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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

Sunray Engineering Group Limited

(8616)

Rating:48Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The stock's overall score reflects moderate financial performance and challenging valuation. The company's declining profitability and revenue trends are major concerns, slightly offset by improved cash management. Technical indicators suggest potential price consolidation, while valuation metrics highlight significant downside risks.

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

Sunray Engineering Group Limited Business Overview & Revenue Model

Company DescriptionSunray Engineering Group Limited (8616) is a company based in Hong Kong, primarily engaged in providing building services engineering and maintenance services. The company operates within the construction and engineering sectors, offering a range of services including electrical, mechanical, ventilation, and air-conditioning installations. Sunray Engineering Group Limited focuses on delivering high-quality engineering solutions for residential, commercial, and industrial projects.
How the Company Makes MoneySunray Engineering Group Limited generates revenue through its comprehensive suite of building services engineering solutions. The company's primary revenue streams include contracting projects for installation and maintenance of electrical and mechanical systems in buildings. These projects often involve long-term contracts with property developers, building owners, and other commercial entities. Additionally, Sunray may engage in partnerships with other construction firms or participate in joint ventures to undertake large-scale engineering projects. The company's earnings are significantly influenced by the demand for construction and maintenance services in the regions it operates, as well as its ability to secure new contracts and successfully complete existing projects.

Sunray Engineering Group Limited Financial Statement Overview

Summary
The company shows moderate financial health with significant areas for improvement. Declining revenue and profitability trends, along with negative net income, highlight operational challenges. The balance sheet is stable but lacks profitability strength, and cash flow management shows improvement but is inconsistent.
Income Statement
45
Neutral
The income statement reveals declining revenue and profitability trends. The company recorded a negative net income and EBITDA in the latest period, indicating decreasing profitability and operational challenges. The gross profit margin has decreased over time, reflecting cost pressures. Revenue has shown fluctuations, with the latest drop contributing to a negative revenue growth rate. These factors suggest a need for improvement in cost management and revenue generation.
Balance Sheet
60
Neutral
The balance sheet shows a moderately healthy equity base with a stable equity ratio of approximately 70%. The company has controlled its debt levels, reflected in a manageable debt-to-equity ratio. However, a declining return on equity, driven by negative net income, highlights the need for profitability improvements. Despite a solid equity position, the financial health could be better with stronger earnings performance.
Cash Flow
55
Neutral
The cash flow analysis indicates an increase in free cash flow, suggesting improved cash management. However, the operating cash flow to net income ratio is concerning due to negative net income. The free cash flow to net income ratio is positive, indicating that cash generation has been better than earnings. Despite these strengths, the company faces challenges in maintaining consistent operating cash flows over time.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue162.46M165.95M222.81M199.86M178.94M
Gross Profit49.28M48.94M57.44M62.26M58.91M
EBITDA-5.70M7.00M15.79M20.76M20.37M
Net Income-13.28M-798.00K5.51M10.85M12.44M
Balance Sheet
Total Assets244.79M253.20M257.50M258.22M220.95M
Cash, Cash Equivalents and Short-Term Investments49.12M35.19M29.44M46.98M57.78M
Total Debt23.98M25.64M27.78M28.63M4.19M
Total Liabilities71.29M66.43M69.94M76.17M49.75M
Stockholders Equity173.50M186.76M187.56M182.05M171.20M
Cash Flow
Free Cash Flow17.82M10.45M-13.84M-35.26M-19.37M
Operating Cash Flow19.29M10.51M-6.48M14.37M-17.05M
Investing Cash Flow-445.00K189.00K-5.46M-47.52M-1.40M
Financing Cash Flow-4.92M-4.95M-5.60M22.35M36.31M

Sunray Engineering Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.03
Negative
100DMA
0.03
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
33.16
Neutral
STOCH
-36.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8616, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.16 is Neutral, neither overbought nor oversold. The STOCH value of -36.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8616.

Sunray Engineering Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
HK$30.35M9.8123.15%17.35%
58
Neutral
HK$14.28B4.63-3.01%6.75%3.67%-54.16%
56
Neutral
HK$36.80M2.76-8.14%40.98%-222.22%
48
Neutral
HK$33.00M-7.37%-2.10%-1562.50%
41
Neutral
HK$32.06M-11.50%30.11%12.01%
38
Underperform
HK$17.35M
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8616
Sunray Engineering Group Limited
0.03
-0.01
-25.00%
HK:8619
WAC Holdings Ltd.
0.21
-2.29
-91.60%
HK:8445
Noble Engineering Group Holdings Limited
0.12
-0.08
-40.00%
HK:8423
Chi Ho Development Holdings Ltd
0.05
>-0.01
-16.67%
HK:6189
Guangdong Adway Construction (Group) Holdings Co., Ltd. Class H
0.07
-0.16
-69.57%
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 08, 2025