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Country Garden Services Holdings Co Ltd (HK:6098)
:6098

Country Garden Services Holdings Co (6098) AI Stock Analysis

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HK

Country Garden Services Holdings Co

(OTC:6098)

Rating:68Neutral
Price Target:
Country Garden Services Holdings Co has a solid financial performance with strong revenue growth and stable profitability. The technical analysis suggests a positive trend with bullish momentum. However, the valuation indicates the stock is reasonably priced, but the low dividend yield may deter some investors. The lack of earnings call and corporate events data means these factors were not included in the assessment.
Positive Factors
Industry Position
Operationally independent industry leader with multiple business lines and the largest property manager in China in terms of contracted and managed GFA.
Market Sentiment
Recent policy shift marks a near-term floor for sentiment, with funds-driven re-rating to continue in the near-term.
Shareholder Returns
Higher dividend payout is a pleasant surprise along with another round of share buybacks.
Negative Factors
Competitive Environment
Cloudy earnings outlook with fierce competition in its property management business and a weak macro backdrop are likely to weigh on CGS's near-term earnings.
Operating Performance
The company’s operating performance will likely remain suppressed in the near-term due to slowing GFA growth, suppressed margin outlook, and aging receivables with further impairment risks.
Restructuring Uncertainty
Uncertainties over CGS's role in CG's restructuring plan will remain an overhang on the share price performance and valuation.

Country Garden Services Holdings Co (6098) vs. iShares MSCI Hong Kong ETF (EWH)

Country Garden Services Holdings Co Business Overview & Revenue Model

Company DescriptionCountry Garden Services Holdings Company Limited, an investment holding company, provides property management services to property owners, residents, and property developers in the People's Republic of China. It offers security, cleaning, green landscaping, gardening, repair and maintenance, and other services. The company's property management portfolio includes residential properties, commercial properties, office buildings, industrial parks, multi-purpose complexes, government buildings, hospitals, and schools, as well as other public facilities, such as airport terminals, highway service stations, scenic areas, and other non-residential properties. As of December 31, 2021, it managed 6,046 property projects. The company also provides community value-added services comprising home, home decoration, community media, value added innovation, real estate brokerage, and community area services. In addition, it offers consultancy services to property developers for the management of their pre-sale activities, as well as consultancy services for properties managed by other property management companies; and cleaning, greening, repair, and maintenance services to property developers at the pre-delivery stage. Further, the company provides sales and leasing agency services of unsold parking spaces and properties; heat supply, city, and city media services; and e-commerce services. The company was founded in 1992 and is headquartered in Foshan, the People's Republic of China.
How the Company Makes MoneyCountry Garden Services Holdings Co generates revenue primarily through its property management services, which are typically contracted on a long-term basis with property developers and property owners. The company earns service fees from both residential and commercial properties, which are calculated based on the area serviced and the specific services provided. In addition to basic property management services, the company also offers value-added services such as community asset management, smart community solutions, and real estate brokerage services, further diversifying its revenue streams. Significant partnerships with property developers, particularly its association with Country Garden Holdings, one of China's largest property developers, contribute to its stable pipeline of new management contracts and service expansion opportunities.

Country Garden Services Holdings Co Financial Statement Overview

Summary
Country Garden Services Holdings Co demonstrates robust revenue growth with stable profitability metrics. The balance sheet is strong with low leverage, enhancing financial stability. However, the cash flow position is weaker, with inconsistencies and potential liquidity concerns. Overall, the company is financially sound but should closely monitor cash flow management.
Income Statement
75
Positive
The company shows strong revenue growth from 2020 to 2024, with a notable increase in net income from 2023 to 2024. However, gross profit margins have slightly decreased over time. The EBIT and EBITDA margins are relatively stable, indicating efficient operational performance, but the net profit margin shows fluctuations, influenced by varying net income figures.
Balance Sheet
70
Positive
The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio remains solid, suggesting good asset management. However, fluctuations in stockholders' equity could signal potential risks in maintaining financial leverage.
Cash Flow
60
Neutral
The cash flow statement indicates inconsistent free cash flow growth over the years, with periods of negative growth. The operating cash flow to net income ratio is not calculable for 2024 due to missing data, and zero operating cash flow in the latest year suggests potential liquidity issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue43.99B42.61B41.37B28.84B15.60B
Gross Profit8.40B8.73B10.26B8.86B5.30B
EBITDA4.61B3.24B5.57B7.00B3.92B
Net Income1.81B292.33M1.94B4.03B2.69B
Balance Sheet
Total Assets71.25B69.24B70.08B66.81B31.20B
Cash, Cash Equivalents and Short-Term Investments18.24B13.75B12.08B15.27B17.78B
Total Debt2.80B3.09B4.52B6.33B3.92B
Total Liabilities32.18B30.46B30.17B28.44B15.04B
Stockholders Equity36.62B36.16B37.46B36.19B14.57B
Cash Flow
Free Cash Flow3.13B3.67B2.43B2.81B3.27B
Operating Cash Flow3.87B4.61B3.32B3.41B3.61B
Investing Cash Flow1.69B-354.10M755.46M-25.09B-4.63B
Financing Cash Flow-2.82B-2.79B-4.41B18.30B9.76B

Country Garden Services Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.79
Price Trends
50DMA
6.51
Positive
100DMA
6.08
Positive
200DMA
5.63
Positive
Market Momentum
MACD
0.06
Negative
RSI
62.84
Neutral
STOCH
80.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6098, the sentiment is Positive. The current price of 6.79 is above the 20-day moving average (MA) of 6.49, above the 50-day MA of 6.51, and above the 200-day MA of 5.63, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 80.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6098.

Country Garden Services Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$22.70B11.534.96%0.36%1.31%379.84%
53
Neutral
$1.21B3.20-0.13%9.61%-1.86%-126.37%
$2.27B10.77
3.55%
€17.85B11.318.73%2.79%
DE1V0
€463.71M-29.17%17.10%
77
Outperform
HK$3.66B7.099.70%6.30%2.68%8.41%
73
Outperform
HK$13.96B18.838.94%3.38%1.01%12.45%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6098
Country Garden Services Holdings Co
6.79
2.20
48.03%
CNPPF
China Overseas Property Holdings
0.69
0.11
18.97%
DE:195H
China Merchants Securities Co., Ltd. Class H
1.56
0.89
132.84%
DE:1V0
A-Living Smart City Services Co., Ltd. Class H
0.32
0.00
0.00%
HK:1995
CIFI Ever Sunshine Services Group Limited
2.12
0.71
50.35%
HK:2869
Greentown Service Group Co. Ltd.
4.41
1.19
36.96%

Country Garden Services Holdings Co Corporate Events

Country Garden Services Announces Dividend Payments for 2024
Jun 5, 2025

Country Garden Services Holdings Co. announced the approval and payment details of its final and special dividends for the fiscal year ending December 31, 2024. Shareholders will receive dividends calculated in RMB but distributed in Hong Kong dollars, with payments expected by August 29, 2025. This dividend announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

The most recent analyst rating on (HK:6098) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Country Garden Services Holdings Co stock, see the HK:6098 Stock Forecast page.

Country Garden Services Announces Final Dividend for 2024
Jun 5, 2025

Country Garden Services Holdings Co. announced a final ordinary cash dividend of RMB 0.1352 per share for the year ending December 31, 2024, which will be paid in Hong Kong dollars at a rate of HKD 0.1476 per share. This announcement reflects the company’s commitment to returning value to shareholders and may impact investor sentiment positively, reinforcing its stable financial position in the property management sector.

The most recent analyst rating on (HK:6098) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Country Garden Services Holdings Co stock, see the HK:6098 Stock Forecast page.

Country Garden Services Announces Special Dividend for 2024
Jun 5, 2025

Country Garden Services Holdings Company Limited has announced a special cash dividend for the year ended December 31, 2024. The dividend will be paid at RMB 0.1609 per share, equivalent to HKD 0.1757 per share, with a payment date set for August 29, 2025. This announcement reflects the company’s financial strategy and commitment to returning value to its shareholders.

The most recent analyst rating on (HK:6098) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Country Garden Services Holdings Co stock, see the HK:6098 Stock Forecast page.

Country Garden Services Approves Key Resolutions at AGM
May 23, 2025

Country Garden Services Holdings Co. announced the successful approval of all resolutions at its Annual General Meeting held on May 23, 2025. Key resolutions included the approval of final and special dividends, re-election of directors, and the appointment of Deloitte Touche Tohmatsu as the company’s auditor. The AGM also granted the board general mandates to issue new shares and manage treasury shares, indicating a strategic move to enhance financial flexibility and shareholder value.

The most recent analyst rating on (HK:6098) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Country Garden Services Holdings Co stock, see the HK:6098 Stock Forecast page.

Country Garden Services Chairman Reprimanded, No Impact on Operations
May 23, 2025

Country Garden Services Holdings Company Limited announced that its chairman, Ms. YANG Huiyan, received public reprimands from the Shanghai and Shenzhen Stock Exchanges due to the failure of Country Garden Holdings and its subsidiary to timely disclose their 2024 interim reports. The board clarified that this non-compliance was not related to Ms. YANG’s performance or the operations of Country Garden Services Holdings, and thus, her position remains unaffected. The incident is not expected to have any material adverse impact on the company’s business or operations.

The most recent analyst rating on (HK:6098) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Country Garden Services Holdings Co stock, see the HK:6098 Stock Forecast page.

Country Garden Services Announces RMB1 Billion Loan Agreement for Strategic Financial Assistance
May 6, 2025

Country Garden Services Holdings Co announced a connected transaction involving the provision of financial assistance through a loan agreement and a deed of share charge with Concrete Win and Fortune Warrior, companies wholly owned by a substantial shareholder, Ms. Yang. The company agreed to provide revolving loan facilities amounting to RMB1 billion to these entities, which will be used for the ‘guaranteed delivery of houses’ by CG Holdings’ PRC subsidiaries. The transaction is considered a connected transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but exempt from independent shareholders’ approval. This move is seen as a strategic financial assistance measure to support the company’s operations and enhance stakeholder interests.

Country Garden Services Announces AGM and Key Resolutions for 2025
Apr 24, 2025

Country Garden Services Holdings Co has announced its annual general meeting scheduled for May 23, 2025, where key resolutions will be discussed. These include the adoption of financial statements, the declaration of final and special dividends, re-election of directors, and the appointment of Deloitte Touche Tohmatsu as the auditor. Additionally, the company seeks approval to issue and manage shares, with a limit of 20% of the current issued shares, which could impact its capital structure and shareholder value.

Country Garden Services Reports Strong 2024 Financial Results with Significant Profit Increase
Mar 27, 2025

Country Garden Services Holdings Co reported its annual results for the year ended December 31, 2024, showing a 3.2% increase in revenue to RMB 43,992.9 million. Despite a decrease in gross profit by 3.8%, the company achieved a significant increase in net profit by 262.8% to RMB 1,874.5 million, attributed to the owners of the company. The company also saw a substantial rise in basic and diluted earnings per share by 523.2%. The board recommended a final dividend of RMB 13.52 cents per share and a special dividend of RMB 16.09 cents per share, reflecting their appreciation for shareholder support. Additionally, the company has invested in a share award scheme, purchasing 109 million shares to be held in trust for selected participants.

Country Garden Services Announces Final Dividend for 2024
Mar 27, 2025

Country Garden Services Holdings Co. has announced a final cash dividend of RMB 0.1352 per share for the year ending December 31, 2024. The dividend will be approved by shareholders on May 23, 2025, with payment scheduled for August 29, 2025. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Country Garden Services Announces Special Dividend for 2024
Mar 27, 2025

Country Garden Services Holdings Co. announced a special cash dividend of RMB 0.1609 per share for the financial year ending 31 December 2024. This announcement reflects the company’s strong financial performance and commitment to returning value to its shareholders. The dividend is set to be approved by shareholders on 23 May 2025, with the payment scheduled for 29 August 2025. This move is likely to enhance investor confidence and solidify the company’s position in the property management industry.

Country Garden Services Announces Share Repurchase Plan
Mar 27, 2025

Country Garden Services Holdings Co has announced its intention to conduct an on-market share repurchase and/or purchase using at least RMB500 million from its existing cash reserves. This move is intended to demonstrate the company’s confidence in its long-term business prospects and is considered beneficial for the company and its shareholders. The repurchased shares will either be used as treasury shares for a share scheme or canceled, while purchased shares will be held in trust for selected participants under a share award scheme. The company assures that it is in a stable financial position to support this initiative while continuing its business growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025