Sunac Services Holdings Ltd. (1516) AI Stock Analysis

• Market Cap: HK$5.32B
• Dividend Yield: 8.86%
• Average Volume (3M): 6.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: -2.43%
• EPS Growth: -7.97%
• Country: HK
• Employees: 27,051
• Sector: Real Estate
• Sector Strength: 67
• Industry: Real Estate - Services
• EPS (TTM): -0.16
• Shares Outstanding: 3,056,844,000
• 10 Day Avg. Volume: 6,644,328
• 30 Day Avg. Volume: 6,457,943
• PEG Ratio: 0.17
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.45
• 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: HK$1.55
• Price Target Upside: -10.40% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: ―

Sunac Services Holdings Ltd. has a mixed outlook. The company is struggling with significant financial challenges, including negative earnings and cash flow issues, which are the most significant factors affecting its score. On the positive side, technical analysis shows upward momentum, but the stock's valuation is concerning due to negative profitability. The high dividend yield provides some attraction, but sustainability is questionable given the financial state.

Positive Factors

Dividend

FY24 results in line, with fruitful dividend on offer.

Policy Impact

Recent policy shift marks a near-term floor for sentiment, with funds-driven re-rating to continue in the near-term.

Negative Factors

Earnings Outlook

Headwinds weighing on near-term earnings and cashflow outlooks.

Fee Collection

There is also growing difficulty in collecting outstanding fees due to property owners' dissatisfaction with delayed project deliveries, increasing the risk of further impairments.

Revenue Pressure

Property management revenue will likely remain under pressure due to ongoing competitive market dynamics.

Sunac Services Holdings Ltd. Business Overview & Revenue Model

Company Description

Sunac Services Holdings Limited, an investment holding company, provides property management services, value-added services to non-property owners, and commercial operational and community living services in the People's Republic of China. Its property management portfolio covers residential and non-residential properties. The company offers value-added services comprise sales assistance services to property developers to assist with their sales and marketing activities at property sales venues and display units; consultancy and other value-added services to non-property owners, such as consultancy, pre-delivery, and engineering services to other property management companies; and property agency services to property developers primarily in respect of tourism and vacation projects and car park spaces. It also provides community living services include space operation services, property interior decoration services, real estate brokerage services, sale of use rights of car park spaces, and convenience and other services. In addition, the company offers property leasing, housing repair, and commercial management services. Sunac Services Holdings Limited was founded in 2004 and is headquartered in Tianjin, China.

How the Company Makes Money

Sunac Services Holdings Ltd. generates revenue primarily through its property management services, which include maintaining and managing residential and commercial properties. Key revenue streams include management fees collected from property owners for services like security, cleaning, landscaping, and maintenance. Additionally, the company earns from community value-added services, which involve providing bespoke services such as home decoration, repair, and maintenance services to residents. The company also engages in value-added services for non-property owners, including consultancy and project management services for property developers. Strategic partnerships with real estate developers and a large portfolio of managed properties significantly contribute to the company's earnings.

Sunac Services Holdings Ltd. Financial Statement Overview

Summary

Sunac Services Holdings Ltd. faces significant profitability and liquidity challenges, with declining revenues, negative net income, and cash flow issues. The company maintains a low debt profile, but its shrinking equity and asset base indicate potential financial instability. Strategic improvements in revenue generation and cost management are essential to strengthen the company's financial health.

Income Statement

Sunac Services Holdings Ltd. has experienced declining revenue with a negative revenue growth rate of -0.57% from 2023 to 2024. The company has also reported negative net income and EBIT over the last two years, resulting in negative net profit and EBIT margins. This suggests significant profitability challenges. Gross profit margin has decreased over the years, indicating declining efficiency in managing production costs relative to revenue.

Balance Sheet

The company maintains a healthy equity ratio of 48.78% in 2024, indicating strong asset backing by equity. However, the decreasing stockholders' equity and total assets over the years suggest weakening financial stability. The debt-to-equity ratio is low at 0.02, reflecting minimal reliance on debt, which reduces financial risk. However, the declining trend in equity and assets warrants caution.

Cash Flow

Sunac Services Holdings Ltd. had positive free cash flow in 2023 but saw a significant decline to zero in 2024, highlighting potential liquidity issues. The absence of operating and investing cash flows in 2024 raises concerns about cash management and future operational sustainability. The inability to generate free cash flow to net income ratio suggests inefficiencies in converting income into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.97B	7.01B	7.13B	7.90B	4.62B
	Gross Profit
1.53B	1.67B	1.60B	2.49B	1.28B
	EBIT
-603.60M	-412.43M	-676.16M	1.58B	803.19M
	EBITDA
-437.31M	-171.40M	-584.32M	1.65B	901.13M
	Net Income Common Stockholders
-451.20M	-435.07M	-481.90M	1.28B	596.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.04B	4.33B	4.67B	5.74B	9.57B
	Total Assets
10.59B	11.64B	12.49B	13.47B	12.96B
	Total Debt
120.80M	118.44M	144.92M	120.94M	41.25M
	Net Debt
-3.91B	-3.86B	-3.73B	-5.18B	-9.33B
	Total Liabilities
5.27B	5.41B	4.72B	4.80B	3.22B
	Stockholders Equity
5.17B	6.04B	7.60B	8.50B	9.68B
Cash Flow		Free Cash Flow
0.00	773.07M	-520.65M	-533.07M	983.26M
	Operating Cash Flow
0.00	862.24M	-394.81M	-386.85M	1.02B
	Investing Cash Flow
0.00	368.35M	-519.30M	-1.33B	-1.37B
	Financing Cash Flow
0.00	-1.13B	-519.70M	-2.32B	8.63B

Sunac Services Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1516, the sentiment is Positive. The current price of 1.73 is above the 20-day moving average (MA) of 1.67, above the 50-day MA of 1.62, and above the 200-day MA of 1.60, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.56 is Neutral, neither overbought nor oversold. The STOCH value of 77.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1516.

Sunac Services Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.85B	10.72	0.40%	6.07%	5.80%	-21.26%
1516	53 Neutral	HK$5.32B	―	-8.05%	8.86%	-2.43%	-7.97%
CNPPF		$2.26B	10.95		24.60%	―	―
CTRGF		$2.84B	11.11	4.96%	0.31%	―	―
1V0		€466.52M	―	-29.17%	2.43%	―	―
2869	71 Outperform	HK$13.64B	18.41	8.94%	3.46%	1.01%	12.45%
2168	51 Neutral	HK$249.66M	15.93	1.67%	―	-5.11%	―

Sunac Services Holdings Ltd. Corporate Events

Sunac Services Holdings Ltd. Announces 2025 Annual General Meeting and Key Resolutions

Sunac Services Holdings Ltd. has announced its upcoming annual general meeting scheduled for May 22, 2025, where shareholders will consider several key resolutions. These include the adoption of the company’s audited financial statements for 2024, the declaration of a final dividend, re-election of directors, and re-appointment of PricewaterhouseCoopers as auditors. Additionally, the board seeks approval to allot and issue new shares, which could potentially impact the company’s capital structure and shareholder value.

Sunac Services Holdings Ltd. Exits Zhangtai Services Group in Strategic Move

Sunac Services Holdings Ltd. announced its strategic decision to exit from Zhangtai Services Group by selling its 80% equity interest in Guangxi Zhangtai Sunac Smart to Guangxi Laozhangjia for RMB826.62 million. This move is part of the company’s strategy to concentrate resources and management on Tier 1 and Tier 2 cities, potentially enhancing its operational focus and market positioning.

Sunac Services Holdings Ltd. Schedules Board Meeting to Approve Annual Results

Sunac Services Holdings Ltd. has announced a board meeting scheduled for March 24, 2025, to discuss and approve the annual financial results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend, which could impact shareholder returns and the company’s financial strategy.