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Shenwan Hongyuan (H.K.) Limited (HK:0218)
:0218

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

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HK

Shenwan Hongyuan (H.K.) Limited

(Frankfurt:0218)

Rating:51Neutral
Price Target:
The overall score reflects significant operational and financial challenges, with declining revenue and profitability issues being the most critical factors. Technical indicators point to bearish sentiment, and valuation metrics suggest high risk due to ongoing losses and volatility. The company's strong balance sheet provides some support but is overshadowed by poor cash flow and income generation.

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 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
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
55.33M439.01M336.91M646.19M719.22M
Gross Profit
-167.26M201.26M50.58M380.30M439.17M
EBIT
-101.64M-179.21M-646.82M66.26M192.01M
EBITDA
-54.44M58.31M-224.28M29.74M344.60M
Net Income Common Stockholders
-160.73M-192.45M-879.92M-95.75M175.63M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.62B5.02B1.24B576.71M414.93M
Total Assets
8.78B12.85B16.52B22.91B16.29B
Total Debt
0.003.45B5.25B8.52B5.56B
Net Debt
2.05B2.16B4.01B7.94B5.15B
Total Liabilities
6.15B10.06B118.96M98.65M136.52M
Stockholders Equity
2.63B2.79B2.96B3.85B4.04B
Cash FlowFree Cash Flow
0.002.60B1.86B961.84M-4.09B
Operating Cash Flow
0.002.61B1.87B969.58M-4.07B
Investing Cash Flow
0.00181.71M42.08M136.12M232.22M
Financing Cash Flow
0.00-2.74B-1.25B-943.92M3.32B

Shenwan Hongyuan (H.K.) Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.34
Price Trends
50DMA
1.23
Positive
100DMA
1.40
Negative
200DMA
1.36
Positive
Market Momentum
MACD
0.02
Negative
RSI
60.17
Neutral
STOCH
69.44
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 1.34 is above the 20-day moving average (MA) of 1.25, above the 50-day MA of 1.23, and below the 200-day MA of 1.36, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$12.93B9.817.84%78.03%12.20%-7.74%
51
Neutral
€2.14B-5.86%-90.83%16.46%
$32.31B5.617.87%0.80%
$50.59B8.44%4.90%
$20.63B7.539.25%38.63%
$7.57B6.959.19%5.61%
DEGUE
€1.24B24.882.31%3.39%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0218
Shenwan Hongyuan (H.K.) Limited
1.34
1.01
306.06%
CEBCF
China Everbright Bank Co
0.50
0.22
78.57%
CIIHF
CITIC Securities Co
2.75
1.30
89.66%
HUATF
Huatai Securities Co
1.70
0.53
45.30%
SHTDF
Sinopharm Group Co
2.18
-0.64
-22.70%
DE:GUE
Guotai Junan International Holdings Limited
0.11
0.07
175.00%

Shenwan Hongyuan (H.K.) Limited Corporate Events

Shenwan Hongyuan (H.K.) Limited Announces 2025 AGM and Key Resolutions
Apr 30, 2025

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
Apr 11, 2025

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
Apr 11, 2025

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
Apr 11, 2025

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.

Shenwan Hongyuan (H.K.) Limited Reports 2024 Financial Results with Reduced Losses
Mar 28, 2025

Shenwan Hongyuan (H.K.) Limited reported its final results for the year ended December 31, 2024, revealing a consolidated loss of HK$160,726,000, which is an improvement from the previous year’s loss of HK$192,454,000. Despite the overall loss, the company experienced a net gain in other comprehensive income, although total comprehensive loss for the year was HK$160,831,000. The results indicate challenges in revenue generation, with a significant drop in total revenue compared to the previous year, impacting the company’s financial standing and shareholder returns.

Shenwan Hongyuan (H.K.) Limited Granted Waiver for Director Appointment
Mar 27, 2025

Shenwan Hongyuan (H.K.) Limited announced that it has been granted a waiver from strict compliance with certain listing rules by the Hong Kong Stock Exchange. This waiver, effective until April 11, 2025, allows the company additional time to appoint a new Independent Non-executive Director and member of the Audit Committee following the passing of Mr. Ng Wing Hang Patrick. The company is in the process of finalizing arrangements for the appointment and will make further announcements as appropriate.

Shenwan Hongyuan (H.K.) Limited Announces EGM for Board Appointment
Mar 27, 2025

Shenwan Hongyuan (H.K.) Limited has announced an extraordinary general meeting scheduled for April 11, 2025, to appoint Ms. Chiu Lai Kuen Susanna as an independent non-executive director. This move is part of the company’s ongoing efforts to strengthen its board’s independence and governance, potentially enhancing its strategic decision-making and market positioning.

Shenwan Hongyuan (H.K.) Limited Issues Profit Warning Amid Market Challenges
Mar 26, 2025

Shenwan Hongyuan (H.K.) Limited has issued a profit warning, expecting its unaudited consolidated loss after tax for the year ending December 31, 2024, to be between HK$150 million and HK$170 million, marking a reduction of 12% to 22% compared to the previous year’s loss. Despite challenges such as geopolitical instability and tightening global monetary policy affecting the global economic recovery, the company has implemented measures to mitigate these impacts, maintaining sound financial and operational stability.

Shenwan Hongyuan (H.K.) Limited Announces Board Meeting to Approve 2024 Financial Results
Mar 18, 2025

Shenwan Hongyuan (H.K.) Limited has scheduled a board meeting on March 28, 2025, to approve the company’s final results for the year ending December 31, 2024, and to discuss the potential recommendation of a final dividend. This meeting is crucial as it will determine the company’s financial performance disclosure and any dividend distribution, impacting stakeholders’ expectations and the company’s market positioning.

Shenwan Hongyuan (H.K.) Limited Ensures Compliance Amid Board Changes
Mar 13, 2025

Shenwan Hongyuan (H.K.) Limited announced the passing of an independent non-executive director, ensuring compliance with Rule 3.10(2) of the Listing Rules by retaining Mr. Kwok Lam Kwong Larry, who holds extensive professional qualifications. The company maintains its governance structure with qualified directors to oversee financial and audit responsibilities, ensuring stability and adherence to regulatory requirements.

Shenwan Hongyuan (H.K.) Limited Announces Shareholding Restructure
Feb 18, 2025

Shenwan Hongyuan (H.K.) Limited has announced a change in its shareholding structure due to the distribution of shares by SWHY BVI to its shareholders. This distribution involved 402,502,312 shares, representing about 25.78% of the company’s total issued share capital, being allocated among SWHY International, SIIC Finance, and First Shanghai according to their ownership stakes in SWHY BVI. Following this distribution, SWHY International’s direct shareholding has increased to approximately 64.90% of the company’s total issued share capital, while the ultimate controlling shareholder remains unchanged as SWHY.

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.