Sunac Services Holdings Ltd. (1516) AI Stock Analysis

• Market Cap: HK$4.40B
• Dividend Yield: 11.14%
• Average Volume (3M): 13.39M
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.55
• Revenue Growth: -1.14%
• EPS Growth: N/A
• Country: HK
• Employees: 27,051
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.04
• Shares Outstanding: 3,056,844,000
• 10 Day Avg. Volume: 9,369,986
• 30 Day Avg. Volume: 13,388,767
• PEG Ratio: -1.46
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 37.60
• 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: 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: 53 Neutral
• Price Target: HK$1.50 ▲(7.14% Upside)

Sunac Services Holdings Ltd. faces significant financial challenges with declining revenues and negative income, impacting its overall score. Technical analysis indicates bearish momentum, while the high dividend yield provides some appeal. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Recurring fee-based model

Sunac Services' core revenue comes from recurring property management fees plus ancillary services. This contract-based, fee-for-service model creates steady, predictable revenue streams and customer stickiness, supporting long-term cash flow stability and resilience to cyclical property sales.

Low financial leverage

A very low debt-to-equity ratio reduces refinancing risk and interest burden, giving the company financial flexibility to absorb shortfalls or invest in service expansion. Over months, low leverage preserves liquidity and strategic optionality versus highly indebted peers in the sector.

Operational scale

A large employee base indicates operational scale and capacity to service extensive property portfolios. Scale enables standardized procedures, cross-selling of value-added services, and potential economies in procurement and training, supporting margin improvement and competitive position over time.

Negative Factors

Declining revenue trend

A sustained decline in revenue signals weakening demand or contract churn, which pressures fixed-cost absorption and undermines future profitability. If revenue contraction persists over quarters, the company will face tougher competition for contracts and strained reinvestment capacity.

Negative profitability

Consecutive negative EBIT and net income indicate structural profitability issues rather than cyclical noise. Persistent losses erode reserves, constrain reinvestment in service quality and technology, and may force pricing or cost actions that could impair long-term client retention and growth prospects.

Shrinking equity and assets

Declining shareholders' equity and asset base reduce the balance-sheet buffer against shocks, limit borrowing capacity, and raise financing costs. Over a multi-month horizon this weakens strategic flexibility, hindering growth initiatives and increasing vulnerability to sector stress or contract disputes.

Sunac Services Holdings Ltd. Business Overview & Revenue Model

Company Description

Sunac Services Holdings Limited, an investment holding company, provides property management services, value-added services to non-property owners, and commercial operational and community living services in the People's Republic of China. Its property management portfolio covers residential and non-residential properties. The company offers value-added services comprise sales assistance services to property developers to assist with their sales and marketing activities at property sales venues and display units; consultancy and other value-added services to non-property owners, such as consultancy, pre-delivery, and engineering services to other property management companies; and property agency services to property developers primarily in respect of tourism and vacation projects and car park spaces. It also provides community living services include space operation services, property interior decoration services, real estate brokerage services, sale of use rights of car park spaces, and convenience and other services. In addition, the company offers property leasing, housing repair, and commercial management services. Sunac Services Holdings Limited was founded in 2004 and is headquartered in Tianjin, China.

How the Company Makes Money

Sunac Services Holdings Ltd. generates revenue primarily through its property management services, which involve managing residential, commercial, and public properties. Key revenue streams include property management fees, which are charged for the maintenance and management of these properties. Additionally, the company earns income from value-added services for non-property owners, such as consulting and project management, as well as community value-added services, which include services like home decoration, community space operation, and other lifestyle services provided to residents. These diversified services enable the company to maintain a stable and recurring income stream. Significant partnerships with property developers and local governments also contribute to its earnings by expanding its service offerings and customer base.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.03B	6.97B	7.01B	7.13B	7.90B	4.62B
Gross Profit	1.41B	1.53B	1.67B	1.60B	2.49B	1.28B
EBITDA	87.11M	-437.31M	-171.40M	-587.86M	1.65B	901.13M
Net Income	142.90M	-451.20M	-435.07M	-481.90M	1.28B	596.80M
Balance Sheet
Total Assets	9.93B	10.59B	11.64B	12.49B	13.47B	12.96B
Cash, Cash Equivalents and Short-Term Investments	2.88B	4.04B	4.33B	4.67B	5.74B	9.57B
Total Debt	105.58M	120.80M	118.44M	144.92M	120.94M	41.25M
Total Liabilities	4.70B	5.27B	5.41B	4.72B	4.80B	3.22B
Stockholders Equity	5.08B	5.17B	6.04B	7.60B	8.50B	9.68B
Cash Flow
Free Cash Flow	641.54M	124.74M	773.07M	-520.65M	-533.07M	983.26M
Operating Cash Flow	678.29M	186.18M	862.24M	-394.81M	-386.85M	1.02B
Investing Cash Flow	1.18B	400.47M	368.35M	-519.30M	-1.33B	-1.37B
Financing Cash Flow	-12.86M	-541.17M	-1.13B	-519.70M	-2.32B	8.63B

Sunac Services Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.40
• 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:1516, the sentiment is Neutral. The current price of 1.4 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.44, and below the 200-day MA of 1.63, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 70.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3658	78 Outperform	HK$1.55B	6.28	18.19%	9.95%	10.09%	2.39%
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%
1516	53 Neutral	HK$4.40B	28.63	2.77%	11.14%	-1.14%	―
0021	52 Neutral	HK$353.80M	-10.23	-4.27%	―	1303.01%	-45.00%
6666	51 Neutral	HK$13.08B	12.20	185.17%	―	4.74%	-21.33%

Sunac Services Holdings Ltd. Corporate Events

Sunac Services Settles RMB26 Million in Group Receivables via Car Park Asset Transfers

Sunac Services Holdings has entered into a series of debt settlement agreements with affiliated companies under Sunac Group, under which it will acquire car parking spaces and other properties in Shanghai and Guangzhou in lieu of cash to settle outstanding receivables. The transactions, valued at approximately RMB26.26 million, are classified as connected transactions under Hong Kong listing rules due to Sunac China’s roughly 49% stake in the company; they are subject to reporting, announcement and annual review requirements but are exempt from circular issuance and independent shareholders’ approval, streamlining the process of converting receivables into property assets while staying within regulatory thresholds.

The most recent analyst rating on (HK:1516) stock is a Hold with a HK$1.50 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 Says Shanghai Exchange Sanctions Directors over Sunac Real Estate Disclosure Lapses

Sunac Services Holdings Limited disclosed that its chairman and non-executive director, Wang Mengde, and non-executive director, Gao Xi, have received formal disciplinary sanctions from the Shanghai Stock Exchange in relation to Sunac Real Estate Group Co., Ltd., a wholly owned subsidiary of Sunac China Holdings Limited. The sanctions stem from Sunac Real Estate’s failure to timely disclose overdue debt information between 2022 and 2024 under the Shanghai bourse’s bond listing rules, leading to an official criticism of the entity and both individuals, with the action recorded in an integrity database and reported to the China Securities Regulatory Commission. The board of Sunac Services, excluding Wang and Gao, reviewed the disciplinary notice and concluded the non-compliance was due to objective factors at Sunac Real Estate, expressed continued confidence in the integrity and diligence of both directors, and stated that the sanctions are not expected to have any material adverse impact on the group’s business or operations.

The most recent analyst rating on (HK:1516) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sunac Services Holdings Ltd. stock, see the HK:1516 Stock Forecast page.