Soundwill Holdings (0878) AI Stock Analysis

• Market Cap: $1.71B
• Dividend Yield: 16.53%
• Average Volume (3M): 93.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -68.13%
• EPS Growth: -124.14%
• Country: HK
• Employees: 302
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -4.72
• Shares Outstanding: 283,308,650
• 10 Day Avg. Volume: 62,630
• 30 Day Avg. Volume: 93,522
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 3.43
• 1Y Price Target: $5.99
• Price Target Upside: -0.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: HK$6.00 ▼(-0.83% Downside)

Soundwill Holdings' overall score is primarily influenced by its financial performance, which shows strong revenue growth but is hindered by persistent net losses and cash flow issues. The technical analysis indicates a neutral market position, while the high dividend yield is a positive aspect of its valuation despite profitability concerns.

Soundwill Holdings Business Overview & Revenue Model

Company Description

Soundwill Holdings Limited, an investment holding company, provides property development, property leasing, and provision of building management services in the People's Republic of China. The company develops medium to high end commercial and residential, as well as industrial properties; and offers building management, repair and maintenance services to large-scale commercial buildings, and small and medium sized residential estates. It also invests in and leases commercial, office, and residential buildings, as well as advertising and mini-storage spaces; and provides property assembly and sales services. The company was founded in 1978 and is headquartered in Causeway Bay, Hong Kong. Soundwill Holdings Limited is a subsidiary of Ko Bee Limited.

How the Company Makes Money

Soundwill Holdings generates revenue primarily through its property leasing and property development segments. In the leasing segment, the company earns income by leasing out its commercial and residential properties, particularly in high-demand areas of Hong Kong. This provides a stable and recurring revenue stream. The property development segment involves the development and sale of residential and commercial properties, generating revenue through the sale of these properties. Additionally, the company offers building management services, which contribute to its revenue by maintaining and enhancing the value of its real estate assets. Strategic partnerships and investments in key real estate projects also play a role in the company's financial performance, allowing it to leverage opportunities in the real estate market.

Soundwill Holdings Financial Statement Overview

Summary

Soundwill Holdings shows strong revenue growth and a solid equity base, but persistent net losses, negative return on equity, and lack of positive cash flow highlight significant financial risks.

Income Statement

Soundwill Holdings has experienced significant revenue growth in the latest year, increasing from HKD 395.9 million to HKD 1,229.7 million, which is a positive indicator. However, the company has been reporting net losses consistently over the past years, with a net income of -HKD 2,491.9 million in the most recent year. The gross profit margin remains healthy at 100% due to the total revenue equating to gross profit. Despite these positives, the persistent net losses weigh heavily on the overall income statement performance.

Balance Sheet

The company has a strong equity base with stockholders' equity at HKD 15.68 billion and a relatively low debt-to-equity ratio of 0.03. Return on equity is negative due to net losses, which is a significant concern. The equity ratio is robust at 87.2%, indicating strong asset financing through equity. The balance sheet shows financial stability with manageable debt levels, but profitability issues persist.

Cash Flow

Soundwill Holdings has faced challenges in generating positive cash flows, with operating cash flow and free cash flow being HKD 0 in the latest year. Historical free cash flow has been positive but is not sustainable with the current losses. The absence of positive cash flow metrics highlights liquidity risks and operational inefficiencies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	395.89M	490.17M	575.87M	717.68M
Gross Profit	701.03M	353.49M	407.58M	498.44M	610.89M
EBITDA	-2.33B	240.75M	-125.54M	-702.14M	-72.98M
Net Income	-2.49B	-646.51M	-268.20M	-807.93M	-185.81M
Balance Sheet
Total Assets	17.98B	21.00B	22.22B	22.28B	23.14B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.14B	1.43B	1.16B	1.15B
Total Debt	1.40B	1.55B	1.83B	1.90B	1.87B
Total Liabilities	2.30B	2.54B	3.05B	2.73B	2.75B
Stockholders Equity	15.68B	18.46B	19.17B	19.53B	20.37B
Cash Flow
Free Cash Flow	684.82M	9.11M	74.11M	326.00M	268.18M
Operating Cash Flow	672.50M	9.11M	74.51M	336.63M	271.85M
Investing Cash Flow	-319.19M	-198.66M	355.85M	-56.76M	186.74M
Financing Cash Flow	-538.05M	-423.36M	-196.12M	-48.47M	-154.50M

Soundwill Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0878, the sentiment is Neutral. The current price of 6.05 is above the 20-day moving average (MA) of 6.01, below the 50-day MA of 6.05, and below the 200-day MA of 6.27, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 48.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0878.

Soundwill Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6989	66 Neutral	1.42B	4.47	8.37%	12.02%	-0.79%	-3.46%
9983	61 Neutral	1.27B	5.36	11.52%	10.88%	-2.61%	―
0158	55 Neutral	1.58B	-4.99	―	5.53%	7.65%	-186.23%
0878	54 Neutral	$1.71B	―	-18.18%	16.53%	-68.13%	-124.14%
0108	46 Neutral	6.79B	-7.36	―	―	-16.28%	-444.68%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Soundwill Holdings Corporate Events

Soundwill Holdings Faces Revenue Decline Amidst Market Challenges

Soundwill Holdings Limited reported a significant decrease in revenue for the first half of 2025, with figures dropping from HK$1,030.1 million in 2024 to HK$180.7 million. The company also experienced a net fair value loss on investment properties and an increased loss attributable to owners, indicating financial challenges. Despite these setbacks, the company’s total assets and gearing ratio remained relatively stable, suggesting a resilient asset base amidst market difficulties.

The most recent analyst rating on (HK:0878) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Soundwill Holdings stock, see the HK:0878 Stock Forecast page.

Soundwill Holdings Announces Upcoming Board Meeting for Interim Results

Soundwill Holdings Limited has announced a board meeting scheduled for August 21, 2025, to discuss and approve the company’s unaudited condensed consolidated interim results for the first half of 2025. The meeting will also consider the payment of an interim dividend and other administrative matters, potentially impacting the company’s financial strategy and shareholder returns.

Soundwill Holdings Announces Board Restructuring

Soundwill Holdings Limited, a company incorporated in Bermuda, has announced changes to its board of directors, effective from June 30, 2025. The board comprises executive directors including Madam Foo Kam Chu Grace, Ms. Chan Wai Ling, Mr. Chan Hing Tat, and Mr. Tse Wai Hang, as well as independent non-executive directors Mr. Chan Kai Nang, Mr. Pao Ping Wing, and Mr. Young Chun Man, Kenneth. The company has also established three board committees: the Nomination Committee, Remuneration Committee, and Audit Committee, with specific board members assigned to each. These changes reflect the company’s ongoing efforts to strengthen its governance structure and ensure effective oversight and strategic direction.

Soundwill Holdings Updates Nomination Committee Terms to Enhance Governance

Soundwill Holdings Limited has revised the terms of reference for its Nomination Committee, effective from June 30, 2025. The committee, which consists of at least three directors with a majority being independent non-executive directors, is tasked with reviewing the board’s structure and diversity, assessing director independence, and making recommendations on board appointments and succession planning. This move is aimed at enhancing corporate governance and aligning the board’s composition with the company’s strategic goals.

Soundwill Holdings Announces Changes in Nomination Committee

Soundwill Holdings Limited announced changes in its Nomination Committee, effective from June 30, 2025. Ms. Chan Wai Ling, an executive director, and Mr. Young Chun Man, Kenneth, an independent non-executive director, have been appointed as new members, potentially impacting the company’s governance and strategic direction.