Yuexiu Services Group (6626.HK) Q4 2024 Earnings Report

Yuexiu Services Group Limited reported QQ4 2024 revenue of 953.99 million CNY, up 11.46% year over year, on the back of higher contract activity in its property management portfolio. However, the quarter showed margin erosion with gross margin of 20.66% (vs 25.21% YoY) and a notable drop in net income to 37.62 million CNY, down 68.56% YoY. EBITDA stood at 132.71 million CNY, and operating income reached 120.90 million CNY, signaling ongoing operating leverage despite top-line strength. A substantial negative line item for total other income/expenses (-86.82 million CNY) compressed pretax income and contributed to the divergence between operating performance and bottom-line profitability. On the balance sheet, Yuexiu Services remains liquidity-rich with 2.00 billion CNY of cash and cash equivalents and a net debt position of approximately -1.89 billion CNY, underpinning financial flexibility to pursue strategic opportunities or weather cyclical headwinds. Free cash flow generation was robust at 84.84 million CNY, supported by solid operating cash flow of 90.42 million CNY. Management commentary (where disclosed) remains focused on maintaining cost discipline, expanding value-added services, and leveraging a broad client base to sustain recurring revenue. The stock trades at a relatively elevated earnings multiple (P/E ≈ 31x) with a modest balance-sheet risk profile, underlining a growth-oriented but margin-sensitive positioning in China’s competitive property services landscape.