Nacity Property Service Group Co Ltd

Nacity Property Service Group Co Ltd has a market price of 12.15 CNY per share, with a market capitalization of 2,281,500,014.85 CNY. The company's price-to-book ratio is 2.09, and its price-to-tangible-book ratio is also 2.09, indicating that the market values the company at a premium to its book value. The enterprise value to EBITDA ratio is 846.24, which is significantly high, suggesting that the company is not currently generating strong earnings relative to its valuation. The enterprise value to revenue ratio is 5.27, which is in line with the industry's typical valuation metrics.

The company's profitability is weak, with a return on equity of -0.0003 and a return on assets of -0.0001, both of which are negative, indicating that the company is not generating returns for its shareholders or assets. The gross profit margin is 15.48%, and the operating margin is 0.62%, which are below the industry median for property service companies. The company's net income is negative at -291,790 CNY, reflecting a loss for the period.

The company's revenue is primarily derived from property management services, with a significant portion coming from residential properties. The geographic exposure is concentrated in China, with the majority of revenue generated from the domestic market. The company's revenue concentration is high, with no significant diversification across regions or customer segments.

The company's growth trajectory is uncertain, with a negative operating cash flow of -24,205,290 CNY and a capital expenditure of -795,300 CNY, indicating that the company is not generating sufficient cash to fund its operations or investments. The company's revenue history shows a decline in performance, with a net loss reported for the period. The outlook for the next fiscal year is not optimistic, with no significant growth drivers identified.

The company faces several risk factors, including liquidity risk due to a negative net cash position after subtracting total debt. The debt-to-equity ratio is 0.07, which is relatively low, but the company's current ratio of 1.36 suggests that it may struggle to meet its short-term obligations. The risk of dilution is low, with no significant dilution potential identified in the basic shares outstanding. The company has not made any recent significant announcements or filings that would indicate a change in its strategic direction.

Cash conversion of 82.95% ranks best-in-class among 118 real estate service peers, indicating superior cash generation efficiency.

Debt-to-equity ratio of 0.07 is below the cohort median of 0.15, suggesting a conservative capital structure with lower leverage risk.

Revenue grew at a 4.0% CAGR over four years, demonstrating modest but consistent top-line expansion despite margin pressures.

Long-term debt decreased significantly from 167 million CNY in 2022 to 46 million CNY in 2025, reducing interest obligations.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity value erosion.

Free cash flow turned negative at -20.4 million CNY in 2025, reversing previous positive trends and raising liquidity concerns.

Credit risk is flagged as high, suggesting significant potential for defaults or financial distress impacting the company's stability.

Return on equity is negative at -0.03%, underperforming the cohort median of 3.85% and failing to generate value for shareholders.

Revenue ¥1.81B, −2,5% YoY; Operating income −80,1% YoY.

• ▍Revenue ¥1.81B, −2,5% YoY
• ▍Operating income −80,1% YoY
• ▍Net income −88,2% YoY
• ▍Free cash flow −113,0% YoY
• ▍Net margin 1.2%

Revenue ¥1.85B, +15,9% YoY; Operating income −16,1% YoY.

• ▍Revenue ¥1.85B, +15,9% YoY
• ▍Operating income −16,1% YoY
• ▍Net income −10,7% YoY
• ▍Free cash flow −26,9% YoY
• ▍Net margin 7.9%

Revenue ¥1.59B; Operating income ¥235.1M.

• ▍Revenue ¥1.59B
• ▍Operating income ¥235.1M
• ▍Net margin 10.2%