Desun Real Estate Investment Services Group Co., Ltd. (2270) AI Stock Analysis

• Market Cap: HK$2.47B
• Dividend Yield: N/A
• Average Volume (3M): 23.46K
• Price to Earnings (P/E): 61.0
• Beta (1Y): 0.73
• Revenue Growth: 21.08%
• EPS Growth: -18.26%
• Country: HK
• Employees: 1,179
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.03
• Shares Outstanding: 620,259,200
• 10 Day Avg. Volume: 27,800
• 30 Day Avg. Volume: 23,456
• PEG Ratio: 5.10
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 10.72
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$4.00 ▲(0.25% Upside)

Desun Real Estate's strong financial performance and positive technical indicators are offset by a high valuation, suggesting limited upside potential. The stock's overbought status may lead to short-term volatility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust business model and expanding market presence, which supports long-term financial stability.

Cash Generation

Strong cash generation enhances liquidity and financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Stable Profit Margins

Stable profit margins reflect effective cost control and pricing strategies, which contribute to sustainable profitability over the long term.

Negative Factors

Rising Debt Levels

Rising debt levels could strain financial resources and limit the company's ability to invest in growth, potentially impacting long-term stability.

Pressure on Profitability

Decreasing net income could indicate challenges in maintaining profitability, which may affect the company's ability to sustain growth and financial health.

Earnings Decline

A decline in earnings per share growth suggests potential challenges in profit generation, which could impact investor confidence and future investment capacity.

Desun Real Estate Investment Services Group Co., Ltd. Business Overview & Revenue Model

Company Description

Desun Real Estate Investment Services Group Co., Ltd. provides integrated property management and commercial operational services in China. It offers market research, tenant sourcing, shopping streets management, management of sales offices, quality assurance and maintenance, commercial operational services. The company also provides real estate agent, public space advertising and promotion, decoration and furnishing, group bulk purchases, and other value-added services. In addition, it offers brand planning, store display, marketing, and other services for commercial customers; and leasing, plants and decorations rental, conferences, and reception services for industrial parks and office buildings customers. The company was founded in 2010 and is headquartered in Chengdu, China. Desun Real Estate Investment Services Group Co., Ltd. is a subsidiary of Sky Donna Holding Limited.

How the Company Makes Money

Desun Real Estate Investment Services Group Co., Ltd. generates revenue primarily through its real estate investment activities, which include property acquisitions, leasing, and sales. The company earns income from rental properties, management fees, and consultancy services offered to investors seeking guidance in real estate markets. Key revenue streams include long-term leases from residential and commercial properties, capital gains from property sales, and fees associated with managing investment portfolios for clients. Additionally, strategic partnerships with local developers and financial institutions enhance Desun's market reach and provide access to new investment opportunities, further contributing to its profitability.

Desun Real Estate Investment Services Group Co., Ltd. Financial Statement Overview

Summary

Desun Real Estate demonstrates strong financial health with consistent revenue growth, stable profitability, and efficient cash flow management. The balance sheet is solid, though rising debt levels need monitoring.

Income Statement

Desun Real Estate has shown a consistent growth trajectory in its revenue, with a noticeable increase in Total Revenue from the previous year. The Gross Profit Margin and Net Profit Margin have remained stable, indicating efficient cost management. However, the slight decrease in Net Income suggests some pressure on profitability. Overall, the company is maintaining healthy profitability metrics with potential for further growth.

Balance Sheet

The balance sheet of Desun Real Estate demonstrates a solid equity position with a reasonable Debt-to-Equity Ratio, suggesting manageable leverage levels. The Equity Ratio reflects a strong equity base relative to total assets. However, the increase in total debt warrants close monitoring to ensure long-term financial stability.

Cash Flow

Cash flow analysis reveals a positive trend in Free Cash Flow, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio suggests efficient cash conversion from profits. The company has also improved its Free Cash Flow position significantly compared to the previous year, showcasing robust liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	478.43M	453.51M	339.94M	267.27M	253.30M	127.92M
Gross Profit	85.18M	99.83M	91.23M	94.67M	103.43M	62.67M
EBITDA	89.87M	98.33M	73.23M	39.60M	42.23M	51.77M
Net Income	32.30M	37.01M	39.20M	33.60M	33.44M	42.93M
Balance Sheet
Total Assets	906.49M	834.83M	845.28M	450.12M	372.89M	173.02M
Cash, Cash Equivalents and Short-Term Investments	232.95M	173.29M	212.65M	250.05M	254.32M	110.17M
Total Debt	361.47M	296.39M	289.88M	0.00	122.00K	358.00K
Total Liabilities	608.65M	560.73M	532.68M	151.48M	123.64M	92.45M
Stockholders Equity	291.05M	268.71M	305.41M	296.95M	249.01M	80.58M
Cash Flow
Free Cash Flow	55.75M	55.80M	-8.26M	-32.35M	15.88M	38.23M
Operating Cash Flow	69.93M	72.13M	43.43M	-22.31M	17.17M	39.09M
Investing Cash Flow	-23.12M	-24.77M	-71.58M	-12.69M	-8.19M	21.05M
Financing Cash Flow	33.25M	-88.37M	-12.90M	19.48M	132.27M	-8.21M

Desun Real Estate Investment Services Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2270, the sentiment is Negative. The current price of 3.99 is below the 20-day moving average (MA) of 4.00, above the 50-day MA of 3.78, and above the 200-day MA of 2.26, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 92.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2270.

Desun Real Estate Investment Services Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1200	71 Outperform	HK$1.54B	5.16	30.03%	―	9.76%	219.80%
1502	68 Neutral	HK$769.41M	6.37	8.63%	8.32%	16.65%	-8.74%
0898	66 Neutral	HK$827.71M	2.40	4.18%	4.04%	-2.19%	78.43%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2270	64 Neutral	HK$2.47B	61.01	11.60%	―	21.08%	-18.26%
2215	53 Neutral	HK$321.26M	10.22	4.11%	―	-7.17%	-22.01%
0266	50 Neutral	HK$992.19M	-8.30	-3.04%	6.22%	-3.09%	62.33%

Desun Real Estate Investment Services Group Co., Ltd. Corporate Events

Desun Real Estate Establishes Nomination Committee to Enhance Governance

Desun Real Estate Investment Services Group Co., Ltd. has established a Nomination Committee as per the resolutions of its Board of Directors. This move is part of the company’s governance strategy to streamline its nomination processes and ensure compliance with the Listing Rules of the Hong Kong Stock Exchange, potentially impacting its corporate governance and stakeholder relations.

Desun Real Estate Announces Changes to Nomination Committee

Desun Real Estate Investment Services Group Co., Ltd. has announced a change in the composition of its Nomination Committee, effective from November 13, 2025. The appointment of Ms. Wan Hong and Mr. Yan Hong as new members is expected to strengthen the committee with a mix of executive and independent non-executive directors, potentially impacting the company’s governance and strategic direction.

Desun Real Estate Announces Board Composition and Roles

Desun Real Estate Investment Services Group Co., Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which may influence the company’s strategic direction and governance, potentially impacting stakeholders and market perception.

Desun Real Estate Ventures into Digital Finance with Strategic Acquisition

Desun Real Estate Investment Services Group Co., Ltd. has announced the acquisition of a 15% equity interest in Going Securities (HK), a licensed corporation recognized by the Securities and Futures Commission of Hong Kong. This strategic investment aims to facilitate the upgrade of Going Securities’ regulated licenses, allowing Desun to explore opportunities in digital finance, including real-world asset tokenization and virtual asset services. The acquisition is contingent upon the approval of Going Securities’ license upgrade application, with a repurchase agreement in place if the upgrade is not achieved.

Desun Real Estate Announces Return of Parking Spaces in Connected Transactions

Desun Real Estate Investment Services Group Co., Ltd. announced that its wholly-owned subsidiary, Chengdu Desun, has entered into Termination Agreements to return 652 parking spaces to vendors, with relevant debtors agreeing to pay RMB22.52 million. These transactions are considered connected transactions under the Listing Rules, involving entities controlled by the company’s controlling shareholder, Mr. Zou Kang. The agreements are subject to reporting and announcement requirements but exempt from independent shareholder approval.

Desun Real Estate Announces Shareholder Loan Agreement for Chengdu Development

Desun Real Estate Investment Services Group Co., Ltd. announced a discloseable transaction involving a shareholder’s loan agreement with Chengdu Bangtai Jinchen Real Estate Co., Ltd. The agreement, dated 10 October 2025, involves Green Real Estate and Bangtai Yueshang providing an unsecured loan of up to RMB320 million for one year to fund land acquisition and development. The loan will be financed through the company’s internal resources and carries an interest rate of 3.5% per annum, reflecting China’s one-year Loan Prime Rate.

Desun Real Estate Embraces Digital Fintech with Strategic Investment

Desun Real Estate Investment Services Group Co., Ltd. has announced a strategic investment through its subsidiary, Desun Property Service Limited, acquiring a 15% equity interest in Going Securities (HK) Limited. This move is a significant step for Desun in embracing digital fintech, aiming to drive business transformation and diversification by integrating digital financial technologies with its existing operations. The investment aligns with Desun’s strategic objectives to explore new growth avenues and diversify profit models, although it acknowledges potential uncertainties in the market.

Desun Real Estate Updates on Yujing Lease Agreements

Desun Real Estate Investment Services Group Co., Ltd. announced a change in the landlord for its Yujing Leased Premises, now transferred to Chengdu Tianfu Industrial City Investment and Operation Co., Ltd. Despite this transfer, the terms of the lease agreements remain unchanged, and the company will continue to fulfill its obligations under the existing terms, ensuring stability in its operations and maintaining its commitments to stakeholders.

Desun Real Estate Announces Capital Increase in Joint Venture

Desun Real Estate Investment Services Group Co., Ltd. announced a capital increase agreement through its subsidiary, Green Real Estate, with Bangtai Yueshang. The agreement involves Green Real Estate subscribing for RMB10 million of new registered capital in the Target Company, resulting in both parties holding 50% equity interest. This transaction is classified as a discloseable transaction under the Listing Rules, but the Target Company will not become a subsidiary of Desun, and its financial results will not be consolidated into Desun’s financial statements.