2215.HK
Dexin Services Group
Q2 2025 Report
Dexin Services Group Limited (2215.HK) QQ2 2025 Financial Analysis and Investment Outlook...
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Executive Summary
- Dexin Services Group Limited reported QQ1 2024 revenue of CNY 236.6 million, up 3.3% year over year, as the company continues to expand its property management services in Zhejiang and leverage value-added offerings. The QQ1 revenue decline versus Q4 2023 was modest (QoQ -4.9%), reflecting seasonality and timing of property management contracts.
- Gross profit stood at CNY 50.8 million with a gross margin of 21.46% in QQ1 2024, indicating continued scale benefits but margin pressure relative to some peers. Operating income reached CNY 23.39 million, delivering an operating margin of 9.89%. The net income of CNY 21.08 million translated to an implied net margin of 8.91%. QoQ improvements in operating profitability were large due to a swing from a small operating loss in Q4 2023 to positive QQ1 2024 results, underscoring earnings leverage from contract wins and cost discipline.
- The balance sheet shows solid liquidity and very modest leverage. Total current assets of CNY 1.481 billion and total assets of CNY 1.512 billion support a current ratio of about 2.01 and a quick ratio near 1.96. Total liabilities are CNY 746.5 million with total equity of CNY 749.7 million, yielding a conservative debt profile (debt to capitalization ≈ 3.5%, and net debt reportedly negative, suggesting net cash on hand).
- The company’s operating cash flow was negative in QQ1 2024 (CNY -6.39 million) and free cash flow was negative (CNY -7.03 million), reflecting working capital movements common in service-heavy property management and capex timing. However, cash and short-term investments on the balance sheet remained sizable, providing a liquidity cushion as Dexin scales its Zhejiang footprint.
- Relative to regional peers, Dexin’s margins are below some listed property management peers, signaling room for margin expansion through contract mix, efficiency gains, and scalable value-added services. The growth thesis rests on expanding the managed portfolio, higher-value services, and smarter community solutions in core markets.
Key Performance Indicators
Revenue
236.61M
QoQ: -4.89% | YoY:3.32%
Gross Profit
50.77M
21.45% margin
QoQ: 4.82% | YoY:-21.40%
Operating Income
23.39M
QoQ: 1 329.51% | YoY:-33.47%
Net Income
21.08M
QoQ: 3 478.93% | YoY:-33.08%
EPS
0.02
QoQ: 3 342.86% | YoY:-30.58%
Revenue Trend
Margin Analysis
Key Insights
- QQ1 2024 revenue: CNY 236.614 million; YoY growth: 3.32%; QoQ: -4.89% (vs. Q4 2023)
- Gross profit: CNY 50.766 million; gross margin: 21.46% (0.2146)
- Operating income: CNY 23.392 million; operating margin: 9.89% (0.0989)
- Net income: CNY 21.085 million; net margin: 8.91% (0.0891); EPS: CNY 0.0227
- EBITDA: CNY 26.756 million; EBITDA margin: 11.31% (0.1131)