Exchange: HKSE | Sector: Real Estate | Industry: Real Estate Services
Q2 2025
Published: Jun 30, 2025
Earnings Highlights
Revenue of $369.91M up 91.7% year-over-year
EPS of $0.07 increased by 122.8% from previous year
Gross margin of 31.6%
Net income of 60.46M
"No earnings transcript available in the provided data." - Management
New Hope Service Holdings Limited (3658.HK) QQ2 2025 Results Analysis – Real Estate Services: Strong Margin, Prudent Balance Sheet and Recurring Revenue Growth
Executive Summary
New Hope Service Holdings Limited delivered a robust QQ2 2025 performance with a clear expansion in operating scale and disciplined cost management. Revenue of 369.91 million CNY generated a gross profit of 116.84 million CNY, yielding a gross margin of 31.6%. EBITDA reached 87.41 million CNY and net income 60.46 million CNY, translating to a net margin of 16.3% and EPS of 0.0743 CNY. The quarter showcased strong year-over-year growth (revenue up ~91.7% YoY) driven by scale, mix, and the continued monetization of non-owner value-added services, while maintaining a solid EBITDA and operating margin (EBITDA margin ~23.6%, operating margin ~20.6%).
Key Performance Indicators
Revenue
369.91M
QoQ: 100.00% | YoY:91.73%
Gross Profit
116.84M
31.59% margin
QoQ: 100.00% | YoY:114.67%
Operating Income
76.13M
QoQ: 100.00% | YoY:106.40%
Net Income
60.46M
QoQ: 100.00% | YoY:122.59%
EPS
0.07
QoQ: 100.00% | YoY:122.79%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 369.909 million CNY; YoY growth reported at 91.7%; QoQ growth 100.0% (per provided metrics)
Gross Profit: 116.84 million CNY; Gross margin: 31.6%
EBITDA: 87.413 million CNY; EBITDA margin: 23.63%
Operating Income: 76.1265 million CNY; Operating margin: 20.58%
Net Income: 60.4615 million CNY; Net margin: 16.34%
Financial Highlights
Financial and operational highlights (QQ2 2025):
- Revenue: 369.909 million CNY; YoY growth reported at 91.7%; QoQ growth 100.0% (per provided metrics)
- Gross Profit: 116.84 million CNY; Gross margin: 31.6%
- EBITDA: 87.413 million CNY; EBITDA margin: 23.63%
- Operating Income: 76.1265 million CNY; Operating margin: 20.58%
- Net Income: 60.4615 million CNY; Net margin: 16.34%
- EPS: 0.0743 CNY; Diluted EPS: 0.0743 CNY; Weighted avg shares ~814.13 million
- Balance sheet health: Current ratio 2.42; Quick ratio 2.42; Cash ratio 1.41; Debt ratio 1.39%; Debt to equity 2.25%; Cash per share 1.267 CNY; Price to book ~1.13; P/E ~3.04; Dividend yield ~4.19%; Dividend payout ratio ~51%
- Cash flow indicators: Operating cash flow per share 0.0258 CNY; Free cash flow per share 0.0101 CNY; Cash conversion and capex coverage metrics indicate a conservative capital stance while supporting returns to shareholders.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
369.91M
91.73%
100.00%
Gross Profit
116.84M
114.67%
100.00%
Operating Income
76.13M
106.40%
100.00%
Net Income
60.46M
122.59%
100.00%
EPS
0.07
122.79%
100.00%
Key Financial Ratios
currentRatio
2.42
grossProfitMargin
31.6%
operatingProfitMargin
20.6%
netProfitMargin
16.3%
returnOnAssets
5.72%
returnOnEquity
9.27%
debtEquityRatio
0.02
operatingCashFlowPerShare
$0.03
freeCashFlowPerShare
$0.01
dividendPayoutRatio
51%
priceToBookRatio
1.13
priceEarningsRatio
3.04
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights unavailable in the provided input. Earnings call quotes and management commentary could not be extracted because the earnings transcript array is empty. If a transcript becomes available, this section should group quotes by themes (strategy, operations, market conditions) and provide context and significance for investors.
No earnings transcript available in the provided data.
— Management
No earnings transcript available in the provided data.
— Management
Forward Guidance
No formal forward guidance was disclosed in the QQ2 2025 data provided. Given the positive quarterly momentum and a favorable liquidity position, the company could potentially sustain solid margins and cash generation if it can continue to expand non-owner value-added services and community living offerings. Investors should monitor: (1) contract wins and retention in property management and value-added services, (2) changes in macro housing market dynamics and property sector policy in China, (3) progression of operating leverage as scale increases, and (4) any changes to shareholder capital allocation (dividend policy and potential buybacks). In absence of explicit guidance, a conservative baseline assumes continued margin stability with modest revenue growth as new contracts ramp.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
3658.HK Focus
31.59%
20.60%
9.27%
3.04%
1941.HK
25.20%
7.67%
5.67%
1.26%
2165.HK
29.60%
16.80%
7.38%
1.78%
3603.HK
1.00%
-7.36%
-2.54%
-48.00%
3681.HK
0.00%
0.00%
-20.50%
-10.54%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, New Hope Service presents a compelling mix of profitability, liquidity, and shareholder-friendly capital allocation. The QQ2 2025 results show strong YoY growth, healthy margins, and an asset-light balance sheet with minimal leverage. The dividend yield adds an appealing income component for investors seeking exposure to China’s real estate services. The primary caveat is the macro risk from China’s real estate cycle and the need for transparency around segment mix and backlog. If the company can sustain contract momentum and broaden its non-owner value-added services, the growth trajectory could be durable, supported by cash generation and a prudent balance sheet. Relative to peers, 3658.HK trades with a modest P/E of about 3.0 and a price-to-book of ~1.13, offering upside potential if earnings quality remains intact and the sector’s policy environment remains supportive.
Key Investment Factors
Growth Potential
Strong upside from expanding non-owner value-added services and community living offerings, which can broaden the addressable market beyond traditional property management. Recurring revenue streams and high gross margins support earnings resilience even as the Chinese real estate cycle evolves. The company’s solid balance sheet provides capacity to fund growth initiatives and expand service lines without overreliance on external financing.
Profitability Risk
Key risk factors include dependency on China's real estate market and policy environment, competition in GFA/property management space, and potential volatility in new contract timing. Although leverage is low, any deterioration in cash flows or slower contract ramp could pressure growth in the medium term. Limited disclosure on segment mix and backlog could obscure revenue visibility.
Financial Position
Exceptional liquidity and capital discipline are evident: current ratio 2.42, cash ratio 1.41, debt ratio 0.0139, and debt-to-equity 0.0225. Dividend yield of 4.19% and payout ratio of 51% reflect a commitment to returning capital. Free cash flow per share (~0.0101 CNY) supports a sustainable yield while preserving room for reinvestment.
SWOT Analysis
Strengths
Solid gross margin of 31.6% and EBITDA margin of 23.6% indicate a profitable services mix and scalable operations
Very strong liquidity profile: current ratio 2.42, cash ratio 1.41, and low debt burden (debt ratio 1.39%, debt-to-equity 2.25%)
Recurring revenue model via property management and value-added services with potential for cross-sell into community living services
Attractive dividend yield (4.19%) with a payout ratio around 51%, supporting income-focused investors
Return metrics reflective of operating efficiency: net margin 16.3%, ROE 9.27%, ROCE 10.6%
Weaknesses
Limited disclosure on segment mix and contract backlog in QQ2 2025 data reduces visibility into revenue stability by segment
Quarterly data shows a very high QoQ growth figure (100%), which warrants scrutiny for seasonality or one-off effects
Reliance on the Chinese market implies macro policy and housing cycle sensitivity
Opportunities
Expansion of non-owner value-added services and community asset management to diversify revenue streams
Cross-selling across residential, commercial, and community spaces could lift ARPU and retention
Potential strategic partnerships or selective acquisitions to accelerate scale and service depth
Threats
Regulatory changes in China’s real estate and property management sectors could impact margins or growth cadence
Intense competition in the property services market could compress pricing power
Macro headwinds in China’s property market could affect new contract inflows and retention
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