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Soundwill Holdings Limited (HK:0878)
:0878

Soundwill Holdings (0878) AI Stock Analysis

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HK

Soundwill Holdings

(OTC:0878)

Rating:40Neutral
Price Target:
HK$5.00
▼(-16.53%Downside)
The overall stock score is heavily impacted by the company's financial struggles, including significant net losses and lack of positive cash flow, coupled with negative technical indicators and unattractive valuation. These elements outweigh positive factors such as revenue growth and equity strength.

Soundwill Holdings (0878) vs. iShares MSCI Hong Kong ETF (EWH)

Soundwill Holdings Business Overview & Revenue Model

Company DescriptionSoundwill Holdings Limited, an investment holding company, provides property development, property leasing, and provision of building management services in the People's Republic of China. The company develops medium to high end commercial and residential, as well as industrial properties; and offers building management, repair and maintenance services to large-scale commercial buildings, and small and medium sized residential estates. It also invests in and leases commercial, office, and residential buildings, as well as advertising and mini-storage spaces; and provides property assembly and sales services. The company was founded in 1978 and is headquartered in Causeway Bay, Hong Kong. Soundwill Holdings Limited is a subsidiary of Ko Bee Limited.
How the Company Makes MoneySoundwill Holdings generates revenue primarily through two key streams: property leasing and property development. In the property leasing segment, the company earns income by renting out its portfolio of retail, office, and residential properties to tenants. This provides a steady stream of rental income. In the property development segment, Soundwill Holdings generates revenue by developing and selling residential and commercial properties. The company invests in acquiring land, developing properties, and then selling them at a profit. Additionally, the company may engage in property management services, which can provide supplementary income. Strategic partnerships and joint ventures in property development projects also contribute to its earnings.

Soundwill Holdings Financial Statement Overview

Summary
Soundwill Holdings shows strong revenue growth and a solid equity base, but persistent net losses, negative return on equity, and lack of positive cash flow highlight significant financial risks.
Income Statement
35
Negative
Soundwill Holdings has experienced significant revenue growth in the latest year, increasing from HKD 395.9 million to HKD 1,229.7 million, which is a positive indicator. However, the company has been reporting net losses consistently over the past years, with a net income of -HKD 2,491.9 million in the most recent year. The gross profit margin remains healthy at 100% due to the total revenue equating to gross profit. Despite these positives, the persistent net losses weigh heavily on the overall income statement performance.
Balance Sheet
60
Neutral
The company has a strong equity base with stockholders' equity at HKD 15.68 billion and a relatively low debt-to-equity ratio of 0.03. Return on equity is negative due to net losses, which is a significant concern. The equity ratio is robust at 87.2%, indicating strong asset financing through equity. The balance sheet shows financial stability with manageable debt levels, but profitability issues persist.
Cash Flow
20
Very Negative
Soundwill Holdings has faced challenges in generating positive cash flows, with operating cash flow and free cash flow being HKD 0 in the latest year. Historical free cash flow has been positive but is not sustainable with the current losses. The absence of positive cash flow metrics highlights liquidity risks and operational inefficiencies.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.23B395.89M490.17M575.87M717.68M
Gross Profit701.03M353.49M407.58M498.44M610.89M
EBITDA-2.33B240.75M-125.54M-702.14M-72.98M
Net Income-2.49B-646.51M-268.20M-807.93M-185.81M
Balance Sheet
Total Assets17.98B21.00B22.22B22.28B23.14B
Cash, Cash Equivalents and Short-Term Investments1.15B1.14B1.43B1.16B1.15B
Total Debt1.40B1.55B1.83B1.90B1.87B
Total Liabilities2.30B2.54B3.05B2.73B2.75B
Stockholders Equity15.68B18.46B19.17B19.53B20.37B
Cash Flow
Free Cash Flow684.82M9.11M74.11M326.00M268.18M
Operating Cash Flow672.50M9.11M74.51M336.63M271.85M
Investing Cash Flow-319.19M-198.66M355.85M-56.76M186.74M
Financing Cash Flow-538.05M-423.36M-196.12M-48.47M-154.50M

Soundwill Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5.99
Price Trends
50DMA
6.70
Negative
100DMA
6.77
Negative
200DMA
6.10
Negative
Market Momentum
MACD
-0.16
Negative
RSI
39.47
Neutral
STOCH
70.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0878, the sentiment is Neutral. The current price of 5.99 is above the 20-day moving average (MA) of 5.91, below the 50-day MA of 6.70, and below the 200-day MA of 6.10, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0878.

Soundwill Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$1.78B5.278.56%8.60%5.84%0.84%
64
Neutral
HK$1.48B6.2710.96%12.91%1.88%
61
Neutral
AU$2.86B8.084.17%5.17%17.25%41.52%
55
Neutral
HK$1.51B-4.45%5.63%6.77%-21.05%
46
Neutral
HK$2.32B-45.23%-12.09%-610.64%
40
Neutral
$1.68B-14.58%16.89%205.21%-285.43%
HK$1.60B58.822.49%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0878
Soundwill Holdings
5.99
0.29
5.09%
HK:0158
Melbourne Enterprises Limited
61.00
-4.23
-6.48%
HK:0108
GR Properties Limited
0.73
0.31
73.81%
HK:0093
Termbray Industries International (Holdings) Limited
0.60
0.00
0.00%
HK:9983
Central China New Life Ltd.
1.13
0.05
4.63%
HK:6989
Excellence Commercial Property & Facilities Management Group Limited
1.46
0.20
15.87%

Soundwill Holdings Corporate Events

Soundwill Holdings Announces Board Restructuring
Jun 30, 2025

Soundwill Holdings Limited, a company incorporated in Bermuda, has announced changes to its board of directors, effective from June 30, 2025. The board comprises executive directors including Madam Foo Kam Chu Grace, Ms. Chan Wai Ling, Mr. Chan Hing Tat, and Mr. Tse Wai Hang, as well as independent non-executive directors Mr. Chan Kai Nang, Mr. Pao Ping Wing, and Mr. Young Chun Man, Kenneth. The company has also established three board committees: the Nomination Committee, Remuneration Committee, and Audit Committee, with specific board members assigned to each. These changes reflect the company’s ongoing efforts to strengthen its governance structure and ensure effective oversight and strategic direction.

Soundwill Holdings Updates Nomination Committee Terms to Enhance Governance
Jun 30, 2025

Soundwill Holdings Limited has revised the terms of reference for its Nomination Committee, effective from June 30, 2025. The committee, which consists of at least three directors with a majority being independent non-executive directors, is tasked with reviewing the board’s structure and diversity, assessing director independence, and making recommendations on board appointments and succession planning. This move is aimed at enhancing corporate governance and aligning the board’s composition with the company’s strategic goals.

Soundwill Holdings Announces Changes in Nomination Committee
Jun 30, 2025

Soundwill Holdings Limited announced changes in its Nomination Committee, effective from June 30, 2025. Ms. Chan Wai Ling, an executive director, and Mr. Young Chun Man, Kenneth, an independent non-executive director, have been appointed as new members, potentially impacting the company’s governance and strategic direction.

Soundwill Holdings Secures Shareholder Approval at AGM
Jun 12, 2025

Soundwill Holdings Limited announced the successful passage of all resolutions at its Annual General Meeting held on June 12, 2025. The resolutions included the re-election of directors, approval of financial statements, and granting of mandates for share repurchase and issuance, reflecting strong shareholder support and strategic positioning for future growth.

Soundwill Holdings Announces Contingency Plan for AGM Amid Weather Concerns
Jun 10, 2025

Soundwill Holdings Limited has announced a contingency plan for its Annual General Meeting (AGM) scheduled on 12 June 2025, due to potential adverse weather conditions in Hong Kong. If Typhoon Signal No. 8 or above, extreme conditions, or a Black Rainstorm Warning Signal is in effect, the AGM will be postponed to 18 June 2025, with all resolutions and proxy arrangements remaining unchanged.

Soundwill Holdings Withdraws Proposed Special Dividend
May 26, 2025

Soundwill Holdings Limited announced the withdrawal of a proposed special dividend of HKD 1 per share following the failure to approve the Scheme at the Court Meeting held on May 23, 2025. This decision impacts the company’s financial operations and may influence stakeholder expectations, as the resolutions passed at the Special General Meeting will not take effect.

Soundwill Holdings Privatization Proposal Lapses
May 23, 2025

Soundwill Holdings Limited announced that the proposed privatization by Earning Ease Limited through a scheme of arrangement was not approved by the Scheme Shareholders at the Court Meeting. Consequently, the proposal has lapsed, the special dividend will not be distributed, and the company’s shares will remain listed on the Stock Exchange.

Soundwill Holdings Announces Court Meeting for Shareholder Scheme Approval
Apr 29, 2025

Soundwill Holdings Limited has announced a Court Meeting for Scheme Shareholders to consider and potentially approve a scheme of arrangement. This meeting, directed by the Supreme Court of Bermuda, will take place on May 23, 2025, in Hong Kong. The scheme aims to restructure the company’s arrangements with its shareholders, potentially impacting its operational and financial strategies. Shareholders can vote in person or by proxy, and corporate shareholders may appoint representatives to vote on their behalf.

Soundwill Holdings Announces Strategic Restructuring and Special Dividend
Apr 29, 2025

Soundwill Holdings Limited has announced a special general meeting to consider a scheme involving the reduction of issued share capital and the cancellation of scheme shares, followed by the issuance of new shares to an offeror. The proposal includes the withdrawal of the company’s shares from the Hong Kong Stock Exchange and the declaration of a special dividend, indicating a strategic restructuring that could impact shareholders and market positioning.

Soundwill Holdings Announces Privatization and Delisting Plans
Apr 29, 2025

Soundwill Holdings Limited, in collaboration with Earning Ease Limited, has announced a proposed privatization through a scheme of arrangement under the Companies Act, alongside the withdrawal of its listing and a special dividend. The Independent Board Committee and Altus Capital, acting as the Independent Financial Adviser, have both deemed the proposal fair and reasonable, advising shareholders to vote in favor of the scheme and related resolutions.

Soundwill Holdings Announces Privatization and Special Dividend
Apr 29, 2025

Soundwill Holdings Limited has announced a proposed privatization through a scheme of arrangement, alongside a proposed withdrawal of its listing. Additionally, the company declared a special cash dividend of HKD 1 per share, with key dates for shareholders outlined, indicating a strategic shift that may impact its market presence and shareholder value.

Soundwill Holdings Announces 2025 Annual General Meeting
Apr 16, 2025

Soundwill Holdings Limited has announced its upcoming annual general meeting scheduled for June 12, 2025, in Hong Kong. Key agenda items include the consideration of the company’s audited financial statements for 2024, re-election of directors, re-appointment of auditors, and resolutions regarding share repurchase and issuance mandates. These actions are integral to the company’s governance and operational strategies, potentially impacting its market positioning and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025