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

• Market Cap: HK$2.29B
• Dividend Yield: N/A
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 6.37
• Revenue Growth: -45.13%
• EPS Growth: 60.10%
• Country: HK
• Employees: 256
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.04
• Shares Outstanding: 1,561,138,700
• 10 Day Avg. Volume: 2,531,620
• 30 Day Avg. Volume: 2,887,008
• PEG Ratio: 0.95
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 45.99
• P/FCF Ratio: -4.44
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$1.50 ▲(7.91% Upside)

The score is primarily held back by weak financial performance—declining revenue, ongoing losses, and inconsistent operating/free cash flow—despite a comparatively resilient balance sheet with no reported debt. Technicals are mixed (short-term strength but weaker longer-term trend and negative MACD), and valuation is constrained by losses and the absence of a dividend yield.

Positive Factors

Debt-free balance sheet

A lack of reported debt provides durable financial flexibility, reducing default and interest-rate risk and enabling the firm to fund operations, absorb shocks, or pursue strategic opportunities without near-term refinancing pressure. This supports resilience over the next 2-6 months.

Diversified revenue streams

Multiple business lines (brokerage, asset management, corporate finance) and partnerships create structural revenue diversification, lowering single-segment dependence. This supports steady fee capture and cross-selling potential, helping stabilize revenues as market cycles evolve.

Sustainably strong gross margins

A robust gross margin signals underlying pricing power or cost-efficient core operations, offering potential operating leverage if SG&A and overhead are controlled. Preserved gross profitability is a durable foundation for margin recovery if revenue stabilizes or costs are rationalized.

Negative Factors

Material revenue decline

Sustained top-line contraction reduces scale economics, hinders reinvestment, and pressures long-term competitiveness. Continued revenue erosion over several quarters makes durable recovery harder, magnifying the need for structural business improvements or market share gains.

Persistent net losses and negative ROE

Ongoing losses and negative ROE erode capital and limit the company's ability to generate returns for shareholders. This constrains retained capital for growth, risks further equity decline, and may force external funding or strategic restructuring to restore profitability.

Inconsistent operating and free cash flow

Volatile or zero operating cash flow undermines liquidity and makes investment, regulatory capital maintenance, and client funding unpredictable. Persistent cash-flow inconsistency increases reliance on parent support or capital markets, posing a structural constraint on sustainable growth.

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

Company Description

Shenwan 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 Money

Shenwan Hongyuan (H.K.) Limited generates revenue through several key streams. The primary source of income is from brokerage services, where the company earns commissions on trades executed for clients. Additionally, the firm derives revenue from asset management fees for managing client portfolios and investment funds. Corporate finance services, including advisory services for mergers and acquisitions, also contribute to the company's earnings. Significant partnerships with other financial institutions and participation in capital market activities enhance its revenue potential, while the firm's focus on expanding its client base and services in the Greater China region supports its growth strategy.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	363.96M	55.33M	439.01M	270.14M	730.29M	840.01M
Gross Profit	363.96M	-167.26M	201.26M	147.93M	464.40M	698.95M
EBITDA	61.87M	-47.24M	136.00M	-647.83M	204.57M	344.60M
Net Income	-63.28M	-160.73M	-192.45M	-879.92M	-95.75M	175.63M
Balance Sheet
Total Assets	12.13B	8.78B	12.85B	16.52B	22.91B	16.29B
Cash, Cash Equivalents and Short-Term Investments	5.78B	3.62B	5.02B	5.32B	7.67B	5.02B
Total Debt	1.78B	2.49B	3.45B	5.25B	8.52B	5.56B
Total Liabilities	9.44B	6.15B	10.06B	13.56B	19.05B	12.25B
Stockholders Equity	2.69B	2.63B	2.79B	2.96B	3.85B	4.04B
Cash Flow
Free Cash Flow	-669.19M	-572.64M	2.60B	1.86B	961.84M	-4.09B
Operating Cash Flow	-664.11M	-566.39M	2.61B	1.87B	969.58M	-4.07B
Investing Cash Flow	167.76M	-5.94M	181.71M	42.08M	136.12M	232.22M
Financing Cash Flow	235.01M	-275.13M	-2.74B	-1.25B	-943.92M	3.32B

Shenwan Hongyuan (H.K.) Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 1.39 is above the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.45, and below the 200-day MA of 1.59, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
0064	70 Outperform	HK$1.86B	30.21	0.95%	3.28%	9.64%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0717	58 Neutral	HK$653.86M	4.36	4.26%	―	84.88%	122.45%
3678	58 Neutral	HK$866.46M	204.19	0.82%	0.33%	-53.05%	-32.93%
0218	53 Neutral	HK$2.29B	-35.31	-2.44%	―	-45.13%	60.10%
0993	39 Underperform	HK$1.22B	-1.16	―	―	-78.40%	-196.19%
2324	38 Underperform	HK$67.52M	0.53	-14.26%	―	2126.94%	36.49%

Shenwan Hongyuan (H.K.) Limited Corporate Events

Shenwan Hongyuan (H.K.) Shifts Share Registrar to Tricor Investor Services

Shenwan Hongyuan (H.K.) Limited has announced that it will change its share registrar and transfer office to Tricor Investor Services Limited in Hong Kong, effective 9 January 2026. From that date, all applications for share transfer registration and collection of any unclaimed share certificates will be handled by Tricor, a move that mainly affects shareholders and investors dealing with the company’s share registration and administrative processes but does not alter its core business operations.

The most recent analyst rating on (HK:0218) stock is a Hold with a HK$1.50 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.) Sets Formal Mandate for Nomination Committee to Strengthen Board Governance

Shenwan Hongyuan (H.K.) Limited has formally set out the terms of reference for its Nomination Committee, a board-level body responsible for overseeing director appointments and board composition. The committee will comprise a majority of independent non-executive directors, be chaired by either the board chairman or an independent non-executive director, and must include at least one director of a different gender, underscoring the firm’s commitment to board diversity. Meeting at least once a year, the committee is empowered to determine director nomination policy, seek independent professional advice at the company’s expense, and make recommendations on board structure, succession planning, and the independence of non-executive directors. It will also monitor and review the effectiveness of the company’s Board Diversity Policy and support regular board performance evaluations, reinforcing corporate governance standards and aligning board capabilities with the company’s strategic direction.

The most recent analyst rating on (HK:0218) stock is a Hold with a HK$1.50 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 Cancels Executive Committee to Streamline Governance

Shenwan Hongyuan (H.K.) Limited announced the cancellation of its Executive Committee effective November 5, 2025, as part of efforts to optimize corporate governance and improve operational efficiency. The responsibilities of the Executive Committee will be assumed by the Board and the Management Committee, potentially streamlining decision-making processes and enhancing the company’s governance structure.

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 New Board Composition

Shenwan Hongyuan (H.K.) Limited has announced a new composition of its board of directors, effective from November 5, 2025. This restructuring includes the appointment of Ms. Wu Meng as Chairman and Mr. Liang Jun as Chief Executive Officer, among other key roles. The announcement reflects the company’s strategic efforts to strengthen its governance and operational oversight, potentially impacting its market positioning and stakeholder relationships positively.

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 EGM Approves Key Resolutions

Shenwan Hongyuan (H.K.) Limited held an Extraordinary General Meeting on October 15, 2025, where shareholders voted on key resolutions. The meeting successfully passed two ordinary resolutions: the appointment of Mr. Li Shouwei as Executive Director and authorizing the Board to determine director remuneration. The results reflect strong shareholder support, with over 99% voting in favor, indicating stability and confidence in the company’s leadership and governance.

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 Appoints New Executive Director

Shenwan Hongyuan (H.K.) Limited has announced the appointment of Mr. Li Shouwei as an Executive Director, effective from October 15, 2025. Mr. Li, who has an extensive background in risk management, will also join the company’s risk and executive committees, potentially strengthening the company’s governance and risk oversight capabilities.

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 Updates Board of Directors and Committee Roles

Shenwan Hongyuan (H.K.) Limited has announced the updated list of its board of directors, effective from October 15, 2025. This update includes the roles and functions of each director, highlighting the leadership of Ms. Wu Meng as Chairman and Mr. Liang Jun as Chief Executive Officer. The announcement also details the composition of seven board committees, emphasizing the company’s structured governance framework.

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.