Executive Summary
Xian Kingfar Property Services delivered a modest year-over-year improvement in QQ3 2024 revenue and a meaningful improvement in profitability metrics, underpinned by strong cash generation and a very conservatively leveraged balance sheet. Revenue for the quarter was 244.10 million CNY, up 3.54% year over year but down 47.87% quarter over quarter, reflecting typical quarterly seasonality and Larger Q2 project recognition swings rather than a fundamental deterioration in demand. Gross profit reached 36.79 million CNY with a gross margin of 15.07%, supported by cost discipline and non-operating improvements; operating income was 18.02 million CNY (operating margin 7.38%), and net income was 14.68 million CNY (net margin 6.01%), translating into earnings per share of 0.22 CNY. On the cash flow front, the company generated 79.98 million CNY from operations and delivered free cash flow of 71.80 million CNY, highlighting a cash-rich, capital-efficient model. The balance sheet shows a strong liquidity position with cash and equivalents of approximately 426.89 million CNY against low gross debt, contributing to a net cash position of roughly 425.6 million CNY. Key liquidity and efficiency metrics remain solid, including a current ratio of 1.28 and a cash conversion cycle of about 80 days, underscoring the company’s ability to fund ongoing operations and selective growth initiatives. Management commentary for QQ3 2024 is not available in the provided transcript data, limiting direct quotes; nonetheless, the results imply a focus on cost control, profitable portfolio management, and disciplined capital allocation amid a cyclical real estate backdrop.
Key Performance Indicators
QoQ: -48.51% | YoY:18.06%
QoQ: -50.92% | YoY:17.41%
QoQ: -65.63% | YoY:-12.00%
Key Insights
Revenue: 244,098,500 CNY; YoY +3.54%; QoQ -47.87%. Gross Profit: 36,787,500 CNY; Gross Margin 15.07%; YoY +18.06%; QoQ -48.51%. Operating Income: 18,016,000 CNY; Operating Margin 7.38%; YoY +8.09%; QoQ -53.93%. Net Income: 14,679,000 CNY; Net Margin 6.01%; YoY +17.41%; QoQ -50.92%. EBITDA: 20,392,500 CNY; EBITDARatio 8.35%. EPS: 0.22 CNY; Diluted EPS: 0.22 CNY; YoY -12.00%; QoQ -65.63%. Free Cash Flow: 71,804,000 CNY; Operating Cash Flow: 79,977,500 CNY. Balance Sheet (as of 2024-09-30): ...
Financial Highlights
Revenue: 244,098,500 CNY; YoY +3.54%; QoQ -47.87%. Gross Profit: 36,787,500 CNY; Gross Margin 15.07%; YoY +18.06%; QoQ -48.51%. Operating Income: 18,016,000 CNY; Operating Margin 7.38%; YoY +8.09%; QoQ -53.93%. Net Income: 14,679,000 CNY; Net Margin 6.01%; YoY +17.41%; QoQ -50.92%. EBITDA: 20,392,500 CNY; EBITDARatio 8.35%. EPS: 0.22 CNY; Diluted EPS: 0.22 CNY; YoY -12.00%; QoQ -65.63%. Free Cash Flow: 71,804,000 CNY; Operating Cash Flow: 79,977,500 CNY. Balance Sheet (as of 2024-09-30): Total Assets 806,667,000 CNY; Total Liabilities 543,624,000 CNY; Total Equity 256,000,000 CNY. Cash & Equivalents: 426,892,000 CNY; Net Cash Position: approx. -425,606,000 CNY (net cash). Current Ratio: 1.28; Quick Ratio: 1.27; Cash Ratio: 0.79. Returns: ROA 1.82%; ROE 5.73%; ROCE 6.76%. Valuation Samples: P/B 4.77; P/E 20.79; EV/EBITDA 38.98; Price to Sales 5.00. Leverage: Total Debt 1,286,000 CNY; Debt-to-Equity 0.0050; Net Debt negative, reflecting a cash-rich balance sheet. Working capital dynamics and non-cash items show a large non-cash item of 75,939,000 CNY in cash flow from operations, requiring attention to the composition of “other non-cash items.”
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
244.10M |
3.54% |
-47.87% |
| Gross Profit |
36.79M |
18.06% |
-48.51% |
| Operating Income |
18.02M |
8.09% |
-53.93% |
| Net Income |
14.68M |
17.41% |
-50.92% |
| EPS |
0.22 |
-12.00% |
-65.63% |
Key Financial Ratios
operatingProfitMargin
7.38%
Management Commentary
transcriptHighlights: No earnings transcript data provided for QQ3 2024 in the supplied material. As a result, management-specific insights and thematic quotes could not be extracted or quoted. The analysis instead emphasizes the quantified results and inferred strategic signals from the reported numbers, including disciplined cost management, stable but seasonally uneven revenue, and a cash-rich balance sheet.
No transcript available for QQ3 2024.
— N/A
No transcript available for QQ3 2024.
— N/A
Forward Guidance
Management guidance for QQ3 2024 is not included in the provided data. Given the quarterly revenue volatility (QoQ decline in QQ3 2024) and the real estate services sector’s cyclical sensitivity to macro conditions, a cautious but constructive view is prudent. Growth catalysts could include: (1) expansion of value-added and municipal services tied to government initiatives and urban development, (2) improved contract mix that favors higher-margin property management segments, and (3) continued cash-generative discipline enabling selective investments or selective acquisitions. Risks to guidance include slower real estate activity, policy shifts affecting municipal services budgets, and competitive intensity in the Chinese property-management market. Investors should monitor: changes in contract mix and pricing, utilization of cash reserves, working capital dynamics, and any management commentary on contract renewal velocity and cost optimization initiatives.