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

• Market Cap: HK$258.00M
• Dividend Yield: N/A
• Average Volume (3M): 356.53K
• 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: 32,200
• 30 Day Avg. Volume: 356,533
• 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: 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: 44 Neutral
• Price Target: HK$0.21 ▼(-16.40% Downside)

Overall score is held back primarily by weak financial performance (declining revenue, negative profitability, and negative operating/free cash flow). Technicals also point to a sustained downtrend with negative momentum, while valuation impact is neutral due to missing P/E and dividend data.

Positive Factors

Diversified business model

Ever Reach operates across property development, construction and investments, providing multiple revenue streams. This diversification reduces dependence on any single segment, supports project pipeline flexibility, and cushions cash flow volatility across cycles over months.

Stable equity proportion

A stable equity ratio indicates the company retains a meaningful equity buffer versus assets. That structural financing mix can lower refinancing pressure, support credit access, and provide longer-term resilience while management addresses operational issues.

Low market volatility exposure (low Beta)

A very low beta suggests the company's equity historically exhibits limited sensitivity to broad market swings. For stakeholders, lower systematic volatility can enable steadier capital planning and reduce the risk of market-driven funding stress during multi-month recovery phases.

Negative Factors

Sharp revenue decline

A near-29% revenue drop materially undermines scale economics and growth visibility. Over several months this can impair project financing, reduce bargaining leverage with contractors, and limit ability to rebuild margins without structural improvements to sales or project execution.

Negative operating and free cash flow

Sustained negative OCF and FCF indicate operations are not generating cash to fund capex, working capital, or debt service. This structural cash shortfall raises reliance on external funding, increases liquidity risk, and constrains strategic investments over the medium term.

Deteriorated profitability and higher leverage

Negative margins coupled with rising leverage and a negative ROE weaken financial resilience. This combination reduces reinvestment capacity, heightens vulnerability to interest or covenant pressure, and prolongs the time required to restore sustainable profitability.

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

Company Description

Ever Reach Group (Holdings) Company Limited, an investment holding company, engages in the property development and investment activities in the People's Republic of China. The company develops and sells residential and commercial properties, car parking spaces, and storage facilities. It also provides trading and house rental services; and real estate brokerage, rental agency, and information consultation services. The company was founded in 1992 and is headquartered in Xuchang, the People's Republic of China.

How the Company Makes Money

Ever Reach Group Holdings generates revenue through multiple streams. The primary source of income comes from its property development projects, where the company undertakes the construction and sale of residential and commercial properties. Additionally, it earns revenue from its construction services, fulfilling contracts for infrastructure projects. The company may also generate income through investments in associated businesses and partnerships, which provide dividends and capital gains. Strategic alliances with other firms in the real estate and construction sectors can further enhance revenue opportunities by expanding project capabilities and market reach.

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

Summary

Weak fundamentals: revenue declined sharply (-28.75%), margins deteriorated into negative territory (net/EBIT/EBITDA), and operating/free cash flow are negative. Balance sheet is comparatively less severe but still pressured by higher leverage and negative ROE.

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: Negative
• Last Price: 0.25
• 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:3616, the sentiment is Negative. The current price of 0.25 is above the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.30, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$347.36M	-0.48	-9.81%	―	48.60%	-441.98%
2892	46 Neutral	HK$262.50M	-4.46	-9.07%	―	-72.10%	90.00%
3616	44 Neutral	HK$258.00M	―	―	―	―	―
2231	40 Underperform	HK$123.46M	-0.51	―	―	-37.97%	87.04%
3301	39 Underperform	HK$244.10M	-0.02	―	―	-60.50%	-103.48%
0298	38 Underperform	HK$276.95M	-0.98	-9.74%	―	173.15%	2.36%

Ever Reach Group Holdings Co., Ltd. Corporate Events

Ever Reach Group Reshapes Board as Executive Director Retires and Chairman’s Sister Joins

Ever Reach Group (Holdings) Company Limited announced that executive director Qi Chunfeng has retired from the board and the nomination committee effective 30 December 2025, with the company emphasizing that her departure involves no disagreement with the board and expressing thanks for her contributions. On the same date, Li Man, currently assistant to the CEO of subsidiary Xuchang Hengda and a long-serving finance executive within the Group, has been appointed as an executive director and nomination committee member on a three-year term without director’s remuneration, a move that both reinforces financial oversight at board level and further consolidates the influence of the Li family, given her relationship to chairman and controlling shareholder Li Xiaobing.

The most recent analyst rating on (HK:3616) stock is a Hold with a HK$0.39 price target. To see the full list of analyst forecasts on Ever Reach Group Holdings Co., Ltd. stock, see the HK:3616 Stock Forecast page.

Ever Reach Group Outlines Board Composition and Committee Roles

Ever Reach Group (Holdings) Company Limited has announced the current composition of its board of directors, comprising four executive directors and three independent non-executive directors, and clarified the roles of each director across its key board committees. The Board has set up four committees—Audit, Remuneration, Nomination and Legal Compliance—led mainly by the independent non-executive directors, underscoring an emphasis on corporate governance and oversight that may reassure investors regarding the company’s internal checks and regulatory compliance.

The most recent analyst rating on (HK:3616) stock is a Hold with a HK$0.39 price target. To see the full list of analyst forecasts on Ever Reach Group Holdings Co., Ltd. stock, see the HK:3616 Stock Forecast page.

Ever Reach Group Signs New Property Management Agreement

Ever Reach Group Holdings Co., Ltd. has entered into a new 2025 Master Property Management Service Agreement with Hengda Property Management to continue managing connected transactions for property management services. This agreement, effective from January 1, 2026, to December 31, 2028, ensures the continuation of services and complies with the Listing Rules, exempting it from certain requirements due to its fair and reasonable terms.

The most recent analyst rating on (HK:3616) stock is a Hold with a HK$0.32 price target. To see the full list of analyst forecasts on Ever Reach Group Holdings Co., Ltd. stock, see the HK:3616 Stock Forecast page.

Ever Reach Group Successfully Passes All AGM Resolutions

Ever Reach Group Holdings Co., Ltd. held its Annual General Meeting on November 20, 2025, where all proposed resolutions were successfully passed. The resolutions included the approval of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates for share buybacks and issuance. The company also approved amendments to its articles of association, reflecting a strong consensus among shareholders.

The most recent analyst rating on (HK:3616) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Ever Reach Group Holdings Co., Ltd. stock, see the HK:3616 Stock Forecast page.