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

• Market Cap: HK$2.70B
• Dividend Yield: N/A
• Average Volume (3M): 6.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 5.97
• Revenue Growth: -90.83%
• EPS Growth: 16.46%
• Country: HK
• Employees: 256
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): -0.08
• Shares Outstanding: 1,561,138,700
• 10 Day Avg. Volume: 16,200,471
• 30 Day Avg. Volume: 6,254,157
• PEG Ratio: N/A
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$2.00 ▲(17.65%Upside)

The overall stock score reflects significant financial performance challenges, particularly in profitability and cash flow generation. Technical analysis indicates high volatility and potential overbought conditions, while valuation metrics reveal non-profitability, contributing to a lower score. The absence of dividends further impacts the stock's attractiveness.

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

Company Description

Shenwan Hongyuan (H.K.) Limited (0218) is a premier financial services provider headquartered in Hong Kong, offering a comprehensive suite of services across various sectors, including securities brokerage, wealth management, investment banking, and asset management. As a subsidiary of Shenwan Hongyuan Group Co., Ltd., one of China's leading securities firms, the company leverages its extensive expertise and robust platform to serve both individual and institutional clients in the Asia-Pacific region.

How the Company Makes Money

Shenwan Hongyuan (H.K.) Limited generates revenue primarily through its diverse range of financial services. Key revenue streams include commissions and fees from securities brokerage activities, advisory fees from wealth management and investment banking services, as well as management fees from asset management operations. The company also earns interest income from margin financing and other financial products. Strategic partnerships and collaborations with other financial institutions and corporations enhance its service offerings and contribute to its revenue growth. Market conditions, client activity levels, and regulatory environments are significant factors influencing its earnings.

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

Summary

Shenwan Hongyuan (H.K.) Limited faces significant profitability and cash flow challenges, as indicated by declining revenues and persistent net losses. The balance sheet remains relatively strong due to minimal debt, but the inability to generate positive cash flows and net income suggests operational and financial hurdles that need to be addressed.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.33M	439.01M	336.91M	646.19M	719.22M
Gross Profit	-167.26M	201.26M	50.58M	380.30M	439.17M
EBITDA	-47.24M	58.31M	-224.28M	29.74M	344.60M
Net Income	-160.73M	-192.45M	-879.92M	-95.75M	175.63M
Balance Sheet
Total Assets	8.78B	12.85B	16.52B	22.91B	16.29B
Cash, Cash Equivalents and Short-Term Investments	3.62B	5.02B	5.32B	7.67B	5.02B
Total Debt	2.49B	3.45B	5.25B	8.52B	5.56B
Total Liabilities	6.15B	10.06B	13.56B	19.05B	12.25B
Stockholders Equity	2.63B	2.79B	2.96B	3.85B	4.04B
Cash Flow
Free Cash Flow	-572.64M	2.60B	1.86B	961.84M	-4.09B
Operating Cash Flow	-566.39M	2.61B	1.87B	969.58M	-4.07B
Investing Cash Flow	-5.94M	181.71M	42.08M	136.12M	232.22M
Financing Cash Flow	-275.13M	-2.74B	-1.25B	-943.92M	3.32B

Shenwan Hongyuan (H.K.) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.7 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.31, and above the 200-day MA of 1.45, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 63.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.27 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0717	67 Neutral	€599.94M	7.42	2.36%	―	-4.56%	―
3678	62 Neutral	HK$1.23B	103.37	2.39%	0.09%	65.33%	―
0064	60 Neutral	HK$1.88B	36.19	0.66%	6.58%	-37.82%	-104.07%
Sector *	58 Neutral	HK$90.77B	5.06	-3.21%	5.22%	7.36%	-55.21%
0218	53 Neutral	HK$2.70B	―	-5.86%	―	-90.83%	16.46%
0993	45 Neutral	€2.13B	―		―	-74.76%	33.57%
2324	38 Underperform	HK$66.62M	―	-14.26%	―	―	86.64%

Shenwan Hongyuan (H.K.) Limited Corporate Events

Shenwan Hongyuan (H.K.) Limited AGM Resolutions Passed with Unanimous Support

Shenwan Hongyuan (H.K.) Limited successfully held its Annual General Meeting on May 23, 2025, where all proposed resolutions were passed with overwhelming support. Key resolutions included the re-election of directors, the reappointment of auditors, and the granting of mandates for share issuance and repurchase, indicating strong shareholder confidence in the company’s governance and strategic direction.

Shenwan Hongyuan (H.K.) Limited Announces 2025 AGM and Key Resolutions

Shenwan Hongyuan (H.K.) Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 23, 2025, in Hong Kong. The AGM will address several key resolutions, including the adoption of financial statements for 2024, re-election of directors, and re-appointment of auditors. Additionally, the meeting will consider granting the board authority to issue new shares, subject to certain conditions. These resolutions are crucial for the company’s governance and strategic planning, potentially impacting its market operations and stakeholder interests.

Shenwan Hongyuan (H.K.) Limited Announces EGM Poll Results

Shenwan Hongyuan (H.K.) Limited held an Extraordinary General Meeting on April 11, 2025, where shareholders voted on two ordinary resolutions. The resolutions, which included appointing Ms. Chiu Lai Kuen Susanna as an independent non-executive director and authorizing the board to determine director remuneration, were both passed with overwhelming support. This decision reflects the company’s ongoing efforts to strengthen its board with experienced leadership and ensure effective governance, potentially enhancing its market position and stakeholder confidence.

Shenwan Hongyuan (H.K.) Limited Appoints New Independent Non-Executive Director

Shenwan Hongyuan (H.K.) Limited has announced the appointment of Ms. Chiu Lai Kuen Susanna as an Independent Non-Executive Director, effective April 11, 2025. Ms. Chiu brings extensive experience in accounting and finance, having held numerous directorships and leadership roles in various companies and organizations. Her appointment also involves changes in the composition of several committees, including the Audit, Remuneration, Nomination, Risk, and Environmental, Social, and Governance Committees. This strategic move is expected to enhance the company’s governance and compliance with listing rules, potentially strengthening its market position and stakeholder confidence.

Shenwan Hongyuan (H.K.) Limited Announces New Board Composition

Shenwan Hongyuan (H.K.) Limited has announced a new composition of its board of directors, effective from April 11, 2025. This restructuring includes the appointment of Ms. Wu Meng as Chairman and Mr. Liang Jun as Chief Executive Officer. The board is comprised of executive, non-executive, and independent non-executive directors, who will serve on various committees, including audit, remuneration, and risk committees. This announcement reflects the company’s strategic focus on strengthening its governance and operational oversight, potentially impacting its market positioning and stakeholder confidence.