Sunac Services Holdings Ltd. (1516) AI Stock Analysis

• Market Cap: HK$5.29B
• Dividend Yield: 9.34%
• Average Volume (3M): 25.85M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.62
• 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: 23,938,201
• 30 Day Avg. Volume: 25,848,455
• 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$1.46
• Price Target Upside: -12.57% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: HK$1.50 ▼(-10.18% Downside)

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

Diversified Revenue Streams

Sunac Services Holdings Ltd. has diversified revenue streams through property management and value-added services, ensuring stable income and reducing dependency on a single source.

Low Debt Profile

A low debt profile reduces financial risk and enhances the company's ability to navigate economic downturns, providing long-term stability.

Strong Equity Ratio

A strong equity ratio indicates robust asset backing by equity, which enhances financial stability and investor confidence over the long term.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in maintaining market share and competitiveness, potentially impacting long-term growth and profitability.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities and meet financial obligations.

Profitability Challenges

Sustained profitability challenges can hinder the company's ability to reinvest in its operations and maintain competitive advantages, affecting long-term viability.

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. 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: Negative
• Last Price: 1.67
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1.67 is below the 20-day moving average (MA) of 1.70, below the 50-day MA of 1.79, and above the 200-day MA of 1.63, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.69 is Neutral, neither overbought nor oversold. The STOCH value of 54.21 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	77 Outperform	1.65B	6.67	18.21%	9.51%	10.09%	2.39%
6989	66 Neutral	1.43B	4.66	8.37%	12.02%	-0.79%	-6.52%
6666	58 Neutral	12.22B	11.49	0.00%	―	4.74%	-21.33%
0021	55 Neutral	413.42M	-11.26	0.00%	―	1303.01%	-45.00%
1516	53 Neutral	HK$5.29B	34.39	2.77%	9.34%	-1.14%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Sunac Services Holdings Ltd. Corporate Events

Sunac Services Completes Equity Interest Disposal in Zhangtai Services Group

Sunac Services Holdings Limited, through its wholly-owned subsidiary Rising Far (BVI), has completed the disposal of its equity interest in Zhangtai Services Group. The transaction marks the company’s exit from its investment in the Target Company, as it has received full consideration and completed the equity interest transfer registration.

The most recent analyst rating on (HK:1516) stock is a Sell with a HK$1.40 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. Reports Turnaround in Interim Results

Sunac Services Holdings Ltd. reported its interim results for the six months ending June 30, 2025, showing a revenue increase of 2% year-on-year to approximately RMB3,547 million. However, the gross profit decreased by 13% due to deferred revenue recognition and increased repair costs. Despite these challenges, the company turned around its financial performance, reporting a profit attributable to owners of RMB122 million compared to a loss of RMB472 million in the same period last year. This improvement in profitability, alongside reduced selling and administrative expenses, indicates a positive shift in the company’s operational efficiency and financial health.

The most recent analyst rating on (HK:1516) stock is a Hold with a HK$2.00 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. Establishes Nomination Committee to Enhance Governance

Sunac Services Holdings Ltd., a company incorporated in the Cayman Islands, has announced the establishment of a Nomination Committee by its Board of Directors. The committee will consist of at least three members, with a majority being independent non-executive directors and at least one member of a different gender. The committee will meet at least once a year, and its resolutions require a majority vote to pass. This move is likely aimed at enhancing corporate governance and ensuring diverse representation in the company’s leadership.

The most recent analyst rating on (HK:1516) stock is a Hold with a HK$2.00 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. Reports Turnaround with Expected Profit in H1 2025

Sunac Services Holdings Ltd. has announced a significant turnaround in its financial performance for the first half of 2025, reporting an expected unaudited profit of not less than RMB100 million, compared to a loss of approximately RMB472 million in the same period last year. This improvement is largely attributed to a substantial reduction in impairment provisions for related party receivables. However, the company anticipates a decrease in gross profit and margin due to deferred revenue recognition and increased repair costs, which may impact its financial stability and operational strategies moving forward.

The most recent analyst rating on (HK:1516) stock is a Hold with a HK$2.00 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 to Review Interim Results in Upcoming Board Meeting

Sunac Services Holdings Ltd. has announced a board meeting scheduled for August 25, 2025, to consider and approve the interim results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, impacting stakeholders’ perceptions and the company’s market positioning.

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 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.