Kangqiao Service Group Limited (2205) AI Stock Analysis

• Market Cap: HK$945.00M
• Dividend Yield: 4.14%
• Average Volume (3M): 36.10K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.68
• Revenue Growth: -5.08%
• EPS Growth: 27.33%
• Country: HK
• Employees: 2,244
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.05
• Shares Outstanding: 700,000,000
• 10 Day Avg. Volume: 54,800
• 30 Day Avg. Volume: 36,100
• PEG Ratio: 0.36
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -2.15
• 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: 66 Neutral
• Price Target: HK$1.50 ▲(117.39% Upside)

Kangqiao Service Group Limited's stock is supported by strong financial performance and a solid balance sheet. However, technical indicators suggest caution due to overbought conditions, and valuation is moderate with potential pressure from profitability and cash flow challenges. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Solid Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, supporting long-term growth and resilience against market fluctuations.

Revenue Model

The company's revenue model, based on long-term contracts, ensures a stable income stream, enhancing predictability and reducing revenue volatility.

Operational Efficiency

Efficient cost management, as evidenced by a healthy gross profit margin, supports sustainable profitability and competitive pricing strategies.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests liquidity issues, which could hinder the company's ability to invest in growth opportunities and meet financial obligations.

Profitability Volatility

Volatile net profit margins indicate difficulties in sustaining profitability, which could affect investor confidence and long-term financial health.

Cash Conversion Efficiency

Inefficient cash conversion can strain liquidity, limiting the company's ability to fund operations and growth initiatives effectively.

Kangqiao Service Group Limited Business Overview & Revenue Model

Company Description

Kangqiao Service Group Limited is an investment holding company. It provides real estate property management services. The company was incorporated in 2020 and is based in Zhengzhou, China. Kangqiao Service Group Limited operates as a subsidiary of Hung Fai Property Limited.

How the Company Makes Money

Kangqiao Service Group Limited generates revenue primarily through service fees charged for its property management offerings. The company’s key revenue streams include regular management fees from residential and commercial property owners, additional charges for specialized services such as security and cleaning, and consultancy fees for property management planning and execution. Strategic partnerships with real estate developers and local governments also contribute to its financial performance by expanding its service reach and client base.

Kangqiao Service Group Limited Financial Statement Overview

Summary

Kangqiao Service Group Limited demonstrates strong revenue growth and a solid balance sheet with low leverage. However, challenges in maintaining consistent profitability and cash flow stability are evident. Improving cash flow management and profitability will be crucial for future growth.

Income Statement

Kangqiao Service Group Limited has shown consistent revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin remains healthy, indicating efficient cost management. However, the net profit margin has seen some volatility, reflecting challenges in maintaining consistent profitability. The EBIT and EBITDA margins are stable, showcasing operational efficiency.

Balance Sheet

The company's balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating prudent financial management. The equity ratio is robust, suggesting a solid financial foundation. However, the return on equity has been inconsistent, which may point to challenges in generating returns for shareholders.

Cash Flow

The cash flow statement highlights significant fluctuations in operating cash flow, with a negative trend in recent years. Free cash flow has also been negative, indicating potential liquidity challenges. The operating cash flow to net income ratio suggests inefficiencies in converting income into cash, which could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	928.77M	960.85M	934.02M	792.92M	783.57M	575.59M
Gross Profit	209.18M	216.24M	220.69M	191.07M	203.85M	176.54M
EBITDA	87.24M	96.84M	84.06M	94.42M	135.30M	150.43M
Net Income	39.08M	48.41M	38.48M	54.12M	83.89M	88.38M
Balance Sheet
Total Assets	1.60B	1.52B	1.25B	1.17B	1.13B	901.31M
Cash, Cash Equivalents and Short-Term Investments	202.85M	134.07M	407.74M	389.00M	561.85M	134.76M
Total Debt	11.80M	12.61M	9.43M	9.52M	9.79M	360.17M
Total Liabilities	785.66M	738.23M	488.55M	413.11M	433.52M	734.29M
Stockholders Equity	756.91M	724.22M	711.50M	711.36M	667.89M	145.96M
Cash Flow
Free Cash Flow	-210.63M	-208.15M	-10.51M	-149.62M	60.49M	53.22M
Operating Cash Flow	-194.25M	-188.75M	-3.69M	-138.06M	63.95M	55.69M
Investing Cash Flow	-7.46M	-20.16M	37.68M	-32.30M	267.26M	-214.42M
Financing Cash Flow	-1.70M	-13.89M	-24.00M	-25.32M	79.78M	236.04M

Kangqiao Service Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2205, the sentiment is Positive. The current price of 0.69 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 0.84, and below the 200-day MA of 0.70, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 65.58 is Neutral, neither overbought nor oversold. The STOCH value of 58.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2205.

Kangqiao Service Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9928	68 Neutral	HK$530.45M	18.00	1.96%	7.09%	1.97%	-67.03%
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%
0606	63 Neutral	HK$541.80M	48.28	0.38%	―	-5.91%	-94.58%
0021	54 Neutral	HK$405.47M	-11.72	-4.27%	―	1303.01%	-45.00%
0727	45 Neutral	HK$286.16M	-42.65	-7.00%	―	-49.07%	94.90%

Kangqiao Service Group Limited Corporate Events

Kangqiao Service Group Revises Use of Proceeds to Enhance Core Services

Kangqiao Service Group Limited announced a change in the use of its unutilized net proceeds, originally intended for strategic investments and acquisitions. Due to the challenging economic conditions and lack of suitable opportunities, the company has decided to reallocate these funds towards enriching and expanding its existing service and product offerings, as well as for working capital and general corporate purposes. This strategic shift is aimed at strengthening the company’s core capabilities, improving competitiveness, and capturing new market opportunities, thereby ensuring sustainable development and long-term value creation for shareholders.

The most recent analyst rating on (HK:2205) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Kangqiao Service Group Limited stock, see the HK:2205 Stock Forecast page.