Shun Ho Property Investments Ltd (0219) AI Stock Analysis

• Market Cap: HK$322.32M
• Dividend Yield: N/A
• Average Volume (3M): 38.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 3.58%
• EPS Growth: -91.61%
• Country: HK
• Employees: 643
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.27
• Shares Outstanding: 579,753,300
• 10 Day Avg. Volume: 64,624
• 30 Day Avg. Volume: 38,240
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 1.83
• 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: 61 Neutral
• Price Target: HK$0.63 ▲(9.14% Upside)

The score is primarily supported by a resilient financial position (low leverage) and positive operating/free cash flow, but held back by volatile bottom-line results and widening recent net losses. Technicals are constructive with price above key moving averages, though overbought signals reduce confidence. Valuation is constrained by a negative P/E and no provided dividend yield.

Positive Factors

Balance Sheet Strength

The company's low leverage and strong equity base provide resilience, especially important in the cyclical Travel Lodging industry, ensuring long-term financial stability.

Cash Flow Generation

Consistently positive operating and free cash flow indicates strong cash generation capability, which is crucial for sustaining operations and funding growth without relying on external financing.

Revenue Growth

The significant revenue rebound demonstrates strong market demand and effective business strategies, suggesting potential for continued growth and improved market position.

Negative Factors

Volatile Profitability

The company's volatile net profitability and widening losses highlight challenges in maintaining consistent earnings, which could impact long-term financial health and investor confidence.

Earnings Quality Concerns

The discrepancy between revenue growth and net losses suggests issues with earnings quality, potentially due to non-operating items, affecting the reliability of reported profits.

Negative Return on Equity

Negative ROE indicates inefficiencies in generating profits from shareholders' equity, which may deter investment and affect the company's ability to raise capital in the future.

Shun Ho Property Investments Ltd Business Overview & Revenue Model

Company Description

Shun Ho Property Investments Limited, an investment holding company, invests in and operates hotels in Hong Kong, the People's Republic of China, and the United Kingdom. It operates through Hospitality Services, Property Investment, and Securities Investment segments. The company operates Best Western Plus Hotel, Kowloon; Best Western Plus Hotel, Hong Kong; Magnificent International Hotel, Shanghai; Best Western Hotel, Causeway Bay; Ramada Hong Kong Harbour View; Ramada Hong Kong Grand; Grand City Hotel; Ramada Hong Kong Grand View; Royal Scot Hotel, London; and Wood Street Hotel, London. It is also involved in the investment, development, and leasing of properties; hotel management; financing; and securities investment activities. The company was formerly known as Shun Ho Technology Holdings Limited. The company is based in Central, Hong Kong. Shun Ho Property Investments Limited is a subsidiary of Omnico Company Inc.

How the Company Makes Money

Shun Ho Property Investments Ltd generates revenue primarily through rental income from its portfolio of commercial and residential properties. The company leases out spaces to tenants, thus creating a steady cash flow. Additionally, Shun Ho invests in property development projects, which can yield significant profits upon completion and sale of units. The company may also engage in strategic partnerships with other real estate developers or investment firms to co-develop projects or share resources, further enhancing its revenue potential. Factors such as location of properties, market demand, and overall economic conditions play crucial roles in influencing its earnings.

Shun Ho Property Investments Ltd Financial Statement Overview

Summary

Shun Ho Property Investments Ltd shows mixed financial results. Revenue growth is evident with a 12.9% increase, and operational efficiency has improved, as seen in better gross profit and EBIT margins. However, the negative net income in 2024 and lack of operating cash flow are significant concerns. The stable balance sheet is a positive, but the negative ROE and liquidity issues could impact future growth.

Income Statement

The company has experienced inconsistent revenue growth with a recent uptick in revenue in 2024, growing by 12.9% from 2023. However, profitability metrics show significant challenges, as indicated by the negative net income observed in 2024, resulting in a negative net profit margin. The gross profit and EBIT margins have improved, which suggests operational efficiency, but the negative net income is a major concern.

Balance Sheet

The company's balance sheet reveals moderate leverage with a debt-to-equity ratio that remains manageable. The equity ratio is strong, indicating a solid capital structure with shareholders' equity forming a substantial part of total assets. However, the return on equity (ROE) has turned negative in 2024 due to the net loss, highlighting concerns about shareholder returns.

Cash Flow

Cash flow analysis shows a troubling lack of operating and free cash flow in 2024, which could hinder future growth and debt servicing capabilities. The company previously maintained positive free cash flow, but the absence of such in the most recent period raises significant liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	698.74M	683.97M	606.03M	612.69M	514.41M	387.91M
Gross Profit	328.49M	311.05M	189.60M	380.52M	275.12M	223.11M
EBITDA	224.99M	207.11M	173.24M	822.17M	226.34M	-93.87M
Net Income	-335.26M	-289.92M	-72.97M	482.15M	68.23M	-171.63M
Balance Sheet
Total Assets	9.38B	9.52B	9.90B	9.97B	9.12B	9.13B
Cash, Cash Equivalents and Short-Term Investments	198.48M	234.98M	334.48M	286.68M	274.80M	173.67M
Total Debt	903.86M	1.01B	1.03B	1.06B	749.07M	850.48M
Total Liabilities	1.19B	1.30B	1.34B	1.37B	1.04B	1.12B
Stockholders Equity	6.97B	7.03B	7.34B	7.38B	6.99B	6.93B
Cash Flow
Free Cash Flow	179.55M	192.55M	134.51M	275.39M	201.83M	105.84M
Operating Cash Flow	191.13M	214.00M	166.82M	285.07M	217.63M	142.49M
Investing Cash Flow	-13.38M	-235.19M	-24.66M	-556.84M	-31.20M	-33.41M
Financing Cash Flow	-148.87M	-76.45M	-103.78M	316.92M	-95.72M	-89.14M

Shun Ho Property Investments Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.58
• 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:0219, the sentiment is Positive. The current price of 0.58 is below the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.56, and below the 200-day MA of 0.58, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0219.

Shun Ho Property Investments Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0219	61 Neutral	HK$322.32M	-0.95	-4.72%	―	3.58%	-91.61%
0201	56 Neutral	HK$617.35M	-22.58	-0.66%	―	3.97%	41.51%
0617	49 Neutral	HK$267.50M	-0.17	-19.01%	―	-2.75%	-17.31%
0253	49 Neutral	HK$140.22M	-0.74	-4.69%	―	3.58%	-87.78%
0355	47 Neutral	HK$275.24M	-0.28	-18.68%	―	-3.51%	-15.27%
0078	40 Neutral	HK$476.35M	-0.27	-29.62%	―	-0.60%	34.74%