Kangqiao Service Group Limited (2205) AI Stock Analysis

• Market Cap: HK$448.00M
• Dividend Yield: 9.06%
• Average Volume (3M): 13.27K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.67
• Revenue Growth: 0.99%
• EPS Growth: 18.86%
• Country: HK
• Employees: 2,244
• Sector: Real Estate
• Sector Strength: 72
• Industry: Real Estate - Services
• EPS (TTM): <0.01
• Shares Outstanding: 700,000,000
• 10 Day Avg. Volume: 1,500
• 30 Day Avg. Volume: 13,266
• PEG Ratio: -0.25
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.92
• 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

• Rating: 67 Neutral
• Price Target: ―

Kangqiao Service Group Limited shows strong financial performance with solid revenue growth and a robust balance sheet. However, cash flow instability is a significant concern. The stock appears undervalued given its low P/E ratio and high dividend yield, offering attractive returns. Technical indicators suggest a bearish trend, but oversold conditions could lead to a potential rebound.

Kangqiao Service Group Limited Business Overview & Revenue Model

Company Description

Kangqiao Service Group Limited (2205) is a comprehensive property management service provider operating primarily in China. The company specializes in offering a wide range of services including property management, community value-added services, and non-owner value-added services. With a focus on high-quality service delivery, Kangqiao Service Group caters to residential communities, commercial properties, and public facilities, ensuring sustainable and efficient property management solutions.

How the Company Makes Money

Kangqiao Service Group Limited generates revenue through its diverse service offerings. The primary revenue streams include property management fees collected from residential, commercial, and public property clients, which encompass essential services such as security, cleaning, landscaping, and facility maintenance. Additionally, the company earns from community value-added services, which involve providing residents with lifestyle services like home maintenance and repair, as well as organizing community activities. Non-owner value-added services contribute to revenue through offerings like property agency services and advertising opportunities within managed communities. Strategic partnerships with real estate developers and local governments enhance the company's service portfolio and broaden its market reach, further supporting its revenue growth.

Kangqiao Service Group Limited Financial Statement Overview

Summary

Kangqiao Service Group Limited presents a strong revenue growth trajectory and solid balance sheet with low leverage. Despite good profitability margins, cash flow management remains a concern with fluctuating cash flows over the years. The company is well-positioned in terms of equity, but needs to improve its cash flow stability to enhance financial robustness.

Income Statement

The company shows a consistent revenue growth trend, with Total Revenue increasing from 2020 to 2024. Gross Profit Margin and Net Profit Margin for 2024 are strong at 22.52% and 5.04% respectively. The EBIT and EBITDA margins also reflect efficient operations. However, Net Income has fluctuated over the years.

Balance Sheet

The balance sheet indicates a strong equity position with an Equity Ratio of 47.77% in 2024 and a stable Debt-to-Equity Ratio of 0.02, suggesting low leverage. Return on Equity is moderate at 6.68%, reflecting steady profitability. The company’s assets have grown, enhancing its financial stability.

Cash Flow

Cash flow analysis shows challenges, with Free Cash Flow being zero in 2024. Historically, Free Cash Flow has been volatile, affecting the overall liquidity profile. The operating cash flow was negative in 2023, indicating potential cash management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
960.85M	934.02M	792.92M	783.57M	575.59M
	Gross Profit
216.24M	220.69M	191.07M	203.85M	176.54M
	EBIT
88.27M	69.41M	77.77M	126.84M	144.66M
	EBITDA
96.84M	84.06M	94.42M	135.30M	150.43M
	Net Income Common Stockholders
48.41M	38.48M	54.12M	83.89M	88.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
184.85M	407.74M	389.00M	561.85M	134.76M
	Total Assets
1.52B	1.25B	1.17B	1.13B	901.31M
	Total Debt
12.61M	9.43M	9.52M	9.79M	360.17M
	Net Debt
-119.95M	-346.26M	-336.39M	-531.05M	225.41M
	Total Liabilities
738.23M	488.55M	413.11M	433.52M	734.29M
	Stockholders Equity
724.22M	711.50M	711.36M	667.89M	145.96M
Cash Flow		Free Cash Flow
0.00	-10.51M	-149.62M	60.49M	53.22M
	Operating Cash Flow
0.00	-3.69M	-138.06M	63.95M	55.69M
	Investing Cash Flow
0.00	37.68M	-32.30M	267.26M	-214.42M
	Financing Cash Flow
0.00	-24.00M	-25.32M	79.78M	236.04M

Kangqiao Service Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2205, the sentiment is Negative. The current price of 0.64 is below the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.64, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6098	68 Neutral	HK$21.46B	10.93	4.96%	0.36%	1.31%	379.84%
1995	68 Neutral	HK$3.47B	6.72	9.70%	6.65%	2.68%	8.49%
2205	67 Neutral	HK$448.00M	8.53	6.75%	9.06%	0.99%	18.86%
3662	67 Neutral	HK$384.91M	3.69	8.37%	42.51%	-14.98%	-39.71%
9983	62 Neutral	HK$1.43B	6.05	10.96%	105.04%	1.88%	―
Sector *	51 Neutral	$1.16B	3.28	-0.13%	9.52%	-1.86%	-126.37%
3319	46 Neutral	€4.06B	―	-29.17%	17.94%	-11.94%	-756.32%

Kangqiao Service Group Limited Corporate Events

Kangqiao Service Group Limited Reports Revenue Growth and Increased Profit for 2024

Kangqiao Service Group Limited reported a 2.9% increase in revenue for 2024, reaching approximately RMB960.8 million. The company saw significant growth in property management services, which accounted for 70.9% of total revenue, while other segments like value-added services to non-property owners and community value-added services experienced declines. Despite a decrease in gross profit margin, the company achieved a 30.8% increase in profit for the year, amounting to RMB68.8 million. The company also expanded its gross floor area under management by 12.5%, with a notable portion coming from third-party developers.