Sunray Engineering Group Limited (8616) AI Stock Analysis

Sunray Engineering Group Limited

(HKEX:8616)

Select Model

Rating:67Neutral

Price Target:HKD 0.09▲(8.14% Upside)

Action:reiterated

Date:09/18/26

The score is driven primarily by improving financial performance (return to profitability, strong recent free cash flow, and low leverage), supported by positive technical momentum with price above major moving averages. Valuation is neutral with a mid-range P/E and no dividend yield data to add support.

Positive Factors

Return to ProfitabilityThe return to profitability and renewed revenue growth indicate that operating performance has recovered from the prior-year loss. Although earnings remain modest, positive results improve internal funding capacity and provide a more stable base for sustaining project activity over the coming quarters.

Negative Factors

Thin Profit MarginsThin margins leave limited room for cost increases, execution problems, or weaker project pricing to be absorbed without affecting earnings. This constrains the durability of profits and means that even a return to positive net income may not yet represent strong or well-protected earnings power.

Sunray Engineering Group Limited (8616) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 86.00M
Dividend Yield: ―
Average Volume (3M): 719.12K
Price to Earnings (P/E): 15.6
Beta (1Y): 0.62
Revenue Growth: 9.25%
EPS Growth: ―
Country: Hong Kong
Employees: 39
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Sunray Engineering Group Limited Business Overview & Revenue Model

Company Description

Operating as an investment holding company, Sunray Engineering Group Limited delivers comprehensive building protection solutions throughout Hong Kong and Macau. The firm provides a diverse range of products, specifically for waterproofing, tiling, a...

How the Company Makes Money

Sunray Engineering Group Limited primarily makes money by providing project-based engineering contracting services. Revenue is generated when the company is awarded contracts (typically as a main contractor or subcontractor) to deliver electrical and...

Sunray Engineering Group Limited Financial Statement Overview

Summary

Financials show a rebound in 2026 with net income turning positive (HK$4.2M) and revenue rising to HK$177.5M. Balance sheet leverage is low (debt-to-equity ~0.10), and free cash flow improved to HK$29.6M. Offsetting this, profitability remains thin (net margin ~2.4%) and revenue/cash flows have been volatile across prior years, limiting visibility.

Income Statement

58Neutral

Balance Sheet

74Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	216.09M	177.48M	162.46M	165.95M	222.81M	199.86M
Gross Profit	64.91M	48.50M	49.28M	48.94M	57.44M	62.26M
EBITDA	1.53M	12.28M	-5.70M	7.00M	15.79M	20.76M
Net Income	-7.93M	4.23M	-13.28M	-798.00K	5.51M	10.85M
Balance Sheet
Total Assets	247.05M	247.05M	244.79M	253.20M	257.50M	258.22M
Cash, Cash Equivalents and Short-Term Investments	74.69M	74.69M	49.12M	35.19M	29.44M	46.98M
Total Debt	18.27M	18.27M	23.98M	25.64M	27.78M	28.63M
Total Liabilities	69.31M	69.31M	71.29M	66.43M	69.94M	76.17M
Stockholders Equity	177.74M	177.74M	173.50M	186.76M	187.56M	182.05M
Cash Flow
Free Cash Flow	-3.88M	29.55M	17.82M	10.45M	-13.84M	-35.26M
Operating Cash Flow	-1.90M	32.76M	19.29M	10.51M	-6.48M	14.37M
Investing Cash Flow	-1.79M	-2.86M	-445.00K	189.00K	-5.46M	-47.52M
Financing Cash Flow	-6.58M	-4.34M	-4.92M	-4.95M	-5.60M	22.35M

Sunray Engineering Group Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price0.09

Price Trends

50DMA0.09Negative

100DMA0.08Positive

200DMA0.07Positive

Market Momentum

MACD-0.00Positive

RSI34.92Neutral

STOCH38.46Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8616, the sentiment is Neutral. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.09, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of -0.00 indicates Positive momentum. The RSI at 34.92 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8616.

Sunray Engineering Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

HK:8616 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1690	77Outperform	HKD 202.33M	6.60	22.32%	21.43%	-39.08%	1675.00%
HK:1627	71Outperform	HKD 730.00M	2.54	15.75%	8.22%	15.16%	25.81%
HK:8616	67Neutral	HKD 86.00M	15.64	3.13%	―	9.25%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
HK:1413	46Neutral	HKD 102.34M	-1.15	-26.71%	―	-51.29%	43.87%
HK:8445	33Underperform	HKD 63.01M	-5.32	-13.85%	―	-36.27%	-4.08%

* General Sector Average

Performance Comparison

HK:8616 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8616	Sunray Engineering Group Limited	0.09	0.04	72.00%
HK:1408	Macau E&M Holding Limited	0.39	0.15	65.95%
HK:1413	Kwong Luen Engineering Holdings Limited	0.21	-0.20	-48.77%
HK:1627	Able Engineering Holdings Ltd.	0.36	-0.32	-46.79%
HK:8445	Noble Engineering Group Holdings Limited	0.19	0.02	11.76%
HK:1690	Lap Kei Engineering (Holdings) Limited	0.14	0.08	129.51%

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: Sep 17, 2026

Sunray Engineering Group Limited AI Stock Analysis