Zhenro Services Group Limited (6958) AI Stock Analysis

• Market Cap: HK$117.24M
• Dividend Yield: N/A
• Average Volume (3M): 73.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.12 ▲(6.36% Upside)

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.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance service offerings and client base, providing a durable competitive advantage and potential revenue growth.

Low Financial Leverage

Low financial leverage provides financial stability and flexibility, allowing the company to navigate economic fluctuations more effectively.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single income source, enhancing resilience against sector-specific downturns.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market position and competitiveness, potentially impacting long-term growth prospects.

Cash Flow Volatility

Negative cash flow raises concerns about liquidity and the ability to sustain operations, potentially necessitating external financing.

Margin Deterioration

Deteriorating margins suggest operational inefficiencies and increased cost pressures, challenging profitability and long-term sustainability.

Zhenro Services Group Limited Business Overview & Revenue Model

Company Description

Zhenro Services Group Limited (6958) is a prominent service provider based in China, primarily engaged in the property management sector. The company offers a comprehensive range of services that includes property management, facility management, and community services across various types of properties, including residential, commercial, and mixed-use developments. Zhenro Services aims to enhance living and working environments through high-quality service delivery and innovative solutions, positioning itself as a key player in the growing real estate services industry.

How the Company Makes Money

Zhenro Services Group Limited generates revenue primarily through its property management services, which include management fees charged to property developers and owners. The company also earns income from value-added services, such as maintenance, security, cleaning, and landscaping, which are provided to residents and businesses within the properties it manages. Additionally, Zhenro may engage in strategic partnerships with property developers to secure long-term management contracts for new developments, further solidifying its revenue base. Economic factors such as the growing demand for quality housing and commercial spaces in urban areas contribute significantly to the company's earnings potential.

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 strong equity position relative to debt, the overall 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: 0.11
• 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 0.11 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.71 is Neutral, neither overbought nor oversold. The STOCH value of 3.85 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$284.66M	2.71	15.85%	11.46%	11.13%	142.00%
2376	72 Outperform	HK$408.02M	9.57	7.09%	3.92%	-3.62%	26.66%
2146	69 Neutral	HK$132.54M	4.39	5.00%	―	1.30%	-6.96%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1941	48 Neutral	HK$95.25M	-5.49	-6.82%	―	1.53%	22.83%
6958	46 Neutral	HK$117.24M	-0.47	-24.03%	―	-0.04%	-104.98%
1153	43 Neutral	HK$207.98M	2.49	―	―	-2.44%	―

Zhenro Services Group Limited Corporate Events

Zhenro Services Group Limited Announces Auditor Change

Zhenro Services Group Limited announced a change in its auditor, with Ernst & Young resigning due to a disagreement on audit fees for the financial year ending December 2025. The company has appointed CCTH CPA Limited as the new auditor, citing its experience, independence, and competitive fees as key reasons for the selection. The change is not expected to impact the annual audit significantly, and the company believes it is in the best interest of shareholders.