Zhenro Services Group Limited (6958) AI Stock Analysis

• Market Cap: HK$124.50M
• Dividend Yield: N/A
• Average Volume (3M): 59.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -4.77%
• EPS Growth: -194.39%
• Country: HK
• Employees: 3,270
• Sector: Real Estate
• Sector Strength: 58
• Industry: Real Estate - Services
• EPS (TTM): -0.25
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 63,800
• 30 Day Avg. Volume: 59,200
• PEG Ratio: 0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -78.85
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Zhenro Services Group Limited's overall stock score is primarily impacted by weak financial performance and valuation concerns. The company's declining revenues, increasing losses, and negative cash flow signal significant financial challenges. Additionally, technical analysis reflects bearish momentum. The absence of positive valuation metrics and lack of earnings call and corporate events data further contribute to a low score.

Zhenro Services Group Limited Business Overview & Revenue Model

Company Description

Zhenro Services Group Limited (6958) is a leading property management service provider in China. The company primarily operates in the property management sector, offering a wide array of services, including property management, community value-added services, and value-added services to non-property owners. Its core services are aimed at enhancing the living and working environments of its clients, ensuring high-quality property upkeep and customer satisfaction.

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. Although the balance sheet indicates prudent debt management, overall financial performance is weak, signaling 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.15B	1.14B	1.34B	1.10B
Gross Profit	232.94M	244.67M	252.86M	428.11M	383.38M
EBITDA	64.70M	-36.20M	-148.38M	258.95M	249.12M
Net Income	-235.91M	-81.19M	-280.75M	174.58M	171.65M
Balance Sheet
Total Assets	1.77B	1.85B	1.98B	2.52B	1.98B
Cash, Cash Equivalents and Short-Term Investments	572.21M	588.97M	691.63M	736.91M	1.45B
Total Debt	259.81M	77.12M	172.50M	268.50M	38.10M
Total Liabilities	930.23M	758.18M	812.26M	1.05B	592.04M
Stockholders Equity	841.72M	1.08B	1.16B	1.45B	1.36B
Cash Flow
Free Cash Flow	33.77M	132.37M	-1.19M	186.95M	154.59M
Operating Cash Flow	45.39M	135.34M	2.82M	195.58M	160.28M
Investing Cash Flow	-7.59M	-145.31M	-8.38M	-866.30M	-16.68M
Financing Cash Flow	-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 0.13, below the 50-day MA of 0.13, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.04 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 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$290.59M	3.00	15.54%	11.14%	13.95%	185.84%
2376	72 Outperform	HK$426.69M	8.73	8.33%	3.69%	-3.67%	―
2146	67 Neutral	HK$120.32M	3.90	5.35%	―	4.83%	-13.53%
Sector *	54 Neutral	$1.19B	3.61	0.13%	6.37%	-2.13%	-128.06%
1941	51 Neutral	HK$72.96M	―	-9.83%	―	8.37%	-64.25%
1153	43 Neutral	HK$272.21M	31.12		―	-3.04%	―
6958	41 Neutral	HK$124.50M	―	-24.52%	―	-4.77%	-194.39%

Zhenro Services Group Limited Corporate Events

Zhenro Services Group Limited Announces Board Composition and Roles

Zhenro Services Group Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles within the organization. The board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to various board committees such as the Audit, Remuneration, and Nomination Committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making framework within Zhenro Services Group Limited.

Zhenro Services Group Limited Strengthens Governance with New Nomination Committee

Zhenro Services Group Limited, incorporated in the Cayman Islands, has established a Nomination Committee as part of its governance structure. The committee is composed of a majority of independent non-executive directors and is responsible for overseeing the nomination process for board appointments. The establishment of this committee aims to enhance the company’s governance practices by ensuring a structured and transparent approach to board nominations, which could positively impact the company’s operations and stakeholder trust.

Zhenro Services Group Appoints New Non-Executive Director

Zhenro Services Group Limited has announced the appointment of Mr. Wang Zhiming as a non-executive director effective from July 1, 2025. Mr. Wang brings extensive experience in management and business development, having held significant positions in various companies. Despite a previous regulatory warning related to a breach of the PRC Takeover Codes, the board believes Mr. Wang’s integrity and suitability remain intact. His appointment is part of the company’s strategic direction to enhance its leadership team, with Mr. Wang receiving an annual remuneration of RMB150,000.

Zhenro Services Group Limited Announces AGM Results

Zhenro Services Group Limited announced the results of its Annual General Meeting held on June 20, 2025, where most resolutions were passed, including the re-election of directors and the reappointment of auditors. However, the resolution to grant a general mandate to issue and deal with shares was not approved, impacting the company’s ability to extend this mandate.

Zhenro Services Group Limited Announces 2025 AGM and Key Resolutions

Zhenro Services Group Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 20, 2025, in Shanghai. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for 2024, the re-election of directors, and the re-appointment of Ernst & Young as auditors. Additionally, the company seeks approval to issue new shares and securities, with a limit set at 20% of the current issued shares, excluding treasury shares.