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Sunac Services Holdings Ltd. (1516) AI Stock Analysis

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HK:1516

Sunac Services Holdings Ltd.

(HKEX:1516)

Select Model
Rating:54Neutral
Price Target:HKD 0.67â–²(1.97% Upside)
Action:reiterated
Date:08/06/26

The score is primarily held back by uneven financial performance: despite a very conservatively financed balance sheet and a return to profitability in 2025, ongoing revenue decline, thin margins, and a sharp deterioration in 2025 free cash flow reduce confidence in earnings quality. Technical signals are neutral-to-soft with the stock still below longer-term moving averages, while valuation is moderately attractive (P/E ~10.36) and provides some support but not enough to outweigh cash-flow volatility.

Positive Factors
Conservative balance sheetVery low leverage gives Sunac Services substantial financial flexibility and reduces pressure from interest costs or refinancing. A sizable equity base can support continued operations and selective investment, helping the company absorb business volatility better than a highly indebted property-services peer.
Negative Factors
Persistent revenue declineRepeated revenue contraction signals that the company is not currently expanding its business base consistently. Continued declines can reduce operating leverage, limit investment capacity, and make the 2025 profit recovery harder to sustain unless managed area, pricing, or value-added service penetration improves.

Sunac Services Holdings Ltd. (1516) vs. iShares MSCI Hong Kong ETF (EWH)

-60%-50%-40%-30%-20%-10%0%10%20%HK:1516-56.35%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 1.97B
Dividend Yield
1.67%
Average Volume (3M)
2.68M
Price to Earnings (P/E)
8.3
Beta (1Y)
1.04
Revenue Growth
-4.46%
EPS Growth
50.30%
Country
Hong Kong
Employees
22,139
Sector
Real Estate
Sector Strength
65
Industry
Real Estate - Services

Sunac Services Holdings Ltd. Business Overview & Revenue Model

Company Description

Sunac Services Holdings Limited operates as an investment holding company, delivering a comprehensive suite of services across the People's Republic of China. These include property management, various value-added solutions for non-property owners, c...

How the Company Makes Money

The company primarily makes money by charging fees for (1) property management services and (2) value-added services. 1) Property management service fees: This is the core recurring revenue stream. The company earns management fees for operating and...

Sunac Services Holdings Ltd. Financial Statement Overview

Summary

Balance sheet strength is a clear positive (very low leverage, sizable equity base), but operating fundamentals are mixed: profitability returned in 2025 after prior-year losses, while revenue continues to decline and margins remain thin. Cash-flow quality is the main drag, with 2025 free cash flow turning negative despite positive net income, increasing uncertainty around the durability of the earnings recovery.

Income Statement

48Neutral

Balance Sheet

78Positive

Cash Flow

42Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.49B6.82B6.97B7.01B7.13B7.90B
Gross Profit1.15B1.25B1.53B1.67B1.60B2.49B
EBITDA383.37M447.99M-373.98M-171.40M-498.44M1.71B
Net Income205.09M202.72M-451.20M-435.07M-481.90M1.28B
Balance Sheet
Total Assets9.29B9.84B10.59B11.64B12.49B13.47B
Cash, Cash Equivalents and Short-Term Investments3.29B4.04B4.04B4.33B4.67B5.74B
Total Debt90.64M100.68M120.80M118.44M144.92M120.94M
Total Liabilities3.99B4.60B5.27B5.41B4.72B4.80B
Stockholders Equity5.21B5.16B5.17B6.04B7.60B8.50B
Cash Flow
Free Cash Flow-48.29M-48.38M124.74M773.07M-520.65M-533.07M
Operating Cash Flow36.92M30.66M186.18M862.24M-394.81M-386.85M
Investing Cash Flow813.70M244.02M400.47M368.35M-519.30M-1.33B
Financing Cash Flow-136.49M-511.80M-541.17M-1.13B-519.70M-2.32B

Sunac Services Holdings Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price0.66

Price Trends

50DMA0.77Negative
100DMA0.79Negative
200DMA0.97Negative

Market Momentum

MACD-0.03Positive
RSI27.54Positive
STOCH4.76Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1516, the sentiment is Negative. The current price of 0.66 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.77, and below the 200-day MA of 0.97, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 27.54 is Positive, neither overbought nor oversold. The STOCH value of 4.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1516.

Sunac Services Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

HK:1516 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2869HK:286975OutperformHKD 12.86B10.9812.24%3.93%12.73%28.42%
HK:6049HK:604975OutperformHKD 14.63B7.8414.87%6.08%7.89%8.60%
Sector *65Neutral$2.17B12.193.79%4.94%3.15%1.96%
HK:3319HK:331960NeutralHKD 2.67B31.910.70%7.27%-2.93%―
HK:6098HK:609857NeutralHKD 16.30B24.461.56%1.09%11.42%-55.21%
HK:6666HK:666654NeutralHKD 10.54B8.8154.42%―8.66%7.46%
HK:1516HK:151654NeutralHKD 1.97B8.293.95%1.67%-4.46%50.30%

* Real Estate Sector Average

Performance Comparison

-40%-20%0%20%HK:1516HK:6098HK:3319HK:2869HK:6049HK:6666Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1516 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1516Sunac Services Holdings Ltd.0.66-0.87-56.92%
HK:6098Country Garden Services Holdings Co 4.90-0.71-12.70%
HK:3319A-Living Smart City Services Co., Ltd. Class H1.88-0.47-20.07%
HK:2869Greentown Service Group Co. Ltd.4.08-0.16-3.71%
HK:6049Poly Property Services Co., Ltd. Class H26.44-5.79-17.98%
HK:6666Evergrande Property Services Group Ltd.0.97-0.21-18.07%

Sunac Services Holdings Ltd. Corporate Events

Sunac Services Settles RMB15.45 Million Receivables via Connected Property Transfers

Oct 30, 2026

Sunac Services Holdings Ltd. has entered into a series of debt settlement agreements under which certain associates of its controlling shareholder, Sunac China Holdings, will transfer properties and car parking spaces to the group to settle unpaid re...

Sunac Services Delivers Higher Adjusted Profit Despite Revenue Dip in 2026 Interim Results

Aug 25, 2026

Sunac Services Holdings Limited reported interim revenue of RMB3,222 million and gross profit of RMB667 million for the six months ended 30 June 2026, with year-on-year declines of 9% and 14% respectively largely driven by the 2025 disposal of its st...

Sunac Services Shareholders Approve New Share Option Scheme with 10% Issuance Cap

Aug 13, 2026

Sunac Services Holdings Ltd. secured strong shareholder backing at its 13 August 2026 extraordinary general meeting for the adoption of a new share option scheme, with approximately 95.6% of votes cast in favour of the proposal. The scheme authorises...

Sunac Services Sets August Board Meeting to Approve 2026 Interim Results

Aug 13, 2026

Sunac Services Holdings has scheduled a board meeting for 25 August 2026 to review and approve the interim results for the six months ended 30 June 2026 and to authorize their publication. The announcement also reiterates the current composition of t...

Sunac Services Says Regulatory Warning for Director Will Not Hit Operations

Jul 31, 2026

Sunac Services Holdings has disclosed that its non-executive director Gao Xi received a warning letter from the Tianjin Securities Regulatory Bureau and a public criticism from the Shenzhen Stock Exchange, after Sunac Real Estate Group Co., Ltd., a s...

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 06, 2026