Yuexiu Services Group Ltd. (6626) AI Stock Analysis

• Market Cap: HK$4.58B
• Dividend Yield: 2.11%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.70
• Revenue Growth: 17.83%
• EPS Growth: -28.88%
• Country: HK
• Employees: 10,422
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): 0.05
• Shares Outstanding: 1,502,212,200
• 10 Day Avg. Volume: 2,785,997
• 30 Day Avg. Volume: 1,845,782
• PEG Ratio: -0.58
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.46
• 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: 75 Outperform
• Price Target: HK$3.50 ▲(11.46%Upside)

Yuexiu Services Group's overall stock score is driven by strong financial performance and a favorable valuation. The company's robust revenue growth and low leverage are significant positives, while mixed technical indicators suggest cautious market sentiment. The attractive dividend yield adds to its investment appeal. Potential risks include declining profitability and limited cash flow visibility.

Yuexiu Services Group Ltd. Business Overview & Revenue Model

Company Description

Yuexiu Services Group Ltd. (6626) is a leading provider of comprehensive property management services in China. The company operates across various sectors, focusing on residential, commercial, and public properties. Its core services include property management, value-added services for communities, and smart solutions for property management, aimed at enhancing the quality of living and working environments.

How the Company Makes Money

Yuexiu Services Group Ltd. generates revenue primarily through its property management services, which include basic property management fees and charges for additional services. It also earns income from value-added services like home improvement, property brokerage, and other community-related services that cater to the diverse needs of residents and property owners. Additionally, the company leverages smart technology solutions to provide enhanced services, contributing to its revenue streams. Significant partnerships with real estate developers and local governments further bolster its earnings, ensuring a steady flow of property management contracts and projects.

Yuexiu Services Group Ltd. Financial Statement Overview

Summary

Yuexiu Services Group demonstrates strong revenue growth and a robust balance sheet, with low leverage and a solid equity base. However, declining profitability and a decrease in ROE suggest potential issues in shareholder returns. The cash flow analysis is limited by missing data, indicating possible concerns in cash management.

Income Statement

The company shows strong revenue growth with an increase from 1,168 million in 2020 to 3,868 million in 2024. Gross profit margin has remained stable around 23% to 25%, indicating efficient cost management. However, net profit margin has seen a decline from 15.7% in 2023 to 9.1% in 2024, suggesting reduced profitability. EBIT and EBITDA margins have been consistent, reflecting solid operational performance.

Balance Sheet

Yuexiu Services Group maintains a strong equity position, with an equity ratio improving from 25.5% in 2019 to 52.9% in 2024, demonstrating financial stability. The debt-to-equity ratio is low at 0.03, indicating low leverage and reduced financial risk. ROE has decreased from 14.1% in 2023 to 10.1% in 2024, signaling a decline in shareholder returns.

Cash Flow

The company's cash flow situation is mixed. Operating cash flow to net income ratio is not available for 2024 due to zero reported operating cash flow, which raises concerns about cash generation. Free cash flow growth has been robust in previous years, but the lack of current data limits comprehensive analysis.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.87B	3.22B	2.49B	1.92B	1.17B
Gross Profit	901.62M	856.63M	679.44M	670.83M	403.29M
EBITDA	618.99M	778.40M	658.08M	603.99M	384.74M
Net Income	352.92M	487.02M	416.10M	359.54M	199.13M
Balance Sheet
Total Assets	6.62B	6.41B	5.95B	5.13B	2.41B
Cash, Cash Equivalents and Short-Term Investments	2.47B	4.70B	4.39B	3.80B	994.63M
Total Debt	119.45M	108.13M	78.84M	55.02M	115.40M
Total Liabilities	3.03B	2.79B	2.56B	2.04B	1.65B
Stockholders Equity	3.50B	3.44B	3.22B	2.93B	614.62M
Cash Flow
Free Cash Flow	370.76M	674.11M	730.29M	969.94M	435.20M
Operating Cash Flow	389.99M	695.01M	750.42M	998.12M	450.27M
Investing Cash Flow	-2.71B	-28.23M	-22.47M	137.58M	1.03B
Financing Cash Flow	-375.77M	-327.29M	-184.45M	1.69B	-1.25B

Yuexiu Services Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6626, the sentiment is Positive. The current price of 3.14 is above the 20-day moving average (MA) of 3.01, above the 50-day MA of 2.90, and above the 200-day MA of 3.03, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 70.47 is Negative, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6626.

Yuexiu Services Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	79 Outperform	HK$19.95B	12.39	16.04%	4.03%	6.53%	4.78%
6626	75 Outperform	HK$4.58B	12.11	10.03%	2.11%	17.83%	-28.88%
2869	73 Outperform	HK$15.29B	20.61	8.94%	2.67%	1.01%	12.45%
6098	68 Neutral	$23.74B	12.09	4.96%	2.32%	1.31%	379.84%
2602	66 Neutral	HK$27.22B	21.94	6.76%	4.91%	7.13%	-42.14%
6666	58 Neutral	HK$8.65B	7.81	2935.68%	―	0.27%	-35.07%
Sector *	54 Neutral	$1.24B	3.84	0.67%	6.03%	-2.39%	-129.28%

Yuexiu Services Group Ltd. Corporate Events

Yuexiu Services Group Ltd. Successfully Passes All Resolutions at AGM

Yuexiu Services Group Ltd. held its Annual General Meeting on June 18, 2025, where all proposed resolutions were passed by poll. Key resolutions included the adoption of financial statements, the declaration of a final dividend, the re-election of directors, the re-appointment of Ernst & Young as auditors, and the granting of share issue and repurchase mandates. The successful passage of these resolutions indicates strong shareholder support and positions the company for continued governance and operational stability.

Yuexiu Services Group Announces 2025 Annual General Meeting

Yuexiu Services Group Limited has announced its upcoming annual general meeting to be held on June 18, 2025, in Hong Kong. The meeting will cover several key agenda items, including the adoption of the company’s financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of Ernst & Young as the company’s auditor. Additionally, a general mandate will be considered to allow the directors to issue new shares, subject to certain conditions. This meeting is significant as it will address important governance and financial decisions impacting the company’s strategic direction and shareholder interests.

Yuexiu Services Group Ltd. Announces Leadership Transition

Yuexiu Services Group Ltd. announced a significant leadership change effective May 22, 2025, with Mr. Zhu Huisong resigning as the non-executive Director and Chairman of the Board due to a job reassignment within Yuexiu Property. Mr. Jiang Guoxiong has been appointed as the new non-executive Director and Chairman, bringing extensive experience from his previous roles within Yuexiu Property and its subsidiaries. This transition is expected to maintain the company’s strategic direction and strengthen its governance structure, potentially impacting its market position and stakeholder relations positively.

Yuexiu Services Group Ltd. Announces Board Composition and Committee Membership

Yuexiu Services Group Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The announcement also details the membership of various board committees, including the Audit, Remuneration, Nomination, Investment, and Environmental, Social and Governance Committees. This structured governance framework is crucial for the company’s strategic decision-making and oversight, potentially impacting its operational efficiency and stakeholder confidence.