Colour Life Services Group Co (1778) AI Stock Analysis

• Market Cap: HK$336.55M
• Dividend Yield: N/A
• Average Volume (3M): 991.58K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.77
• Revenue Growth: 14.13%
• EPS Growth: -6.61%
• Country: HK
• Employees: 10,191
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.01
• Shares Outstanding: 1,859,407,200
• 10 Day Avg. Volume: 1,675,150
• 30 Day Avg. Volume: 991,577
• PEG Ratio: -0.71
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 3.86
• 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: 49 Neutral
• Price Target: HK$0.17 ▼(-1.18% Downside)

The overall stock score of 49 reflects significant challenges in financial performance and technical analysis. The company's declining revenue and profitability, coupled with bearish technical indicators, are major concerns. While the valuation is moderate, the lack of a dividend yield and positive cash flow trends further impacts the score.

Positive Factors

Strong Equity Position

A strong equity position with low leverage indicates financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.

Strategic Partnerships

Strategic partnerships with technology firms enhance service offerings and operational efficiency, potentially driving long-term revenue growth and competitive advantage.

Revenue Diversification

Diversified revenue streams from property management, community services, and engineering reduce dependency on a single income source, supporting financial stability and growth.

Negative Factors

Declining Revenue

Declining revenue trends indicate challenges in market position and competitiveness, potentially impacting long-term profitability and growth prospects.

Negative Cash Flow Trends

Negative cash flow trends pose risks to liquidity and the ability to fund operations, which can hinder strategic investments and growth initiatives.

Decreasing Profit Margins

Decreasing profit margins suggest operational inefficiencies and competitive pressures, which may affect the company's ability to sustain profitability over the long term.

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 charged for managing residential complexes, commercial properties, and providing ancillary services such as cleaning, maintenance, and security. The company also earns income from value-added services, including community development activities and leisure services, which contribute to customer retention and satisfaction. Additionally, Colour Life may benefit from strategic partnerships with real estate developers and local governments, allowing them to secure long-term contracts and expand their service offerings. These partnerships often lead to additional revenue streams through project collaborations and shared initiatives in property development and management.

Colour Life Services Group Co Financial Statement Overview

Summary

Colour Life Services Group Co is facing challenges in revenue growth and profitability, with declining margins and unstable cash flows. Despite maintaining a strong equity position with low leverage, the overall financial health reflects a need for strategic improvements in revenue generation and cash flow management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.02B	1.95B	1.52B	1.31B	3.12B	3.60B
Gross Profit	413.31M	410.03M	454.16M	421.22M	839.33M	1.21B
EBITDA	136.05M	184.16M	182.79M	154.22M	601.06M	1.01B
Net Income	18.46M	18.95M	23.01M	31.36M	17.66M	501.72M
Balance Sheet
Total Assets	5.80B	5.92B	5.85B	5.83B	5.74B	10.30B
Cash, Cash Equivalents and Short-Term Investments	778.54M	994.12M	947.90M	757.12M	600.08M	2.46B
Total Debt	23.51M	29.17M	27.75M	11.45M	203.18M	2.56B
Total Liabilities	1.25B	1.44B	1.39B	1.38B	1.34B	5.74B
Stockholders Equity	4.37B	4.29B	4.27B	4.25B	4.22B	4.35B
Cash Flow
Free Cash Flow	260.30M	63.12M	56.54M	306.82M	-494.21M	795.55M
Operating Cash Flow	263.24M	91.34M	86.18M	327.37M	-368.21M	825.82M
Investing Cash Flow	20.95M	-15.80M	234.22M	-58.31M	1.73B	-293.14M
Financing Cash Flow	-18.77M	-29.33M	-129.61M	-112.03M	-3.22B	226.99M

Colour Life Services Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 0.17 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and below the 200-day MA of 0.18, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 85.99 is Negative, neither overbought nor oversold. The STOCH value of 55.33 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	73 Outperform	HK$275.76M	2.63	15.85%	11.22%	11.13%	142.00%
1538	69 Neutral	HK$358.91M	3.66	8.72%	6.25%	2.42%	10.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2376	56 Neutral	HK$374.69M	8.79	7.09%	3.90%	-3.62%	26.66%
1153	50 Neutral	HK$275.27M	3.03	―	―	-2.44%	―
1778	49 Neutral	HK$336.55M	16.02	0.42%	―	14.13%	-6.61%

Colour Life Services Group Co Corporate Events

Colour Life Extends Connected Engineering Services Deal with Fantasia to 2028

Colour Life Services Group has renewed its continuing connected transactions with Fantasia Group by entering into a new set of agreements, known as the 2026 CCTs, which extend the existing 2023 arrangements for a further three years from 1 January 2026 to 31 December 2028. Under the 2026 Engineering Services Agreement, the group will continue to provide engineering services, including installation of power systems and energy-saving lighting, to Fantasia’s properties, with fees settled in cash on roughly 45-day terms; these transactions fall within Hong Kong Listing Rules thresholds that require reporting and announcement but are exempt from independent shareholders’ approval, signalling ongoing but relatively modest related-party business with its key connected developer partner.

The most recent analyst rating on (HK:1778) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on Colour Life Services Group Co stock, see the HK:1778 Stock Forecast page.

Colour Life Faces Potential Share Auction Amid Legal Dispute

Colour Life Services Group Co., Limited has announced that Fantasia Holdings Group Co., Limited received a notice from Odysseus Capital Asia Limited regarding the potential sale of up to 29.9% of Colour Life’s shares through an auction process. Fantasia has objected to this process and is seeking legal advice to protect its interests, indicating potential legal and operational implications for Colour Life and its stakeholders.