Evergrande Property Services Group Ltd. (6666) AI Stock Analysis

• Market Cap: HK$8.43B
• Dividend Yield: N/A
• Average Volume (3M): 15.03M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.35
• Revenue Growth: 0.27%
• EPS Growth: -35.07%
• Country: HK
• Employees: 95,171
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): 0.05
• Shares Outstanding: 10,810,811,000
• 10 Day Avg. Volume: 23,373,457
• 30 Day Avg. Volume: 15,026,561
• PEG Ratio: -0.03
• Price to Book (P/B): -10.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.40
• 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: 58 Neutral
• Price Target: ―

Evergrande Property Services Group Ltd. faces significant challenges in profitability and financial stability, as seen in its income statement and balance sheet. The technical analysis shows mixed momentum, with the stock slightly below key moving averages, and valuation metrics suggest the stock is undervalued, though with no dividend yield. These factors combine to give an overall moderate stock score.

Evergrande Property Services Group Ltd. Business Overview & Revenue Model

Company Description

Evergrande Property Services Group Limited, an investment holding company, provides property management services in the People's Republic of China. The company manages a portfolio of properties, including mid- to high-end residential properties, offices buildings, commercial properties, theme and industrial parks, healthcare complexes, themed towns, schools, etc. It offers property management services, including butler, security, cleaning and greening, and repair and maintenance services to residents, property developers, and tenants of non-residential properties. The company also provides value-added services, such as preliminary property management services comprising construction site and sales office management, and consulting services; pre-delivery services consisting of properties cleaning and inspecting; properties repair and maintenance services; and property transaction assistance services to non-property owners. In addition, it offers community value-added services that include community operation services, including group purchase activities, community space operations, etc.; community assets management services that include parking space leasing, real estate agency, sports and entertainment complex operation, etc.; and community living services, such as housekeeping, home renovation, etc., as well as recreation center operations services. The company was founded in 1997 and is headquartered in Guangzhou, the People's Republic of China. Evergrande Property Services Group Limited is a subsidiary of CEG Holdings (BVI) Limited.

How the Company Makes Money

Evergrande Property Services Group Ltd. primarily generates revenue through property management fees collected from property owners and developers for the management of residential and commercial properties. These fees are based on the size and type of properties managed. Additionally, the company earns income from community value-added services, which include home living services, house brokerage services, and property agency services. These additional services enhance the living experience for residents and create supplementary revenue streams. The company's revenue is further supported by strategic partnerships with property developers, particularly those under the Evergrande Group, which provides a steady pipeline of properties under management. Factors such as the scale of properties managed, occupancy rates, and service quality significantly influence the company's earnings.

Evergrande Property Services Group Ltd. Financial Statement Overview

Summary

Evergrande Property Services Group Ltd. demonstrates moderate revenue growth but faces profitability and financial stability challenges. The balance sheet reveals concerning leverage with negative equity, while cash flow inconsistencies suggest operational and financial management hurdles.

Income Statement

The company's revenue grew modestly over the past few years, but with fluctuations. Gross profit margin and EBIT margin have shown some volatility, indicating inconsistent operational efficiency. The net profit margin has been unstable, with periods of negative income, suggesting profitability challenges.

Balance Sheet

The company exhibits high leverage with a negative stockholders' equity for multiple years, raising concerns about financial stability. Although the debt levels are relatively low, the negative equity reflects a risky financial structure. The equity ratio is negative, indicating potential solvency issues.

Cash Flow

Cash flows have been erratic, with a recent absence of operating, investing, and free cash flows, raising red flags about cash management. Historically, free cash flow has been positive, but the inconsistency in operating cash flow to net income ratios suggests challenges in converting profits into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.76B	12.49B	11.81B	13.19B	10.51B
	Gross Profit
2.53B	3.11B	2.72B	3.66B	4.01B
	EBIT
1.47B	2.11B	1.99B	2.40B	3.52B
	EBITDA
1.71B	2.34B	2.32B	215.48M	3.54B
	Net Income Common Stockholders
1.02B	1.54B	1.42B	-388.78M	2.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.34B	2.30B	1.57B	1.14B	12.60B
	Total Assets
8.71B	8.25B	7.15B	6.60B	17.06B
	Total Debt
95.13M	120.52M	516.68M	621.57M	24.09M
	Net Debt
-2.60B	-1.76B	-1.05B	-508.58M	-12.58B
	Total Liabilities
7.73B	8.23B	8.66B	10.10B	7.13B
	Stockholders Equity
554.61M	-467.57M	-2.01B	-3.87B	9.92B
Cash Flow		Free Cash Flow
1.09B	1.29B	722.24M	4.46B	5.14B
	Operating Cash Flow
1.12B	1.32B	756.44M	4.48B	5.17B
	Investing Cash Flow
0.00	-609.08M	-186.90M	-742.03M	910.44M
	Financing Cash Flow
-108.61M	-400.19M	-132.43M	-13.21B	5.84B

Evergrande Property Services Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6666, the sentiment is Positive. The current price of 0.78 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.72, and above the 200-day MA of 0.77, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 64.50 is Neutral, neither overbought nor oversold. The STOCH value of 75.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6666.

Evergrande Property Services Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
6666	58 Neutral	HK$8.43B	7.62	2935.68%	―	0.27%	-35.07%
CNPPF		$2.24B	10.95		24.29%	―	―
CTRGF		$2.81B	11.11	4.96%	0.31%	―	―
1V0		€466.52M	―	-29.17%	2.43%	―	―
1755		HK$2.44B	4.88	15.76%	8.04%	―	―
2869	71 Outperform	HK$13.64B	18.41	8.94%	3.46%	1.01%	12.45%

Evergrande Property Services Group Ltd. Corporate Events

Evergrande Property Services Sees Revenue Growth but Faces Profit Margin Decline in 2024

Evergrande Property Services Group Ltd. reported a modest year-on-year revenue increase of 2.2% for 2024, reaching approximately RMB12,756.7 million. However, the company faced a decline in profitability, with gross profit and net profit margins decreasing by 5.7 and 4.4 percentage points, respectively. Despite these challenges, the company achieved significant growth in its contracted GFA, with a year-on-year increase of over 100% in newly signed contracts from third parties. The board decided not to recommend a final dividend for the year, reflecting a cautious approach amid the financial performance downturn.

Evergrande Property Services Announces Upcoming Board Meeting for Annual Results

Evergrande Property Services Group Ltd. has announced a board meeting scheduled for March 31, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and other business matters, potentially impacting the company’s financial strategies and shareholder interests.