Powerlong Commercial Management Holdings Limited (9909) AI Stock Analysis

• Market Cap: HK$1.54B
• Dividend Yield: 13.76%
• Average Volume (3M): 440.38K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.14
• Revenue Growth: -2.53%
• EPS Growth: -53.46%
• Country: HK
• Employees: 5,566
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.04
• Shares Outstanding: 642,900,000
• 10 Day Avg. Volume: 297,900
• 30 Day Avg. Volume: 440,383
• PEG Ratio: -0.13
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.61
• 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: 75 Outperform
• Price Target: HK$2.50 ▲(4.60%Upside)

The company demonstrates strong financial fundamentals with a healthy balance sheet and attractive valuation, making it a potentially undervalued stock. However, financial performance is tempered by declining profitability margins and cash flow concerns. Technical indicators show short-term bullish momentum, contributing positively to the overall score.

Powerlong Commercial Management Holdings Limited Business Overview & Revenue Model

Company Description

Powerlong Commercial Management Holdings Limited, together with its subsidiaries, engages in commercial operational and residential property management businesses in the People's Republic of China. It offers commercial operational services, including business tenant management; rent collection; and other value-added services, such as car parking, common area, and advertising space management services, as well as market research and positioning, business tenant sourcing, and opening preparation services for property developers, tenants, and owners of shopping malls and retail commercial properties under the Powerlong One Mall, Powerlong City, Powerlong Plaza, and Powerlong Land brand names. The company also provides commercial property management services, such as security, gardening, cleaning, repair, and maintenance services for tenants. In addition, it offers residential property management services for residential properties, serviced apartments, and office buildings, including pre-sale management services and other value-added services to property developers, property owners, and residents. Further, the company provides management consulting, technology development, property management, and commercial operational services to independent. As of December 31, 2021, it had 88 retail commercial properties with approximately 9.9 million square meters approximately. The company was founded in 1993 and is headquartered in Shanghai, the People's Republic of China. Powerlong Commercial Management Holdings Limited is a subsidiary of Powerlong Real Estate (BVI) Holdings Limited.

How the Company Makes Money

Powerlong Commercial Management Holdings Limited generates revenue primarily through property management fees, rental income, and commission-based services related to the leasing and operation of commercial properties. The company earns management fees from property owners for its operational and management services, which include tenant recruitment, rent collection, and facility maintenance. Additionally, Powerlong receives rental income from leasing spaces within the properties it manages. The company also benefits from commissions and bonuses linked to the successful leasing and sustained high occupancy rates of the properties. Strategic partnerships with property developers and investors enhance its portfolio, contributing to its revenue growth.

Powerlong Commercial Management Holdings Limited Financial Statement Overview

Summary

Powerlong Commercial Management Holdings Limited shows solid revenue growth and a strong balance sheet with low leverage. However, a decline in profitability margins and recent worrisome cash flow metrics indicate potential areas of concern. The overall financial health is stable, but the company should address profitability and cash flow issues to maintain its financial strength.

Income Statement

The company has shown a consistent increase in total revenue over the years, with a slight dip in 2024. Gross Profit Margin has been stable, ranging from 32% to 35%. However, there is a notable decline in Net Profit Margin from 17.19% in 2023 to 8.26% in 2024, indicating potential profitability challenges. EBIT and EBITDA margins have also decreased slightly in the most recent period.

Balance Sheet

The company's balance sheet is strong with a stable Stockholders' Equity position that has been increasing annually. The Debt-to-Equity Ratio is low, indicating prudent financial leverage. The Equity Ratio remains solid above 50%, suggesting a strong equity position relative to total assets. These metrics suggest a stable financial foundation with low risk from leverage.

Cash Flow

There is some concern regarding cash flow as the Operating Cash Flow dropped to zero in 2024. The Free Cash Flow has fluctuated over the years, with a significant drop in the latest period. The lack of positive operating cash flow in 2024 is a potential risk despite historically strong free cash flow metrics relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.62B	2.64B	2.55B	2.46B	1.92B
Gross Profit	833.95M	887.02M	834.42M	821.83M	594.55M
EBITDA	431.84M	741.54M	691.94M	690.97M	529.38M
Net Income	216.02M	452.95M	443.07M	438.14M	305.06M
Balance Sheet
Total Assets	6.04B	5.61B	5.21B	5.07B	4.52B
Cash, Cash Equivalents and Short-Term Investments	4.13B	3.88B	3.45B	3.99B	3.45B
Total Debt	1.27B	995.65M	955.64M	777.41M	861.89M
Total Liabilities	2.82B	2.56B	2.48B	2.60B	2.35B
Stockholders Equity	3.22B	3.05B	2.73B	2.46B	2.15B
Cash Flow
Free Cash Flow	354.91M	442.10M	282.03M	959.83M	786.59M
Operating Cash Flow	366.69M	486.80M	287.07M	970.94M	795.11M
Investing Cash Flow	-8.59M	178.45M	1.49B	-2.08B	-8.09M
Financing Cash Flow	-112.79M	-248.00M	-321.58M	-361.96M	44.31M

Powerlong Commercial Management Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9909, the sentiment is Positive. The current price of 2.39 is above the 20-day moving average (MA) of 2.25, above the 50-day MA of 2.24, and below the 200-day MA of 2.42, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 69.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9909.

Powerlong Commercial Management Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6989	80 Outperform	HK$1.78B	5.27	8.56%	8.60%	5.84%	0.84%
9909	75 Outperform	HK$1.54B	6.52	6.90%	13.76%	-2.53%	-53.46%
Sector *	59 Neutral	C$1.26B	-0.04	-8.19%	4.99%	10.83%	-22.67%
1755		HK$2.44B	4.88	15.76%	8.04%	―	―
3658	79 Outperform	HK$1.63B	6.62	18.89%	8.30%	15.31%	3.39%
6668	77 Outperform	HK$1.32B	7.98	12.36%	12.77%	-0.26%	-11.41%
0432	46 Neutral	HK$409.69M	―	-95.44%	―	9.61%	50.66%

Powerlong Commercial Management Holdings Limited Corporate Events

Powerlong Commercial Management Successfully Concludes AGM with All Resolutions Passed

Powerlong Commercial Management Holdings Limited announced that all proposed resolutions were passed at its Annual General Meeting held on June 13, 2025. Key resolutions included the re-election of directors, authorization of directors’ remuneration, re-appointment of auditors, and granting of mandates related to shares issuance and buy-back. This successful AGM reflects the company’s stable governance and strategic direction, potentially strengthening its market position and shareholder confidence.

The most recent analyst rating on (HK:9909) stock is a Sell with a HK$2.80 price target. To see the full list of analyst forecasts on Powerlong Commercial Management Holdings Limited stock, see the HK:9909 Stock Forecast page.

Powerlong Commercial Management Establishes Nomination Committee to Enhance Board Governance

Powerlong Commercial Management Holdings Limited has established a Nomination Committee, primarily composed of independent non-executive directors, to oversee the selection and appointment of board members. The committee is tasked with reviewing the board’s structure, ensuring diversity, and recommending suitable candidates for directorships, thereby supporting the company’s corporate strategy and governance.

The most recent analyst rating on (HK:9909) stock is a Sell with a HK$2.80 price target. To see the full list of analyst forecasts on Powerlong Commercial Management Holdings Limited stock, see the HK:9909 Stock Forecast page.

Powerlong Commercial Management Announces Rescheduled Liquidation Hearing

Powerlong Commercial Management Holdings Limited announced a rescheduling of the liquidation application hearing concerning its direct holding company, Powerlong Real Estate (BVI) Holdings Limited, to 21 July 2025. This development may impact the company’s operations and stakeholders are advised to exercise caution when dealing with the company’s securities.

The most recent analyst rating on (HK:9909) stock is a Sell with a HK$2.80 price target. To see the full list of analyst forecasts on Powerlong Commercial Management Holdings Limited stock, see the HK:9909 Stock Forecast page.

Powerlong Commercial Management Announces 2025 Annual General Meeting

Powerlong Commercial Management Holdings Limited has announced its upcoming annual general meeting scheduled for June 13, 2025, in Shanghai. The meeting will address several key resolutions, including the adoption of the 2024 financial statements, re-election of directors, and authorization for the board to manage director remuneration and share allotments. These resolutions are crucial for maintaining the company’s governance structure and ensuring continued operational efficiency.