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

• Market Cap: HK$372.00M
• Dividend Yield: N/A
• Average Volume (3M): 356.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(56.25% Upside)

The overall stock score of 45.4 reflects significant financial challenges, including declining revenues and profitability, increased leverage, and cash flow issues. Technical indicators suggest bearish momentum, and valuation metrics highlight financial distress with a negative P/E ratio. The absence of a dividend yield further detracts from the stock's attractiveness.

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: Neutral
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.32 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.32, and above the 200-day MA of 0.28, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 63.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0216	―	HK$341.85M	―	-7.70%	―	-6.84%	-746.07%
3616	―	HK$372.00M	-4.87	―	―	―	―
2231	―	HK$293.02M	―	―	―	-37.97%	87.04%
0298	―	€274.60M	-0.70	-12.76%	―	-22.13%	-23.21%
2892	―	HK$285.00M	―	-9.07%	―	-72.10%	90.00%
3301	―	HK$287.87M	-0.02	―	―	-60.50%	-103.48%

Ever Reach Group Holdings Co., Ltd. Corporate Events

Ever Reach Group Announces 2025 Annual General Meeting

Ever Reach Group Holdings Co., Ltd. has announced its upcoming Annual General Meeting scheduled for November 20, 2025, in Hong Kong. The meeting will address several key agenda items, including the approval of financial statements for 2023 and 2024, re-election of directors, and re-appointment of the company’s auditor. Additionally, a resolution will be considered to grant the company’s directors a mandate to buy back shares, potentially impacting the company’s share capital structure.

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.

Ever Reach Group Proposes Amendments to Articles of Association

Ever Reach Group Holdings Co., Ltd., a company incorporated in the Cayman Islands, has announced proposed amendments to its existing articles of association. The board of directors recommends aligning the articles with the expanded paperless listing regime, electronic dissemination of corporate communications, and the new treasury shares regime under the Hong Kong Stock Exchange Listing Rules. These amendments, along with other housekeeping changes, will be incorporated into a new set of articles, subject to shareholder approval at the upcoming annual general meeting on November 20, 2025.

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.

Ever Reach Group Resumes Trading After Fulfilling Resumption Guidance

Ever Reach Group Holdings Co., Ltd. announced the fulfillment of all resumption guidance requirements set by the Stock Exchange of Hong Kong, allowing the resumption of trading in its shares from September 19, 2025. This follows a series of investigations and reviews, including an independent investigation into prepayment issues and an internal control review, which addressed regulatory concerns and ensured compliance with listing obligations. The successful completion of these steps is expected to restore investor confidence and stabilize the company’s market position.

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.

Ever Reach Group Announces Connected Property Transaction

Ever Reach Group Holdings Co., Ltd. announced a connected transaction involving the sale of a residential property in Zhengzhou to Mr. LI Xiaobing, the company’s chairman and controlling shareholder. The transaction, valued at RMB3.30 million, is considered a routine business activity and is exempt from independent shareholder approval due to its compliance with specific listing rules. The board, excluding Mr. LI Xiaobing, views the transaction as fair and beneficial to the company and its 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.

Ever Reach Group Reports Interim Results Amid Trading Suspension

Ever Reach Group Holdings Co., Ltd. announced its interim results for the six months ended June 30, 2025, reporting a revenue increase to RMB 1,585,416,000 from RMB 1,467,599,000 in the same period of 2024. Despite the revenue growth, the company faced challenges with a significant drop in gross profit and a continued suspension of trading, impacting stakeholders and raising concerns about its financial stability.

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.

Ever Reach Group Completes Internal Control Review and Implements Remediation Measures

Ever Reach Group Holdings Co., Ltd. has announced the findings of an internal control review conducted by Ranger Advisory Co. Limited. The review identified a breach of terms under loan agreements where development loan funds were improperly retained by the Group. In response, the company has completed remediation measures, including appointing designated personnel to oversee loan agreements and implementing a Loan Monitoring Policy to ensure compliance. These actions aim to strengthen the company’s internal controls and restore confidence among stakeholders.

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.

Ever Reach Group Announces Positive Profit Alert Amid Trading Suspension

Ever Reach Group Holdings Co., Ltd. has issued a positive profit alert, indicating an expected revenue increase of 2.2% to 9.0% for the first half of 2025 compared to the same period in 2024, and a net profit ranging from RMB1.0 million to RMB5.0 million, a significant improvement from the previous year’s net loss. Despite challenging industry conditions, the company attributes this turnaround to effective cost management. However, trading of the company’s shares remains suspended since April 2024, pending fulfillment of resumption guidance.

Ever Reach Group Announces Board Meeting Amid Continued Trading Suspension

Ever Reach Group Holdings Co., Ltd. has announced a board meeting scheduled for August 29, 2025, to consider and approve the unaudited consolidated accounts for the first half of 2025. Additionally, the company has stated that trading of its shares remains suspended since April 2024, pending fulfillment of resumption guidance, advising shareholders and potential investors to exercise caution.