Ling Yue Services Group Limited (2165) AI Stock Analysis

• Market Cap: HK$522.80M
• Dividend Yield: N/A
• Average Volume (3M): 54.90K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.67
• Revenue Growth: 5.01%
• EPS Growth: -31.83%
• Country: HK
• Employees: 5,786
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.18
• Shares Outstanding: 285,685,000
• 10 Day Avg. Volume: 103,700
• 30 Day Avg. Volume: 54,900
• PEG Ratio: -0.21
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 3.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$2.00 ▲(5.26% Upside)

The score is driven mainly by strong financial positioning (especially very low leverage) and an attractive low P/E. These positives are tempered by weaker technical momentum (below key moving averages with negative MACD) and concerns around margin compression and free-cash-flow volatility in 2024.

Positive Factors

Conservative Balance Sheet

A conservative balance sheet with near-zero leverage enhances financial stability and provides flexibility for future investments.

Revenue Growth

Consistent revenue growth indicates a robust business model and market demand, supporting long-term business sustainability.

Renewed Property Management Agreements

Renewing key agreements secures future revenue streams and strengthens long-term client relationships, enhancing business stability.

Negative Factors

Margin Compression

Margin compression suggests rising costs or pricing pressure, which could impact profitability if not managed effectively.

Volatile Cash Flow

Volatile cash flow raises concerns about financial predictability and may affect the company's ability to fund operations or growth.

Declining Net Income

Declining net income despite revenue growth indicates potential inefficiencies or cost challenges, impacting long-term profitability.

Ling Yue Services Group Limited Business Overview & Revenue Model

Company Description

Ling Yue Services Group Limited operates as a property management company in the People's Republic of China. The company offers a range of property management services, such as security services, cleaning and greening services, and repair and maintenance services to property owners, residents, and property developers, as well as tenants in non-residential properties. It manages a diverse portfolio of properties, including residential properties, commercial properties, and public and other properties. The company also provides value-added services to non-property owners, including preliminary planning and design consultancy, sales office management, pre-delivery, repair and maintenance, property transaction assistance, and security support services; and community value-added services primarily to property owners and residents comprising community space management, decoration and turnkey furnishing, convenient living, and community retail services. As of December 31, 2021, it had been contracted to manage 183 properties with an aggregate contracted GFA of approximately 20.8 million square meters under its management. The company was founded in 2002 and is headquartered in Chengdu, the People's Republic of China.

How the Company Makes Money

Ling Yue Services Group Limited generates revenue primarily through fees and charges for its property management services. This includes management fees, consultancy fees, and charges for ancillary services provided to property owners and residents. The company makes money by entering into contracts with property owners to manage their properties, ensuring operational efficiency, maintenance, and tenant satisfaction. Additionally, Ling Yue Services Group may also earn income through value-added services like consultancy, which offers strategic advice on property development and management. Significant partnerships with real estate developers and property owners serve as a critical factor in securing service contracts and ensuring steady revenue streams.

Ling Yue Services Group Limited Financial Statement Overview

Summary

Overall, Ling Yue Services Group Limited presents a strong financial profile with solid growth and profitability metrics. The balance sheet is particularly robust, showing no debt and a high equity ratio. While income and balance sheet aspects are commendable, the lack of recent cash flow data introduces uncertainty about cash management capabilities.

Income Statement

Ling Yue Services Group Limited has demonstrated a consistent growth trajectory with a revenue growth rate of 7.18% in 2024. The company maintains strong profitability, with a gross profit margin of 28.11% and a net profit margin of 12.49% in 2024. Additionally, the EBIT margin is healthy at 16.56%, indicating efficient operations. However, a slight decrease in gross profit margin from the previous year suggests some pressure on costs.

Balance Sheet

The company exhibits excellent financial stability with a debt-to-equity ratio of 0, indicating no reliance on debt financing. A robust equity ratio of 63.47% in 2024 further underpins its financial health. The return on equity is also impressive at 13.25%, showcasing effective use of shareholders' funds to generate profits.

Cash Flow

The cash flow statement highlights challenges with an absence of operating and free cash flow data for 2024, which impacts the ability to assess cash flow health accurately. In 2023, the free cash flow to net income ratio was strong, indicating healthy cash conversion from profits. However, the lack of recent data raises concerns about sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	660.60M	652.93M	609.10M	577.70M	541.17M	428.16M
Gross Profit	179.03M	183.53M	194.72M	167.11M	155.07M	144.79M
EBITDA	97.83M	128.77M	131.45M	106.39M	91.19M	83.89M
Net Income	72.61M	81.55M	101.86M	77.00M	70.61M	65.22M
Balance Sheet
Total Assets	977.40M	970.02M	837.62M	702.59M	587.95M	291.20M
Cash, Cash Equivalents and Short-Term Investments	737.82M	712.88M	606.21M	360.74M	277.90M	68.27M
Total Debt	0.00	0.00	0.00	0.00	754.00K	1.49M
Total Liabilities	292.92M	339.14M	287.93M	249.74M	212.20M	178.74M
Stockholders Equity	665.32M	615.46M	534.63M	433.25M	356.60M	96.79M
Cash Flow
Free Cash Flow	77.02M	113.47M	240.24M	89.69M	-10.00K	114.64M
Operating Cash Flow	77.86M	116.75M	244.68M	93.54M	1.29M	115.14M
Investing Cash Flow	-2.08M	-2.92M	-2.98M	-2.92M	18.14M	-11.25M
Financing Cash Flow	-2.28M	-3.24M	-245.00K	-5.17M	187.58M	-66.71M

Ling Yue Services Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2165, the sentiment is Negative. The current price of 1.9 is below the 20-day moving average (MA) of 1.91, below the 50-day MA of 1.94, and above the 200-day MA of 1.68, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 27.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2165.

Ling Yue Services Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2165	74 Outperform	HK$522.80M	6.68	11.46%	―	5.01%	-31.83%
2205	66 Neutral	HK$945.00M	22.46	5.26%	4.14%	-5.08%	27.33%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$305.02M	7.16	3.28%	6.60%	-14.43%	-77.55%
2107	51 Neutral	HK$250.89M	-11.78	-4.06%	15.45%	6.30%	-128.34%
9608	45 Neutral	HK$230.40M	26.09	2.06%	―	0.88%	-25.81%

Ling Yue Services Group Limited Corporate Events

Ling Yue Services Renews Key Property Management Agreements

Ling Yue Services Group Limited has announced the renewal of its Property Management Services Framework Agreements with Leading Holdings and Mr. Liu Yuhui, extending the agreements from January 1, 2026, to December 31, 2028. These agreements, which are considered continuing connected transactions under Hong Kong’s Listing Rules, require approval from independent shareholders due to the significant percentage ratio involved, necessitating a reporting and review process.