Sundy Service Group Co. Ltd (9608) AI Stock Analysis

• Market Cap: HK$199.68M
• Dividend Yield: N/A
• Average Volume (3M): 422.33K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.53
• Revenue Growth: 0.88%
• EPS Growth: -25.81%
• Country: HK
• Employees: 435
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): <0.01
• Shares Outstanding: 3,840,000,000
• 10 Day Avg. Volume: 677,000
• 30 Day Avg. Volume: 422,333
• PEG Ratio: -3.88
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 3.34
• P/FCF Ratio: -11.88
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.05 ▼(-16.67% Downside)

The score is held back primarily by persistent negative operating/free cash flow and significantly compressed margins/returns, despite a conservatively positioned, low-debt balance sheet. Technically, the stock remains in a clear downtrend, while valuation is only middling relative to the weakened fundamentals.

Positive Factors

Conservative Balance Sheet

A near-zero debt profile provides durable financial flexibility, lowering default and refinancing risk. This strength supports operations during prolonged cash shortfalls, enables strategic optionality like selective M&A or capex, and preserves solvency under cyclical pressure.

Strong 2024 Revenue Rebound

A large top-line recovery indicates regained demand or successful contract execution, which can underpin sustained revenue base expansion. If maintained, this scale can improve operational leverage and provide runway for margin recovery and reinvestment over the medium term.

Continued Profitability

Remaining profitable, even with compressed margins, means the company still generates accounting earnings to support strategic responses. Profitability reduces immediate existential risk versus persistent losses and gives management a platform to rebuild margins and improve cash conversion over time.

Negative Factors

Sustained Negative Cash Flow

Persistent operating and free cash outflows materially weaken earnings quality and restrict internal funding for capex, working capital, or dividends. Over months, this forces reliance on external financing or asset dispositions, increasing financing risk despite low leverage.

Severe Margin Compression

Sharp margin erosion drastically reduces resilience to cost inflation and erodes free cash flow even if revenue grows. Low single-digit net margins limit reinvestment capacity, weaken returns on capital, and suggest structural pricing or cost pressures that may persist absent business model change.

Volatile Revenue and Earnings

Significant top-line volatility undermines predictability of cash flows and complicates planning for staffing, capex, and debt servicing. Inconsistent revenues reduce credibility with customers and lenders, making sustainable margin recovery and steady cash generation harder over the medium term.

Sundy Service Group Co. Ltd Business Overview & Revenue Model

Company Description

Sundy Service Group Co. Ltd, an investment holding company, operates as an integrated property management service provider in the property management industry in Zhejiang province, the People's Republic of China. The company provides property management services to 58 properties, including 38 residential properties and 20 non-residential properties. It offers property management services, including security, cleaning, gardening, repair, and maintenance of common areas and common facilities and ancillary services; value-added services to non-property owners, including consulting services, sales assistance services, and pre-delivery services; and community value-added services to property owners and residents, including property repair and maintenance, waste cleaning, utility fee collection, remodeling, and decoration and community space services, as well as engages in hotel and long-term rental apartment businesses. The company was formerly known as SUNDY HUIDU LIMITED and changed its name to Sundy Service Group Co. Ltd in September 2017. The company was founded in 1995 and is headquartered in Hangzhou, the People's Republic of China. Sundy Service Group Co. Ltd operates as a subsidiary of CMB Wing Lung (Trustee) Ltd.

How the Company Makes Money

Sundy Service Group Co. Ltd generates revenue primarily through its property management services, which include maintenance, security, cleaning, and landscaping for residential and commercial properties. The company also earns income from consulting services, advising property owners on management strategies and operational efficiencies. Additionally, Sundy Service Group Co. Ltd offers value-added services such as leasing assistance and community event planning, which further contribute to its revenue. Strategic partnerships with real estate developers and property owners play a significant role in expanding its client base and service offerings, driving sustained revenue growth.

Sundy Service Group Co. Ltd Financial Statement Overview

Summary

Balance sheet strength (minimal leverage and stable assets) is offset by sharply weaker profitability (net margin down to ~1.2% in 2024) and, most importantly, sustained negative operating and free cash flow for 2021–2024, which undermines earnings quality.

Income Statement

Revenue has been volatile—down in 2022–2023 before rebounding strongly in 2024 (annual revenue growth of ~154%). However, profitability has deteriorated sharply versus prior years: net margin fell from ~12% (2022) and ~17% (2021) to ~3.6% (2023) and ~1.2% (2024), with EBIT and EBITDA margins also compressing meaningfully. The business is still profitable, but the earnings base is much weaker and less consistent than it was earlier in the period.

Balance Sheet

The balance sheet is conservatively positioned with essentially no debt (debt-to-equity near zero across periods) and a solid equity base. Total assets have remained relatively stable, supporting financial flexibility. The key drawback is weaker shareholder returns recently, with return on equity falling from very high levels in 2019–2021 to low single-digits by 2024, reflecting the drop in profitability rather than balance sheet stress.

Cash Flow

Cash generation is the main concern: operating cash flow has been negative for four straight years (2021–2024), and free cash flow has also remained negative over the same period, with 2024 showing a sizable cash outflow. This contrasts with positive cash flow in 2019–2020 and suggests earnings quality and/or working-capital dynamics have worsened. While free cash flow growth rates swing sharply year to year, the overall direction is unfavorable given the sustained negative cash flow profile.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.41M	247.55M	262.36M	268.58M	316.24M	256.70M
Gross Profit	66.39M	57.43M	44.92M	58.06M	114.54M	77.86M
EBITDA	25.00M	17.53M	26.36M	45.98M	82.69M	49.49M
Net Income	8.19M	2.94M	9.36M	32.90M	54.63M	32.66M
Balance Sheet
Total Assets	555.86M	549.59M	562.36M	529.98M	488.06M	281.16M
Cash, Cash Equivalents and Short-Term Investments	191.77M	181.04M	224.38M	109.29M	319.27M	192.19M
Total Debt	0.00	0.00	122.00K	418.00K	208.00K	1.13M
Total Liabilities	155.95M	156.42M	169.81M	181.98M	178.06M	163.89M
Stockholders Equity	395.05M	384.04M	384.32M	342.37M	308.44M	116.00M
Cash Flow
Free Cash Flow	-4.61M	-69.60M	-21.09M	-74.09M	-8.02M	52.24M
Operating Cash Flow	-43.95M	-69.00M	-19.52M	-45.30M	-6.57M	54.99M
Investing Cash Flow	87.53M	99.03M	31.93M	-164.39M	-4.21M	1.13M
Financing Cash Flow	0.00	0.00	31.54M	-189.00K	137.18M	-1.47M

Sundy Service Group Co. Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 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:9608, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.27 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9608.

Sundy Service Group Co. Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2165	74 Outperform	HK$514.23M	6.57	11.46%	―	5.01%	-31.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$305.02M	7.16	3.28%	6.60%	-14.43%	-77.55%
2107	51 Neutral	HK$266.81M	-12.53	-4.06%	15.45%	6.30%	-128.34%
0432	44 Neutral	HK$413.76M	-1.27	―	―	19.34%	18.13%
9608	43 Neutral	HK$199.68M	22.61	2.06%	―	0.88%	-25.81%
0037	41 Neutral	HK$398.84M	-19.49	-4.23%	―	-32.80%	57.37%

Sundy Service Group Co. Ltd Corporate Events

Sundy Service Group Deploys RMB25.9 Million Idle Funds Into Structured Deposits

Sundy Service Group has subscribed to principal-guaranteed structured deposit products with China Minsheng Bank totalling RMB25.9 million via its subsidiaries Hangzhou Qiyu and Zhejiang Hechen, using idle internal funds in a bid to improve investment income. The deposits, including a 91-day gold-linked binary structured product with an expected annualized return of 1.0%–1.63% and a conservative risk rating, qualify as discloseable transactions under Hong Kong Listing Rules, underscoring the group’s ongoing effort to optimize cash management and generate low-risk yields for stakeholders within regulatory boundaries.

The most recent analyst rating on (HK:9608) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on Sundy Service Group Co. Ltd stock, see the HK:9608 Stock Forecast page.

Sundy Service Invests RMB12 Million in Low-Risk Structured Deposit to Boost Idle Fund Returns

Sundy Service Group Co. Ltd has directed subsidiary Sundy Property to subscribe to a principal-guaranteed structured deposit product from Hangzhou Bank, investing RMB12 million of internal idle funds to enhance returns. The low-risk, euro–US dollar exchange rate-linked product, carrying a floating annual interest rate of 0.45%–2.05% and maturing by 30 April 2026 with monthly early redemption flexibility, is classified as a discloseable transaction under Hong Kong listing rules and is intended to improve capital efficiency without affecting the group’s operational liquidity.

The most recent analyst rating on (HK:9608) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on Sundy Service Group Co. Ltd stock, see the HK:9608 Stock Forecast page.

Sundy Service Group Shareholders Unanimously Approve New Property Management Agreements

Independent shareholders of Sundy Service Group Co. Ltd have unanimously approved, by poll at an extraordinary general meeting held on 6 January 2026, a Letter of Intent and a suite of new master property management agreements, including the New Master Property Management Agreement, the New Zhizhonghe Master Agreement and the New Yangguang Master Agreement, along with their respective transaction arrangements and annual caps. The passage of these resolutions, with 120 million votes cast entirely in favour and none against, authorises the company’s directors (excluding Ms. Yu Yun) to execute and implement the transactions and related documentation, reinforcing the company’s contractual framework for its property management operations and providing governance clarity for future business under these key agreements while major shareholder Sundy Heye abstained in accordance with listing rules.

The most recent analyst rating on (HK:9608) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on Sundy Service Group Co. Ltd stock, see the HK:9608 Stock Forecast page.

Sundy Service Group Drops Subscription Deal, Sees No Major Business Impact

Sundy Service Group Co. Ltd has terminated its New Subscription Agreement after the prospective subscriber failed to satisfy the agreed conditions precedent by the 31 December 2025 deadline, with both parties deciding not to proceed in light of prevailing market conditions. The company stated that all rights and obligations under the agreement have ceased without any further claims between the parties and emphasized that the termination is not expected to have a material adverse impact on its existing business, operations or financial position, while advising shareholders and potential investors to exercise caution when dealing in its shares.

The most recent analyst rating on (HK:9608) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on Sundy Service Group Co. Ltd stock, see the HK:9608 Stock Forecast page.

Sundy Service Invests RMB24.8 Million in Low-Risk Gold-Linked Structured Deposit

Sundy Service Group Co. Ltd’s subsidiary Hangzhou Xingrun has subscribed to a principal-guaranteed structured deposit product worth RMB24.8 million from China Minsheng Bank, using the group’s internal idle funds to enhance treasury returns. The 90-day, gold-linked product, offering a floating annualized yield of 1.0%–1.92% and classified by the bank as low risk, is not expected to affect the group’s liquidity and qualifies as a discloseable transaction under Hong Kong listing rules, signaling a cautious but more yield-focused approach to managing surplus cash for the benefit of stakeholders.

Sundy Service Group Announces Extraordinary General Meeting for Key Approvals

Sundy Service Group Co. Ltd has announced an extraordinary general meeting to be held on January 6, 2026, in Hangzhou City, Zhejiang Province, China. The meeting will focus on approving a Letter of Intent and new property management agreements, which are expected to impact the company’s operations by authorizing directors to execute necessary documents and agreements related to these transactions.

Sundy Service Group Delays Circular Dispatch

Sundy Service Group Co. Ltd has announced a delay in the dispatch of a circular that was initially scheduled for release by December 10, 2025. This circular contains important details about new property management agreements and related transactions. The delay is due to the need for additional time to finalize the information, with the new dispatch date set for on or before December 17, 2025.

Sundy Service Group Updates on Property Acquisition and Lease Agreements

Sundy Service Group Co. Ltd has announced a supplemental update regarding its acquisition of a property and the renewal of continuing connected transactions for the years 2026 to 2028. The company clarified that no rental income or net profit was generated from the property in the two years prior to its acquisition. The new agreements involve leasing premises for hotel use, with annual caps set for right-of-use assets. These agreements are expected to impact the company’s financial reporting and operational strategy, with a focus on aligning with International Financial Reporting Standards.

Sundy Service Group Relocates Hong Kong Office

Sundy Service Group Co. Ltd has announced a change in its principal place of business in Hong Kong, effective from November 10, 2025. The new address is Units 1801-08 & 1810, 18/F, Gloucester Tower, The Landmark, 15 Queen’s Road Central, Hong Kong. This move is part of the company’s strategic decisions to enhance its operational efficiency and presence in the Hong Kong market.

Sundy Service Group Co. Ltd Expands with New Property Acquisition and Renewed Agreements

Sundy Service Group Co. Ltd announced a significant acquisition of property through its subsidiary, Hangzhou Hehong, from Greenland Holdings for RMB6,648,276. Additionally, the company has renewed several key agreements, including the Master Lease Agreement, Property Management Agreements, Master Service Agreement, and Master Purchase Agreement, to continue its connected transactions from 2026 to 2028. These strategic moves aim to solidify Sundy Service Group’s market position and ensure the continuity of its operations, impacting stakeholders by maintaining stable business relationships and service provisions.