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

• Market Cap: HK$387.84M
• Dividend Yield: N/A
• Average Volume (3M): 157.33K
• Price to Earnings (P/E): 126.3
• Beta (1Y): 0.24
• Revenue Growth: -7.55%
• EPS Growth: -75.00%
• Country: HK
• Employees: 435
• Sector: Real Estate
• Sector Strength: 72
• Industry: Real Estate - Services
• EPS (TTM): >-0.01
• Shares Outstanding: 3,840,000,000
• 10 Day Avg. Volume: 338,000
• 30 Day Avg. Volume: 157,333
• PEG Ratio: -0.16
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.20
• 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: 49 Neutral
• Price Target: ―

Sundy Service Group Co. Ltd presents a challenging investment case. The company shows declining revenue and profitability with weak cash flow generation, despite a strong balance sheet. Technical analysis points to bearish momentum, while a high P/E ratio suggests overvaluation. These factors combine to yield a low overall stock score, reflecting significant risks and limited immediate upside potential.

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

Sundy Service Group Co. Ltd faces significant challenges with declining revenue and profitability across its income statement. Despite a strong and stable balance sheet with no debt, the company's cash flow struggles suggest potential liquidity issues. Overall, while the company remains financially stable, its ability to generate revenue and cash flow needs improvement to sustain long-term growth.

Income Statement

The income statement shows declining revenue and profitability. Gross profit margin dropped from 43.2% in 2020 to 23.2% in 2024, and net profit margin fell from 12.7% to 1.2%. Revenue growth has been negative for the last two years, indicating a challenging market environment.

Balance Sheet

The company maintains a strong balance sheet with zero debt and a debt-to-equity ratio of 0, indicating no leverage risk. The equity ratio is robust at 69.9% as of 2024, reflecting strong financial stability. However, the return on equity has significantly decreased over the years, from 28.1% in 2020 to 0.8% in 2024, suggesting declining profitability.

Cash Flow

Cash flow performance is weak, with no significant operating cash flows in recent years. Free cash flow has been consistently negative, indicating potential liquidity issues. The lack of operating cash flow to net income ratio and free cash flow growth rate further highlights challenges in cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
247.55M	262.36M	268.58M	316.24M	256.70M
	Gross Profit
57.43M	44.92M	58.06M	114.54M	77.86M
	EBIT
8.60M	19.94M	37.24M	86.33M	42.41M
	EBITDA
17.53M	26.36M	45.98M	82.69M	49.49M
	Net Income Common Stockholders
2.94M	9.36M	32.90M	54.63M	32.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
181.04M	224.38M	109.29M	319.27M	192.19M
	Total Assets
549.59M	562.36M	529.98M	488.06M	281.16M
	Total Debt
0.00	122.00K	418.00K	208.00K	1.13M
	Net Debt
-175.03M	-154.06M	-108.87M	-317.96M	-191.07M
	Total Liabilities
156.42M	169.81M	181.98M	178.06M	163.89M
	Stockholders Equity
384.04M	384.32M	342.37M	308.44M	116.00M
Cash Flow		Free Cash Flow
0.00	-21.09M	-66.22M	-8.02M	52.24M
	Operating Cash Flow
0.00	-19.52M	-45.30M	-6.57M	54.99M
	Investing Cash Flow
0.00	31.93M	-164.39M	-4.21M	1.13M
	Financing Cash Flow
0.00	31.54M	-189.00K	137.18M	-1.47M

Sundy Service Group Co. Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 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 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.10, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.98 is Neutral, neither overbought nor oversold. The STOCH value of -9.72 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	77 Outperform	HK$379.96M	4.36	14.22%	―	5.20%	-21.61%
3662	67 Neutral	HK$384.91M	3.69	8.37%	42.51%	-14.98%	-39.71%
Sector *	61 Neutral	$2.83B	10.91	0.42%	11.76%	5.94%	-21.26%
2107	57 Neutral	HK$391.64M	5.21	-1.62%	10.31%	7.48%	-118.08%
0037	52 Neutral	HK$353.69M	―	-14.14%	―	-31.82%	-34.32%
9608	49 Neutral	HK$387.84M	126.25	0.77%	―	-7.55%	-75.00%
0432	44 Neutral	HK$405.61M	―	-95.44%	―	9.61%	50.66%

Sundy Service Group Co. Ltd Corporate Events

Sundy Service Group Reports 2024 Financial Results with Mixed Performance

Sundy Service Group Co. Ltd announced its annual results for the year ending December 31, 2024, revealing a revenue decline of 5.6% to RMB247.6 million compared to the previous year. Despite the overall revenue drop, the company saw a 4.9% increase in property management services revenue, which now accounts for 79.3% of total revenue. Gross profit increased by 28.1% to RMB57.5 million, with a gross profit margin improvement to 23.2%. However, the profit for the year decreased by 35.0% to RMB7.8 million, primarily due to higher impairment losses on trade receivables. The company also reported a 19.3% increase in cash and cash equivalents, while the gross floor area under management decreased by 12.5%. The Board decided not to recommend any final dividend for the year.

Sundy Service Group Announces Key Leadership Changes

Sundy Service Group Co. Ltd announced significant leadership changes with the resignation of Ms. Miao Jianping as Chief Financial Officer and Ms. Zhang Qisi as Company Secretary, both effective from March 19, 2025. Ms. Chen Xiaomin and Ms. Xu Xiaoli have been appointed as the new Chief Financial Officer and Company Secretary, respectively. These changes are part of the company’s ongoing efforts to strengthen its management team and ensure continued growth and stability in the competitive real estate services industry.

Sundy Service Group Engages in Structured Deposit to Optimize Idle Funds

Sundy Service Group Co. Ltd, through its subsidiary Hangzhou Xingrun, has entered into a Structured Deposit Product Agreement with China Minsheng Bank to utilize idle funds and generate better returns. The agreement involves a subscription of RMB50 million in a principal-guaranteed deposit linked to the euro/dollar exchange rate, with a floating interest rate and a 90-day term. This transaction is classified as discloseable under the Listing Rules due to its applicable percentage ratios, necessitating reporting and announcement requirements.