Powerlong Commercial Management Holdings Limited (9909) AI Stock Analysis

• Market Cap: HK$1.42B
• Dividend Yield: 13.76%
• Average Volume (3M): 412.95K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.20
• Revenue Growth: -2.53%
• EPS Growth: -53.46%
• Country: HK
• Employees: 5,566
• Sector: Real Estate
• Sector Strength: 70
• Industry: Real Estate - Services
• EPS (TTM): 0.04
• Shares Outstanding: 642,900,000
• 10 Day Avg. Volume: 732,650
• 30 Day Avg. Volume: 412,950
• PEG Ratio: 5.61
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.78
• 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: 72 Outperform
• Price Target: ―

Powerlong Commercial Management Holdings Limited scores a 71.5, indicating a moderate investment opportunity. Strengths include strong revenue growth, a robust balance sheet, and attractive valuation metrics. However, these are offset by concerns over declining profitability margins and negative cash flow trends. Technical indicators suggest a lack of strong momentum, with potential overbought conditions.

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 demonstrates 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
	EBIT
346.93M	591.63M	608.54M	586.98M	431.05M
	EBITDA
431.84M	741.54M	691.94M	690.97M	529.38M
	Net Income Common Stockholders
216.02M	452.95M	443.07M	438.14M	305.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.13B	3.88B	3.45B	3.99B	3.45B
	Total Assets
6.04B	5.61B	5.21B	5.07B	4.52B
	Total Debt
1.27B	995.65M	955.64M	777.41M	861.89M
	Net Debt
-2.86B	-2.89B	-2.50B	-3.21B	-2.59B
	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
0.00	442.10M	282.03M	959.83M	786.59M
	Operating Cash Flow
0.00	486.80M	287.07M	970.94M	795.11M
	Investing Cash Flow
0.00	178.45M	1.49B	-2.08B	-8.09M
	Financing Cash Flow
0.00	-248.00M	-321.58M	-361.96M	44.31M

Powerlong Commercial Management Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.17 is below the 20-day moving average (MA) of 2.19, below the 50-day MA of 2.20, and below the 200-day MA of 2.44, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 20.51 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9909	72 Outperform	HK$1.42B	5.89	6.90%	13.76%	-2.53%	-53.46%
Sector *	61 Neutral	$2.84B	10.85	0.42%	9.90%	5.94%	-21.26%
1755		HK$2.44B	4.88	15.76%	8.04%	―	―
6668	75 Outperform	HK$1.30B	7.74	12.36%	12.97%	-0.26%	-11.41%
3658	72 Outperform	HK$1.57B	6.39	18.89%	8.78%	15.31%	3.39%
6989	70 Outperform	HK$1.68B	4.98	8.56%	71.44%	5.84%	0.84%
0432	44 Neutral	HK$405.61M	―	-95.44%	―	9.61%	50.66%

Powerlong Commercial Management Holdings Limited Corporate Events

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.

Powerlong CM Reports Decline in 2024 Financial Results Amid Stable Operations

Powerlong Commercial Management Holdings Limited reported a slight revenue decline of 0.7% for 2024, with a more significant drop in gross profit by 6% and a sharp decrease in profit attributable to shareholders by 52.3%. The company’s operational metrics, such as contracted and operational gross floor area, remained robust, indicating a stable market presence despite financial challenges.

Powerlong Commercial Management Announces Board Composition and Roles

Powerlong Commercial Management Holdings Limited has announced the composition of its board of directors and their roles within the company. The announcement details the executive, non-executive, and independent non-executive directors, as well as their respective roles in the audit, remuneration, and nomination committees. This update provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes.

Powerlong Commercial Management Issues Profit Warning Amid Industry Challenges

Powerlong Commercial Management Holdings Limited has issued a profit warning, indicating a significant decrease in net profit for the year ending December 31, 2024. The anticipated decline of approximately 50.4% to 60.9% compared to the previous year is attributed to increased credit risk in trade receivables due to a real estate industry downturn and higher marketing costs amid intensified market competition. The company’s financial results are still being finalized and have not been audited, with the final report expected by March 2025.

Powerlong Commercial Management Schedules Board Meeting to Approve Annual Results

Powerlong Commercial Management Holdings Limited has announced a board meeting scheduled for March 26, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for the payment of a final dividend, which could impact shareholder returns and the company’s financial strategy.

Powerlong Faces Liquidation Application Amidst Financial Dispute

Powerlong Commercial Management Holdings Limited announced that a liquidation application has been filed against its holding company, Powerlong Real Estate (BVI) Holdings Limited, in the Eastern Caribbean Supreme Court. The application, made by several investment funds, concerns non-payment of senior notes worth $500 million. Despite this, the company’s board believes the application will not materially impact its financial performance or operations, and it will continue to monitor the situation closely.