Exchange: HKSE | Sector: Real Estate | Industry: Real Estate Services
Q2 2025
Published: Jun 30, 2025
Earnings Highlights
Revenue of $442.99M up 87.2% year-over-year
EPS of $0.04 increased by 70% from previous year
Gross margin of 21.3%
Net income of 34.14M
"N/A" - Management
Dexin Services Group Limited (2215.HK) QQ2 2025 Financial Analysis and Investment Outlook
Executive Summary
Dexin Services Group Limited reported a strong Q2 2025 (QQ2 2025) with substantial year-over-year revenue growth and solid profitability metrics, despite a lean capital structure and limited dividend activity. Revenue reached 442.99 million CNY, up 87.2% year over year, driven by scale effects, contract wins, and higher service adoption across its Zhejiang portfolio. Gross profit was 94.41 million CNY with a gross margin of 21.31%, and net income amounted to 34.14 million CNY, yielding a net margin of 7.71%. EBITDA stood at 53.98 million CNY, translating to an EBITDA margin of 12.19% and an operating margin of 10.64%.
The balance sheet exhibits a remarkably low leverage profile: debt ratio 0.0075 and debt-to-equity 0.0145, with a current ratio of 1.853 and cash ratio of 0.26, suggesting ample liquidity to fund ongoing expansion and working-capital needs. However, operating cash flow per share is negative (-0.0290 CNY) and free cash flow per share is also negative (-0.0298 CNY), indicating that cash generation during the quarter was impacted by working capital dynamics and capital expenditure requirements.
Management commentary was not captured in the provided transcript dataset, limiting the ability to quote direct guidance or qualitative strategic updates. Nevertheless, the QQ2 2025 results imply meaningful growth momentum, reinforced by favorable margins and a disciplined balance sheet. The stock trades at a modest valuation (P/E ~4.78, P/B ~0.91, P/S ~1.47), which may reflect earnings visibility and the cyclicality of the real estate services sector in China. Investors should monitor contract cadence, receivables collection, and any capex that could influence near-term cash flows, as well as potential regional diversification beyond Zhejiang.
Liquidity, efficiency, and leverage:
- Current Ratio: 1.853; Quick Ratio: 1.636; Cash Ratio: 0.260
- Days Sales Outstanding (DSO): 102.87; Days Inventory Outstanding (DIO): 36.72; Days Payables Outstanding (DPO): 49.83; Cash Conversion Cycle: 89.76 days
- Debt Ratio: 0.748%; Debt/Equity: 0.0145; Long-Term Debt to Capitalization: 0.0138; Total Debt to Capitalization: 0.0143
- Operating Cash Flow per Share: -0.0290; Free Cash Flow per Share: -0.0298; Cash per Share: 0.502
- Price to Earnings: 4.78; Price to Book: 0.912; Price to Sales: 1.472; Enterprise Value Multiple: 9.13
- Net income margin: 7.71%; Gross margin: 21.31%; Operating margin: 10.64%
Notes on cash flow and dividends:
- Cash flow metrics show negative per-share figures on OCF and FCF, indicating near-term cash-usage drivers such as working capital movements and capex; no dividend yield is reported.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
442.99M
87.22%
0.00%
Gross Profit
94.41M
85.98%
0.00%
Operating Income
47.12M
101.45%
0.00%
Net Income
34.14M
61.91%
0.00%
EPS
0.04
70.04%
0.00%
Key Financial Ratios
currentRatio
1.85
grossProfitMargin
21.3%
operatingProfitMargin
10.6%
netProfitMargin
7.71%
returnOnAssets
2.46%
returnOnEquity
4.78%
debtEquityRatio
0.01
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.03
priceToBookRatio
0.91
priceEarningsRatio
4.78
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript not provided in the dataset. No management quotes or Q&A commentary are available for QQ2 2025. Investors should rely on the published filings and press releases for management commentary on contract wins, pricing, service mix, and regional strategy. If a transcript becomes available, key themes to extract would include contract renewal cadence, utilization of value-added services, and any forward-looking targets.
N/A
— Management
N/A
— Management
Forward Guidance
No formal guidance was published in the provided data. Based on macro trends in China’s property management market and Dexin’s QQ2 2025 performance, the following qualitative outlook is offered:
- Revenue trajectory: Expect continued growth driven by new contract wins and deeper penetration in Zhejiang, with potential expansion into neighboring provinces through existing capabilities (security, cleaning, maintenance, and value-added services).
- Profitability: Margins should remain around current levels if strict cost controls persist; scale effects may improve operating leverage over time, supporting EBITDA margins in the low-to-mid teens if capex remains moderate relative to growth.
- Cash flow: Near-term negative FCF/OCF per share could persist if capex and working-capital investments remain elevated; improving receivables collection and efficient working capital management will be critical to turning free cash flow positive.
- Risks to monitor: regulatory developments in the Chinese property management space, regional concentration risk, macro housing market headwinds, and competition from larger peers with diversified geographies. Investors should watch for explicit guidance on contract backlogs, price realization, and capital expenditure plans in subsequent disclosures.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
2215.HK Focus
21.31%
10.60%
4.78%
4.78%
2219.HK
42.60%
21.00%
4.83%
4.06%
2235.HK
51.70%
-0.98%
-0.06%
-495.98%
2251.HK
76.60%
-19.10%
-0.13%
-176.64%
2256.HK
1.00%
57.00%
7.39%
9.14%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Dexin’s QQ2 2025 results show meaningful top-line momentum with controlled operating costs and a lean balance sheet. The company delivered revenue of 442.99 million CNY with net income of 34.14 million CNY and a 7.71% net margin, supported by a solid gross margin and EBITDA margin. The balance sheet remains exceptionally conservative, with debt ratios near-zero and healthy liquidity, allowing for potential expansion without meaningful financial risk. Valuation appears attractive relative to peers, with a P/E of 4.78 and P/B of 0.91, suggesting a discount to many real estate and property-management peers despite solid growth signals. However, negative OCF/FCF per share indicate near-term cash-flow challenges tied to working capital and capex needs; these should moderate as the business scales and contract mix stabilizes. The absence of an earnings call transcript limits qualitative judgments about forward guidance and management strategy. Investors should monitor contract backlogs, receivables aging, potential capex plans, and any regional diversification initiatives. Overall, Dexin presents an appealing risk-adjusted opportunity for growth-oriented investors who are comfortable with a higher working-capital intensity profile and regional exposure, supported by a strong balance sheet and improving profitability trajectory.
Key Investment Factors
Growth Potential
Dexin demonstrated strong top-line growth in QQ2 2025 (YoY revenue +87.2%). The scale in Zhejiang, coupled with service diversification (security, cleaning, maintenance, sales-office management, and value-added services), supports multiple avenues for revenue expansion and higher contract tenure.
Profitability Risk
Key risks include regional concentration in Zhejiang, reliance on the Chinese property management cycle, and working-capital intensity as indicated by a high DSO (~103 days) and CCC (~90 days). The absence of cash-flow positivity in OCF/FCF could pressure liquidity if capex or receivables grow faster than revenue.
Financial Position
Balance sheet is exceptionally conservative with minimal leverage (debt ratio 0.75% and debt/equity 1.45%), solid liquidity (current ratio 1.853), and modest capital structure, which affords optionality to fund growth or pursue selective acquisitions without material leverage.
SWOT Analysis
Strengths
Extremely low leverage and robust liquidity metrics (debt ratio 0.75%, debt/equity 0.0145)
Solid gross margin (~21.3%) and EBITDA margin (~12.2%) in QQ2 2025
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