Sunfonda Group Holdings Ltd. (1771) AI Stock Analysis

• Market Cap: HK$153.00M
• Dividend Yield: N/A
• Average Volume (3M): 18.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: -24.42%
• EPS Growth: -115.68%
• Country: HK
• Employees: 2,409
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.15
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 2,900
• 30 Day Avg. Volume: 18,833
• PEG Ratio: <0.01
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 0.55
• 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: 45 Neutral
• Price Target: HK$0.50 ▲(72.41% Upside)

Sunfonda Group Holdings Ltd. is currently facing significant financial and operational challenges, as evidenced by declining revenue and profitability. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and nearing oversold conditions. The negative P/E ratio and lack of dividend yield further highlight valuation concerns. These factors collectively result in a cautious outlook for the stock.

Positive Factors

Diversified Revenue Streams

Sunfonda's diversified revenue streams from real estate and financial services provide a stable income base, reducing reliance on a single sector and enhancing resilience against market fluctuations.

Strategic Partnerships

Partnerships expand investment opportunities and service offerings, strengthening Sunfonda's market position and enabling access to new growth avenues, which is crucial for long-term sustainability.

Positive Operating Cash Flow

Consistent positive operating cash flow indicates effective cash management and operational efficiency, providing the company with the liquidity needed to invest in growth initiatives and manage liabilities.

Negative Factors

Declining Revenue and Profitability

The significant decline in revenue and profitability suggests operational challenges and market pressures, which could hinder the company's ability to invest in growth and maintain competitive positioning.

Negative Gross and EBIT Margins

Negative margins indicate inefficiencies and cost pressures, which could erode profitability and limit financial flexibility, affecting the company's ability to sustain operations and invest in future growth.

Negative Return on Equity

Negative return on equity reflects poor financial performance and shareholder value erosion, raising concerns about management's ability to generate returns and effectively utilize equity capital.

Sunfonda Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Sunfonda Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles in Mainland China. It sells imported and domestically manufactured luxury and ultra-luxury automobiles. The company also offers after-sales services comprising maintenance and repair services, sale of spare parts, and automobile detailing services; and other value-added services, such as automobile insurance agency, automobile financing, automobile licensing, and automobile survey services. In addition, it provides logistics and storage services; technology development and Internet services; and sale and service of second-hand cars. The company was founded in 2000 and is headquartered in Xi'an, the People's Republic of China. Sunfonda Group Holdings Limited is a subsidiary of Top Wheel Limited.

How the Company Makes Money

Sunfonda Group Holdings Ltd. generates revenue primarily through the sale and leasing of its developed properties, which includes both residential and commercial real estate. The company also earns income from property management services and investment returns from its financial services and technology ventures. Key revenue streams include rental income from long-term leases, one-time sales of developed properties, and dividends or capital gains from equity investments in technology firms. Additionally, strategic partnerships with real estate developers and technology companies enhance its market reach and operational efficiencies, contributing to overall profitability.

Sunfonda Group Holdings Ltd. Financial Statement Overview

Summary

Sunfonda Group Holdings Ltd. faces significant financial challenges, with declining revenue and profitability impacting its income statement. The balance sheet shows stability in its debt levels but highlights concerns with equity and asset utilization. Cash flow remains a relative strength with positive operating cash flow, yet risks associated with operational losses persist.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. Gross profit margin and EBIT margins have turned negative in 2024, indicating significant operational challenges. The net profit margin has also turned negative, reflecting a loss situation. Revenue growth is negative, with a steep decline from previous years, suggesting struggles in maintaining sales levels.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio is relatively stable, but the equity ratio indicates a decline in total assets coverage by equity. Return on equity has turned negative in 2024, driven by net losses, which is a concern for shareholders. However, the overall asset base remains substantial.

Cash Flow

Cash flow statements present a mixed picture. Although the company has managed to generate positive operating cash flow, free cash flow has fluctuated significantly, showing positive growth in 2024. The operating cash flow to net income ratio is high due to net losses, indicating reliance on non-operating activities for cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.74B	8.61B	10.98B	10.92B	11.64B	10.63B
Gross Profit	-87.55M	-29.82M	420.13M	715.73M	993.28M	748.79M
EBITDA	134.76M	114.78M	331.06M	444.21M	558.37M	480.77M
Net Income	-201.72M	-213.03M	11.87M	81.27M	345.85M	145.19M
Balance Sheet
Total Assets	5.10B	5.67B	6.32B	5.91B	5.88B	5.04B
Cash, Cash Equivalents and Short-Term Investments	462.69M	654.91M	764.79M	731.19M	972.14M	834.29M
Total Debt	1.76B	2.13B	2.61B	2.58B	2.38B	1.88B
Total Liabilities	2.90B	3.41B	3.86B	3.45B	3.44B	2.88B
Stockholders Equity	2.19B	2.25B	2.46B	2.46B	2.44B	2.16B
Cash Flow
Free Cash Flow	72.72M	265.65M	25.98M	-396.14M	-331.72M	313.06M
Operating Cash Flow	252.68M	523.19M	365.69M	113.27M	135.97M	617.92M
Investing Cash Flow	-134.03M	-152.40M	-209.69M	-307.51M	-216.47M	-274.32M
Financing Cash Flow	-179.01M	-522.93M	-120.55M	-37.01M	271.25M	-480.42M

Sunfonda Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1771, the sentiment is Negative. The current price of 0.29 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.29, and above the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1771.

Sunfonda Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6909	52 Neutral	HK$305.03M	―	-1.92%	11.22%	-14.32%	-192.28%
0970	46 Neutral	HK$337.68M	―	-19.65%	―	-14.26%	84.90%
1959	46 Neutral	HK$1.56B	-25.88	-48.30%	―	-41.19%	30.99%
1771	45 Neutral	HK$153.00M	―	-8.81%	―	-24.42%	-115.68%
3836	45 Neutral	HK$1.27B	―	-4.42%	4.25%	11.33%	56.94%

Sunfonda Group Holdings Ltd. Corporate Events

Sunfonda Group Announces Executive Leadership Change

Sunfonda Group Holdings Ltd. has announced a change in its executive leadership, effective November 7, 2025. Mr. Deng Ning has resigned as an executive director and vice president of operations to focus on in-store operation management, while Mr. Wang Hao has been appointed to these roles. Mr. Wang brings over 14 years of experience in the automobile industry and has held various managerial positions within the company since joining in 2022. His appointment is expected to influence the company’s operational strategies positively, given his extensive expertise and leadership background.

Sunfonda Group Holdings Ltd. Announces Board Composition and Roles

Sunfonda Group Holdings Ltd. has announced the composition of its board of directors and their respective roles in various committees. This organizational update may impact the company’s governance and strategic decision-making processes, potentially influencing its market positioning and stakeholder relations.

Sunfonda Group Holdings Announces Change of Auditor

Sunfonda Group Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a change in its auditor due to an inability to agree on audit fees with its previous auditor, Ernst & Young (EY). EY has resigned, and BDO Limited has been appointed as the new auditor effective from October 31, 2025. The Board and Audit Committee of Sunfonda have expressed confidence in BDO’s ability to maintain audit quality and believe the change is in the best interest of the company and its shareholders.