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Sunray Engineering Group Limited (HK:8616)
:8616
Hong Kong Market
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Sunray Engineering Group Limited (8616) AI Stock Analysis

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HK:8616

Sunray Engineering Group Limited

(8616)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
HK$0.07
▲(34.00% Upside)
Action:Reiterated
Date:07/01/26
The score is primarily supported by improving financial performance in 2026, including a return to profitability, strong recent free cash flow, and a low-leverage balance sheet. This is tempered by weak technical positioning (price below major moving averages) and limited valuation support given the negative P/E and no dividend yield data.
Positive Factors
Low leverage / strong balance sheet
A very low debt-to-equity (~0.10) and substantial equity base provide durable financial flexibility for an engineering firm, cushioning project cyclicality, supporting competitive bidding and working-capital needs, and reducing refinancing risk across multi-year project cycles.
Negative Factors
Thin margins and low shareholder returns
Persistently thin net and EBITDA margins limit the firm's ability to absorb cost inflation or bid aggressively while maintaining returns; low profitability also translates to modest ROE, constraining shareholder return potential and reinvestment capacity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
A very low debt-to-equity (~0.10) and substantial equity base provide durable financial flexibility for an engineering firm, cushioning project cyclicality, supporting competitive bidding and working-capital needs, and reducing refinancing risk across multi-year project cycles.
Read all positive factors

Sunray Engineering Group Limited (8616) vs. iShares MSCI Hong Kong ETF (EWH)

Sunray Engineering Group Limited Business Overview & Revenue Model

Company Description
Operating as an investment holding company, Sunray Engineering Group Limited delivers comprehensive building protection solutions throughout Hong Kong and Macau. The firm provides a diverse range of products, specifically for waterproofing, tiling...
How the Company Makes Money
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Sunray Engineering Group Limited Financial Statement Overview

Summary
Overall fundamentals show a rebound in 2026: net income turned positive (HK$4.2M) and revenue rose to HK$177.5M (+4.9%). Balance sheet leverage is low (debt-to-equity ~0.10), and free cash flow improved strongly (HK$29.6M). Offsetting this, profitability remains thin (net margin ~2.4%) and both revenue and cash flow have been volatile across prior years, limiting visibility.
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
63
Positive
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue177.48M162.46M165.95M222.81M199.86M
Gross Profit48.50M49.28M48.94M57.44M62.26M
EBITDA12.28M-5.70M7.00M15.79M20.76M
Net Income4.23M-13.28M-798.00K5.51M10.85M
Balance Sheet
Total Assets247.05M244.79M253.20M257.50M258.22M
Cash, Cash Equivalents and Short-Term Investments74.69M49.12M35.19M29.44M46.98M
Total Debt18.27M23.98M25.64M27.78M28.63M
Total Liabilities69.31M71.29M66.43M69.94M76.17M
Stockholders Equity177.74M173.50M186.76M187.56M182.05M
Cash Flow
Free Cash Flow29.55M17.82M10.45M-13.84M-35.26M
Operating Cash Flow32.76M19.29M10.51M-6.48M14.37M
Investing Cash Flow-2.86M-445.00K189.00K-5.46M-47.52M
Financing Cash Flow-4.34M-4.92M-4.95M-5.60M22.35M

Sunray Engineering Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.05
Price Trends
50DMA
0.06
Positive
100DMA
0.06
Positive
200DMA
0.06
Positive
Market Momentum
MACD
<0.01
Negative
RSI
58.43
Neutral
STOCH
47.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8616, the sentiment is Positive. The current price of 0.05 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 bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 47.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8616.

Sunray Engineering Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$1.04B3.6213.68%9.09%15.16%25.81%
68
Neutral
HK$170.54M9.5511.27%13.51%-32.40%671.43%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
HK$66.00M11.09-8.42%9.25%
45
Neutral
HK$90.04M-0.45-47.12%-51.29%43.87%
42
Neutral
HK$33.17M-1.77-17.44%-36.27%-4.08%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8616
Sunray Engineering Group Limited
0.07
0.04
120.00%
HK:1408
Macau E&M Holding Limited
0.33
0.19
137.41%
HK:1413
Kwong Luen Engineering Holdings Limited
0.18
-0.11
-36.90%
HK:1627
Able Engineering Holdings Ltd.
0.52
-0.13
-20.00%
HK:8445
Noble Engineering Group Holdings Limited
0.12
>-0.01
-6.25%
HK:1690
Lap Kei Engineering (Holdings) Limited
0.12
0.06
100.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2026