Ling Yue Services Group Limited (2165) AI Stock Analysis

• Market Cap: HK$514.23M
• Dividend Yield: N/A
• Average Volume (3M): 54.90K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.59
• 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

Strong overall fundamentals supported by a very conservative balance sheet (near-zero leverage) and steady revenue growth. The main offsets are margin compression and lower net income in 2024, plus volatile and sharply lower free cash flow versus 2023.

Income Statement

Revenue has grown consistently from 2019–2024 (with very strong growth in 2019–2021 and slower but still positive growth in 2022–2024). Profitability remains solid with healthy operating and net margins, but margins have compressed versus 2023 (notably net margin), and net income declined in 2024 despite higher revenue—suggesting some cost pressure or mix shift.

Balance Sheet

The balance sheet is very conservatively positioned with essentially no debt in recent years (debt-to-equity at or near zero) and a growing equity base over time. Returns on equity are positive and generally healthy, though they have moderated in 2024 versus 2023, indicating profitability is not scaling as fast as the capital base.

Cash Flow

Cash generation is currently positive with free cash flow close to net income in 2024, which supports earnings quality. However, cash flow has been volatile historically (including negative operating cash flow in 2019 and extremely weak conversion in 2021), and 2024 free cash flow fell sharply versus 2023—raising questions about working-capital swings and sustainability of recent cash performance.

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: Positive

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 above the 20-day moving average (MA) of 1.87, below the 50-day MA of 1.93, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 19.52 is Positive, 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$514.23M	6.57	11.46%	―	5.01%	-31.83%
2205	66 Neutral	HK$959.00M	22.80	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$266.81M	-12.53	-4.06%	15.45%	6.30%	-128.34%
9608	43 Neutral	HK$199.68M	22.61	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.