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Yuexiu Services Group Ltd. (HK:6626)
:6626

Yuexiu Services Group Ltd. (6626) AI Stock Analysis

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HK

Yuexiu Services Group Ltd.

(Frankfurt:6626)

Rating:75Outperform
Price Target:
HK$3.50
▲(19.05%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. (6626) vs. iShares MSCI Hong Kong ETF (EWH)

Yuexiu Services Group Ltd. Business Overview & Revenue Model

Company DescriptionYuexiu Services Group Ltd. (6626) is a leading property management and city services provider in China. The company focuses on delivering comprehensive property management services which include residential, commercial, and public facility management. It also extends its expertise to urban development services, enhancing the overall living experience through smart and sustainable solutions.
How the Company Makes MoneyYuexiu Services Group Ltd. generates revenue primarily through its property management services, which comprise fees collected from managing residential and commercial properties. The company also earns income from providing value-added services such as facility maintenance, cleaning, security, and landscaping. Additionally, Yuexiu leverages strategic partnerships and collaborations in urban development projects, contributing to its earnings by offering integrated smart city solutions.

Yuexiu Services Group Ltd. Financial Statement Overview

Summary
Yuexiu Services Group shows strong revenue growth and solid operational performance, but recent declines in net profit margin and ROE indicate weakening profitability and shareholder returns. The balance sheet remains robust with low leverage, but cash flow concerns due to missing data highlight potential risks.
Income Statement
82
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.87B3.22B2.49B1.92B1.17B
Gross Profit901.62M856.63M679.44M670.83M403.29M
EBITDA618.99M778.40M658.08M603.99M384.74M
Net Income352.92M487.02M416.10M359.54M199.13M
Balance Sheet
Total Assets6.62B6.41B5.95B5.13B2.41B
Cash, Cash Equivalents and Short-Term Investments2.47B4.70B4.39B3.80B994.63M
Total Debt119.45M108.13M78.84M55.02M115.40M
Total Liabilities3.03B2.79B2.56B2.04B1.65B
Stockholders Equity3.50B3.44B3.22B2.93B614.62M
Cash Flow
Free Cash Flow370.76M674.11M730.29M969.94M435.20M
Operating Cash Flow389.99M695.01M750.42M998.12M450.27M
Investing Cash Flow-2.71B-28.23M-22.47M137.58M1.03B
Financing Cash Flow-375.77M-327.29M-184.45M1.69B-1.25B

Yuexiu Services Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.94
Price Trends
50DMA
2.82
Positive
100DMA
2.93
Positive
200DMA
3.04
Negative
Market Momentum
MACD
0.03
Negative
RSI
59.46
Neutral
STOCH
81.12
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 2.94 is above the 20-day moving average (MA) of 2.89, above the 50-day MA of 2.82, and below the 200-day MA of 3.04, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 81.12 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$18.56B11.5316.04%4.34%6.53%4.78%
75
Outperform
€4.42B11.6710.03%5.65%17.83%-28.88%
73
Outperform
HK$13.65B18.418.94%3.00%1.01%12.45%
71
Outperform
HK$24.84B19.976.76%4.95%7.13%-42.14%
68
Neutral
$22.03B11.224.96%0.36%1.31%379.84%
58
Neutral
HK$8.86B8.012935.68%0.27%-35.07%
53
Neutral
$1.19B3.430.13%7.15%-2.13%-128.06%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6626
Yuexiu Services Group Ltd.
2.94
-0.03
-1.04%
HK:6666
Evergrande Property Services Group Ltd.
0.81
0.14
20.90%
HK:6049
Poly Property Services Co., Ltd. Class H
33.55
6.28
23.03%
HK:2869
Greentown Service Group Co. Ltd.
4.33
1.01
30.42%
HK:2602
Onewo, Inc. Class H
21.50
0.86
4.17%
HK:6098
Country Garden Services Holdings Co
6.66
2.25
51.16%

Yuexiu Services Group Ltd. Corporate Events

Yuexiu Services Group Ltd. Successfully Passes All Resolutions at AGM
Jun 18, 2025

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
May 26, 2025

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
May 22, 2025

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
May 22, 2025

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.

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: Jul 03, 2025