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Shenwan Hongyuan (H.K.) Limited (HK:0218)
:0218
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Shenwan Hongyuan (H.K.) Limited (0218) AI Stock Analysis

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HK:0218

Shenwan Hongyuan (H.K.) Limited

(Frankfurt:0218)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
HK$2.00
▲(8.11% Upside)
The overall stock score is primarily influenced by significant financial performance challenges, including declining revenues and persistent net losses. Technical analysis indicates weak market momentum, further weighing on the stock's outlook. Poor valuation metrics, such as a negative P/E ratio and no dividend yield, also contribute to the low score.

Shenwan Hongyuan (H.K.) Limited (0218) vs. iShares MSCI Hong Kong ETF (EWH)

Shenwan Hongyuan (H.K.) Limited Business Overview & Revenue Model

Company DescriptionShenwan Hongyuan (H.K.) Limited engages in wealth management, enterprise finance, institutional services and trading, asset management, and other businesses in Hong Kong. The company's Enterprise Finance segment offers stock underwriting sponsorship, bond underwriting, and financial advisory services for corporate clients; and equity, debt, and other investment services. Its Wealth Management segment provides securities, futures, and options brokerage services; and wealth management, over the counter, and securities margin financing products to individual clients and non-professional institutional investors. The company's Institutional Services and Trading segment provides stock brokerage and trading services; research advisory, and investment and financing solutions; and sales, trading, hedging, and over-the-counter derivative services to institutional clients, as well as sells and trades in fixed income bonds, currencies, and commodities. Its Asset Management segment offers public and private fund management, investment advisory, and entrusted discretionary managed account services. The company was formerly known as Shenyin Wanguo (H.K.) Limited and changed its name to Shenwan Hongyuan (H.K.) Limited in May 2015. The company was incorporated in 1972 and is headquartered in Wan Chai, Hong Kong.
How the Company Makes MoneyShenwan Hongyuan (H.K.) Limited generates revenue through various financial services. The company's primary revenue streams include commissions and fees from securities and futures brokerage, which involve facilitating trades for clients in exchange for a fee. Additionally, the firm earns from providing corporate finance and advisory services, such as underwriting and advising on mergers and acquisitions. Asset management services contribute to revenue through management fees and performance-based fees from managing investment portfolios for clients. The company also benefits from interest income generated through margin lending and other financing activities. Strategic partnerships and a strong client network enhance its market presence and contribute to its earnings.

Shenwan Hongyuan (H.K.) Limited Financial Statement Overview

Summary
Shenwan Hongyuan (H.K.) Limited faces profitability and cash flow challenges, with declining revenues and persistent net losses. Despite a strong balance sheet with minimal debt, the company struggles with liquidity and generating positive cash flows.
Income Statement
65
Positive
The company has experienced a decline in revenue over the past few years, with the most recent year showing a significant drop. The gross profit margin remains strong, but consistent net losses indicate weak profitability. Revenue growth is negative, and both EBIT and EBITDA margins are absent or negative in recent years, suggesting operational challenges.
Balance Sheet
70
Positive
The company maintains a strong equity position with no total debt reported in the latest year. However, a declining stockholders' equity and negative return on equity indicate challenges in generating shareholder value. The equity ratio is relatively stable, providing some balance sheet resilience.
Cash Flow
50
Neutral
Operating cash flow has fluctuated significantly, with recent periods showing zero operating cash flow. Free cash flow has also been inconsistent, highlighting potential liquidity challenges. The free cash flow to net income ratio is not available due to negative net income, indicating cash flow issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue55.33M439.01M336.91M646.19M719.22M
Gross Profit-167.26M201.26M50.58M380.30M439.17M
EBITDA-47.24M58.31M-224.28M29.74M344.60M
Net Income-160.73M-192.45M-879.92M-95.75M175.63M
Balance Sheet
Total Assets8.78B12.85B16.52B22.91B16.29B
Cash, Cash Equivalents and Short-Term Investments3.62B5.02B5.32B7.67B5.02B
Total Debt2.49B3.45B5.25B8.52B5.56B
Total Liabilities6.15B10.06B13.56B19.05B12.25B
Stockholders Equity2.63B2.79B2.96B3.85B4.04B
Cash Flow
Free Cash Flow-572.64M2.60B1.86B961.84M-4.09B
Operating Cash Flow-566.39M2.61B1.87B969.58M-4.07B
Investing Cash Flow-5.94M181.71M42.08M136.12M232.22M
Financing Cash Flow-275.13M-2.74B-1.25B-943.92M3.32B

Shenwan Hongyuan (H.K.) Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.85
Price Trends
50DMA
2.02
Negative
100DMA
1.69
Positive
200DMA
1.61
Positive
Market Momentum
MACD
-0.02
Positive
RSI
50.80
Neutral
STOCH
51.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0218, the sentiment is Positive. The current price of 1.85 is below the 20-day moving average (MA) of 1.95, below the 50-day MA of 2.02, and above the 200-day MA of 1.61, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.80 is Neutral, neither overbought nor oversold. The STOCH value of 51.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0218.

Shenwan Hongyuan (H.K.) Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
876.31M10.251.92%-4.56%0.00%
62
Neutral
1.12B312.501.59%0.26%3.47%0.70%
60
Neutral
1.81B34.430.00%1.75%13.35%15.14%
53
Neutral
€3.04B-2.44%-45.13%60.10%
39
Underperform
1.73B-1.5910.60%-78.40%-196.19%
38
Underperform
64.82M-1.380.00%2126.94%36.49%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0218
Shenwan Hongyuan (H.K.) Limited
1.85
1.54
487.30%
DE:93W
Huarong International Financial Holdings Limited
0.02
>-0.01
-33.33%
DE:HQF
Emperor Capital Group Limited
0.01
0.00
0.00%
HK:2324
Capital VC Limited
0.15
0.07
87.50%
HK:3678
Holly Futures Co. Ltd. Class H
4.11
2.41
141.76%
HK:0064
Get Nice Holdings Limited
2.86
-0.15
-4.98%

Shenwan Hongyuan (H.K.) Limited Corporate Events

Shenwan Hongyuan (H.K.) Limited Approves MOU at EGM
Sep 1, 2025

Shenwan Hongyuan (H.K.) Limited, a company incorporated in Hong Kong, held an Extraordinary General Meeting (EGM) on September 1, 2025, to vote on proposed ordinary resolutions. The primary focus was the approval of a memorandum of understanding (MOU) with Shenwan Hongyuan Group Co., Ltd. regarding continuing connected transactions. The resolution was passed with 96.63% of the votes in favor, allowing the company’s directors to execute necessary actions to implement the MOU. This decision is significant for the company’s strategic operations and compliance with Hong Kong’s listing rules.

The most recent analyst rating on (HK:0218) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenwan Hongyuan (H.K.) Limited stock, see the HK:0218 Stock Forecast page.

Shenwan Hongyuan (H.K.) Limited Reports Turnaround in H1 2025 Financial Results
Aug 22, 2025

Shenwan Hongyuan (H.K.) Limited reported a significant turnaround in its financial performance for the first half of 2025, achieving a profit of HK$60.1 million compared to a loss of HK$37.3 million in the same period last year. This improvement was driven by increased revenue, particularly from interest income and contracts with customers, despite higher interest expenses and commission costs. The company’s earnings per share rose to HK3.85 cents, reflecting its strengthened financial position and potential positive implications for stakeholders.

The most recent analyst rating on (HK:0218) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenwan Hongyuan (H.K.) Limited stock, see the HK:0218 Stock Forecast page.

Shenwan Hongyuan (H.K.) Limited Announces EGM for 2025 MOU Approval
Aug 12, 2025

Shenwan Hongyuan (H.K.) Limited has announced an extraordinary general meeting scheduled for September 1, 2025, to approve the 2025 SWHYG Memorandum of Understanding (MOU) with Shenwan Hongyuan Group Co., Ltd. This MOU pertains to continuing connected transactions and their annual caps, impacting the company’s operations through 2028. The board seeks authorization to execute necessary actions to implement these transactions, which could influence the company’s market positioning and stakeholder interests.

Shenwan Hongyuan (H.K.) Limited Schedules Board Meeting for Interim Results
Aug 8, 2025

Shenwan Hongyuan (H.K.) Limited has announced a board meeting scheduled for August 22, 2025, to discuss and approve the interim results for the first half of the year and consider the recommendation of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

Shenwan Hongyuan Announces Key Management Change
Aug 5, 2025

Shenwan Hongyuan (H.K.) Limited has announced a change in its company secretary and authorized representative roles, effective from August 5, 2025. Mr. Cheung Kai Cheong Willie has resigned, and Ms. Lin Sio Ngo, who has over 20 years of experience in corporate secretarial and administration management, has been appointed as his successor. This change is part of the company’s ongoing efforts to strengthen its corporate governance and administrative capabilities.

Shenwan Hongyuan (H.K.) Limited Enters New MOU with SWHYG for Connected Transactions
Aug 5, 2025

Shenwan Hongyuan (H.K.) Limited has entered into a new Memorandum of Understanding (MOU) with SWHYG, effective from September 2025 to May 2028, replacing the previous 2022 agreement. This MOU involves continuing connected transactions that require independent shareholders’ approval due to their scale, exceeding 5% of asset, revenue, and consideration ratios, and involves amounts over HK$10 million. An Independent Board Committee and an Independent Financial Adviser have been appointed to ensure the transactions are fair and in the best interest of the shareholders. The company plans to dispatch a circular with detailed information to shareholders by mid-August 2025.

Shenwan Hongyuan (H.K.) Limited Appoints New Non-Executive Director
Jul 31, 2025

Shenwan Hongyuan (H.K.) Limited has announced the appointment of Ms. Zhang Ying as a non-executive director, effective from July 31, 2025. Ms. Zhang brings extensive experience in economics and finance, having held significant positions at Central Huijin Investment Ltd. and other financial institutions. Her appointment is expected to strengthen the company’s governance and strategic direction, although she will not receive remuneration for her role.

Shenwan Hongyuan (H.K.) Limited Announces EGM Results
Jul 31, 2025

Shenwan Hongyuan (H.K.) Limited held an Extraordinary General Meeting on 31 July 2025, where shareholders voted on key resolutions. The resolutions, including the appointment of Ms. Zhang Ying as a non-executive director and authorizing the board to determine director remuneration, were passed unanimously. This meeting underscores the company’s commitment to strengthening its governance and operational framework.

Shenwan Hongyuan (H.K.) Limited Announces Positive Profit Alert for H1 2025
Jul 30, 2025

Shenwan Hongyuan (H.K.) Limited has issued a positive profit alert, indicating a significant turnaround in its financial performance for the first half of 2025. The company expects to report an unaudited consolidated profit after tax of between HK$55 million and HK$65 million, compared to a loss of HK$37 million in the same period of 2024. This improvement is attributed to the company’s strategic optimization of asset allocation, prudent risk management, and cost control, which have driven revenue growth in its core business areas.

Shenwan Hongyuan (H.K.) Sets Record Date for Extraordinary General Meeting
Jul 25, 2025

Shenwan Hongyuan (H.K.) Limited announced the record date for its upcoming extraordinary general meeting (EGM) scheduled for July 31, 2025. The register of members will be closed from July 25 to July 31, 2025, to determine shareholders’ entitlement to attend and vote at the EGM. This announcement is crucial for shareholders who wish to participate in the decision-making process, as it outlines the necessary steps and deadlines for registration.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 19, 2025