First Shanghai Investments Limited (0227) AI Stock Analysis

• Market Cap: HK$602.44M
• Dividend Yield: N/A
• Average Volume (3M): 3.23M
• Price to Earnings (P/E): 39.9
• Beta (1Y): 3.63
• Revenue Growth: 3.07%
• EPS Growth: -72.40%
• Country: HK
• Employees: 569
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 2,190,680,000
• 10 Day Avg. Volume: 2,577,920
• 30 Day Avg. Volume: 3,228,705
• PEG Ratio: -0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -5.69
• 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: 52 Neutral
• Price Target: HK$0.28 ▲(6.92% Upside)

The score is mainly supported by improved profitability and a stronger balance sheet, but is held back by cash flow uncertainty, weak-to-mixed technical signals (including negative MACD and elevated volatility), and a high P/E without dividend support.

Positive Factors

Diversified business model

Operating across property, financial services and trading provides multiple durable revenue streams and reduces single‑market dependence. Structural diversification supports resilience to sector shocks and enables cross‑business capital allocation and partnership opportunities over the medium term.

Sustained revenue growth

A 15.7% revenue increase signals persistent top‑line expansion and market demand for the company’s offerings. Sustainable revenue growth bolsters long‑term cash generation potential and underpins the ability to invest in assets and services, improving structural competitiveness.

Improved balance sheet metrics

Lower leverage and a positive ROE reflect meaningful capital structure repair and enhanced financial stability. A stronger balance sheet increases flexibility for strategic investments, debt repayment and buffering cyclical downturns, supporting durable operational continuity.

Negative Factors

Weak cash flow generation

Missing and weak operating and free cash flow indicate earnings are not reliably converted to cash, undermining reinvestment capacity, debt servicing and shareholder distributions. Persistent cash conversion issues threaten medium‑term financial flexibility and growth execution.

Low operating profitability and limited transparency

A modest 7.2% EBIT margin and absent EBITDA disclosure point to constrained operating efficiency and gaps in reporting. Low margins reduce ability to absorb cost shocks and fund expansion internally; missing metrics hinder durable assessment of operational health.

Volatile earnings history

A steep negative EPS growth rate highlights earnings volatility and inconsistency in profitability. Such swings impede long‑term planning, weaken investor confidence, and raise questions about the sustainability of profits and the reliability of future cash flows for strategic initiatives.

First Shanghai Investments Limited Business Overview & Revenue Model

Company Description

First Shanghai Investments Limited, an investment holding company, engages in financial services, property and hotel, medical and healthcare, and direct investment sectors in Hong Kong, the People's Republic of China, and internationally. The company offers securities investment, securities broking, margin financing, corporate finance, underwriting and placements, asset management, wealth management, shares placement, IPO subscription, shares custodian, nominee, financial intermediary, and investment advisory services. It also develops residential, service apartment, commercial office, industrial office, hotel, and recreation resort properties; develops and commercializes therapeutic drugs; and provides container transportation and freight forwarding services. In addition, the company operates a medical center in Central, Hong Kong that provides medical and healthcare services, including imaging, day surgery, endoscopy, and check-up services, as well as medical beauty treatments, and general and specialist consultation services. Further, it provides money lending, nominee, agency, management and secretarial, financial leasing and consultancy, internet financial service system, dental, futures broking, stock broking, insurance broking, and property investment services, as well as operates hotel and golf course. The company was formerly known as Public International Investments Limited and changed its name to First Shanghai Investments Limited in June 1993. First Shanghai Investments Limited was founded in 1964 and is based in Central, Hong Kong.

How the Company Makes Money

First Shanghai Investments Limited generates revenue through multiple streams, primarily from its real estate investments which yield rental income and capital appreciation. The company also earns fees and commissions from its financial services segment, including brokerage and asset management services. Additionally, trading activities contribute to the revenue, where the company buys and sells commodities and other goods. Strategic partnerships with other financial institutions and real estate developers enhance its market reach and profitability, while effective management of its investment portfolio helps to maximize returns.

First Shanghai Investments Limited Financial Statement Overview

Summary

First Shanghai Investments Limited showed a positive revenue growth trajectory and improved profitability in 2024. The balance sheet reflects increased financial stability with a lower debt burden and positive ROE. However, cash flow metrics highlight areas of concern, particularly in cash generation and utilization, which may pose risks if not addressed.

Income Statement

The company experienced a revenue growth rate of 15.7% in 2024, indicating a positive trend. The gross profit margin remained strong at 100%, but the net profit margin improved significantly from the previous year's negative margin to 21.5%. However, EBIT and EBITDA margins were weak, with EBIT margin at 7.2% and EBITDA margin unavailable due to missing data.

Balance Sheet

The debt-to-equity ratio decreased substantially, reflecting improved financial stability. The return on equity (ROE) turned positive in 2024, reaching 3.13%, which is a significant improvement. The equity ratio remained stable, indicating a balanced capital structure.

Cash Flow

The free cash flow growth rate was not calculable due to missing free cash flow data. The company faced challenges in generating operating cash flow, as evidenced by the operating cash flow to net income ratio being unavailable. This indicates potential issues in cash flow generation and management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	356.42M	390.39M	312.88M	326.89M	529.85M	457.99M
Gross Profit	356.42M	219.88M	207.43M	210.34M	303.46M	258.47M
EBITDA	154.14M	152.83M	-16.88M	-23.95M	55.01M	39.31M
Net Income	15.06M	77.97M	-10.63M	-56.04M	-139.90M	-90.33M
Balance Sheet
Total Assets	5.80B	5.05B	5.62B	5.90B	7.11B	6.74B
Cash, Cash Equivalents and Short-Term Investments	614.26M	283.49M	349.67M	241.86M	325.49M	325.86M
Total Debt	15.75M	120.44M	213.74M	264.47M	333.84M	575.73M
Total Liabilities	3.19B	2.49B	3.19B	3.52B	4.55B	4.05B
Stockholders Equity	2.54B	2.49B	2.37B	2.32B	2.48B	2.61B
Cash Flow
Free Cash Flow	253.34M	-92.73M	1.43M	-75.88M	-3.70M	9.21M
Operating Cash Flow	259.69M	-83.35M	6.01M	-66.51M	3.66M	28.62M
Investing Cash Flow	-39.12M	139.84M	114.89M	86.71M	49.27M	224.06M
Financing Cash Flow	-77.23M	-110.80M	-24.94M	-92.35M	-44.91M	-151.68M

First Shanghai Investments Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.26
• 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:0227, the sentiment is Neutral. The current price of 0.26 is above the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.28, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 35.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0227.

First Shanghai Investments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0717	58 Neutral	HK$660.60M	4.45	4.26%	―	84.88%	122.45%
1461	56 Neutral	HK$711.35M	18.11	1.41%	2.39%	-18.72%	-45.10%
1141	53 Neutral	HK$899.51M	10.25	6.23%	―	126.33%	―
0218	53 Neutral	HK$2.37B	-36.30	-2.44%	―	-45.13%	60.10%
0227	52 Neutral	HK$602.44M	39.86	0.63%	―	3.07%	-72.40%
0952	45 Neutral	HK$915.74M	-10.75	-4.03%	―	173.24%	-515.63%

First Shanghai Investments Limited Corporate Events

First Shanghai Investments Limited Updates Nomination Committee Composition

First Shanghai Investments Limited announced changes to its Nomination Committee, effective December 11, 2025. Mr. LO Yuen Yat resigned from the committee, and Ms. LAO Yuanyuan was appointed as a new member. These changes aim to enhance diversity and improve corporate governance in line with the Corporate Governance Code. The board expressed gratitude to Mr. LO for his contributions and welcomed Ms. LAO to her new role.

The most recent analyst rating on (HK:0227) stock is a Hold with a HK$0.26 price target. To see the full list of analyst forecasts on First Shanghai Investments Limited stock, see the HK:0227 Stock Forecast page.

First Shanghai Investments Limited Announces Board Composition

First Shanghai Investments Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This update provides clarity on the leadership structure and committee memberships, which is crucial for stakeholders to understand the governance and strategic direction of the company.

The most recent analyst rating on (HK:0227) stock is a Hold with a HK$0.26 price target. To see the full list of analyst forecasts on First Shanghai Investments Limited stock, see the HK:0227 Stock Forecast page.

First Shanghai Investments Updates Nomination Committee Terms

First Shanghai Investments Limited has updated the terms of reference for its Nomination Committee, effective from December 11, 2025. The committee, which is accountable to the board of directors, is tasked with overseeing the nomination process for board members, ensuring board diversity, and assessing the independence of directors. This update reflects the company’s commitment to maintaining a diverse and effective board, aligning with its corporate strategy and governance standards.

The most recent analyst rating on (HK:0227) stock is a Hold with a HK$0.26 price target. To see the full list of analyst forecasts on First Shanghai Investments Limited stock, see the HK:0227 Stock Forecast page.