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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

(0218)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
HK$1.50
▲(10.29% Upside)
The overall stock score is primarily impacted by weak financial performance and poor technical indicators. The company's profitability and cash flow issues, combined with bearish market momentum and unattractive valuation metrics, contribute to a low score. The absence of earnings call data and corporate events further limits positive factors.

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 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue363.96M55.33M439.01M270.14M730.29M840.01M
Gross Profit363.96M-167.26M201.26M147.93M464.40M698.95M
EBITDA61.87M-47.24M136.00M-647.83M204.57M344.60M
Net Income-63.28M-160.73M-192.45M-879.92M-95.75M175.63M
Balance Sheet
Total Assets12.13B8.78B12.85B16.52B22.91B16.29B
Cash, Cash Equivalents and Short-Term Investments5.78B3.62B5.02B5.32B7.67B5.02B
Total Debt1.78B2.49B3.45B5.25B8.52B5.56B
Total Liabilities9.44B6.15B10.06B13.56B19.05B12.25B
Stockholders Equity2.69B2.63B2.79B2.96B3.85B4.04B
Cash Flow
Free Cash Flow-669.19M-572.64M2.60B1.86B961.84M-4.09B
Operating Cash Flow-664.11M-566.39M2.61B1.87B969.58M-4.07B
Investing Cash Flow167.76M-5.94M181.71M42.08M136.12M232.22M
Financing Cash Flow235.01M-275.13M-2.74B-1.25B-943.92M3.32B

Shenwan Hongyuan (H.K.) Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.36
Price Trends
50DMA
1.71
Negative
100DMA
1.85
Negative
200DMA
1.62
Negative
Market Momentum
MACD
-0.09
Positive
RSI
29.25
Positive
STOCH
7.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0218, the sentiment is Negative. The current price of 1.36 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.71, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 29.25 is Positive, neither overbought nor oversold. The STOCH value of 7.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
60
Neutral
HK$1.84B35.140.66%1.66%13.35%15.14%
58
Neutral
€714.53M8.832.36%-4.56%
58
Neutral
HK$918.90M220.360.82%0.34%-53.07%-32.93%
46
Neutral
€2.45B-38.77-2.44%-45.13%60.10%
39
Underperform
HK$1.49B-78.40%-196.19%
38
Underperform
HK$58.07M-1.20-14.26%2126.94%36.49%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0218
Shenwan Hongyuan (H.K.) Limited
1.36
-0.12
-8.11%
HK:0993
Huarong International Financial Holdings Limited
0.17
-0.01
-8.06%
HK:0717
Emperor Capital Group Limited
0.11
0.05
105.88%
HK:2324
Capital VC Limited
0.13
-0.08
-36.89%
HK:3678
Holly Futures Co. Ltd. Class H
3.23
0.61
23.28%
HK:0064
Get Nice Holdings Limited
3.01
0.49
19.44%

Shenwan Hongyuan (H.K.) Limited Corporate Events

Shenwan Hongyuan (H.K.) Limited Cancels Executive Committee to Streamline Governance
Nov 5, 2025

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
Nov 5, 2025

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
Oct 15, 2025

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
Oct 15, 2025

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
Oct 15, 2025

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.

Shenwan Hongyuan (H.K.) Limited Updates on Connected Transactions and Licensing Agreements
Sep 30, 2025

Shenwan Hongyuan (H.K.) Limited has issued a supplemental announcement to its 2024 Annual Report, detailing continuing connected transactions under the 2022 SWHYG MOU and updated license agreements. The transactions involve services exchanged between the SWHYG Group and Shenwan Hongyuan, including brokerage and corporate finance services, with specified annual caps and actual amounts for 2024. These developments are part of the company’s strategic operations and compliance with listing rules, potentially impacting its market positioning and stakeholder relations.

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 Key Leadership Appointment
Sep 23, 2025

Shenwan Hongyuan (H.K.) Limited has announced an extraordinary general meeting scheduled for October 15, 2025, where shareholders will vote on the appointment of Mr. Li Shouwei as the Executive Director and authorize the Board to determine his remuneration. This meeting is significant for the company’s governance and strategic direction, as it involves key leadership appointments that could impact its operations and stakeholder interests.

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 Structure
Sep 22, 2025

Shenwan Hongyuan (H.K.) Limited has announced changes to its board of directors effective from September 22, 2025. The new board structure includes Ms. Wu Meng as Chairman, Mr. Liang Jun as Chief Executive Officer, and Mr. Hu Jing as Chief Risk Officer, among others. This restructuring aims to enhance the company’s governance and strategic direction, potentially impacting its market positioning and operational efficiency.

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 Executive Director Resignation
Sep 22, 2025

Shenwan Hongyuan (H.K.) Limited announced the resignation of Mr. Tan Weijun as Executive Director, effective September 22, 2025, due to reaching the retirement age. The company expressed gratitude for Mr. Tan’s contributions, and his departure is not associated with any disagreements or issues requiring shareholder attention.

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 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.

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: Nov 22, 2025