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6958

Zhenro Services Group SEHK:6958 Stock Report

Last Price

HK$0.51

Market Cap

HK$518.8m

7D

-12.1%

1Y

-89.7%

Updated

11 Aug, 2022

Data

Company Financials
6958 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

6958 Stock Overview

Zhenro Services Group Limited provides property management services for residential and non-residential properties in China.

Zhenro Services Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zhenro Services Group
Historical stock prices
Current Share PriceHK$0.51
52 Week HighHK$5.23
52 Week LowHK$0.47
Beta0.091
1 Month Change-32.90%
3 Month Change-34.62%
1 Year Change-89.70%
3 Year Changen/a
5 Year Changen/a
Change since IPO-90.89%

Recent News & Updates

Shareholder Returns

6958HK Real EstateHK Market
7D-12.1%-1.1%-0.6%
1Y-89.7%-37.6%-23.8%

Return vs Industry: 6958 underperformed the Hong Kong Real Estate industry which returned -37.6% over the past year.

Return vs Market: 6958 underperformed the Hong Kong Market which returned -23.8% over the past year.

Price Volatility

Is 6958's price volatile compared to industry and market?
6958 volatility
6958 Average Weekly Movement7.5%
Real Estate Industry Average Movement5.8%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 6958 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 6958's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20005,034Xiaotong Linhttps://www.zhenrowy.com

Zhenro Services Group Limited provides property management services for residential and non-residential properties in China. The company offers a range of property management services, such as cleaning, security, landscaping, and repair and maintenance services to property developers, property owners, residents, and commercial property tenants. It also provides value-added services, including sales assistance, additional tailored, housing repair, preliminary planning and design consultancy, and pre-delivery inspection services to non-property owners.

Zhenro Services Group Fundamentals Summary

How do Zhenro Services Group's earnings and revenue compare to its market cap?
6958 fundamental statistics
Market CapCN¥444.45m
Earnings (TTM)CN¥174.58m
Revenue (TTM)CN¥1.34b

2.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6958 income statement (TTM)
RevenueCN¥1.34b
Cost of RevenueCN¥907.68m
Gross ProfitCN¥428.11m
Other ExpensesCN¥253.53m
EarningsCN¥174.58m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin32.05%
Net Profit Margin13.07%
Debt/Equity Ratio8.0%

How did 6958 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 6958 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6958?

Other financial metrics that can be useful for relative valuation.

6958 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 6958's PE Ratio compare to its peers?

6958 PE Ratio vs Peers
The above table shows the PE ratio for 6958 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.3x
2168 Kaisa Prosperity Holdings
9.2xn/aHK$571.7m
2370 Redco Healthy Living
16.3xn/aHK$596.0m
898 Multifield International Holdings
1.8xn/aHK$769.2m
2146 Roiserv Lifestyle Services
1.8xn/aHK$846.0m
6958 Zhenro Services Group
2.6xn/aHK$518.8m

Price-To-Earnings vs Peers: 6958 is good value based on its Price-To-Earnings Ratio (2.6x) compared to the peer average (7.3x).


Price to Earnings Ratio vs Industry

How does 6958's PE Ratio compare vs other companies in the HK Real Estate Industry?

Price-To-Earnings vs Industry: 6958 is good value based on its Price-To-Earnings Ratio (2.6x) compared to the Hong Kong Real Estate industry average (5.5x)


Price to Earnings Ratio vs Fair Ratio

What is 6958's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6958 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6958's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 6958 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6958 (HK$0.51) is trading below our estimate of fair value (HK$4.51)

Significantly Below Fair Value: 6958 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Zhenro Services Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.3%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Zhenro Services Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine whether Zhenro Services Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Zhenro Services Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Zhenro Services Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6958 has high quality earnings.

Growing Profit Margin: 6958's current net profit margins (13.1%) are lower than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: 6958's earnings have grown significantly by 36.1% per year over the past 5 years.

Accelerating Growth: 6958's earnings growth over the past year (1.7%) is below its 5-year average (36.1% per year).

Earnings vs Industry: 6958 earnings growth over the past year (1.7%) underperformed the Real Estate industry 17%.


Return on Equity

High ROE: 6958's Return on Equity (12.1%) is considered low.


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Financial Health

How is Zhenro Services Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6958's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥880.1M).

Long Term Liabilities: 6958's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥165.1M).


Debt to Equity History and Analysis

Debt Level: 6958 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 6958's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6958's debt is well covered by operating cash flow (165.6%).

Interest Coverage: 6958's interest payments on its debt are well covered by EBIT (44.5x coverage).


Balance Sheet


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Dividend

What is Zhenro Services Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6958's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6958's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6958's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6958's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 6958 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 6958 has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Xiaotong Lin (58 yo)

1.5yrs

Tenure

Mr. Xiaotong Lin serves as Executive Director at Zhenro Services Group Limited since November 06, 2020 and also serves as its Chief Executive Officer since February 5, 2021. Mr. Lin has experience in engin...


Leadership Team

Experienced Management: 6958's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: 6958's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zhenro Services Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Zhenro Services Group Limited
  • Ticker: 6958
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Implied Market Cap: HK$518.750m
  • Shares outstanding: 1.04b
  • Website: https://www.zhenrowy.com

Number of Employees


Location

  • Zhenro Services Group Limited
  • Building No.7
  • Hongqiao Zhenro Center
  • Shanghai
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.