Hevol Services Group Co. Limited (6093) AI Stock Analysis

• Market Cap: HK$750.40M
• Dividend Yield: N/A
• Average Volume (3M): 13.27K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.34
• Revenue Growth: 1.96%
• EPS Growth: -32.15%
• Country: HK
• Employees: 4,908
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Services
• EPS (TTM): 0.10
• Shares Outstanding: 560,000,000
• 10 Day Avg. Volume: 14,400
• 30 Day Avg. Volume: 13,266
• PEG Ratio: -1.09
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.94
• 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

• Rating: 68 Neutral
• Price Target: ―

Hevol Services Group shows strong revenue growth and a solid financial base, but the decline in cash flow is a concern. Technical indicators suggest cautious optimism with some resistance, while valuation appears reasonable. The absence of a dividend may further impact investor sentiment.

Hevol Services Group Co. Limited Business Overview & Revenue Model

Company Description

Hevol Services Group Co. Limited, an investment holding company, provides property management and value-added services in the People's Republic of China. It provides security, cleaning, greening, gardening, and repair and maintenance services to property owners and residents, as well as property developers. The company also offers community value-added services comprises home-living services, including property repair and maintenance, cleaning, interior decoration, collection of electricity tariffs, purchase assistance, and accommodation and catering services to property owners; leases common areas, such as swimming pools, car parking spaces, and advertising spaces to third party contractors; and organizes community cultural activities, which include community sports events, community carnivals, elderly care, and community festival celebrations for residents. In addition, it provides value-added services, such as site, auxiliary property management, and full cycle and process services to non-property owners. Further, the company is involved in provision of management consulting and property agency services. As of December 31, 2021, it managed 195 property management projects with a total contracted gross floor area of approximately 34.0 million square meters. Hevol Services Group Co. Limited was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Hevol Services Group Co. Limited generates revenue primarily through fee-based contracts for its property management services. These fees are typically structured as fixed monthly charges or as a percentage of the total property management costs, depending on the agreement with property owners or developers. The company may also earn additional income through value-added services such as leasing management, renovation projects, and energy management solutions. Strategic partnerships with real estate developers and property owners are significant, allowing the company to expand its service portfolio and client base, thereby driving revenue growth.

Hevol Services Group Co. Limited Financial Statement Overview

Summary

Hevol Services Group demonstrates robust revenue growth and operational efficiency. The income statement shows strong growth and healthy margins, while the balance sheet reflects financial stability with low leverage. However, cash flow management is challenged, with a notable decline in operating and free cash flow in 2024, potentially impacting liquidity.

Income Statement

The company shows strong revenue growth, particularly impressive with a 230% increase from 2019 to 2024. The gross profit margin is healthy at around 25.6%, though net profit margins are moderate, showing a slight decline from 5.9% in 2023 to 4% in 2024. EBIT and EBITDA margins remain stable, indicating efficient operational management. However, the decrease in net income from 2023 to 2024 suggests potential challenges in cost management or increased expenses.

Balance Sheet

The balance sheet reflects strong financial health with a low debt-to-equity ratio of 0.15 in 2024, showcasing conservative leverage. The equity ratio of 40% indicates a solid equity base, supporting financial stability. The consistent growth in total assets and stockholders' equity over the years highlights robust business expansion. However, the slight decrease in stockholders' equity in 2024 may signal emerging liabilities or capital returns.

Cash Flow

Cash flow analysis shows a concerning trend with zero operating and free cash flow in 2024, following positive free cash flow in previous years. This could indicate cash management issues or increased capital expenditure. The operating cash flow to net income ratio is unavailable for 2024 due to zero operating cash flow, which raises concerns about cash generation capacity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.37B	1.31B	1.04B	766.79M	415.87M
	Gross Profit
349.61M	336.22M	295.31M	264.19M	148.91M
	EBIT
103.03M	127.41M	102.52M	123.92M	66.38M
	EBITDA
126.39M	175.06M	135.77M	135.63M	70.22M
	Net Income Common Stockholders
54.39M	77.90M	68.72M	86.19M	56.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
357.26M	381.38M	364.24M	392.74M	313.37M
	Total Assets
1.73B	1.65B	1.63B	1.17B	613.25M
	Total Debt
100.70M	69.99M	16.09M	6.54M	2.61M
	Net Debt
-173.01M	-308.22M	-259.83M	-384.68M	-288.89M
	Total Liabilities
958.44M	875.17M	921.79M	586.22M	286.05M
	Stockholders Equity
693.09M	696.95M	614.66M	523.79M	307.17M
Cash Flow		Free Cash Flow
0.00	72.43M	-29.97M	201.68M	14.55M
	Operating Cash Flow
0.00	79.30M	-23.07M	207.20M	17.02M
	Investing Cash Flow
0.00	13.80M	-91.79M	-222.53M	-10.34M
	Financing Cash Flow
0.00	4.79M	-22.61M	116.04M	90.57M

Hevol Services Group Co. Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.34
• 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:6093, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.35, and below the 200-day MA of 1.37, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6093.

Hevol Services Group Co. Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2869	72 Outperform	HK$13.11B	17.68	8.94%	3.60%	1.01%	12.45%
6099	71 Outperform	€147.33B	9.82	8.73%	3.52%	-2.52%	17.25%
6098	68 Neutral	$20.90B	10.64	4.96%	0.39%	1.31%	379.84%
1995	68 Neutral	HK$3.28B	6.35	9.70%	7.93%	2.68%	8.49%
6093	68 Neutral	HK$750.40M	12.73	7.83%	―	1.96%	-32.15%
Sector *	61 Neutral	$2.82B	10.89	0.42%	8438.96%	5.74%	-20.95%
3319	46 Neutral	€3.95B	―	-29.17%	2.54%	-11.94%	-756.32%

Hevol Services Group Co. Limited Corporate Events

Hevol Services Group Announces 2025 Annual General Meeting

Hevol Services Group Co. Limited has announced its upcoming annual general meeting, scheduled for May 30, 2025, in Beijing, China. The meeting will address several key resolutions, including the adoption of the company’s financial statements for 2024, the re-election of certain directors, and the authorization of the board to manage directors’ remuneration and appoint auditors. Additionally, the company seeks approval for the directors to issue new shares or securities, which could potentially impact the company’s capital structure and shareholder value.

Hevol Services Group Reports Revenue Growth Amid Profit Decline in 2024

Hevol Services Group Co. Limited reported a 3.9% increase in total revenue for 2024, reaching approximately RMB1,365.1 million, and a 4.0% rise in gross profit. However, the profit after income tax decreased by 24.1% to RMB86.6 million, with a net profit margin drop to 6.3%. The company also expanded its total gross floor area under management by 11.5%, reflecting its growth in operational scale.

Hevol Services Issues Profit Warning with Expected Decline in 2024 Earnings

Hevol Services Group Co. Limited has issued a supplemental announcement regarding its profit warning, indicating a decrease in expected profit for the year ending December 31, 2024, compared to the previous year. The company anticipates profits between RMB48.3 million and RMB58.5 million, a decline from RMB77.9 million in 2023, based on unaudited management accounts. Stakeholders are advised to exercise caution, as the final audited results may differ, and further disclosures will be made as necessary.

Hevol Services Group Issues Profit Warning Amid Rising Expenses

Hevol Services Group Co. Limited has issued a profit warning, anticipating a 25% to 35% decrease in net profit after tax for the year ending December 31, 2024, compared to the previous year. This decline is attributed to increased marketing expenses aimed at expanding management areas and higher provisions for credit impairment of trade receivables. The announcement is based on unaudited management accounts, and actual results may vary. Stakeholders are advised to exercise caution when dealing with the company’s securities.