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

Sunray Engineering Group Limited (8616) AI Stock Analysis

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HK

Sunray Engineering Group Limited

(8616)

Rating:52Neutral
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 (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 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 MoneySunray 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
65
Positive
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
78
Positive
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
70
Positive
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue157.72M165.95M222.81M199.86M178.94M199.28M
Gross Profit46.13M48.94M57.44M62.26M58.91M78.06M
EBITDA4.43M7.00M15.79M20.76M20.37M29.41M
Net Income-2.90M-798.00K5.51M10.85M12.44M19.38M
Balance Sheet
Total Assets260.20M253.20M257.50M258.22M220.95M185.46M
Cash, Cash Equivalents and Short-Term Investments44.20M35.19M29.44M46.98M57.78M39.92M
Total Debt25.23M25.64M27.78M28.63M4.19M1.65M
Total Liabilities75.85M66.43M69.94M76.17M49.75M61.95M
Stockholders Equity184.35M186.76M187.56M182.05M171.20M123.50M
Cash Flow
Free Cash Flow7.89M10.45M-13.84M-35.26M-19.37M12.82M
Operating Cash Flow8.49M10.51M-6.48M14.37M-17.05M13.17M
Investing Cash Flow284.00K189.00K-5.46M-47.52M-1.40M-90.00K
Financing Cash Flow-5.82M-4.95M-5.60M22.35M36.31M-4.43M

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
-65.00
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€63.61B5.585.56%4.79%-19.10%-30.15%
79
Outperform
$62.75B6.3914.62%4.80%1.21%2.15%
70
Outperform
$20.69B7.645.64%5.33%5.93%-3.64%
65
Neutral
$10.77B15.805.51%1.90%3.03%-26.66%
52
Neutral
HK$33.00M-7.37%-23.17%-200.00%
45
Neutral
HK$315.58M
-34.67%-99.72%
40
Underperform
HK$792.00M-2.26%34.69%41.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8616
Sunray Engineering Group Limited
0.03
-0.01
-25.00%
HK:3928
S&T Holdings Ltd.
1.65
0.34
25.95%
HK:1993
Asiaray Media Group Ltd.
0.66
-0.64
-49.23%
HK:1199
COSCO SHIPPING Ports
5.33
0.40
8.00%
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.65
0.10
6.73%
HK:3311
China State Construction International Holdings
11.68
1.29
12.46%
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: Apr 21, 2025