Soundwill Holdings (0878) AI Stock Analysis

• Market Cap: HK$1.83B
• Dividend Yield: 16%
• Average Volume (3M): 63.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -68.13%
• EPS Growth: -124.14%
• Country: HK
• Employees: 302
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -4.72
• Shares Outstanding: 283,308,650
• 10 Day Avg. Volume: 53,920
• 30 Day Avg. Volume: 63,813
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 2.24
• 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: 49 Neutral
• Price Target: HK$6.00 ▼(-4.31% Downside)

Soundwill Holdings' financial performance is the most significant factor, with strong revenue growth overshadowed by persistent net losses and cash flow issues. Technical analysis suggests stability, but valuation concerns persist due to a negative P/E ratio, despite a high dividend yield.

Positive Factors

Strong Equity Base

A robust equity base provides financial stability and resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Revenue Growth

Significant revenue growth indicates successful market penetration and demand for the company's properties, supporting long-term business expansion.

Low Debt Levels

Low debt levels reduce financial risk and interest obligations, providing more flexibility for strategic investments and operational stability.

Negative Factors

Persistent Net Losses

Ongoing net losses undermine profitability and can erode shareholder value, posing a risk to long-term financial health and sustainability.

Negative Cash Flows

Lack of positive cash flows indicates liquidity challenges and operational inefficiencies, which can limit the company's ability to fund growth and meet obligations.

Negative Return on Equity

Negative return on equity reflects inefficiencies in generating returns from shareholders' investments, impacting investor confidence and capital raising ability.

Soundwill Holdings Business Overview & Revenue Model

Company Description

Soundwill 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 Money

Soundwill Holdings generates revenue primarily through the sale and leasing of residential and commercial properties. The company develops properties that are sold to end-users or investors, which constitutes a significant portion of its revenue. Additionally, Soundwill earns income from leasing its commercial spaces, providing a steady stream of rental income. The company may also engage in property management services, enhancing its revenue through service fees. Strategic partnerships with other real estate developers and local government bodies can further support its growth and revenue, enabling Soundwill to capitalize on emerging market opportunities and maintain a competitive edge in the property sector.

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 flows are significant concerns.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	380.33M	1.23B	395.89M	490.17M	575.87M	690.29M
Gross Profit	380.33M	701.03M	353.49M	407.58M	498.44M	610.89M
EBITDA	139.79M	-2.33B	240.75M	298.56M	355.90M	317.09M
Net Income	-2.85B	-2.49B	-646.51M	-268.20M	-807.93M	-185.81M
Balance Sheet
Total Assets	16.62B	17.98B	21.00B	22.22B	22.28B	23.14B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.15B	1.14B	1.43B	1.16B	1.15B
Total Debt	911.60M	1.40B	1.55B	1.83B	1.90B	1.87B
Total Liabilities	2.27B	2.30B	2.54B	3.05B	2.73B	2.75B
Stockholders Equity	14.35B	15.68B	18.46B	19.17B	19.53B	20.37B
Cash Flow
Free Cash Flow	423.56M	684.82M	9.11M	74.11M	326.00M	268.18M
Operating Cash Flow	423.56M	687.42M	9.11M	74.51M	336.63M	271.85M
Investing Cash Flow	-924.09M	-319.19M	-198.66M	355.85M	-56.76M	186.74M
Financing Cash Flow	-136.51M	-538.05M	-423.36M	-196.12M	-48.47M	-154.50M

Soundwill Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.27
• 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:0878, the sentiment is Positive. The current price of 6.27 is below the 20-day moving average (MA) of 6.31, above the 50-day MA of 6.23, and below the 200-day MA of 6.32, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 74.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0878.

Soundwill Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9983	66 Neutral	HK$688.62M	2.90	11.48%	18.38%	-2.61%	―
6989	66 Neutral	HK$1.00B	3.16	7.55%	16.21%	-0.79%	-3.46%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0158	55 Neutral	HK$1.55B	-2.42	-9.50%	5.48%	-3.49%	-309.61%
0093	51 Neutral	HK$1.12B	35.90	2.84%	―	37.85%	134.00%
0878	49 Neutral	HK$1.83B	-0.64	-18.18%	16.00%	-68.13%	-124.14%
0108	42 Neutral	HK$7.37B	-7.99	-44.97%	―	-16.28%	-444.68%

Soundwill Holdings Corporate Events

Soundwill Strengthens Governance with New Remuneration Committee Appointment

Soundwill Holdings Limited, a Bermuda-incorporated company listed in Hong Kong, operates through a board comprising both executive and independent non-executive directors overseeing its corporate governance and strategic direction.

The company has adjusted the composition of its Remuneration Committee, appointing independent non-executive director Young Chun Man, Kenneth as a committee member with effect from 14 January 2026, a move that signals continued emphasis on independent oversight of directors’ and senior management’s pay structures and reinforces its corporate governance framework for stakeholders.

The most recent analyst rating on (HK:0878) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Soundwill Holdings stock, see the HK:0878 Stock Forecast page.

Soundwill Updates Board and Committee Structure to Reinforce Governance

Soundwill Holdings Limited, a Bermuda-incorporated company listed in Hong Kong, has announced an updated composition of its board of directors and board committees, effective 14 January 2026. The board comprises four executive directors, including Chairman Mr. Chan Hing Tat and Vice Chairman Ms. Chan Wai Ling, and three independent non-executive directors, reflecting a standard Hong Kong listed-company governance structure with oversight spread across nomination, remuneration and audit functions.

The company confirmed the latest appointments and role allocations within its three key board committees, with Mr. Chan Kai Nang chairing both the nomination and audit committees and Mr. Chan Hing Tat chairing the remuneration committee. This refreshed governance lineup underscores Soundwill’s emphasis on maintaining independent oversight and clearly defined responsibilities at board level, which is likely aimed at reinforcing corporate governance standards and assuring stakeholders of robust board and committee supervision.

The most recent analyst rating on (HK:0878) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Soundwill Holdings stock, see the HK:0878 Stock Forecast page.