China SCE Group Holdings (1966) AI Stock Analysis

• Market Cap: HK$320.95M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.47
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.04
• Revenue Forecast (FY): HK$12.63B

• Rating: 41 Neutral
• Price Target: HK$0.08 ▼(-6.67% Downside)
• Action: Upgraded Date: 01/30/26
• Date: Action: Upgraded 01/30/26

The score is driven primarily by weak financial performance—ongoing losses, high leverage/low equity, and severe cash flow deterioration—creating elevated stability and liquidity risk. Technical indicators are mixed (some short-term support but negative MACD and weak longer-term trend), while valuation is constrained by a negative P/E and lack of dividend support.

Positive Factors

Diversified income streams

China SCE's mix of property sales, leasing and property management creates multiple revenue engines. Recurring rental and management fees can stabilize cash receipts versus cyclical new-home sales, providing a durable buffer for cash generation and operational continuity over months.

Supportive structural demand

Long-term urbanization and policy support in China underpin steady demand for residential and commercial projects. For an established developer, these structural tailwinds improve project absorption prospects and support revenue visibility across 2-6 months and longer.

Recent revenue increase

A material revenue rise shows the company can convert projects into sales volume despite sector pressures. Sustained top-line recovery is a necessary foundation for margin restoration and deleveraging, and signals operational execution that can persist if cash and financing are stabilized.

Negative Factors

Unprofitable operations

Persistent negative net margins indicate the core business is not currently generating economic profit. Continued losses erode equity, limit reinvestment, and impede the firm's ability to build reserves, posing a structural challenge to long-term financial health unless margins improve.

Highly leveraged balance sheet

Significant leverage and depleted equity increase refinancing and solvency risk. In property development, heavy debt amplifies exposure to interest and funding squeezes; low equity constrains flexibility to fund projects or weather market slowdowns over the medium term.

Severe cash flow deterioration

The collapse to zero reported cash flows signals acute liquidity strain and an inability to self-fund operations or complete projects. Over the coming months this raises execution and refinancing risk, increasing dependence on external financing to sustain the business.

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

Weak overall fundamentals: the company remains unprofitable with negative margins, a highly leveraged and strained balance sheet (low equity), and severe liquidity concerns as recent operating/investing/financing cash flows and free cash flow are reported at zero.

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: Neutral
• Last Price: 0.09
• 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:1966, the sentiment is Neutral. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	50 Neutral	HK$594.02M	0.05	260.87%	―	82.96%	―
3688	43 Neutral	HK$437.95M	-0.34	-29.51%	―	53.69%	-33.81%
1233	41 Neutral	HK$215.97M	-0.03	―	―	-45.56%	-191.99%
1966	41 Neutral	HK$320.95M	-0.03	-381.99%	―	-5.49%	27.48%
1777	41 Neutral	HK$490.67M	-0.03	―	―	-64.27%	-19.76%
1628	40 Underperform	HK$147.26M	-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.