Sunlight (1977) Holdings Limited (8451) AI Stock Analysis

• Market Cap: HK$52.00M
• Dividend Yield: N/A
• Average Volume (3M): 270.33K
• Price to Earnings (P/E): 17.1
• Beta (1Y): >-0.01
• Revenue Growth: 1.12%
• EPS Growth: -29.63%
• Country: HK
• Employees: 36
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 748,000
• 30 Day Avg. Volume: 270,333
• PEG Ratio: -0.16
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 7.01
• 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: 65 Neutral
• Price Target: HK$0.07 ▲(8.33% Upside)

The score is primarily supported by improving financial performance and a very low-debt balance sheet, which lowers financial risk. This is tempered by weak technical momentum (price below key moving averages and negative MACD) and only moderate valuation support (mid-range P/E with no dividend yield provided).

Positive Factors

Very low financial leverage

Extremely low debt-to-equity materially reduces financial risk and interest burden. That balance-sheet conservatism gives durable optionality to fund operations, capex or opportunistic investments internally, and withstand revenue volatility without refinancing stress.

Sustained gross margin improvement

A multi-year rise in gross margin implies structural gains in pricing, cost efficiency or product mix. Sustained higher gross margins support durable operating leverage as revenue scales, improving ability to generate operating profit even if SG&A or overheads increase.

Improved cash conversion

FCF matching net profit indicates recent earnings are translating into real cash, strengthening funding capacity for reinvestment and reducing dependence on external financing. Reliable cash conversion is a durable foundation for reinvestment and resilience across cycles.

Negative Factors

Thin net margins

Low and declining net margins limit the company's ability to absorb cost inflation, invest in growth, or return capital. With thin profitability, shocks to revenue or one-off non-operating items can materially depress earnings and cash generation over the medium term.

Uneven historical cash flow quality

Past episodes of negative OCF and FCF point to volatile working-capital dynamics or episodic operational strains. Such variability raises execution risk for sustaining investments and complicates long-term planning, making future cash-driven initiatives less certain.

Moderate returns on equity

ROE at low single digits signals the company is not yet converting its capital base into strong shareholder returns. Persistently modest ROE constrains long-term value creation unless management improves asset efficiency, margins, or pursues higher-return investments.

Sunlight (1977) Holdings Limited Business Overview & Revenue Model

Company Description

Sunlight (1977) Holdings Limited (8451) is a Hong Kong-based company primarily engaged in the provision of property management services. The company offers a wide range of services, including security, cleaning, maintenance, and repair works for residential and commercial properties. It is committed to delivering high-quality and professional management services that cater to the needs of its clients.

How the Company Makes Money

Sunlight (1977) Holdings Limited generates revenue primarily through the provision of property management services. The company charges its clients, including property owners and developers, fees for managing and maintaining their properties. These fees are typically based on the scope and scale of services provided, such as security, cleaning, and maintenance. Additionally, the company may earn income from ancillary services like repair works and facilities management. Sunlight (1977) Holdings Limited's earnings are influenced by factors such as the number of properties under management, contract renewals, and the overall demand for property management services in its operational regions.

Sunlight (1977) Holdings Limited Financial Statement Overview

Summary

Strong balance sheet with very low leverage and improved profitability (higher gross margin and operating profit turning clearly positive). Offsets include still-thin net margins and historically uneven cash-flow quality despite recent positive free cash flow.

Income Statement

Profitability has improved meaningfully versus earlier years: gross margin rose from ~23–25% (2020–2022) to ~31–35% (2023–2025), and operating profit turned clearly positive after the weak 2021–2022 period. The latest annual period (2025) shows a step-change in scale with revenue up sharply versus 2024, while maintaining a solid gross margin (~35%). Offsetting this, net margin is still modest (~3.6% in 2025 vs ~5.2% in 2024), suggesting higher operating costs and/or non-operating drag as the business scaled.

Balance Sheet

The balance sheet is conservatively financed with very low leverage in recent years (debt-to-equity ~0.8% in 2025 and ~1.0% in 2024), which reduces financial risk. Equity and assets are sizable relative to debt, giving flexibility through cycles. The main trade-off is moderate returns on equity (about ~2.6% in 2025 and ~4.0% in 2024), implying the company is not yet translating its capital base into strong shareholder returns.

Cash Flow

Cash generation has strengthened recently: operating cash flow and free cash flow were positive in 2023–2025, with 2025 free cash flow roughly matching net profit (about 1.0x), indicating earnings are largely converting to cash. However, cash flow quality has been uneven over time, with notably negative operating and free cash flow in 2020 and 2022, and operating cash flow in 2025 covering only about 0.73x of EBITDA—suggesting working-capital movements or timing effects can still create volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.83M	13.74M	14.06M	14.60M	12.02M	11.77M
Gross Profit	4.61M	4.76M	4.80M	4.53M	2.78M	2.88M
EBITDA	1.29M	1.62M	1.79M	1.50M	327.00K	291.00K
Net Income	402.00K	497.70K	735.00K	650.00K	260.00K	246.00K
Balance Sheet
Total Assets	21.70M	22.77M	21.79M	20.32M	19.18M	21.01M
Cash, Cash Equivalents and Short-Term Investments	3.68M	4.59M	3.45M	1.76M	807.00K	3.74M
Total Debt	165.00K	150.28K	178.00K	202.00K	235.00K	1.91M
Total Liabilities	3.33M	3.34M	3.59M	3.49M	2.80M	5.04M
Stockholders Equity	18.36M	18.96M	18.19M	16.83M	8.98M	15.97M
Cash Flow
Free Cash Flow	278.00K	1.13M	1.23M	838.00K	-2.89M	-148.00K
Operating Cash Flow	578.00K	1.13M	1.53M	1.56M	-1.78M	1.34M
Investing Cash Flow	271.00K	0.00	232.00K	-599.00K	-1.01M	-1.41M
Financing Cash Flow	-35.00K	0.00	-34.00K	-43.00K	-141.00K	-140.00K

Sunlight (1977) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8451, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of -24.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8451.

Sunlight (1977) Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8451	65 Neutral	HK$52.00M	17.11	2.69%	―	1.12%	-29.63%
8436	65 Neutral	HK$98.80M	21.48	1.89%	―	-20.10%	-74.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1259	48 Neutral	HK$70.51M	-1.34	-8.59%	―	-1.48%	-16.04%
8200	45 Neutral	HK$48.09M	44.85	0.15%	―	1.01%	―
8281	45 Neutral	HK$104.00M	15.76	2.37%	―	-1.65%	230.00%
1173	42 Neutral	HK$93.17M	-0.80	-117.03%	―	-17.91%	-32.66%