Powerlong Commercial Management Holdings Limited (9909) AI Stock Analysis

• Market Cap: HK$1.63B
• Dividend Yield: N/A
• Average Volume (3M): 679.01K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.09
• Revenue Growth: -4.36%
• EPS Growth: -48.52%
• Country: HK
• Employees: 5,566
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.31
• Shares Outstanding: 642,900,000
• 10 Day Avg. Volume: 1,400,654
• 30 Day Avg. Volume: 679,009
• PEG Ratio: -0.13
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 4.01
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$3.00 ▲(20.48% Upside)

The overall stock score of 72 reflects a stable financial performance with strong revenue growth and a solid balance sheet. However, concerns about declining profitability margins and cash flow issues weigh on the score. The technical analysis indicates mixed momentum, while the valuation suggests the stock is undervalued, providing potential upside.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and increasing equity provides financial stability and flexibility for future growth initiatives.

Solid Revenue Growth

Consistent revenue growth, despite a recent dip, indicates a strong market position and the ability to generate income over the long term.

Low Financial Leverage

Low financial leverage reduces risk and enhances the company's ability to withstand economic downturns, supporting long-term sustainability.

Negative Factors

Declining Profit Margins

Declining profit margins suggest potential challenges in cost management or pricing power, which could impact future profitability.

Cash Flow Concerns

Zero operating cash flow poses a risk to liquidity and operational funding, potentially affecting the company's ability to invest and grow.

Profitability Challenges

Decreasing EBIT and EBITDA margins indicate potential operational inefficiencies or increased costs, which could hinder long-term growth.

Powerlong Commercial Management Holdings Limited Business Overview & Revenue Model

Company Description

Powerlong Commercial Management Holdings Limited (9909) is a prominent player in the commercial property management sector in China. The company primarily specializes in the management of commercial real estate, including shopping malls, office buildings, and mixed-use developments. Through its comprehensive suite of services, Powerlong enhances the operational efficiency and tenant experience of its properties, ultimately adding value to its clients and stakeholders.

How the Company Makes Money

Powerlong Commercial Management Holdings Limited generates revenue primarily through its property management services, which include leasing, maintenance, and operational support for commercial properties. The company earns management fees from property owners, as well as rental income from leasing spaces within its managed properties. Additionally, Powerlong may engage in value-added services, such as marketing and promotional activities for tenants, which further contribute to its revenue streams. Strategic partnerships with real estate developers and other stakeholders in the commercial sector enhance its market presence and profitability.

Powerlong Commercial Management Holdings Limited Financial Statement Overview

Summary

The company shows solid revenue growth and a strong balance sheet with low leverage. However, declining profitability margins and concerning cash flow metrics, particularly the drop in operating cash flow to zero in 2024, indicate potential financial challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.59B	2.62B	2.64B	2.55B	2.46B	1.92B
Gross Profit	789.87M	833.95M	887.02M	834.42M	821.83M	594.55M
EBITDA	314.03M	431.84M	741.54M	691.94M	690.97M	529.38M
Net Income	204.32M	216.02M	452.95M	443.07M	438.14M	305.06M
Balance Sheet
Total Assets	6.02B	6.04B	5.61B	5.21B	5.07B	4.52B
Cash, Cash Equivalents and Short-Term Investments	4.29B	4.13B	3.88B	3.45B	3.99B	3.45B
Total Debt	1.03B	1.27B	995.65M	955.64M	777.41M	861.89M
Total Liabilities	2.63B	2.82B	2.56B	2.48B	2.60B	2.35B
Stockholders Equity	3.40B	3.22B	3.05B	2.73B	2.46B	2.15B
Cash Flow
Free Cash Flow	218.25M	354.91M	442.10M	282.03M	959.83M	786.59M
Operating Cash Flow	221.24M	366.69M	486.80M	287.07M	970.94M	795.11M
Investing Cash Flow	-598.00K	-8.59M	178.45M	1.49B	-2.08B	-8.09M
Financing Cash Flow	-61.19M	-112.79M	-248.00M	-321.58M	-361.96M	44.31M

Powerlong Commercial Management Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 2.49 is above the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.54, and above the 200-day MA of 2.34, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 95.24 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
3658	78 Outperform	HK$1.60B	6.44	18.19%	9.85%	10.09%	2.39%
6668	75 Outperform	HK$1.38B	8.39	12.19%	9.78%	-7.04%	-6.89%
9909	72 Outperform	HK$1.63B	7.40	6.08%	―	-4.36%	-48.52%
6989	66 Neutral	HK$1.01B	3.20	7.55%	16.80%	-0.79%	-3.46%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0432	44 Neutral	HK$397.46M	-1.22	―	―	19.34%	18.13%

Powerlong Commercial Management Holdings Limited Corporate Events

Powerlong Commercial Management Announces Liquidation Hearing Adjournment

Powerlong Commercial Management Holdings Limited announced that the hearing for the liquidation application against its direct holding company, Powerlong Real Estate (BVI) Holdings Limited, has been postponed to December 2025. This delay allows the company more time to address the situation, and stakeholders are advised to exercise caution when dealing with the company’s securities.

Powerlong Commercial Management’s Controlling Shareholder Considers Share Disposal Amid Restructuring

Powerlong Commercial Management Holdings Limited announced a potential disposal of shares by its controlling shareholder, Powerlong Real Estate Holdings Limited, as part of a restructuring agreement. This restructuring involves the disposal or pledge of shares to fund a cash amount of $40 million and the transfer of up to 32.4% of the company’s shares to scheme creditors. The company expects no adverse effects on its operations from this restructuring.