Sunac Services Holdings Ltd. (1516) AI Stock Analysis

• Market Cap: HK$4.31B
• Dividend Yield: 11.14%
• Average Volume (3M): 13.39M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 1.56
• 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 revenue model

A business model centered on recurring management fees and ancillary services creates predictable, contract-driven revenue streams. This recurring nature supports cash visibility, customer retention and steady demand for service offerings, providing resilience and stability over the medium term.

Low leverage

Minimal reliance on debt reduces refinancing and interest-rate risk, preserving financial flexibility. Low leverage gives the company capacity to withstand cyclical property-market stress, invest in operations or acquisitions, and supports long-term solvency even amid short-term earnings weakness.

High equity backing

An equity ratio near 50% indicates assets are largely financed by shareholders' equity rather than debt, offering a solvency cushion. This stronger capital structure supports risk absorption, underpins credibility with clients and suppliers, and aids sustainable operations over multiple quarters.

Negative Factors

Declining revenue and negative operating profit

Sustained revenue declines combined with negative EBIT and net income signal structural profitability issues. Reduced operating margins limit reinvestment in service quality and growth, undermine competitive positioning, and may necessitate strategic restructuring to restore sustainable earnings.

Weakening cash generation

A collapse in free cash flow undermines the firm's ability to fund operations, invest in capability upgrades, or absorb shocks without external financing. Persistent weak cash conversion raises liquidity risk and could force asset sales, diluted investment, or increased borrowing over the medium term.

Eroding asset and equity base

A shrinking asset and equity base constrains operational scale and future revenue potential. Coupled with losses, capital erosion weakens bargaining power with developers and customers, limits capacity to secure large contracts, and raises the risk of long-term competitive decline without recapitalization.

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: Negative
• 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 Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.50, and below the 200-day MA of 1.64, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.58B	6.38	18.19%	9.95%	10.09%	2.39%
6989	66 Neutral	HK$1.03B	3.24	7.55%	16.21%	-0.79%	-3.46%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0021	54 Neutral	HK$405.47M	-11.72	-4.27%	―	1303.01%	-45.00%
1516	53 Neutral	HK$4.31B	28.03	2.77%	11.14%	-1.14%	―
6666	51 Neutral	HK$12.65B	11.79	185.17%	―	4.74%	-21.33%