Excellence Commercial Property & Facilities Management Group Limited (6989) AI Stock Analysis

• Market Cap: HK$1.43B
• Dividend Yield: 11.91%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 4.7
• Beta (1Y): 1.12
• Revenue Growth: -0.79%
• EPS Growth: -6.52%
• Country: HK
• Employees: 17,873
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): 0.13
• Shares Outstanding: 1,220,348,000
• 10 Day Avg. Volume: 1,944,557
• 30 Day Avg. Volume: 1,526,627
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$1.50
• Price Target Upside: 28.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: HK$1.50 ▲(28.21% Upside)

The stock's overall score is primarily driven by its strong valuation, with a low P/E ratio and high dividend yield indicating potential undervaluation. However, technical analysis suggests bearish momentum, and financial performance is mixed due to cash flow challenges despite solid revenue growth and financial stability.

Positive Factors

Financial Stability

The strong balance sheet with low leverage indicates financial stability, providing resilience against economic downturns and flexibility for strategic investments.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and enhance service offerings, supporting long-term business sustainability.

Profitability Metrics

Improved net profit margins indicate effective cost management and operational efficiency, contributing to sustained profitability in the competitive real estate services sector.

Negative Factors

Revenue Growth Challenges

Negative revenue growth poses a challenge to maintaining market competitiveness and could signal difficulties in expanding service offerings or client base.

Cost Pressures

Declining EBIT and EBITDA margins may indicate rising operational costs, which could erode profitability if not managed effectively, impacting long-term financial health.

Cash Flow Challenges

Negative operating cash flow suggests potential liquidity issues, which could constrain the company's ability to invest in growth opportunities and meet financial obligations.

Excellence Commercial Property & Facilities Management Group Limited Business Overview & Revenue Model

Company Description

Excellence Commercial Property & Facilities Management Group Limited provides commercial property management services in China. It operates through three segments: Property Management Services, Finance Services, and Other Services. The Property Management Services segment offers property management services or system supply and installation services to property developers, property owners, and tenants, as well as value-added services to such customers, including asset services, which comprise preliminary property consulting, property leasing and sales agency, asset-light property and space operation, and corporate services. It serves commercial properties, including commercial office buildings and complexes, high-tech industrial parks, government buildings, and residential apartments. The Finance Services segment principally provides micro-lending services to small and medium enterprises, individual business proprietors, and individuals. The Other Services segment offers software development and apartment rental services. Excellence Commercial Property & Facilities Management Group Limited was founded in 1999 and is headquartered in Shenzhen, China.

How the Company Makes Money

Excellence Commercial Property & Facilities Management Group Limited makes money primarily through service fees and management contracts. The company generates revenue by charging property owners and tenants for the management and maintenance of their properties. The key revenue streams include property management fees, leasing fees, and facility management fees, which are often structured as a percentage of the rental income or as fixed fees based on the scope of services provided. Additionally, significant partnerships with real estate developers and property investors contribute to their earnings by expanding their portfolio of managed properties and enhancing service offerings.

Excellence Commercial Property & Facilities Management Group Limited Financial Statement Overview

Summary

The company demonstrates solid revenue growth and financial stability with low leverage. However, cash flow challenges are evident, with negative operating cash flow that could impact liquidity if not addressed. Profitability metrics remain healthy, but vigilance on cost management is advised.

Income Statement

The company shows steady revenue growth with a 7.78% increase from 2023 to 2024. Gross profit margin is stable at 18.87% for 2024, indicating consistent profitability. Net profit margin improved slightly to 7.37%, consistent with industry standards. EBIT and EBITDA margins showed slight declines, suggesting potential cost pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.004 and a high equity ratio of 72.53%, highlighting financial stability. Return on Equity decreased slightly to 8.37%, showing efficient use of equity despite the drop.

Cash Flow

The cash flow statement indicates challenges with negative operating cash flow for 2024. Free cash flow growth is unavailable due to missing data, but the substantial negative operating cash flow relative to net income is a concern. This could indicate cash flow management challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.23B	3.93B	3.53B	3.47B	2.53B
Gross Profit	798.63M	733.61M	844.35M	959.63M	663.81M
EBITDA	441.22M	529.37M	681.64M	833.26M	530.02M
Net Income	312.09M	302.69M	403.49M	510.09M	324.99M
Balance Sheet
Total Assets	5.14B	5.20B	5.01B	5.07B	4.93B
Cash, Cash Equivalents and Short-Term Investments	965.63M	2.38B	2.56B	3.01B	3.36B
Total Debt	14.53M	40.69M	124.93M	206.75M	523.62M
Total Liabilities	1.34B	1.55B	1.42B	1.61B	1.67B
Stockholders Equity	3.73B	3.58B	3.49B	3.45B	3.18B
Cash Flow
Free Cash Flow	-1.04B	-199.78M	173.71M	791.87M	418.30M
Operating Cash Flow	-555.09M	-185.21M	192.09M	810.06M	434.01M
Investing Cash Flow	-482.19M	44.07M	-165.13M	-412.24M	847.17M
Financing Cash Flow	-182.99M	-267.70M	-447.07M	-638.62M	1.64B

Excellence Commercial Property & Facilities Management Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6989, the sentiment is Negative. The current price of 1.17 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.40, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 27.68 is Positive, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6989.

Excellence Commercial Property & Facilities Management Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3658	77 Outperform	HK$1.73B	7.10	18.19%	9.11%	10.09%	2.39%
1502	71 Outperform	HK$881.46M	7.41	8.63%	7.23%	16.65%	-8.74%
6989	66 Neutral	HK$1.43B	4.66	7.55%	11.91%	-0.79%	-6.52%
Sector *	63 Neutral	$7.15B	13.09	-0.31%	6.85%	4.03%	-25.34%
1755	―	HK$2.44B	4.88	15.76%	8.04%	―	―
2215	59 Neutral	HK$454.35M	14.14	4.11%	―	-7.17%	-26.62%
0798	52 Neutral	HK$1.86B	21.61	1.01%	9.80%	-19.65%	-81.68%

Excellence Commercial Property & Facilities Management Group Limited Corporate Events

Excellence Commercial Property & Facilities Management Group Schedules Board Meeting for Interim Results

Excellence Commercial Property & Facilities Management Group Limited has announced a board meeting scheduled for August 26, 2025, to consider and approve the interim results for the first half of the year and discuss the potential recommendation of an interim dividend. This meeting could have implications for the company’s financial strategy and stakeholder interests.

Excellence Commercial Property & Facilities Management Group Limited AGM Resolutions Passed

Excellence Commercial Property & Facilities Management Group Limited held its Annual General Meeting on May 27, 2025, where all proposed resolutions were passed by poll. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, re-appointment of KPMG as auditor, and granting of mandates for share issuance and buybacks. These decisions reflect the company’s strategic focus on maintaining financial stability and operational continuity, potentially impacting its market positioning and shareholder value positively.