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

• Market Cap: HK$560.00M
• Dividend Yield: N/A
• Average Volume (3M): 25.73K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.30
• Revenue Growth: 1.96%
• EPS Growth: -32.15%
• Country: HK
• Employees: 4,908
• Sector: Real Estate
• Sector Strength: 51
• Industry: Real Estate - Services
• EPS (TTM): 0.03
• Shares Outstanding: 560,000,000
• 10 Day Avg. Volume: 38,000
• 30 Day Avg. Volume: 25,733
• PEG Ratio: -1.01
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.64
• 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: 60 Neutral
• Price Target: HK$1.00 ▲(0.00%Upside)

Hevol Services Group's overall score reflects strong financial performance driven by revenue growth and a solid balance sheet. However, technical analysis indicates bearish trends, and cash flow concerns pose risks to liquidity. The valuation is reasonable, but lack of dividend yield could impact attractiveness to investors. Addressing cash flow issues and monitoring technical indicators are crucial for improving the stock's outlook.

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 its comprehensive suite of property management services. The company's primary revenue streams include fees from property management services, which involve managing and maintaining residential and commercial properties. Additionally, it earns income from value-added services to non-property owners, such as consulting and advisory services. Community value-added services, which include services like home decoration, maintenance, and repair, also contribute to its earnings. The company may engage in partnerships with local developers or other real estate entities to expand its service offerings and client base. The combination of these services, along with their focus on operational efficiency and customer satisfaction, helps Hevol Services sustain and grow its revenue.

Hevol Services Group Co. Limited Financial Statement Overview

Summary

The company exhibits strong revenue growth and operational efficiency, with a healthy gross profit margin. The balance sheet is robust with low leverage and a solid equity base. However, there is a significant concern with cash flow management, as zero operating and free cash flow in 2024 may affect 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
EBITDA	126.39M	175.06M	135.77M	135.63M	70.22M
Net Income	54.39M	77.90M	68.72M	86.19M	56.36M
Balance Sheet
Total Assets	1.73B	1.65B	1.63B	1.17B	613.25M
Cash, Cash Equivalents and Short-Term Investments	357.26M	381.38M	364.24M	392.74M	313.37M
Total Debt	100.70M	69.99M	16.09M	6.54M	2.61M
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	-19.66M	72.43M	-29.97M	201.68M	14.55M
Operating Cash Flow	-10.73M	79.30M	-23.07M	207.20M	17.02M
Investing Cash Flow	-77.89M	13.80M	-91.79M	-222.53M	-10.34M
Financing Cash Flow	-15.71M	4.79M	-22.61M	116.04M	90.57M

Hevol Services Group Co. Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.26, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 8.22 is Positive, neither overbought nor oversold. The STOCH value of 14.72 is Positive, 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
1502	75 Outperform	HK$900.14M	7.15	9.14%	6.99%	13.57%	-11.39%
3662	75 Outperform	HK$413.96M	3.97	8.37%	9.35%	-14.98%	-39.71%
1895	74 Outperform	HK$290.59M	3.00	15.54%	16.84%	13.95%	185.84%
2270	71 Outperform	HK$961.40M	21.95	12.90%	―	31.21%	1.00%
2215	67 Neutral	HK$816.91M	19.91	5.41%	―	-4.12%	-38.34%
Sector *	63 Neutral	$6.78B	14.59	-1.87%	7.22%	3.95%	-36.33%
6093	60 Neutral	HK$560.00M	9.50	7.83%	―	1.96%	-32.15%

Hevol Services Group Co. Limited Corporate Events

Hevol Services Group Updates Nomination Committee Guidelines

Hevol Services Group Co. Limited has updated the terms of reference for its Nomination Committee, emphasizing the importance of diversity, including gender diversity, in its board appointments. The committee is tasked with identifying suitable candidates for director positions, evaluating board performance, and developing nomination and succession guidelines, aligning with applicable laws and regulations. The committee will consist of a majority of independent non-executive directors, meeting at least annually to ensure effective governance and strategic oversight.

Hevol Services Group Updates Nomination Committee Leadership

Hevol Services Group Co. Limited has announced changes in the composition of its Nomination Committee. Mr. Liu Jiang has stepped down as chairman, with Dr. Li Yongrui appointed as the new chairman and Ms. Hu Hongfang joining as a member. These changes align with upcoming amendments to the Listing Rules and Corporate Governance Code, aiming to enhance the board’s effectiveness and diversity, thereby improving corporate governance practices.

Hevol Services Group Announces Board and Committee Structure

Hevol Services Group Co. Limited has announced the composition of its board of directors, which includes non-executive, executive, and independent non-executive directors. The company has also established three committees: Audit, Remuneration, and Nomination, each with specific members and chairpersons. This organizational structure is likely aimed at enhancing corporate governance and operational efficiency.

Hevol Services Group Expands Stake in Property Management Firm

Hevol Services Group Co. Limited has announced a transaction involving the acquisition of a 30% equity interest in a property management company, which will result in the target company becoming an indirect wholly-owned subsidiary. The acquisition, valued at RMB60,189,700, is considered a discloseable and connected transaction under Hong Kong’s Listing Rules. The directors have deemed the terms fair and reasonable, and the transaction is expected to benefit the company and its shareholders.

Hevol Services Group Reports Unanimous Approval of AGM Resolutions

Hevol Services Group Co. Limited announced that all proposed resolutions at their Annual General Meeting held on May 30, 2025, were unanimously passed by shareholders. This includes the re-election of directors, authorization for the board to fix directors’ remuneration, reappointment of auditors, and mandates for share issuance and repurchase. The unanimous approval reflects strong shareholder support and positions the company for continued strategic governance and operational flexibility.

Hevol Services Group Announces Equity Disposal with Expected Loss

Hevol Services Group Co. Limited announced a supplemental disclosure regarding its disposal of a 51% equity interest in a target company, expecting an unaudited loss of approximately RMB13.7 million. The transaction involves Jingjiang Zhihui Network Technology Co. Ltd., owned by Ms. Wu, who is connected to the company through her spouse, Mr. Yu, a substantial shareholder. The valuation of the target company was based on comparables in the property management sector, ensuring they meet specific financial criteria, such as market capitalization and profit status.

Hevol Services Group Announces Disposal of 51% Equity in Target Company

Hevol Services Group Co. Limited has announced a transaction involving the disposal of a 51% equity interest in a target company for RMB30,500,000. This transaction is classified as a discloseable and connected transaction under the Hong Kong Listing Rules, requiring notification and announcement but exempt from shareholder approval. The sale is expected to be in the interest of the company and its shareholders, with the payment to be made in installments by the purchaser, who is connected to the company through familial ties.