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

• Market Cap: HK$420.00M
• Dividend Yield: N/A
• Average Volume (3M): 63.53K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.43
• Revenue Growth: 3.93%
• EPS Growth: -71.60%
• Country: HK
• Employees: 4,908
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): <0.01
• Shares Outstanding: 560,000,000
• 10 Day Avg. Volume: 97,800
• 30 Day Avg. Volume: 63,533
• PEG Ratio: -0.44
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -37.20
• 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: 62 Neutral
• Price Target: HK$0.88 ▲(17.33% Upside)

The overall stock score of 62 reflects strong financial performance with robust revenue growth and a solid balance sheet. However, technical analysis indicates a bearish trend, and valuation metrics suggest moderate pricing. The lack of dividend yield and cash flow challenges are notable concerns.

Positive Factors

Revenue Growth

Significant revenue growth over five years indicates a strong market position and effective business model, supporting long-term expansion.

Operational Efficiency

Consistent operational efficiency suggests effective cost management, which is crucial for sustaining profitability and competitive advantage.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Negative Factors

Cash Flow Challenges

Lack of cash flow can hinder the company's ability to invest in growth opportunities and meet short-term obligations, impacting long-term sustainability.

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or pricing pressures, which could affect future profitability if not addressed.

Equity Reduction

A reduction in equity could limit the company's ability to fund new projects or absorb financial shocks, affecting long-term growth potential.

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 through multiple streams, primarily by charging clients for logistics services such as warehousing and transportation. The company operates on a service fee model, where clients pay for the use of its facilities and services based on volume and duration. Additionally, Hevol may engage in long-term contracts with major clients, providing a steady revenue base. Significant partnerships with manufacturers and retailers also enhance its market reach and revenue potential, allowing the company to capitalize on bulk service agreements and improve operational efficiencies.

Hevol Services Group Co. Limited Financial Statement Overview

Summary

Hevol Services Group demonstrates robust revenue growth and operational efficiency in the real estate services sector. The income statement shows strong growth and healthy margins, and the balance sheet reflects a solid financial foundation with low leverage. However, cash flow management appears challenged with a notable decline in operating and free cash flow in 2024, which could impact 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.39B	1.37B	1.31B	1.04B	766.79M	415.87M
Gross Profit	340.32M	349.61M	336.22M	295.31M	264.19M	148.91M
EBITDA	110.03M	128.54M	175.06M	120.16M	135.63M	70.22M
Net Income	17.93M	54.39M	77.90M	68.72M	86.19M	56.36M
Balance Sheet
Total Assets	1.66B	1.73B	1.65B	1.63B	1.17B	613.25M
Cash, Cash Equivalents and Short-Term Investments	222.05M	357.26M	381.38M	364.24M	392.74M	313.37M
Total Debt	114.60M	100.70M	69.99M	16.09M	6.54M	2.61M
Total Liabilities	980.86M	958.44M	875.17M	921.79M	586.22M	286.05M
Stockholders Equity	646.82M	693.09M	696.95M	614.66M	523.79M	307.17M
Cash Flow
Free Cash Flow	157.78M	-19.66M	72.43M	-29.97M	201.68M	14.55M
Operating Cash Flow	164.04M	-10.73M	79.30M	-23.07M	207.20M	17.02M
Investing Cash Flow	-77.53M	-77.89M	13.80M	-91.79M	-222.53M	-10.34M
Financing Cash Flow	20.63M	-15.71M	4.79M	-22.61M	116.04M	90.57M

Hevol Services Group Co. Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6093, the sentiment is Positive. The current price of 0.75 is above the 20-day moving average (MA) of 0.74, above the 50-day MA of 0.73, and below the 200-day MA of 1.00, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 109.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1895	73 Outperform	HK$275.76M	2.63	15.85%	11.22%	11.13%	142.00%
1502	68 Neutral	HK$795.56M	6.69	8.63%	8.44%	16.65%	-8.74%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2270	64 Neutral	HK$2.46B	62.92	11.60%	―	21.08%	-18.26%
3662	63 Neutral	HK$305.02M	7.16	3.28%	6.60%	-14.43%	-77.55%
6093	62 Neutral	HK$420.00M	23.92	2.59%	―	3.93%	-71.60%
2215	58 Neutral	HK$243.24M	7.12	4.11%	―	-7.17%	-22.01%

Hevol Services Group Co. Limited Corporate Events

Hevol Services Announces Disposal of 51% Equity Interest in Connected Transaction

Hevol Services Group Co. Limited has announced a discloseable and connected transaction involving the disposal of a 51% equity interest in a target company. The transaction, valued at RMB7,877,400, has been agreed upon between the Vendor, an indirect wholly-owned subsidiary of Hevol, and the Purchaser, a company with familial connections to existing stakeholders. The transaction is deemed fair and reasonable by the company’s directors and is expected to be in the interest of the company and its shareholders.

The most recent analyst rating on (HK:6093) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Hevol Services Group Co. Limited stock, see the HK:6093 Stock Forecast page.