing.

Profitability Challenges

Transitioning to a net loss position highlights operational inefficiencies and profitability challenges, which could affect the company's ability to sustain long-term growth and shareholder value.

Shimao Services Holdings Limited Business Overview & Revenue Model

Company Description

Shimao Services Holdings Limited, an investment holding company, provides property management and community living services in the People's Republic of China. It operates in two segments, Property Management and Related Services; and City Services. The company offers property management services, including security, cleaning, greening and gardening, repair, and maintenance services to construction, gardening, and other property management companies. It also provides community value added services, such as community asset management, carpark asset operation, campus value-added, and retail services; sells hardware devices and software products; and home decoration services, including supply chain services of decoration materials, and marketing and promotion services to property owners and developers, technology companies, and other property management companies. In addition, the company offers value-added services, which comprise display units and property sales venue management, preliminary planning and design consultancy, and repair and maintenance management services to property developers; and city services that include sanitation, cleaning, and sewage and waste treatment. Further, it is involved in the real estate agency, wholesale and retail trading, construction decoration and other construction, education, enterprises management consulting, household management, engineering construction, and hotel management businesses. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China. Shimao Services Holdings Limited is a subsidiary of Best Cosmos Limited.

How the Company Makes Money

Shimao Services Holdings Limited generates revenue through multiple streams, primarily from its property management services, which include managing residential communities and commercial properties. The company charges management fees based on the area and services provided, leading to a steady income from long-term contracts with property developers and owners. Additionally, Shimao Services earns revenue from value-added services, such as cleaning, landscaping, security, and maintenance services, which often come with additional fees. The company may also form strategic partnerships with local governments and real estate developers to enhance service offerings and expand its customer base, further contributing to its earnings. Overall, its diversified service portfolio and strategic relationships in the real estate sector play a crucial role in its revenue generation.

Shimao Services Holdings Limited Financial Statement Overview

Summary

Shimao Services Holdings Limited is experiencing financial strain, evidenced by declining revenues and profitability, as well as operational cash flow issues. While its balance sheet remains strong in terms of equity and liquidity, the company must address profitability and cash flow generation to improve its financial health.

Income Statement

Shimao Services Holdings Limited has faced declining revenue over recent years, with a notable revenue drop from 2023 to 2024. The gross profit margin has decreased, and the company has moved from a net income to a net loss position, indicating profitability challenges. The negative EBIT and EBITDA margins in 2024 further highlight operational inefficiencies.

Balance Sheet

The company maintains a strong equity position with an equity ratio consistently above 50%. However, the debt-to-equity ratio has risen slightly, suggesting increased leverage. Despite this, the company retains a solid cash position, with cash and equivalents surpassing total debt, indicating good liquidity.

Cash Flow

Cash flow from operations turned negative in recent years, indicating issues in generating cash from core operations. Free cash flow has also been inconsistent, with significant negative values in some periods, reflecting potential challenges in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.48B	7.90B	8.20B	8.64B	8.34B	5.03B
Gross Profit	1.43B	1.53B	1.65B	1.94B	2.39B	1.58B
EBITDA	506.89M	675.54M	826.15M	-393.09M	1.50B	975.90M
Net Income	-447.81M	-272.36M	273.25M	-927.12M	1.11B	692.95M
Balance Sheet
Total Assets	13.36B	12.99B	14.24B	14.60B	18.16B	10.91B
Cash, Cash Equivalents and Short-Term Investments	4.81B	3.94B	4.83B	4.76B	9.84B	5.83B
Total Debt	33.95M	43.77M	368.28M	615.17M	3.24B	50.70M
Total Liabilities	5.44B	4.95B	5.59B	6.23B	8.93B	4.16B
Stockholders Equity	7.63B	7.66B	7.92B	7.57B	8.53B	6.45B
Cash Flow
Free Cash Flow	228.44M	-108.32M	786.86M	-1.75B	1.09B	869.54M
Operating Cash Flow	247.17M	201.37M	1.03B	-1.51B	1.21B	964.13M
Investing Cash Flow	-2.19B	-1.34B	921.38M	-2.93B	-1.24B	175.93M
Financing Cash Flow	-295.53M	-478.58M	-470.81M	-3.09B	4.15B	4.01B

Shimao Services Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0873, the sentiment is Neutral. The current price of 0.59 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.63, and below the 200-day MA of 0.74, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0873.

Shimao Services Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3658	78 Outperform	HK$1.57B	6.34	18.19%	9.95%	10.09%	2.39%
6668	75 Outperform	HK$1.42B	8.51	12.19%	9.78%	-7.04%	-6.89%
6989	66 Neutral	HK$1.04B	3.24	7.55%	16.21%	-0.79%	-3.46%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2215	58 Neutral	HK$243.24M	7.12	4.11%	―	-7.17%	-22.01%
0873	42 Neutral	HK$1.53B	-3.09	-5.89%	―	-8.22%	-248.87%

Shimao Services Holdings Limited Corporate Events

Shimao Services Forms RMB283 Million Partnership for Liaoning Sewage Treatment Project

Shimao Services’ indirect wholly owned unit Shanghai Shimao Tianjing has entered into a partnership with Huludao Yongsheng to invest in and operate a sewage treatment project in Xingcheng City, Huludao, Liaoning Province, China. Under the agreement, the new limited partnership, to be named Liaoning Qisheng Project Management Consultancy Partnership (Limited Partnership) subject to regulatory approval, will have total committed capital of RMB283 million, with Shanghai Shimao Tianjing contributing 99% and Huludao Yongsheng 1%, funded from Shimao’s internal resources. Huludao Yongsheng will act as the executive general partner, overseeing day-to-day management and reporting, while the structure marks a discloseable transaction under Hong Kong listing rules, signalling Shimao Services’ continued push into environmental infrastructure operations and potentially strengthening its position in the growing urban sewage treatment and public-utility services market in China.

The most recent analyst rating on (HK:0873) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shimao Services Holdings Limited stock, see the HK:0873 Stock Forecast page.

Shimao Services Enters New Agreements with Shimao Group Holdings

Shimao Services Holdings Limited has entered into new Continuing Connected Transactions (CCT) Agreements with Shimao Group Holdings, effective from November 5, 2025, to December 31, 2028. These agreements, which include leasing, carpark sales agency services, and other operational services, are subject to reporting and review requirements under Hong Kong’s Listing Rules but do not require independent shareholder approval. This move signifies ongoing collaboration with its major shareholder and aims to strengthen its operational capabilities and market positioning.

The most recent analyst rating on (HK:0873) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shimao Services Holdings Limited stock, see the HK:0873 Stock Forecast page.