Sino-Ocean Service Holding Ltd. (6677) AI Stock Analysis

• Market Cap: HK$574.24M
• Dividend Yield: 6.1%
• Average Volume (3M): 786.81K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.54
• Revenue Growth: -7.62%
• EPS Growth: -1151.82%
• Country: HK
• Employees: 8,585
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): -0.28
• Shares Outstanding: 1,184,000,000
• 10 Day Avg. Volume: 1,310,342
• 30 Day Avg. Volume: 786,814
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 4.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: HK$0.50 ▲(4.17% Upside)

The overall stock score of 54 reflects significant challenges in financial performance, particularly in cash flow and profitability, despite a strong balance sheet. Technical indicators show bearish trends, and the valuation suggests potential overvaluation, although the dividend yield is a positive aspect.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to weather economic fluctuations and invest in growth opportunities.

Long-term Contracts

Long-term contracts provide stable and predictable revenue streams, enhancing financial stability and allowing for better long-term planning and investment in service quality improvements.

Industry Position

Being a prominent player in the property management sector in China positions the company well to capitalize on urbanization trends and increasing demand for quality property management services.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which could impact long-term growth prospects and profitability if not addressed.

Negative Cash Flow

Negative cash flow from operations can strain liquidity and limit the company's ability to invest in growth initiatives, potentially impacting long-term financial health and operational efficiency.

Decreasing Profit Margins

Decreasing profit margins suggest rising costs or pricing pressures, which could erode profitability and reduce the company's ability to reinvest in business development and competitive positioning.

Sino-Ocean Service Holding Ltd. Business Overview & Revenue Model

Company Description

Sino-Ocean Service Holding Limited, an investment holding company, primarily offers property management services in the People's Republic of China. The company's property management services comprising security, cleaning, greening, gardening, and repair and maintenance services to property owners and residents, as well as property developers. The company's property management portfolio covers residential properties; commercial properties comprising office buildings and shopping malls; and public and other properties consisting of hospitals, public service facilities, government buildings, and schools. Its value-added services, such as pre-delivery services to property developers to assist with their sales and marketing activities at property sales venues and display units; consultancy services to assist with the overall planning and management of pre-sale activities; and property engineering services. The company's community value-added services include carpark management and community space operation services; community living services, such as home appliances maintenance and repair services, retail sale of commodities, home decoration services, housekeeping, and other bespoke services; and property brokerage services to property owners and residents of its managed properties. It also offers information technology services. The company was founded in 1997 and is headquartered in Beijing, the People's Republic of China. Sino-Ocean Service Holding Limited is a subsidiary of Shine Wind Development Limited.

How the Company Makes Money

Sino-Ocean Service Holding Ltd. generates revenue primarily through its property management services. The company charges fees for managing residential, commercial, and public properties, which include a range of services such as security, cleaning, and maintenance. A significant portion of its income comes from long-term contracts with property owners and developers. Additionally, the company may engage in value-added services that cater to the specific needs of its clients, providing additional revenue streams. Partnerships with real estate developers and strategic expansions into new geographic markets also contribute to its earnings by increasing its portfolio of managed properties.

Sino-Ocean Service Holding Ltd. Financial Statement Overview

Summary

Sino-Ocean Service Holding Ltd. is experiencing declining revenue and profitability, alongside negative cash flows. However, it maintains a strong balance sheet with low leverage. The overall financial performance indicates significant challenges, especially in operational efficiency and cash generation.

Income Statement

Sino-Ocean Service Holding Ltd. has shown declining revenue in recent years with a 9.35% decrease from 2022 to 2023. The gross profit margin has decreased to 18.22% in 2023 from 23.53% in 2022, indicating pressure on profitability. The net profit margin also decreased to 1.34% from 2.6% in the previous year. These trends highlight significant challenges in maintaining profitability.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.0036 in 2023, indicating low leverage. The equity ratio remains stable at around 51.96%. However, the return on equity has decreased to 2.01% in 2023 from 3.43% in 2022, reflecting reduced profitability on equity employed.

Cash Flow

Operating cash flow was negative in recent years, with -111,122,000 in 2023, indicating cash flow challenges. Free cash flow has also been negative, showing no improvement in liquidity. The lack of positive cash flow from operations could pose risks if this trend continues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.84B	3.13B	3.27B	2.97B	2.02B
Gross Profit	517.28M	597.74M	769.44M	824.84M	511.30M
EBITDA	144.66M	187.30M	157.92M	585.22M	489.02M
Net Income	28.91M	42.15M	75.75M	439.02M	257.63M
Balance Sheet
Total Assets	4.02B	4.04B	4.09B	3.83B	3.09B
Cash, Cash Equivalents and Short-Term Investments	761.14M	678.88M	471.70M	2.53B	2.18B
Total Debt	5.61M	7.67M	16.68M	21.14M	12.73M
Total Liabilities	1.89B	1.89B	1.83B	1.39B	1.04B
Stockholders Equity	2.10B	2.10B	2.21B	2.40B	2.03B
Cash Flow
Free Cash Flow	102.53M	-127.14M	-141.41M	494.80M	352.31M
Operating Cash Flow	115.55M	-111.12M	-43.57M	509.74M	361.35M
Investing Cash Flow	34.97M	506.79M	-1.71B	-56.39M	2.82B
Financing Cash Flow	-40.06M	-210.46M	-291.99M	-92.95M	-1.42B

Sino-Ocean Service Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6677, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.57, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 18.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6677.

Sino-Ocean Service Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2205	72 Outperform	HK$427.00M	10.15	5.26%	9.35%	-5.08%	27.33%
Sector *	65 Neutral	$2.13B	16.19	3.79%	4.92%	4.78%	6.63%
6093	62 Neutral	HK$420.00M	21.61	2.59%	―	3.93%	-71.60%
2215	59 Neutral	HK$458.94M	14.29	4.11%	―	-7.17%	-26.62%
0021	55 Neutral	HK$473.05M	28.14	-4.27%	―	1303.01%	-45.00%
6677	54 Neutral	HK$574.24M	17.92	-17.20%	6.10%	-7.62%	-1151.82%
3913	42 Neutral	HK$472.03M	24.82	-29.80%	―	-15.03%	-3600.73%

Sino-Ocean Service Holding Ltd. Corporate Events

Sino-Ocean Service Announces Major Asset Return Agreement

Sino-Ocean Service Holding Ltd. has entered into a Framework Agreement with its controlling shareholder, Sino-Ocean Group Company, to return 2,684 parking spaces in the PRC, previously transferred under an original assets transfer agreement. This transaction, which involves the cancellation of the original asset transfer and settlement of the purchase price through a guaranteed loan, is classified as a major and connected transaction under Hong Kong’s listing rules, requiring independent shareholder approval. The move is expected to realign the company’s asset management strategy and has implications for its financial structuring and stakeholder interests.

Sino-Ocean Service Holding Ltd. Announces Changes in Nomination Committee

Sino-Ocean Service Holding Ltd. has announced changes in its Nomination Committee, effective June 30, 2025. Ms. Zhu Geying has been appointed as a member, Mr. Cui Hongjie has been appointed as the chairman, and Mr. Yang Deyong has stepped down from his roles in the committee. These changes may impact the company’s governance and strategic direction.

Sino-Ocean Service Announces Board Composition and Committee Roles

Sino-Ocean Service Holding Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. The announcement includes the structure of three key board committees: Audit, Nomination, and Remuneration, which are crucial for the company’s governance and strategic decision-making processes.

Sino-Ocean Service Holding Limited Enhances Governance with New Nomination Committee

Sino-Ocean Service Holding Limited has established a nomination committee to oversee the nomination process for its board of directors. The committee will consist of at least three members, primarily independent non-executive directors, and will be responsible for ensuring diversity and proper governance in board appointments. This move is expected to enhance the company’s corporate governance structure and ensure a balanced representation in its leadership, potentially impacting its market position positively.

Sino-Ocean Service Holding Ltd. Enhances Governance with New Audit Committee

Sino-Ocean Service Holding Limited has established an audit committee to enhance its governance structure, composed primarily of independent non-executive directors. This move is expected to strengthen the company’s oversight and compliance with financial regulations, potentially improving stakeholder confidence and aligning with industry best practices.

Sino-Ocean Service Holding Ltd. AGM Resolutions Unanimously Approved

Sino-Ocean Service Holding Ltd. announced that all proposed resolutions at its Annual General Meeting held on May 30, 2025, were approved by shareholders. Key resolutions included the re-election of directors, authorization for directors’ remuneration, re-appointment of auditors, and granting mandates for share issuance and buybacks. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.