Ever Reach Group Holdings Co., Ltd. (3616) AI Stock Analysis

• Market Cap: HK$438.00M
• Dividend Yield: N/A
• Average Volume (3M): 347.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 658
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 162,800
• 30 Day Avg. Volume: 347,000
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -7.95
• 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: 38.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(38.89% Upside)

The most significant factor affecting the stock score is the company's poor financial performance, with declining revenues and profitability, increased leverage, and cash flow challenges. Technical analysis shows a lack of momentum and overbought conditions, while valuation metrics indicate unattractiveness due to negative earnings and no dividend yield.

Ever Reach Group Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Ever Reach Group Holdings Co., Ltd. (3616) is a diversified investment holding company based in Hong Kong, primarily focused on the development and management of real estate projects. The company operates across various sectors including property development, leasing, and investment, aiming to create value through strategic acquisitions and sustainable development practices. Its core services include residential and commercial property development, as well as property management services, catering to both local and international markets.

How the Company Makes Money

Ever Reach Group Holdings generates revenue primarily through its real estate development and leasing activities. The company makes money by selling residential and commercial properties upon completion of development projects, which often involves significant value-add through design and construction. Additionally, the company earns recurring income from leasing out its properties to tenants, including both residential and commercial clients. Key revenue streams include sales of developed properties, rental income from tenant leases, and property management fees. The company may also engage in partnerships with other real estate developers or investors, which can enhance its project pipeline and revenue potential, further contributing to its overall earnings.

Ever Reach Group Holdings Co., Ltd. Financial Statement Overview

Summary

Ever Reach Group Holdings Co., Ltd. is facing significant financial challenges, with declining revenues and profitability. The balance sheet shows increased leverage, and cash flow metrics indicate liquidity issues. The company needs to address operational inefficiencies and improve cash flow management to stabilize its financial position.

Income Statement

The company has experienced a significant decline in revenue with a negative growth rate of -28.75% in the latest year. Gross profit margin has decreased substantially from previous years, indicating reduced profitability. The net profit margin has turned negative, reflecting a challenging operating environment. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has increased, indicating higher leverage, but remains manageable. Return on equity has turned negative due to net losses, which is a concern. The equity ratio remains stable, suggesting a reasonable proportion of equity financing relative to total assets.

Cash Flow

The company has negative operating and free cash flows, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is also negative, reflecting cash flow difficulties in supporting net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.88B	2.76B	3.57B	2.86B	2.77B	2.42B
Gross Profit	101.70M	123.11M	434.20M	421.38M	851.49M	778.96M
EBITDA	-125.62M	-148.06M	147.56M	169.26M	555.06M	533.45M
Net Income	-210.77M	-270.42M	40.94M	84.81M	306.91M	284.01M
Balance Sheet
Total Assets	6.97B	7.90B	9.09B	10.03B	10.30B	8.51B
Cash, Cash Equivalents and Short-Term Investments	155.72M	253.34M	274.81M	221.06M	287.64M	554.64M
Total Debt	1.01B	1.08B	964.19M	693.50M	713.87M	576.48M
Total Liabilities	5.39B	6.30B	7.23B	8.16B	8.45B	6.98B
Stockholders Equity	1.55B	1.54B	1.81B	1.77B	1.75B	1.50B
Cash Flow
Free Cash Flow	31.56M	-36.85M	-10.75M	-8.70M	-176.01M	885.09M
Operating Cash Flow	34.57M	-35.57M	-4.03M	-4.32M	-170.65M	897.59M
Investing Cash Flow	15.65M	10.57M	-41.66M	-1.29M	-282.21M	-122.23M
Financing Cash Flow	-140.21M	3.54M	99.44M	-54.82M	179.84M	-466.00M

Ever Reach Group Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3616, the sentiment is Positive. The current price of 0.36 is below the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.30, and above the 200-day MA of 0.27, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 13.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3616.

Ever Reach Group Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0216	53 Neutral	HK$341.85M	―	-7.70%	―	-6.84%	-746.07%
3616	46 Neutral	HK$438.00M	―	―	―	―	―
2892	41 Neutral	HK$285.00M	―	-9.07%	―	-72.10%	90.00%
0298	39 Underperform	HK$291.03M	―	-12.76%	―	-22.13%	-23.21%
2231	39 Underperform	HK$296.31M	―	-757.46%	―	-37.97%	87.04%
3301	39 Underperform	HK$328.27M	―	-465.56%	―	-60.50%	-103.48%