Sunray Engineering Group Limited (8616) AI Stock Analysis

• Market Cap: HK$33.00M
• Dividend Yield: N/A
• Average Volume (3M): 51.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -23.17%
• EPS Growth: -200.00%
• Country: HK
• Employees: 101
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 24,000
• 30 Day Avg. Volume: 51,000
• PEG Ratio: -0.18
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.61
• 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

• Rating: 52 Neutral
• Price Target: ―

Sunray Engineering Group Limited faces significant challenges, primarily due to profitability issues and bearish market sentiment. The company's strong balance sheet and improved cash flows provide some stability, but declining revenues and negative net income are major concerns. The technical indicators further suggest downward momentum, and the lack of positive valuation metrics makes the stock less attractive. Addressing these issues is crucial for enhancing its financial health and market performance.

Sunray Engineering Group Limited Business Overview & Revenue Model

Company Description

Sunray Engineering Group Limited (8616) is a company primarily engaged in the provision of engineering services. It operates in sectors including construction, maintenance, and renovation projects. The company offers an array of services that cater to both residential and commercial clients, focusing on delivering high-quality engineering solutions and sustainable infrastructure.

How the Company Makes Money

Sunray Engineering Group Limited generates revenue through various streams, primarily driven by contracts for engineering projects. These projects include construction, maintenance, and renovation services provided to both private and public sector clients. The company secures contracts through competitive bidding and partnerships with developers and government entities. Revenue is recognized based on the progress and completion of these contracted projects. Additionally, the company may engage in long-term maintenance contracts that provide ongoing income. Strategic partnerships and a strong reputation in the industry contribute significantly to its revenue generation.

Sunray Engineering Group Limited Financial Statement Overview

Summary

Sunray Engineering Group Limited shows a mixed financial performance. The income statement reveals declining revenues and profitability challenges, while the balance sheet indicates a strong equity base and low leverage, providing financial stability. Improved cash flows suggest effective cash management, but the negative net income raises concerns about profitability sustainability. Overall, the company needs to address revenue and profitability issues to enhance financial health.

Income Statement

Sunray Engineering Group Limited experienced declining total revenue with a decrease from 199,278,000 in 2020 to 165,947,000 in 2024. The gross profit margin in 2024 was approximately 29.48%, which is relatively stable compared to previous years. However, the net profit margin turned negative in 2024, indicating profitability issues. The EBIT and EBITDA margins also declined. Revenue growth rate was negative, pointing to contraction in sales.

Balance Sheet

The company maintains a solid equity position with a high equity ratio of 73.77% in 2024, which reflects financial stability. The debt-to-equity ratio is low at 0.14, indicating low leverage. However, the return on equity (ROE) was negative in 2024 due to the net loss, signaling challenges in generating returns for shareholders.

Cash Flow

Sunray's cash flow from operations improved significantly in 2024, with a positive free cash flow of 10,454,000. The operating cash flow to net income ratio was positive, reflecting strong cash generation relative to earnings. Free cash flow growth was substantial compared to the previous year's negative value, showing improved cash management.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	157.72M	165.95M	222.81M	199.86M	178.94M	199.28M
Gross Profit	46.13M	48.94M	57.44M	62.26M	58.91M	78.06M
EBITDA	4.43M	7.00M	15.79M	20.76M	20.37M	29.41M
Net Income	-2.90M	-798.00K	5.51M	10.85M	12.44M	19.38M
Balance Sheet
Total Assets	260.20M	253.20M	257.50M	258.22M	220.95M	185.46M
Cash, Cash Equivalents and Short-Term Investments	44.20M	35.19M	29.44M	46.98M	57.78M	39.92M
Total Debt	25.23M	25.64M	27.78M	28.63M	4.19M	1.65M
Total Liabilities	75.85M	66.43M	69.94M	76.17M	49.75M	61.95M
Stockholders Equity	184.35M	186.76M	187.56M	182.05M	171.20M	123.50M
Cash Flow
Free Cash Flow	7.89M	10.45M	-13.84M	-35.26M	-19.37M	12.82M
Operating Cash Flow	8.49M	10.51M	-6.48M	14.37M	-17.05M	13.17M
Investing Cash Flow	284.00K	189.00K	-5.46M	-47.52M	-1.40M	-90.00K
Financing Cash Flow	-5.82M	-4.95M	-5.60M	22.35M	36.31M	-4.43M

Sunray Engineering Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.04, 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 -65.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1618	80 Outperform	€63.61B	5.58	5.56%	4.79%	-19.10%	-30.15%
3311	79 Outperform	$62.75B	6.39	14.62%	4.80%	1.21%	2.15%
1199	70 Outperform	$20.69B	7.64	5.64%	5.33%	5.93%	-3.64%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
8616	52 Neutral	HK$33.00M	―	-7.37%	―	-23.17%	-200.00%
1993	45 Neutral	HK$315.58M	―		―	-34.67%	-99.72%
3928	40 Underperform	HK$792.00M	―	-2.26%	―	34.69%	41.09%