Shun Ho Holdings Ltd (0253) AI Stock Analysis

• Market Cap: HK$140.22M
• Dividend Yield: N/A
• Average Volume (3M): 35.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: 3.58%
• EPS Growth: -87.78%
• Country: HK
• Employees: 643
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.33
• Shares Outstanding: 304,368,740
• 10 Day Avg. Volume: 3,200
• 30 Day Avg. Volume: 35,407
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 0.90
• 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: 49 Neutral
• Price Target: HK$0.50 ▼(-13.79% Downside)

Shun Ho Holdings Ltd faces significant challenges, primarily due to persistent net losses and cash flow issues, which are reflected in its negative P/E ratio. The technical analysis indicates a bearish trend with the stock being oversold. These factors collectively result in a low overall stock score, highlighting the need for strategic improvements in profitability and cash management.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a stable demand for its services and products, which can support long-term business expansion and market presence.

Gross Profit Margin

A strong gross profit margin reflects efficient cost management and pricing power, which can sustain profitability even amid competitive pressures.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, enabling the company to invest in growth opportunities without excessive financial risk.

Negative Factors

Net Losses

Persistent net losses indicate underlying issues in cost management or revenue generation, which could hinder long-term financial health and investor confidence.

Cash Flow Challenges

Lack of positive cash flow suggests operational inefficiencies or cash generation issues, potentially restricting the company's ability to fund operations and growth.

Liquidity Concerns

Reduced cash reserves can limit the company's ability to meet short-term obligations and invest in strategic initiatives, affecting its operational flexibility.

Shun Ho Holdings Ltd Business Overview & Revenue Model

Company Description

Shun Ho Holdings Limited, an investment holding company, engages in the investment and operation of hotels in Hong Kong, the People's Republic of China, and the United Kingdom. The company operates nine hotels with approximately 2,821 guest rooms. It is also involved in the property investment, and securities investment and dealing activities. The company was formerly known as Shun Ho Resources Holdings Limited and changed its name to Shun Ho Holdings Limited in July 2016. Shun Ho Holdings Limited was incorporated in 1973 and is based in Central, Hong Kong. Shun Ho Holdings Limited is a subsidiary of Trillion Resources Limited.

How the Company Makes Money

Shun Ho Holdings Ltd generates revenue through multiple channels. Primarily, the company earns income from the leasing of its investment properties, including commercial and retail spaces, which provides a steady stream of rental income. Additionally, revenue is derived from its hotel operations, where it manages and operates hotels, generating income from room bookings and associated services. Property development also contributes to the company's earnings, as it sells residential and commercial units upon completion. Strategic partnerships with other developers and entities in the hospitality sector further bolster its revenue potential, and the company's diversified portfolio helps mitigate risks associated with market fluctuations.

Shun Ho Holdings Ltd Financial Statement Overview

Summary

Shun Ho Holdings Ltd shows moderate revenue growth and a stable balance sheet with low leverage. However, persistent net losses and recent cash flow challenges highlight significant areas requiring improvement, particularly in operational profitability and cash generation.

Income Statement

Shun Ho Holdings Ltd shows a moderate revenue growth with an increase from HKD 606 million in 2023 to HKD 684 million in 2024. However, the company has been facing challenges in profitability, as evidenced by the negative net profit margin and a net loss in recent years. The gross profit margin is strong at 45.5% for 2024, indicating effective control over direct costs. Despite this, the net income has consistently been negative, which suggests issues with operating expenses or other costs impacting net profitability.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.26 in 2024, indicating a conservative leverage position. The equity ratio stands at 42.7%, reflecting a stable financial structure with a strong equity base relative to total assets. While total assets have slightly declined, the company retains a healthy stockholders' equity, which supports its financial stability. However, the decrease in cash and cash equivalents may pose liquidity concerns.

Cash Flow

Shun Ho Holdings Ltd faces challenges in cash flow management, with no reported operating cash flow or free cash flow in 2024, compared to positive figures in previous years. This absence of cash flow metrics suggests potential issues in operational efficiency or cash generation capability. In past years, the company demonstrated positive free cash flow growth, which enhanced its financial flexibility. Addressing current cash flow issues is crucial for future financial health.

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	275.71M	168.13M	113.27M
EBITDA	227.03M	208.85M	172.04M	820.62M	225.17M	-95.18M
Net Income	-191.78M	-166.44M	-45.02M	258.02M	30.41M	-96.01M
Balance Sheet
Total Assets	9.34B	9.48B	9.86B	9.91B	9.07B	9.07B
Cash, Cash Equivalents and Short-Term Investments	198.51M	235.12M	334.71M	286.90M	274.90M	178.47M
Total Debt	949.56M	1.05B	1.02B	1.10B	778.48M	869.89M
Total Liabilities	1.24B	1.35B	1.38B	1.40B	1.07B	1.14B
Stockholders Equity	4.01B	4.05B	4.22B	4.24B	4.04B	3.89B
Cash Flow
Free Cash Flow	178.15M	191.08M	133.24M	261.39M	192.99M	89.70M
Operating Cash Flow	189.74M	212.53M	165.55M	271.07M	208.79M	126.35M
Investing Cash Flow	-11.88M	-235.19M	-24.66M	-567.53M	-30.37M	-42.79M
Financing Cash Flow	-172.44M	-75.07M	-102.50M	318.43M	-92.41M	-62.44M

Shun Ho Holdings 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:0253, the sentiment is Positive. The current price of 0.58 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.55, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0253.

Shun Ho Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1221	64 Neutral	HK$1.84B	17.44	2.49%	1.95%	-7.90%	58.19%
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%
0078	40 Neutral	HK$476.35M	-0.27	-29.62%	―	-0.60%	34.74%