Executive Summary
New Hope Service Holdings Limited delivered a solid QQ3 2024 performance with notable top-line growth and healthy margins. Revenue reached 385.87 million CNY, up 16.8% year over year and 8.9% quarter over quarter, supported by expansion in property management and non-owner value-added services. EBITDA stood at 80.36 million CNY with an EBITDA margin of 20.8%, while net income was 54.33 million CNY, translating to a net margin of 14.1%. The company maintains a strong liquidity profile, ending the period with net cash of approximately 980 million CNY, and a robust balance sheet with current ratio of 2.29 and cash ratio of 1.49. Financial health is further underscored by a substantial cash balance (cash and cash equivalents of about 1.058 billion CNY) and limited leverage (total debt ≈ 77.39 million CNY; debt to assets ≈ 3.7%).
Key Performance Indicators
Key Insights
Revenue: 385.87 million CNY in QQ3 2024, YoY +16.8%, QoQ +8.85%. Gross profit: 108.85 million CNY, gross margin 28.21%; YoY gross profit change +1.73%, QoQ -6.29%. Operating income: 73.77 million CNY, operating margin 19.12%; YoY +4.25%, QoQ +2.81%. Net income: 54.33 million CNY, net margin 14.08%; YoY +3.02%, QoQ -8.03%. EPS: 0.0667 CNY; diluted EPS: 0.0667 CNY. EBITDA: 80.36 million CNY with EBITDAR margin approx. 20.83%. Tax rate (effective): ~14.7%. Balance sheet highlights include cash and ...
Financial Highlights
Revenue: 385.87 million CNY in QQ3 2024, YoY +16.8%, QoQ +8.85%. Gross profit: 108.85 million CNY, gross margin 28.21%; YoY gross profit change +1.73%, QoQ -6.29%. Operating income: 73.77 million CNY, operating margin 19.12%; YoY +4.25%, QoQ +2.81%. Net income: 54.33 million CNY, net margin 14.08%; YoY +3.02%, QoQ -8.03%. EPS: 0.0667 CNY; diluted EPS: 0.0667 CNY. EBITDA: 80.36 million CNY with EBITDAR margin approx. 20.83%. Tax rate (effective): ~14.7%. Balance sheet highlights include cash and cash equivalents of 1.058 billion CNY, total assets 2.084 billion CNY, total liabilities 0.756 billion CNY, and total stockholders’ equity 1.246 billion CNY. Net debt stands at -980.37 million CNY, indicating a robust net cash position. Liquidity ratios show current ratio 2.29, cash ratio 1.488. Efficiency metrics include days sales outstanding (DSO) 104.7 days, days payable outstanding 69.3 days, and a cash conversion cycle of 35.6 days. Valuation benchmarks (peer group) indicate P/E ≈ 6.32x, P/S ≈ 3.56x, P/B ≈ 1.10x, with dividend yield reported at ~4.81%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
385.87M |
16.76% |
8.85% |
| Gross Profit |
108.85M |
1.73% |
-6.29% |
| Operating Income |
73.77M |
4.25% |
2.81% |
| Net Income |
54.33M |
3.02% |
-8.03% |
| EPS |
0.07 |
2.93% |
-8.13% |
Key Financial Ratios
operatingProfitMargin
19.1%
dividendPayoutRatio
121.7%
Management Commentary
No earnings call transcript was provided for QQ3 2024 in the Materials. As a result, no extractable management commentary or quotes are available in this update.
Forward Guidance
No explicit forward-looking targets or quantitative guidance were disclosed for QQ4 2024 or beyond in the QQ3 2024 materials. In the current environment, management is likely to emphasize continued expansion of non-owner value-added services and community living services, aided by an asset-light operating model and potential digitalization initiatives. Investors should monitor: (1) the trajectory of revenue mix between core property management and value-added services, (2) receivables management and working capital dynamics given a mid-teens cash conversion cycle framework, (3) any announced capex or partnerships that could affect scale and operating leverage, and (4) regional expansion plans that could drive utilization in new markets. Given the existing net cash position and modest leverage, the company has flexibility to pursue growth initiatives while maintaining balance sheet resilience, though macro headwinds in China real estate could temper growth if demand slows.