China SCE Group Holdings (1966) AI Stock Analysis

• Market Cap: HK$342.06M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.45
• Revenue Growth: -5.49%
• EPS Growth: 27.48%
• Country: HK
• Employees: 6,201
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.91
• Shares Outstanding: 4,222,986,300
• 10 Day Avg. Volume: 809,700
• 30 Day Avg. Volume: 1,256,586
• PEG Ratio: 0.05
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.02
• P/FCF Ratio: -1.14
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: HK$0.08 ▲(0.00% Upside)

China SCE Group Holdings faces significant financial and technical challenges. The financial performance is weak due to high leverage and negative cash flows. Technical indicators suggest bearish momentum, and valuation metrics are unattractive with a negative P/E ratio. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Diversification

Diversified revenue streams from property sales, leasing, and management services provide resilience against market fluctuations, supporting long-term stability.

Strategic Partnerships

Partnerships with local entities can improve project execution and financing, fostering growth and competitive positioning in the real estate market.

Urbanization Efforts

Alignment with China's urbanization trends supports long-term demand for residential and commercial properties, driving sustainable growth.

Negative Factors

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Inability to generate positive cash flow raises concerns about liquidity and operational sustainability, threatening long-term viability.

Profitability Issues

Ongoing losses and negative profit margins indicate challenges in achieving sustainable profitability, affecting financial health and investor confidence.

China SCE Group Holdings Business Overview & Revenue Model

Company Description

China SCE Group Holdings Limited, an investment holding company, engages in the development, investment, and management of properties in the People's Republic of China. the company develops residential and commercial real estate, cultural tourism real estate, and industrial real estate properties; rents apartments; and operates and manages shopping malls, residential and public facilities, education, health management, and other business sectors, as well as provides financial services, such as fund management and investment. It also trades in construction materials. The company was formerly known as China SCE Property Holdings Limited and changed its name to China SCE Group Holdings Limited in July 2018. The company was founded in 1987 and is headquartered in Shanghai, the People's Republic of China. China SCE Group Holdings Limited is a subsidiary of Newup Holdings Limited.

How the Company Makes Money

China SCE Group generates revenue primarily through the sale of properties developed by the company, including residential apartments and commercial buildings. The company also earns significant income from leasing its investment properties, which provides a steady stream of rental income. Additionally, revenue is supplemented through property management services and other ancillary services related to real estate. Strategic partnerships with local governments and other developers can enhance project financing and accelerate development timelines, thereby positively impacting the company's earnings. Market demand for housing and commercial spaces, along with government policies supporting real estate development, are key factors influencing the company's revenue generation.

China SCE Group Holdings Financial Statement Overview

Summary

China SCE Group Holdings is facing significant financial difficulties. Despite revenue growth, the company is unprofitable with negative net profit margins and deteriorating cash flows. The balance sheet is weak with high leverage and low equity levels, raising concerns about financial stability.

Income Statement

The income statement reveals a challenging situation for China SCE Group Holdings. Despite a significant increase in total revenue from 2023 to 2024, the company remains unprofitable with a net income loss. Gross profit margins have declined compared to previous years, and the net profit margin is negative, indicating ongoing profitability issues. Revenue growth is evident in the most recent year, but the overall financial health remains weak due to persistent losses.

Balance Sheet

The balance sheet shows a precarious financial situation with a high debt-to-equity ratio, highlighting significant leverage. Stockholders' equity has drastically decreased from previous years, indicating financial strain. The equity ratio is low, suggesting a heavy reliance on debt financing. These factors contribute to a weak balance sheet position, raising concerns about financial stability.

Cash Flow

Cash flow analysis indicates severe challenges, as recent reports show zero operating, investing, and financing cash flows. Free cash flow has deteriorated from substantial positive figures in 2022 to zero in 2024. The inability to generate positive cash flow from operations or investments raises significant concerns about the company's liquidity and ability to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.47B	40.77B	20.96B	26.71B	37.74B	32.57B
Gross Profit	5.63B	6.24B	2.63B	4.42B	8.17B	7.86B
EBITDA	3.81B	4.39B	198.99M	2.46B	5.13B	5.06B
Net Income	-7.66B	-7.86B	-7.99B	24.54M	3.07B	3.80B
Balance Sheet
Total Assets	109.51B	128.29B	167.89B	193.96B	195.01B	170.61B
Cash, Cash Equivalents and Short-Term Investments	2.61B	3.08B	5.23B	9.55B	16.97B	19.23B
Total Debt	34.57B	37.83B	40.86B	48.63B	50.54B	46.92B
Total Liabilities	102.51B	117.72B	147.41B	157.34B	152.31B	131.46B
Stockholders Equity	-1.44B	1.70B	9.72B	19.71B	21.79B	21.00B
Cash Flow
Free Cash Flow	477.34M	-541.54M	5.02B	16.30B	-3.78B	-214.81M
Operating Cash Flow	500.76M	-498.71M	5.09B	16.43B	-3.69B	-140.19M
Investing Cash Flow	-159.99M	429.41M	4.04B	-2.60B	1.28B	-4.32B
Financing Cash Flow	-707.82M	-1.24B	-13.39B	-21.25B	1.13B	2.49B

China SCE Group Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1966, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.67 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1966.

China SCE Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0618	49 Neutral	HK$506.42M	0.58	260.87%	―	82.96%	―
3688	46 Neutral	HK$565.09M	-0.31	-29.51%	―	53.69%	-33.81%
1777	41 Neutral	HK$473.35M	-0.05	―	―	-64.27%	-19.76%
1233	39 Underperform	HK$287.37M	-0.01	―	―	-45.56%	-191.99%
1966	38 Underperform	HK$342.06M	-0.04	-381.99%	―	-5.49%	27.48%
1628	38 Underperform	HK$167.88M	>-0.01	―	―	-62.71%	-16.95%

China SCE Group Holdings Corporate Events

China SCE Group Announces Amendments to Offshore Debt Restructuring Agreement

China SCE Group Holdings Limited, a company incorporated in the Cayman Islands, has announced an amendment to its offshore debt restructuring agreement. The company and the Ad Hoc Group (AHG) have executed an agreement to amend the Restructuring Support Agreement (RSA), which includes providing certain lenders with rights similar to those of the AHG and extending the Longstop Date to July 31, 2026, with a possible extension to October 31, 2026. Scheme Creditors are encouraged to accede to the amended RSA by the specified deadline.

China SCE Group Extends Deadlines for Debt Restructuring Consent Fees

China SCE Group Holdings Limited has announced an extension of the deadlines for the Early Consent Fee and Base Consent Fee related to its offshore debt restructuring. This extension is to allow certain Scheme Creditors additional time to complete their internal processes for acceding to the Restructuring Support Agreement (RSA). The company urges all Scheme Creditors who have not yet acceded to the RSA to do so promptly. This move is part of the company’s ongoing efforts to manage its financial obligations and stabilize its operations, which could have significant implications for its stakeholders.