Colour Life Services Group Co (1778) AI Stock Analysis

• Market Cap: HK$464.85M
• Dividend Yield: N/A
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.81
• Revenue Growth: 23.44%
• EPS Growth: -22.03%
• Country: HK
• Employees: 10,191
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 1,859,407,200
• 10 Day Avg. Volume: 4,954,056
• 30 Day Avg. Volume: 3,723,361
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 59 reflects a combination of financial challenges and technical strengths. The company's financial performance is hindered by declining revenue and profitability, while technical indicators suggest positive momentum but caution due to overbought conditions. Valuation appears fair, but the lack of a dividend yield is a downside for income investors.

Colour Life Services Group Co Business Overview & Revenue Model

Company Description

Colour Life Services Group Co., Limited, an investment holding company, provides property management and community services through an online platform in the People's Republic of China. The company is involved in the provision of services for communities under commission basis and lump sum basis; pre-delivery services for property developers; and consultancy services for regional property management companies. The company also provides community leasing, sale, and other value-added services, which primarily include the provision of online promotion, sales and rental assistance, and others. In addition, it offers engineering services, such as the provision of equipment installation, repair and maintenance, automation and other equipment upgradation, and energy-saving services. The company was founded in 2002 and is headquartered in Shenzhen, the People's Republic of China. Colour Life Services Group Co., Limited is a subsidiary of Fantasia Holdings Group Co., Limited.

How the Company Makes Money

Colour Life Services Group Co generates revenue primarily through its property management services, which include fees for managing residential and commercial properties. The company also earns income from community value-added services, which may include property leasing, advertising, and other ancillary services that enhance community living. Additionally, Colour Life provides engineering services, such as maintenance and repair, which contribute to its revenue. The company benefits from strategic partnerships with technology firms to enhance its service offerings and improve operational efficiency, further driving its earnings.

Colour Life Services Group Co Financial Statement Overview

Summary

Colour Life Services Group Co is experiencing challenges in revenue growth and profitability, with declining margins and unstable cash flows. Despite a strong equity position with low leverage providing some financial stability, the company needs strategic improvements in revenue generation and cash flow management to enhance profitability and long-term sustainability.

Income Statement

The company has shown declining revenue over the past few years, with a significant drop from 2019 to 2024. Gross profit margins have been decreasing from their historical highs, indicating pressure on profitability. Net profit margins have been extremely low in recent years, raising concerns about profitability. The EBIT and EBITDA margins have also been declining, reflecting operational challenges. Overall, the income statement indicates weak revenue growth and profitability, warranting a cautious outlook.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, showing financial stability. The equity ratio is high, indicating a strong capital structure. However, the company has experienced declining total assets and stockholders' equity over the years, raising concerns about its long-term asset management strategy. The balance sheet is stable but reflects a need for better asset growth.

Cash Flow

The cash flow statement reveals concerning trends with operating cash flow turning negative in 2021 and free cash flow showing significant fluctuations. There is no recent free cash flow generation, and the operating cash flow to net income ratio is not available, indicating potential issues with cash generation. The lack of positive cash flow trends poses a risk to the company’s liquidity and ability to fund operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	1.52B	1.31B	3.12B	3.60B
Gross Profit	410.03M	454.16M	421.22M	839.33M	1.21B
EBITDA	184.16M	182.79M	154.22M	601.06M	1.01B
Net Income	18.95M	23.01M	31.36M	17.66M	501.72M
Balance Sheet
Total Assets	5.92B	5.85B	5.83B	5.74B	10.30B
Cash, Cash Equivalents and Short-Term Investments	994.12M	947.90M	757.12M	600.08M	2.46B
Total Debt	29.17M	27.75M	11.45M	203.18M	2.56B
Total Liabilities	1.44B	1.39B	1.38B	1.34B	5.74B
Stockholders Equity	4.29B	4.27B	4.25B	4.22B	4.35B
Cash Flow
Free Cash Flow	63.12M	56.54M	306.82M	-494.21M	795.55M
Operating Cash Flow	91.34M	86.18M	327.37M	-368.21M	825.82M
Investing Cash Flow	-15.80M	234.22M	-58.31M	1.73B	-293.14M
Financing Cash Flow	-29.33M	-129.61M	-112.03M	-3.22B	226.99M

Colour Life Services Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 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:1778, the sentiment is Positive. The current price of 0.25 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.20, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.63 is Neutral, neither overbought nor oversold. The STOCH value of 41.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1778.

Colour Life Services Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1895	82 Outperform	HK$349.89M	3.61	15.54%	13.98%	13.95%	185.84%
1538	81 Outperform	HK$358.91M	3.55	8.86%	5.95%	2.04%	8.36%
2376	72 Outperform	HK$417.35M	9.80	7.09%	3.78%	-3.62%	26.58%
1778	59 Neutral	HK$464.85M	18.12	0.44%	―	23.44%	-22.03%
Sector *	53 Neutral	$1.21B	2.92	-5.63%	5.83%	-2.99%	-79.62%
1153	43 Neutral	HK$302.80M	34.62		―	-3.04%	―
1922	―	HK$363.33M	2.81		―	―	―

Colour Life Services Group Co Corporate Events

Colour Life Services Faces Board Compliance Challenge After Director Resignation

Colour Life Services Group Co., Limited announced the resignation of Mr. Zhang Raymond Yue from his roles as an independent non-executive director and chairman of the remuneration committee, among other positions, effective June 4, 2025. This resignation has resulted in non-compliance with several listing rules, as the board now lacks the required number of independent non-executive directors and committee members. The company is actively seeking a suitable replacement to rectify this situation within the stipulated three-month period.

Colour Life Services Group Announces Board Composition and Roles

Colour Life Services Group Co., Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement underscores the company’s commitment to strong governance and strategic oversight, which is crucial for maintaining its competitive edge in the property management industry. The board includes a mix of executive, non-executive, and independent non-executive directors, ensuring a balanced approach to decision-making and corporate governance.

Colour Life Services Group Co. Announces Successful AGM Resolutions

Colour Life Services Group Co., Limited announced the results of its annual general meeting held on May 23, 2025. All resolutions proposed, including the re-election of directors, authorization of directors’ remuneration, reappointment of auditors, and granting of mandates for share buybacks and issuance, were passed with significant majority votes. This outcome reflects strong shareholder support for the company’s current management and strategic direction, potentially reinforcing its market position and operational stability.