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Powerlong Commercial Management Holdings Limited (HK:9909)
:9909
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Powerlong Commercial Management Holdings Limited (9909) AI Stock Analysis

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HK:9909

Powerlong Commercial Management Holdings Limited

(9909)

Rating:73Outperform
Price Target:
HK$2.50
▲(9.65% Upside)
Powerlong Commercial Management Holdings Limited's overall score reflects strong revenue growth and a robust balance sheet. However, declining profitability margins and cash flow issues pose risks. The stock's valuation appears attractive, but technical indicators reveal mixed momentum, suggesting cautious optimism.

Powerlong Commercial Management Holdings Limited (9909) vs. iShares MSCI Hong Kong ETF (EWH)

Powerlong Commercial Management Holdings Limited Business Overview & Revenue Model

Company DescriptionPowerlong 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 MoneyPowerlong Commercial Management Holdings Limited generates revenue through a multi-faceted business model centered around property management services. The company's primary revenue streams include management fees from overseeing the operation and maintenance of commercial properties, leasing fees from renting out retail and office spaces, and marketing service fees for organizing promotional activities to increase foot traffic and tenant sales. Additionally, the company may earn performance-based incentives tied to the financial success of the properties it manages. Key factors contributing to its earnings include its extensive network of commercial properties, strategic partnerships with property developers, and its reputation for delivering high-quality management services.

Powerlong Commercial Management Holdings Limited Financial Statement Overview

Summary
Powerlong Commercial Management Holdings Limited exhibits strong revenue growth and a robust balance sheet with low leverage. However, the decline in profitability margins and concerning cash flow metrics, notably the zero operating cash flow in 2024, present potential risks.
Income Statement
77
Positive
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
82
Very Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.62B2.64B2.55B2.46B1.92B
Gross Profit833.95M887.02M834.42M821.83M594.55M
EBITDA431.84M741.54M691.94M690.97M529.38M
Net Income216.02M452.95M443.07M438.14M305.06M
Balance Sheet
Total Assets6.04B5.61B5.21B5.07B4.52B
Cash, Cash Equivalents and Short-Term Investments4.13B3.88B3.45B3.99B3.45B
Total Debt1.27B995.65M955.64M777.41M861.89M
Total Liabilities2.82B2.56B2.48B2.60B2.35B
Stockholders Equity3.22B3.05B2.73B2.46B2.15B
Cash Flow
Free Cash Flow354.91M442.10M282.03M959.83M786.59M
Operating Cash Flow366.69M486.80M287.07M970.94M795.11M
Investing Cash Flow-8.59M178.45M1.49B-2.08B-8.09M
Financing Cash Flow-112.79M-248.00M-321.58M-361.96M44.31M

Powerlong Commercial Management Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.28
Price Trends
50DMA
2.29
Negative
100DMA
2.27
Positive
200DMA
2.38
Negative
Market Momentum
MACD
<0.01
Positive
RSI
39.48
Neutral
STOCH
10.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9909, the sentiment is Negative. The current price of 2.28 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.29, and below the 200-day MA of 2.38, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 10.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9909.

Powerlong Commercial Management Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$1.78B5.278.56%9.55%5.84%0.84%
73
Outperform
HK$1.49B6.196.90%13.76%-2.53%-53.46%
61
Neutral
kr18.16B20.002.73%2.57%2.19%140.59%
HK$2.44B4.8815.76%8.04%
77
Outperform
HK$1.37B8.1612.36%9.70%-0.26%-11.41%
71
Outperform
HK$1.52B6.1918.89%8.92%15.31%3.39%
48
Neutral
HK$423.95M-95.44%19.34%18.13%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9909
Powerlong Commercial Management Holdings Limited
2.28
-0.24
-9.52%
HK:1755
S-Enjoy Service Group Co., Ltd.
2.80
0.06
2.19%
HK:3658
New Hope Service Holdings Limited
1.88
0.38
25.33%
HK:0432
Pacific Century Premium Developments Limited
0.21
0.02
10.53%
HK:6668
E-Star Commercial Management Company Limited
1.35
0.31
29.81%
HK:6989
Excellence Commercial Property & Facilities Management Group Limited
1.46
0.29
24.79%

Powerlong Commercial Management Holdings Limited Corporate Events

Powerlong Commercial Management Faces Liquidation Hearing Delay
Jul 14, 2025

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 17 November 2025. This delay in the legal proceedings could impact the company’s operations and investor confidence, as 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 Successfully Concludes AGM with All Resolutions Passed
Jun 13, 2025

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
Jun 10, 2025

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
May 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025