<div id="readability-page-1"><div><p>Yuexiu Services Group (SEHK:6626) has reported its FY 2025 first half with revenue of C¥1.96b and basic EPS of C¥0.16, setting the tone for how the rest of the year could shape up for shareholders watching earnings quality and scale. The company has seen revenue hold around the C¥1.96b mark across the past two reported halves, with basic EPS moving from C¥0.18 in 1H 2024 to C¥0.05 in 2H 2024 before landing at C¥0.16 in 1H 2025. This gives a clear view of how profitability per share has tracked against a relatively steady top line. With trailing net profit margins at 7% versus 9.1% a year earlier, the story now hinges on how any future revenue expansion might relate to margins.</p> <p>See our full analysis for Yuexiu Services Group.</p><p>With the headline numbers set, the next step is to see how this earnings print lines up with the widely followed growth and risk narratives around Yuexiu Services Group, and where the latest margins either support or challenge those stories.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/868889da-9c25-4343-a91b-ac0a82ed2c2c/chart/earnings-and-revenue-history/query-ZGF0ZT0yMDI2LTAzLTI3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/868889da-9c25-4343-a91b-ac0a82ed2c2c/chart/earnings-and-revenue-history/query-ZGF0ZT0yMDI2LTAzLTI3"/><figcaption>SEHK:6626 Earnings &amp; Revenue History as at Mar 2026</figcaption></figure> <h2>Margins Softening With 7% Net Profit Level</h2> <ul> <li>On a trailing basis, Yuexiu Services Group is earning a 7% net profit margin, compared with 9.1% a year earlier, alongside trailing twelve month revenue of C¥3,901.89m and net income of C¥273.69m.</li> <li>What stands out for the bullish view is that forecast earnings growth of about 35.1% per year sits against this softer margin base. This means:     <ul> <li>Trailing twelve month net income has moved from C¥352.92m to C¥273.69m, so any bullish case around higher earnings growth needs this margin picture to improve rather than stay at 7%.</li> <li>Revenue is forecast to grow by about 11.5% per year, so bulls are effectively arguing that future efficiency on top of this revenue profile will do more heavy lifting than the recent margin line suggests.</li> </ul> </li> </ul> <h2>Revenue Holding Near C¥1.96b While Profit Swings</h2> <ul> <li>Across the last three reported halves, revenue has stayed close to C¥1,960m per period, while net income (excluding extra items) moved from C¥277.68m in 1H 2024 to C¥75.25m in 2H 2024 and then to C¥239.71m in 1H 2025.</li> <li>Bears often focus on earnings variability, and these swings give them material numbers to point to. Yet the relatively steady top line challenges the idea that the core business is unstable:     <ul> <li>Past year earnings were negative relative to the five year average growth of 3.3% per year, so critics highlight that recent profit performance has not been smooth.</li> <li>At the same time, revenue expectations of about 11.5% growth per year and the stable semi annual revenue base suggest that the issue has been profitability rather than demand, which is a different type of risk for investors to think through.</li> </ul> </li> </ul> <h2>P/E Of 8.4x Versus DCF Fair Value C¥4.42</h2> <ul> <li>The shares trade on a trailing P/E of 8.4x compared with a peer average of 20.6x and industry average of 11.9x, and a DCF fair value of HK$4.42 sits well above the current HK$1.74 share price.</li> <li>Supporters of the bullish narrative point to this valuation gap, but the earnings track record means the numbers need to be read in context:     <ul> <li>Forecast earnings growth of roughly 35% per year and revenue growth of about 11.5% per year heavily supports the bullish case that a low P/E is tied more to caution than to weak forward fundamentals.</li> <li>However, the fact that trailing margins are at 7% versus 9.1% a year earlier and that past year earnings were negative versus a 3.3% five year growth rate is a reminder that any potential upside implied by the 8.4x P/E and DCF fair value still rests on more consistent profitability.</li> </ul> </li> </ul> <p>To see how other investors are weighing these growth forecasts against the recent margin picture, check out what the community is saying about Yuexiu Services Group <strong>📊 Read the what the Community is saying about Yuexiu Services Group.</strong></p> <h2>Next Steps</h2> <p>Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Yuexiu Services Group's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.</p> <p>With margins, earnings swings and valuation all in focus, the sentiment around Yuexiu Services Group is far from settled. It helps to review the numbers firsthand while this earnings story is still fresh and form a view that fits personal goals by weighing both the risks and the 3 key rewards</p> <h2>Explore Alternatives</h2> <p>Yuexiu Services Group shows softer margins around 7%, uneven earnings and a low P/E that still relies heavily on more consistent profitability to support the story.</p> <p>If that earnings and margin uncertainty leaves you wanting sturdier options, compare this set of results with companies in the 284 resilient stocks with low risk scores to quickly focus on more resilient profiles.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

06626

<p>Yuexiu Services Group (SEHK:6626) reported FY 2025 first half revenue of C¥1.96b and basic EPS of C¥0.16, with net profit margins declining to 7% from 9.1% a year earlier. Despite steady revenue, net income has fluctuated, raising concerns about profitability. The company forecasts earnings growth of 35.1% annually against a backdrop of softer margins, while trading at a P/E of 8.4x compared to industry averages. Investors are urged to consider long-term trends and risks as sentiment remains uncertain.</p>

Yuexiu Services Group (SEHK:6626) Margin Slippage Challenges Bullish Growth Narrative