Sunac Services Holdings Ltd. (1516) AI Stock Analysis

• Market Cap: HK$5.47B
• Dividend Yield: 8.86%
• Average Volume (3M): 11.58M
• 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: 59
• Industry: Real Estate - Services
• EPS (TTM): 0.12
• Shares Outstanding: 3,056,844,000
• 10 Day Avg. Volume: 10,134,739
• 30 Day Avg. Volume: 11,577,241
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 4.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$2.00 ▲(10.50% 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

Earnings

FY24 results in line, with fruitful dividend on offer.

Market 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.

Negative Factors

Earnings Outlook

Multiple headwinds weighing on near-term earnings outlook.

Revenue Pressure

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

Stakeholder Uncertainty

Correlation with Sunac China remains, as parent’s restructuring re-negotiations could create uncertainty around its c.50% stake in Sunac Services.

Sunac Services Holdings Ltd. Business Overview & Revenue Model

Company Description

Sunac Services Holdings Ltd. (1516) is a leading property management service provider in China, focusing on comprehensive property and community management. The company operates across various sectors, including residential properties, commercial properties, and public and industrial properties. Its core services encompass property management, value-added services for non-property owners, and community value-added services, which enhance the living experience and maximize property value for stakeholders.

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. 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: Neutral
• Last Price: 1.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.81 is below the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.77, and above the 200-day MA of 1.63, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 5.29 is Positive, 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
6989	80 Outperform	HK$1.78B	5.27	8.56%	9.55%	5.84%	0.84%
3658	71 Outperform	HK$1.54B	6.26	18.89%	8.92%	15.31%	3.39%
Sector *	63 Neutral	$6.81B	13.54	-1.43%	7.28%	4.64%	-34.02%
6666	58 Neutral	HK$8.43B	7.62	2935.68%	―	0.27%	-35.07%
0021	55 Neutral	HK$496.90M	30.23	2.08%	―	450.21%	―
1516	50 Neutral	HK$5.47B	―	-8.05%	8.86%	-2.43%	-7.97%

Sunac Services Holdings Ltd. Corporate Events

Sunac Services Extends Equity Disposal Deadline

Sunac Services Holdings Limited has announced a revision to its previously disclosed transaction involving the disposal of equity interest in a target company. The company, which operates in the property management sector, has extended the completion date of the transaction from 15 July 2025 to 31 August 2025, with a new negotiation deadline set for 3 September 2025. This extension, agreed upon by all parties involved, allows additional time for the transaction’s completion and is deemed fair and reasonable by the company’s directors, reflecting a strategic move to ensure the interests of the company are maintained.

The most recent analyst rating on (HK:1516) stock is a Hold with a HK$1.53 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. 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.