Zhenro Services Group Limited (6958) AI Stock Analysis

• Market Cap: HK$118.28M
• Dividend Yield: N/A
• Average Volume (3M): 73.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.12 ▲(7.27% Upside)

The score is primarily held back by weak financial performance (revenue decline, losses, and negative operating cash flow). Technicals provide modest support due to a short-term improvement in trend and neutral momentum, while valuation remains a concern given the negative P/E and lack of dividend yield data.

Positive Factors

Comprehensive service portfolio

A broad service offering across residential, commercial and mixed-use properties supports diversified revenue streams and cross-sell potential. This business model generates recurring contract revenue and client stickiness, helping stabilize medium-term cash flows despite market cyclicality.

Low financial leverage

Relatively low leverage and a favorable debt-to-equity profile provide financial flexibility to withstand downturns and pursue selective investments or contract wins. This reduces refinancing risk and supports longer-term operational continuity while management addresses profitability challenges.

Fee-based and value-added revenue mix

A core of recurring management fees plus ancillary value-added services creates predictable, contract-driven cash flows and multiple monetization levers per property. This structural mix supports margin recovery opportunities from upsells and long-term developer partnerships.

Negative Factors

Declining revenue and margins

Sustained revenue declines and margin compression materially weaken the firm’s ability to reinvest, retain talent, and compete on service quality. Persistent losses can erode market position, hinder contract renewals, and make long-term recovery dependent on successful operational restructuring.

Negative operating cash flow

Negative operating cash flow reduces internal funding for working capital and capex, increasing reliance on external financing. Over a multi-month horizon this heightens liquidity and execution risk, limiting the company’s ability to invest in service quality or pursue accretive contracts.

Shrinking equity and assets

Eroding equity and asset base constrain borrowing capacity and reduce strategic flexibility. This structural deterioration can limit the company’s ability to scale operations, bid on large developer contracts, or absorb short-term shocks without dilutive or costly financing.

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 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

Financial statements point to weakening fundamentals: declining revenue, deteriorating margins and a recent substantial net loss, plus negative operating cash flow and volatile free cash flow. The balance sheet shows relatively low leverage, but shrinking equity and assets add risk.

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: Neutral

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 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, 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$272.80M	2.60	15.85%	11.22%	11.13%	142.00%
2146	69 Neutral	HK$117.50M	3.90	5.00%	―	0.75%	-6.96%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2376	56 Neutral	HK$430.69M	10.10	7.09%	3.90%	-3.62%	26.66%
1153	50 Neutral	HK$241.63M	2.66	―	―	-2.44%	―
6958	48 Neutral	HK$118.28M	-0.48	-24.03%	―	-0.04%	-104.98%
1941	48 Neutral	HK$94.03M	-5.45	-6.82%	―	1.53%	22.83%

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.