Sunray Engineering Group Limited (8616) AI Stock Analysis

• Market Cap: HK$47.00M
• Dividend Yield: N/A
• Average Volume (3M): 139.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -2.10%
• EPS Growth: -1562.50%
• Country: HK
• Employees: 101
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 59,000
• 30 Day Avg. Volume: 139,666
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 1.80
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Sunray Engineering Group Limited's overall stock score is primarily impacted by its challenging financial performance, characterized by declining margins and net losses despite a strong balance sheet. Technical analysis shows bullish trends but potential overbought conditions. Valuation concerns arise from the negative P/E ratio and absence of dividends, reducing the stock's attractiveness.

Sunray Engineering Group Limited Business Overview & Revenue Model

Company Description

Sunray Engineering Group Limited (8616) is a leading provider of engineering and manufacturing solutions, primarily focused on the infrastructure and construction sectors. The company specializes in the design, fabrication, and installation of advanced engineering components and systems, catering to a diverse range of industries including transportation, energy, and water management. With a commitment to innovation and quality, Sunray Engineering Group leverages cutting-edge technology to deliver superior products and services that meet the evolving needs of its clients.

How the Company Makes Money

Sunray Engineering Group Limited generates revenue through various channels, with a primary focus on engineering contracts and project-based work in the infrastructure sector. The company earns money by securing contracts for the design and construction of engineering projects, which often involve long-term agreements with public and private sector clients. Key revenue streams include the fabrication of specialized components, installation services, and maintenance contracts. Additionally, the company may benefit from partnerships with other engineering firms and subcontractors, allowing it to expand its service offerings and project capabilities. Factors contributing to its earnings include a strong reputation for quality, strategic project bidding, and the ability to adapt to market demands in the construction and infrastructure industries.

Sunray Engineering Group Limited Financial Statement Overview

Summary

Sunray Engineering Group Limited faces challenges in revenue growth and profitability, as evidenced by declining margins and net losses. Despite this, the company maintains a strong balance sheet with low leverage, providing a cushion against financial instability. Improvements in cash flow management are positive, but sustained profitability is crucial for long-term success.

Income Statement

The income statement shows a declining trend in revenue and profitability. Gross profit margin has decreased from previous years, and the company has reported a net loss in the latest period. The negative net profit margin and declining EBIT and EBITDA margins indicate challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the return on equity has been negative due to net losses, which could be a concern if not addressed. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis shows improvement in operating cash flow, turning positive after previous negative figures. Free cash flow has also improved, indicating better cash management. However, the free cash flow to net income ratio is not favorable due to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	162.46M	162.46M	165.95M	222.81M	199.86M	178.94M
Gross Profit	46.40M	49.28M	48.94M	57.44M	62.26M	58.91M
EBITDA	-7.17M	-5.70M	7.00M	15.79M	20.76M	20.37M
Net Income	-13.28M	-13.28M	-798.00K	5.51M	10.85M	12.44M
Balance Sheet
Total Assets	244.79M	244.79M	253.20M	257.50M	258.22M	220.95M
Cash, Cash Equivalents and Short-Term Investments	49.12M	49.12M	35.19M	29.44M	46.98M	57.78M
Total Debt	23.98M	23.98M	25.64M	27.78M	28.63M	4.19M
Total Liabilities	71.29M	71.29M	66.43M	69.94M	76.17M	49.75M
Stockholders Equity	173.50M	173.50M	186.76M	187.56M	182.05M	171.20M
Cash Flow
Free Cash Flow	17.42M	17.82M	10.45M	-13.84M	-35.26M	-19.37M
Operating Cash Flow	24.35M	19.29M	10.51M	-6.48M	14.37M	-17.05M
Investing Cash Flow	-600.00K	-445.00K	189.00K	-5.46M	-47.52M	-1.40M
Financing Cash Flow	-5.32M	-4.92M	-4.95M	-5.60M	22.35M	36.31M

Sunray Engineering Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8616, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 80.10 is Negative, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8616.

Sunray Engineering Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8619	51 Neutral	HK$36.14M	0.58	32.69%	―	3.26%	1621.53%
8423	51 Neutral	HK$40.00M	-3.25	-8.48%	―	40.98%	-222.22%
8616	49 Neutral	HK$47.00M	―	-7.37%	―	-2.10%	-1562.50%
8445	43 Neutral	HK$42.84M	-4.52	-12.21%	―	1.52%	21.51%
6189	38 Underperform	HK$17.35M	-0.18	7.92%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%