Sunac Services Holdings Ltd. (1516) AI Stock Analysis

• Market Cap: HK$5.78B
• Dividend Yield: 8.3%
• Average Volume (3M): 10.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -2.43%
• EPS Growth: -7.97%
• Country: HK
• Employees: 27,051
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): 0.12
• Shares Outstanding: 3,056,844,000
• 10 Day Avg. Volume: 16,820,682
• 30 Day Avg. Volume: 10,040,896
• PEG Ratio: -0.18
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.15
• 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$1.90
• Price Target Upside: 1.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$2.00 ▲(6.38%Upside)

The overall score reflects significant financial challenges due to declining revenues and profitability issues, despite strong technical momentum. The high dividend yield is appealing, but the negative P/E ratio suggests caution. The stock's positive technical indicators are overshadowed by fundamental weaknesses.

Positive Factors

Investment Opportunities

Recent sell-offs may offer entry window for a policy-driven rally; continue to prefer property managers given likelihood to reverse their relative underperformances vs developers.

Market Sentiment

Recent policy shift marks a near-term floor for sentiment, with funds-driven re-rating to continue in the near-term.

Negative Factors

Earnings Outlook

Multiple headwinds weighing on near-term earnings outlook.

Fee Collection Challenges

There is also growing difficulty in collecting outstanding fees due to property owners' dissatisfaction with delayed project deliveries, increasing the risk of further impairments.

Revenue Pressure

Property management revenue will likely remain under pressure due to ongoing competitive market dynamics.

Sunac Services Holdings Ltd. Business Overview & Revenue Model

Company Description

Sunac Services Holdings Ltd. (1516) is a leading property management service provider in China. The company focuses on offering a comprehensive range of services across residential and commercial properties. Its core offerings include property management, community value-added services, and value-added services to non-property owners. Sunac Services Holdings Ltd. operates primarily in the real estate sector, catering to various needs of property owners and residents.

How the Company Makes Money

Sunac Services Holdings Ltd. generates revenue primarily through its property management services, which include maintaining and managing residential and commercial properties. Key revenue streams include management fees collected from property owners for services like security, cleaning, landscaping, and maintenance. Additionally, the company earns from community value-added services, which involve providing bespoke services such as home decoration, repair, and maintenance services to residents. The company also engages in value-added services for non-property owners, including consultancy and project management services for property developers. Strategic partnerships with real estate developers and a large portfolio of managed properties significantly contribute to the company's earnings.

Sunac Services Holdings Ltd. Financial Statement Overview

Summary

Sunac Services Holdings Ltd. faces significant profitability and liquidity challenges, marked by declining revenues, negative income, and cash flow issues. While the company maintains a low debt profile, its shrinking equity and asset base indicate potential financial instability. Strategic improvements in revenue generation and cost management are essential to strengthen the company's financial health.

Income Statement

Sunac Services Holdings Ltd. has experienced declining revenue with a negative revenue growth rate of -0.57% from 2023 to 2024. The company has also reported negative net income and EBIT over the last two years, resulting in negative net profit and EBIT margins. This suggests significant profitability challenges. Gross profit margin has decreased over the years, indicating declining efficiency in managing production costs relative to revenue.

Balance Sheet

The company maintains a healthy equity ratio of 48.78% in 2024, indicating strong asset backing by equity. However, the decreasing stockholders' equity and total assets over the years suggest weakening financial stability. The debt-to-equity ratio is low at 0.02, reflecting minimal reliance on debt, which reduces financial risk. However, the declining trend in equity and assets warrants caution.

Cash Flow

Sunac Services Holdings Ltd. had positive free cash flow in 2023 but saw a significant decline to zero in 2024, highlighting potential liquidity issues. The absence of operating and investing cash flows in 2024 raises concerns about cash management and future operational sustainability. The inability to generate free cash flow to net income ratio suggests inefficiencies in converting income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.97B	7.01B	7.13B	7.90B	4.62B
Gross Profit	1.53B	1.67B	1.60B	2.49B	1.28B
EBITDA	-437.31M	-171.40M	-584.32M	1.65B	901.13M
Net Income	-451.20M	-435.07M	-481.90M	1.28B	596.80M
Balance Sheet
Total Assets	10.59B	11.64B	12.49B	13.47B	12.96B
Cash, Cash Equivalents and Short-Term Investments	4.04B	4.33B	4.67B	5.74B	9.57B
Total Debt	120.80M	118.44M	144.92M	120.94M	41.25M
Total Liabilities	5.27B	5.41B	4.72B	4.80B	3.22B
Stockholders Equity	5.17B	6.04B	7.60B	8.50B	9.68B
Cash Flow
Free Cash Flow	124.74M	773.07M	-520.65M	-533.07M	983.26M
Operating Cash Flow	186.18M	862.24M	-394.81M	-386.85M	1.02B
Investing Cash Flow	400.47M	368.35M	-519.30M	-1.33B	-1.37B
Financing Cash Flow	-541.17M	-1.13B	-519.70M	-2.32B	8.63B

Sunac Services Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.88
• 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:1516, the sentiment is Positive. The current price of 1.88 is above the 20-day moving average (MA) of 1.78, above the 50-day MA of 1.71, and above the 200-day MA of 1.63, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1516.

Sunac Services Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6989	80 Outperform	HK$1.84B	5.45	8.56%	8.32%	5.84%	0.84%
3658	79 Outperform	HK$1.63B	6.62	18.89%	8.30%	15.31%	3.39%
6666	58 Neutral	HK$8.97B	7.81	2935.68%	―	0.27%	-35.07%
0021	55 Neutral	HK$504.85M	28.60	2.08%	―	450.21%	―
Sector *	54 Neutral	$1.19B	3.66	0.13%	6.36%	-2.13%	-128.06%
1516	50 Neutral	HK$5.78B	―	-8.05%	8.30%	-2.43%	-7.97%

Sunac Services Holdings Ltd. Corporate Events

Sunac Services Holdings Ltd. AGM Resolutions Passed

Sunac Services Holdings Ltd. recently held its Annual General Meeting on May 22, 2025, where all proposed resolutions were passed by poll. Key resolutions included the adoption of the company’s audited financial statements for 2024, the declaration of a final dividend, the re-election of several directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, the board was authorized to issue and buy back shares within specified limits. These resolutions reflect the company’s ongoing commitment to governance and shareholder value, potentially impacting its market position and investor confidence.

The most recent analyst rating on (HK:1516) stock is a Hold with a HK$1.90 price target. To see the full list of analyst forecasts on Sunac Services Holdings Ltd. stock, see the HK:1516 Stock Forecast page.

Sunac Services Holdings Ltd. Declares Final Dividend for 2024

Sunac Services Holdings Ltd. announced a final dividend of RMB 0.143 per share for the financial year ending December 31, 2024, which will be paid in HKD at an exchange rate of RMB 1 to HKD 1.089, resulting in HKD 0.156 per share. This announcement reflects the company’s commitment to returning value to its shareholders and may positively impact its market positioning by demonstrating financial stability and rewarding investor confidence.

The most recent analyst rating on (HK:1516) stock is a Hold with a HK$1.90 price target. To see the full list of analyst forecasts on Sunac Services Holdings Ltd. stock, see the HK:1516 Stock Forecast page.

Sunac Services Holdings Ltd. Announces 2025 Annual General Meeting and Key Resolutions

Sunac Services Holdings Ltd. has announced its upcoming annual general meeting scheduled for May 22, 2025, where shareholders will consider several key resolutions. These include the adoption of the company’s audited financial statements for 2024, the declaration of a final dividend, re-election of directors, and re-appointment of PricewaterhouseCoopers as auditors. Additionally, the board seeks approval to allot and issue new shares, which could potentially impact the company’s capital structure and shareholder value.

Sunac Services Holdings Ltd. Exits Zhangtai Services Group in Strategic Move

Sunac Services Holdings Ltd. announced its strategic decision to exit from Zhangtai Services Group by selling its 80% equity interest in Guangxi Zhangtai Sunac Smart to Guangxi Laozhangjia for RMB826.62 million. This move is part of the company’s strategy to concentrate resources and management on Tier 1 and Tier 2 cities, potentially enhancing its operational focus and market positioning.