Kangqiao Service Group Limited (2205) AI Stock Analysis

• Market Cap: HK$448.00M
• Dividend Yield: 9.06%
• Average Volume (3M): 18.43K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.84
• 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: 25,600
• 30 Day Avg. Volume: 18,433
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: -21.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$0.50 ▼(-21.88% Downside)

Kangqiao Service Group Limited's strong valuation, with a low P/E ratio and high dividend yield, is a significant positive factor. However, the company's financial performance, particularly in terms of cash flow stability and profitability, presents challenges. The technical analysis indicates a bearish trend, which may impact short-term stock performance.

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 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
EBITDA	96.84M	84.06M	94.42M	135.30M	150.43M
Net Income	48.41M	38.48M	54.12M	83.89M	88.38M
Balance Sheet
Total Assets	1.52B	1.25B	1.17B	1.13B	901.31M
Cash, Cash Equivalents and Short-Term Investments	184.85M	407.74M	389.00M	561.85M	134.76M
Total Debt	12.61M	9.43M	9.52M	9.79M	360.17M
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	-208.15M	-10.51M	-149.62M	60.49M	53.22M
Operating Cash Flow	-188.75M	-3.69M	-138.06M	63.95M	55.69M
Investing Cash Flow	-20.16M	37.68M	-32.30M	267.26M	-214.42M
Financing Cash Flow	-13.89M	-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: 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 Negative. The current price of 0.64 is above the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.67, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 57.12 is Neutral, 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
2205	72 Outperform	HK$448.00M	10.65	5.26%	9.06%	-5.08%	27.33%
0606	67 Neutral	570.82M	51.72	2.10%	―	-5.91%	-94.58%
9928	64 Neutral	550.10M	18.67	0.35%	7.09%	1.97%	-67.03%
0021	55 Neutral	413.42M	-11.26	0.00%	―	1303.01%	-45.00%
0727	50 Neutral	429.25M	18.18	4.31%	―	-39.27%	0.00%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Kangqiao Service Group Limited Corporate Events

Kangqiao Service Group to Review Interim Results and Dividend

Kangqiao Service Group Limited has announced a board meeting scheduled for August 27, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the declaration of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Kangqiao Service Group’s AGM Resolutions Unanimously Approved

Kangqiao Service Group Limited held its Annual General Meeting on June 27, 2025, where all proposed resolutions were unanimously approved by shareholders. The resolutions included the adoption of financial statements, re-election of directors, authorization of directors’ remuneration, and re-appointment of the company’s auditor. Additionally, the board was granted mandates to issue and repurchase shares, enhancing the company’s flexibility in managing its capital structure.