Zhenro Services Group Limited (6958) AI Stock Analysis

• Market Cap: HK$125.54M
• Dividend Yield: N/A
• Average Volume (3M): 73.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -0.04%
• EPS Growth: -104.98%
• Country: HK
• Employees: 3,270
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): >-0.01
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 12,100
• 30 Day Avg. Volume: 73,600
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 4.85
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenues and cash flow volatility. Technical analysis provides a neutral outlook, while valuation concerns due to a negative P/E ratio and lack of dividend yield further weigh down the score.

Zhenro Services Group Limited Business Overview & Revenue Model

Company Description

Zhenro Services Group Limited provides property management services for residential and non-residential properties in China. The company offers a range of property management services, such as cleaning, security, landscaping, and repair and maintenance services to property developers, property owners, residents, and commercial property tenants. It also provides value-added services, including sales assistance, additional tailored, housing repair, preliminary planning and design consultancy, and pre-delivery inspection services to non-property owners. In addition, the company offers community value-added services primarily consisting of home-living, car park management, leasing assistance and other, and common area value-added services to property owners and residents. It serves a range of properties, including government and public facilities, office buildings, industrial parks, and schools. The company was founded in 2000 and is headquartered in Shanghai, China.

How the Company Makes Money

Zhenro Services Group Limited generates revenue through several key streams. The primary source of income is from property management fees charged for managing residential, commercial, and other properties. The company also earns from community value-added services, which include home-living services, public resource management, and community space operations. Additionally, Zhenro Services provides value-added services to non-property owners, such as pre-delivery services and consultancy, often working closely with property developers. Strategic partnerships with real estate developers and cross-industry collaborations further bolster its revenue by expanding its service offerings and client base.

Zhenro Services Group Limited Financial Statement Overview

Summary

Zhenro Services Group Limited faces significant financial challenges, with declining revenues, increasing losses, and cash flow volatility. Despite a favorable debt-to-equity ratio, the overall financial trajectory indicates potential operational and liquidity risks.

Income Statement

The income statement reveals declining revenue over recent years, with a significant drop from 2021 to 2024. Gross and net profit margins have deteriorated, with the latest net income showing a substantial loss. Despite negative EBIT margins, the company previously maintained profitability, indicating volatility and potential operational challenges.

Balance Sheet

The balance sheet shows a mixed picture; while the company maintains a strong equity position relative to debt in recent years, indicating low financial leverage, the declining stockholders' equity and assets suggest potential constraints on growth. The debt-to-equity ratio remains favorable, but shrinking equity presents risks.

Cash Flow

The cash flow statement indicates substantial volatility. Operating cash flow turned negative in the most recent period, and free cash flow has shown no growth. The lack of cash flow generation raises concerns about liquidity and the ability to sustain operations without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.11B	1.15B	1.14B	1.34B	1.10B
Gross Profit	227.32M	232.94M	244.67M	252.86M	428.11M	383.38M
EBITDA	83.68M	64.70M	-36.20M	-20.47M	258.95M	249.12M
Net Income	-228.30M	-235.91M	-81.19M	-280.75M	174.58M	171.65M
Balance Sheet
Total Assets	1.74B	1.77B	1.85B	1.98B	2.52B	1.98B
Cash, Cash Equivalents and Short-Term Investments	548.43M	572.21M	588.97M	721.10M	736.91M	1.45B
Total Debt	234.61M	259.81M	77.12M	172.50M	268.50M	38.10M
Total Liabilities	899.33M	930.23M	758.18M	812.26M	1.05B	592.04M
Stockholders Equity	834.19M	841.72M	1.08B	1.16B	1.45B	1.36B
Cash Flow
Free Cash Flow	35.93M	33.77M	132.37M	-1.19M	186.95M	154.59M
Operating Cash Flow	44.17M	45.39M	135.34M	2.82M	195.58M	160.28M
Investing Cash Flow	-5.04M	-7.59M	-145.31M	-8.38M	-866.30M	-16.68M
Financing Cash Flow	0.00	-46.91M	-98.58M	-46.27M	-29.50M	1.15B

Zhenro Services Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 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:6958, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 9.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6958.

Zhenro Services Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1895	73 Outperform	HK$308.38M	2.94	15.85%	10.58%	11.13%	142.00%
2376	72 Outperform	HK$406.69M	9.54	7.09%	3.82%	-3.62%	26.66%
2146	69 Neutral	HK$125.96M	4.18	5.00%	―	1.30%	-6.96%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
6958	46 Neutral	HK$125.54M	―	-24.03%	―	-0.04%	-104.98%
1153	46 Neutral	HK$296.68M	3.27	―	―	-2.44%	―
1941	45 Neutral	HK$80.25M	―	-6.82%	―	1.53%	22.83%

Zhenro Services Group Limited Corporate Events

Zhenro Services Group Limited Updates Board Composition and Roles

Zhenro Services Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The announcement details the structure of the board committees, which include the Audit, Remuneration, and Nomination Committees, and specifies the directors serving on each committee. This update provides stakeholders with clarity on the company’s governance structure and may impact its strategic direction and operational oversight.

Zhenro Services Announces Board Reshuffle with New Director Appointment

Zhenro Services Group Limited has announced a change in its board composition with the resignation of Mr. Zhang Wei as an independent non-executive director, chairman of the audit committee, and a member of the remuneration committee, effective September 1, 2025. Mr. Zhang’s resignation is due to other business commitments, and he has no disagreements with the board. Concurrently, Mr. Zheng Yilei has been appointed as an independent non-executive director and a member of the audit and nomination committees, bringing extensive experience in corporate law to the board. These changes reflect the company’s efforts to strengthen its governance structure and maintain robust oversight, potentially impacting its strategic direction and stakeholder confidence.

Zhenro Services Reports Decline in Revenue and Gross Profit for H1 2025

Zhenro Services Group Limited reported a 4.5% decrease in revenue for the first half of 2025, with property management services remaining the largest revenue source despite a slight decline. The company experienced a reduction in gross profit and a narrowed loss compared to the previous year, while the gross floor area under management also saw a slight decrease. The board decided not to declare an interim dividend for the period.

Zhenro Services Group Schedules Board Meeting for Interim Results

Zhenro Services Group Limited, a company incorporated in the Cayman Islands, has announced a board meeting scheduled for August 27, 2025. The meeting will focus on approving the unaudited interim results for the first half of 2025 and discussing the potential payment of an interim dividend. This announcement could impact the company’s financial strategy and stakeholder expectations regarding dividend distributions.