Sunray Engineering Group Limited (8616) AI Stock Analysis

• Market Cap: HK$33.00M
• Dividend Yield: N/A
• Average Volume (3M): 42.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -2.10%
• EPS Growth: -1562.50%
• Country: HK
• Employees: 101
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 63,000
• 30 Day Avg. Volume: 42,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.31
• 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: 48 Neutral
• 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 Business Overview & Revenue Model

Company Description

Sunray 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 Money

Sunray 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	162.46M	165.95M	222.81M	199.86M	178.94M
Gross Profit	49.28M	48.94M	57.44M	62.26M	58.91M
EBITDA	-5.70M	7.00M	15.79M	20.76M	20.37M
Net Income	-13.28M	-798.00K	5.51M	10.85M	12.44M
Balance Sheet
Total Assets	244.79M	253.20M	257.50M	258.22M	220.95M
Cash, Cash Equivalents and Short-Term Investments	49.12M	35.19M	29.44M	46.98M	57.78M
Total Debt	23.98M	25.64M	27.78M	28.63M	4.19M
Total Liabilities	71.29M	66.43M	69.94M	76.17M	49.75M
Stockholders Equity	173.50M	186.76M	187.56M	182.05M	171.20M
Cash Flow
Free Cash Flow	17.82M	10.45M	-13.84M	-35.26M	-19.37M
Operating Cash Flow	19.29M	10.51M	-6.48M	14.37M	-17.05M
Investing Cash Flow	-445.00K	189.00K	-5.46M	-47.52M	-1.40M
Financing Cash Flow	-4.92M	-4.95M	-5.60M	22.35M	36.31M

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 0.03, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8619	60 Neutral	HK$30.35M	9.81	23.15%	―	17.35%	―
Sector *	58 Neutral	HK$14.28B	4.63	-3.01%	6.75%	3.67%	-54.16%
8423	56 Neutral	HK$36.80M	2.76	-8.14%	―	40.98%	-222.22%
8616	48 Neutral	HK$33.00M	―	-7.37%	―	-2.10%	-1562.50%
8445	41 Neutral	HK$32.06M	―	-11.50%	―	30.11%	12.01%
6189	38 Underperform	HK$17.35M	―		―	―	―