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

• Market Cap: HK$2.92B
• Dividend Yield: N/A
• Average Volume (3M): 17.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 6.14
• Revenue Growth: -90.83%
• EPS Growth: 16.46%
• Country: HK
• Employees: 256
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Capital Markets
• EPS (TTM): -0.08
• Shares Outstanding: 1,561,138,700
• 10 Day Avg. Volume: 8,831,257
• 30 Day Avg. Volume: 17,120,882
• PEG Ratio: N/A
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.63
• 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: 59 Neutral
• Price Target: HK$2.00 ▼(-5.21%Downside)

The company's score is primarily driven by significant financial performance challenges, particularly in profitability and cash flow. Technical analysis provides some positive momentum, but valuation remains weak due to persistent losses. The absence of earnings call and corporate event insights limits additional context.

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

Company Description

Shenwan Hongyuan (H.K.) Limited (0218) is a leading financial services provider based in Hong Kong, operating as a subsidiary of the Shenwan Hongyuan Group Co., Ltd. The company is primarily engaged in securities and futures brokerage, corporate finance, asset management, and financial advisory services. Its core offerings include investment banking, wealth management, and institutional services, catering to a diverse client base that includes individual investors, corporate entities, and institutional clients.

How the Company Makes Money

Shenwan 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

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: 2.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.11 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 1.65, and above the 200-day MA of 1.57, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 54.84 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	70 Neutral	HK$606.68M	7.50	2.36%	―	-4.56%	―
3678	62 Neutral	HK$1.09B	91.79	2.39%	0.23%	65.33%	―
0064	60 Neutral	HK$1.85B	35.71	0.66%	6.45%	-37.82%	-104.07%
0218	59 Neutral	HK$2.92B	―	-5.86%	―	-90.83%	16.46%
Sector *	58 Neutral	HK$93.21B	5.42	-3.19%	4.97%	5.93%	-50.48%
0993	46 Neutral	HK$2.06B	―		―	-74.76%	33.57%
2324	38 Underperform	HK$73.82M	―	-14.26%	―	―	86.64%

Shenwan Hongyuan (H.K.) Limited Corporate Events

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

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

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

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

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.

Shenwan Hongyuan (H.K.) Limited Announces EGM for Director Appointment

Shenwan Hongyuan (H.K.) Limited, a company incorporated in Hong Kong, has announced an Extraordinary General Meeting (EGM) scheduled for July 31, 2025. The meeting will address the appointment of Ms. Zhang Ying as a non-executive director and authorize the board to determine director remuneration. This announcement is part of the company’s governance and operational updates, potentially impacting its leadership structure and decision-making processes.

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.