Sunray Engineering Group Limited (8616) AI Stock Analysis

• Market Cap: HK$50.00M
• Dividend Yield: N/A
• Average Volume (3M): 67.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 8.51%
• EPS Growth: -217.24%
• Country: HK
• Employees: 101
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 16,000
• 30 Day Avg. Volume: 67,666
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 1.80
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$0.04 ▼(-16.00% Downside)

The overall stock score reflects significant challenges in financial performance and technical analysis. The company's strong balance sheet provides some stability, but declining profitability and bearish technical indicators weigh heavily on the score. The negative P/E ratio and lack of dividend yield further contribute to a cautious outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Improved Cash Flow

Improved cash flow management enhances liquidity, enabling the company to fund operations and strategic initiatives without relying heavily on external financing.

Revenue Growth

Positive revenue growth indicates expanding business operations and market presence, which can drive long-term profitability and shareholder value.

Negative Factors

Declining Profitability

Declining profitability, as seen in reduced margins and net losses, poses a risk to long-term sustainability and limits the ability to reinvest in growth.

Negative Net Profit Margin

A negative net profit margin indicates operational inefficiencies and challenges in cost management, which can hinder future profitability and competitiveness.

Negative Return on Equity

Negative return on equity reflects inefficient use of shareholder capital and can deter investment, impacting the company's ability to raise funds for growth.

Sunray Engineering Group Limited Business Overview & Revenue Model

Company Description

Sunray Engineering Group Limited (8616) is a Hong Kong-based company that specializes in providing a wide range of engineering and technical services. The company operates primarily in the civil engineering and construction sectors, offering services such as project management, design, and consulting. Sunray Engineering Group is known for its commitment to quality and innovation, catering to various infrastructure projects that support urban development and public works.

How the Company Makes Money

Sunray Engineering Group generates revenue primarily through contracts in civil engineering and construction projects. The company earns money by providing engineering consultancy, project management services, and executing construction contracts for both public and private sector clients. Key revenue streams include fixed-price contracts, time and materials contracts, and cost-plus contracts, which are structured to ensure profitability while meeting client requirements. Additionally, the company may engage in partnerships with other firms to undertake larger projects, thereby expanding its capabilities and market reach, which can enhance its earnings potential.

Sunray Engineering Group Limited Financial Statement Overview

Summary

Sunray Engineering Group Limited faces challenges in revenue growth and profitability, as evidenced by declining margins and net losses. Despite this, the company maintains a strong balance sheet with low leverage, providing a cushion against financial instability. Improvements in cash flow management are positive, but sustained profitability is crucial for long-term success.

Income Statement

The income statement shows a declining trend in revenue and profitability. Gross profit margin has decreased from previous years, and the company has reported a net loss in the latest period. The negative net profit margin and declining EBIT and EBITDA margins indicate challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the return on equity has been negative due to net losses, which could be a concern if not addressed. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis shows improvement in operating cash flow, turning positive after previous negative figures. Free cash flow has also improved, indicating better cash management. However, the free cash flow to net income ratio is not favorable due to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	212.92M	162.46M	165.95M	222.81M	199.86M	178.94M
Gross Profit	61.69M	49.28M	48.94M	57.44M	62.26M	58.91M
EBITDA	-5.49M	-5.70M	7.00M	15.79M	20.76M	20.37M
Net Income	-14.65M	-13.28M	-798.00K	5.51M	10.85M	12.44M
Balance Sheet
Total Assets	244.64M	244.79M	253.20M	257.50M	258.22M	220.95M
Cash, Cash Equivalents and Short-Term Investments	39.00M	49.12M	35.19M	29.44M	46.98M	57.78M
Total Debt	20.81M	23.98M	25.64M	27.78M	28.63M	4.19M
Total Liabilities	69.50M	71.29M	66.43M	69.94M	76.17M	49.75M
Stockholders Equity	175.13M	173.50M	186.76M	187.56M	182.05M	171.20M
Cash Flow
Free Cash Flow	2.93M	17.82M	10.45M	-13.84M	-35.26M	-19.37M
Operating Cash Flow	4.94M	19.29M	10.51M	-6.48M	14.37M	-17.05M
Investing Cash Flow	-1.89M	-445.00K	189.00K	-5.46M	-47.52M	-1.40M
Financing Cash Flow	-5.81M	-4.92M	-4.95M	-5.60M	22.35M	36.31M

Sunray Engineering Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 67.23 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8619	51 Neutral	HK$26.45M	0.44	31.39%	―	-15.18%	94.48%
8616	47 Neutral	HK$50.00M	-3.76	-5.13%	―	8.51%	-217.24%
8423	45 Neutral	HK$39.20M	-3.18	-28.49%	―	-1.68%	-417.79%
6189	38 Underperform	HK$17.35M	―	―	―	―	―
8445	38 Underperform	HK$46.98M	-4.96	-11.29%	―	-41.79%	19.85%