Binjiang Service Group Co. Ltd. (3316) AI Stock Analysis

• Market Cap: HK$6.59B
• Dividend Yield: 6.94%
• Average Volume (3M): 259.40K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.76
• Revenue Growth: 21.11%
• EPS Growth: 9.61%
• Country: HK
• Employees: 14,022
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 1.18
• Shares Outstanding: 276,407,000
• 10 Day Avg. Volume: 375,973
• 30 Day Avg. Volume: 259,402
• PEG Ratio: 0.85
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 9.77
• 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$28.00 ▲(18.04% Upside)

Binjiang Service Group Co. Ltd. demonstrates strong financial performance and attractive valuation, making it a compelling investment in the real estate services sector. The technical analysis indicates a positive trend, though caution is advised due to potential overbought conditions. The lack of earnings call and corporate events data does not impact the overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective service expansion, enhancing long-term competitive positioning.

Profitability

Robust profitability margins reflect effective cost management and operational efficiency, supporting sustainable financial health.

Balance Sheet Strength

Minimal leverage risk due to low debt levels enhances financial stability and flexibility for future growth opportunities.

Negative Factors

Cash Flow Management

Lack of free cash flow in 2024 raises concerns about cash management, potentially impacting future investments and financial flexibility.

Liquidity Concerns

Potential liquidity challenges due to high current liabilities could strain short-term financial operations and require careful management.

Free Cash Flow Volatility

Volatile free cash flow patterns may hinder the company's ability to consistently fund operations and strategic initiatives internally.

Binjiang Service Group Co. Ltd. Business Overview & Revenue Model

Company Description

Binjiang Service Group Co. Ltd. provides property management and related services in the People's Republic of China. Its property management services include security, cleaning, gardening, repair, maintenance, and ancillary services to residential and non-residential properties, such as commercial properties, office buildings, corporate buildings, public facilities, industrial parks, and government buildings. The company also offers value-added services to non-property owners comprising pre-delivery, consulting, and community space services primarily to property developers; and property sales and leasing agency, car parking space, and storage room services, as well as home living, interior design, customized furnishing, facility upgrade, and maintenance services to property owners. In addition, the company sells furniture, parking places, and storage rooms; and provides decoration, advertisement design, producing, releasing, and brokerage services. It serves property owners and residents, property developers, and property management companies. The company was founded in 1995 and is headquartered in Hangzhou, China. Binjiang Service Group Co. Ltd. is a subsidiary of Great Dragon Ventures Limited.

How the Company Makes Money

Binjiang Service Group generates revenue primarily through property management fees, which are charged for managing residential and commercial properties. Additional revenue streams include service fees for community services, such as maintenance, security, and cleaning. The company also earns income from ancillary services, which may include leasing, advertising, and consultancy related to real estate. Partnerships with real estate developers and local governments further bolster its revenue, as they provide exclusive management contracts and access to new developments, thus expanding its market reach and service offerings.

Binjiang Service Group Co. Ltd. Financial Statement Overview

Summary

Binjiang Service Group Co. Ltd. shows strong financial performance with consistent revenue growth and robust profitability. The company maintains a solid equity foundation with minimal debt, enhancing financial stability. However, attention to cash flow management is necessary due to fluctuating free cash flow.

Income Statement

Binjiang Service Group Co. Ltd. demonstrates strong financial performance with consistent revenue growth, evidenced by a 28% increase from 2023 to 2024. The company maintains robust profitability, with a gross profit margin of 23.2% and a net profit margin of 15.2% for 2024. Both EBIT and EBITDA margins are healthy at 19.6% and 19.9%, respectively. This indicates effective cost management and operational efficiency. The company shows a positive growth trajectory, enhancing its competitive position in the real estate services industry.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.0017, indicating minimal leverage risk. The equity ratio is 35.9%, pointing to a solid equity base. Additionally, the return on equity is 35.7%, showcasing effective utilization of shareholders' funds to generate profits. However, the high current liabilities compared to current assets could pose potential liquidity challenges. Overall, the company's balance sheet remains robust with a strong equity foundation and limited debt exposure.

Cash Flow

The cash flow statement indicates fluctuating free cash flow, with no free cash flow reported in 2024 compared to positive figures in previous years. Despite this, the company demonstrates strong operating cash flow in prior years, which supports its ability to fund operations internally. The lack of free cash flow in 2024 raises concerns about cash management and future investments. Continued focus on optimizing cash flow generation will be critical for sustaining long-term growth and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.97B	3.59B	2.81B	1.98B	1.40B	960.20M
Gross Profit	868.70M	835.37M	695.89M	592.25M	449.68M	297.32M
EBITDA	742.23M	715.92M	667.17M	521.86M	394.05M	252.40M
Net Income	578.92M	546.53M	492.55M	412.00M	321.75M	219.55M
Balance Sheet
Total Assets	4.98B	4.26B	4.05B	2.99B	1.68B	1.50B
Cash, Cash Equivalents and Short-Term Investments	3.32B	2.20B	1.79B	2.12B	1.17B	1.19B
Total Debt	2.31M	2.65M	4.02M	454.00K	1.71M	2.50M
Total Liabilities	3.32B	2.67B	2.51B	1.71B	711.08M	644.26M
Stockholders Equity	1.59B	1.53B	1.49B	1.25B	941.59M	841.63M
Cash Flow
Free Cash Flow	760.26M	535.21M	904.04M	1.10B	229.43M	309.55M
Operating Cash Flow	789.09M	561.21M	928.89M	1.12B	242.38M	317.74M
Investing Cash Flow	-315.29M	-608.17M	-1.17B	32.04M	65.55M	40.60M
Financing Cash Flow	-155.61M	-503.11M	-255.82M	-111.35M	-208.13M	-72.05M

Binjiang Service Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3316, the sentiment is Negative. The current price of 23.72 is below the 20-day moving average (MA) of 24.29, below the 50-day MA of 24.47, and below the 200-day MA of 23.82, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 38.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3316.

Binjiang Service Group Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3316	74 Outperform	HK$6.59B	10.55	38.46%	6.94%	21.11%	9.61%
1995	72 Outperform	HK$3.22B	6.98	8.42%	8.48%	2.83%	-6.65%
2156	71 Outperform	HK$3.84B	9.83	20.32%	5.77%	-7.78%	-29.31%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1516	53 Neutral	HK$4.31B	28.03	2.77%	11.14%	-1.14%	―
6666	51 Neutral	HK$12.65B	12.30	185.17%	―	4.74%	-21.33%

Binjiang Service Group Co. Ltd. Corporate Events

Binjiang Service Group Renews Key Operational Agreements for 2026

Binjiang Service Group Co. Ltd. announced the renewal of agreements for its ongoing connected transactions set to expire in 2025. These renewals encompass property management, sales agency, consultancy services, and the procurement of assets such as parking spaces, storage rooms, and retail spaces under the 2026 Agreements. These transactions, categorized as continuing connected transactions under Hong Kong’s Listing Rules, will be subject to reporting, announcement, and review requirements without necessitating independent shareholder approval due to their defined thresholds. This move underscores the company’s focus on sustaining critical operations and aligning with regulatory compliance.

The most recent analyst rating on (HK:3316) stock is a Buy with a HK$31.79 price target. To see the full list of analyst forecasts on Binjiang Service Group Co. Ltd. stock, see the HK:3316 Stock Forecast page.