Shanghai Industrial Holdings (0363) AI Stock Analysis

• Market Cap: HK$15.85B
• Dividend Yield: 6.37%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.60
• Revenue Growth: -7.44%
• EPS Growth: -18.48%
• Country: HK
• Employees: 19,561
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.96
• Shares Outstanding: 1,087,211,500
• 10 Day Avg. Volume: 1,858,796
• 30 Day Avg. Volume: 1,083,867
• PEG Ratio: -0.25
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 42.26
• 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): 21.08
• Revenue Forecast (FY): HK$223.08B

• Rating: 71 Outperform
• Price Target: HK$16.50 ▲(12.02% Upside)

Shanghai Industrial Holdings is fundamentally sound with strong profitability and an attractive valuation. However, technical indicators suggest the stock is overbought, which could lead to a price correction. The company's high leverage and inconsistent revenue growth are areas of concern that need addressing to enhance financial stability.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams across manufacturing and infrastructure sectors provide stability and reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Strong Profit Margins

Strong profit margins indicate effective cost management and operational efficiency, which can support sustained profitability and competitive pricing strategies.

Strategic Partnerships

Strategic partnerships with government and private entities enhance revenue capabilities and secure long-term contracts, providing a stable foundation for future growth.

Negative Factors

High Leverage

High leverage increases financial risk and can strain cash flow, limiting the company's ability to invest in growth opportunities and weather economic downturns.

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term planning and investment strategies, potentially impacting the company's ability to scale operations and compete effectively.

Volatile Free Cash Flow

Volatile free cash flow limits the company's ability to fund new projects and respond to market opportunities, potentially affecting long-term growth and financial stability.

Shanghai Industrial Holdings Business Overview & Revenue Model

Company Description

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure facilities, real estate, and consumer products businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water-related businesses. It also engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products. Further, it engages in the raw materials sourcing business. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited is a subsidiary of Shanghai Industrial Investment (Holdings) Company Limited.

How the Company Makes Money

Shanghai Industrial Holdings generates revenue through multiple streams, primarily from its manufacturing and infrastructure operations. In the manufacturing sector, the company produces a variety of goods, including pharmaceuticals and consumer products, which are sold to both domestic and international markets. Revenue is also derived from the sale of construction materials. In the infrastructure segment, the company earns income from investments in toll roads and water treatment plants, primarily through user fees and service contracts. Significant partnerships with local government and private entities enhance its revenue capabilities, enabling the company to secure long-term contracts and projects. Additionally, the company may benefit from strategic investments and joint ventures that further diversify its income sources.

Shanghai Industrial Holdings Financial Statement Overview

Summary

Shanghai Industrial Holdings exhibits strong profitability and operational efficiency, yet faces challenges with revenue growth and high leverage. The company's cash flow position is stable but requires careful management to ensure future financial flexibility. Overall, while the company is fundamentally sound, strategic efforts to improve revenue growth and reduce debt levels could enhance financial stability.

Income Statement

Shanghai Industrial Holdings has demonstrated strong gross and net profit margins, reflecting effective cost management and profitability. However, the revenue growth has been inconsistent, with recent declines indicating potential challenges in maintaining sales momentum. EBIT and EBITDA margins are healthy, suggesting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high, indicating substantial leverage which could pose financial risk if not managed prudently. The return on equity is reasonable, reflecting decent profitability from shareholder investments. The equity ratio suggests a stable capital structure, but the high debt levels remain a concern.

Cash Flow

Free cash flow has been volatile, showing a significant decline recently, which could impact future investments and growth opportunities. Operating cash flow is positive and sufficient relative to net income, demonstrating efficient cash generation from operations. However, challenges in sustaining free cash flow growth could pose future liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.02B	28.92B	32.70B	31.35B	38.75B	27.14B
Gross Profit	7.11B	7.90B	12.79B	9.03B	14.87B	9.82B
EBITDA	5.89B	6.44B	12.76B	8.45B	13.46B	9.59B
Net Income	2.65B	2.81B	3.42B	2.31B	3.75B	2.22B
Balance Sheet
Total Assets	165.57B	168.51B	179.31B	193.93B	207.71B	194.88B
Cash, Cash Equivalents and Short-Term Investments	27.32B	26.85B	27.85B	31.16B	39.23B	29.94B
Total Debt	58.75B	59.77B	58.83B	58.94B	65.08B	57.93B
Total Liabilities	85.24B	90.22B	101.85B	117.14B	126.35B	112.81B
Stockholders Equity	49.16B	47.57B	46.60B	45.52B	47.44B	43.68B
Cash Flow
Free Cash Flow	177.23M	304.68M	3.03B	-2.09B	936.19M	1.53B
Operating Cash Flow	4.08B	4.81B	4.35B	-1.53B	7.93B	4.54B
Investing Cash Flow	-121.67M	-6.92B	-4.04B	-3.07B	-2.58B	-4.89B
Financing Cash Flow	-5.21B	-1.38B	-3.34B	-4.56B	2.91B	-3.15B

Shanghai Industrial Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0363, the sentiment is Negative. The current price of 14.73 is above the 20-day moving average (MA) of 14.71, below the 50-day MA of 14.86, and above the 200-day MA of 13.38, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 52.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0363.

Shanghai Industrial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0053	80 Outperform	HK$22.46B	5.68	6.18%	5.00%	7.45%	11.56%
0363	71 Outperform	HK$15.85B	5.98	5.58%	6.37%	-7.44%	-18.48%
0148	69 Neutral	HK$31.74B	11.60	4.43%	5.88%	6.95%	24.07%
0392	66 Neutral	HK$40.66B	7.00	6.26%	4.94%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0025	46 Neutral	HK$1.25B	-3.89	-3.32%	3.80%	10.38%	7.39%
0656	42 Neutral	HK$35.60B	-7.53	-3.65%	0.44%	-8.93%	-698.78%

Shanghai Industrial Holdings Corporate Events

Shanghai Industrial Renews Connected Leases for Key Hong Kong Tobacco Facility

Shanghai Industrial Holdings has renewed key lease arrangements for its tobacco operations in Hong Kong, with Nanyang Tobacco and the parent company entering new one‑year tenancy agreements for 2026 covering their major office and factory site in Tuen Mun. The Tuen Mun property, a 16‑storey building with a gross floor area of about 423,244 square feet, will continue to be leased from connected party Nanyang Enterprises at a monthly rent of HK$2.75 million, with terms set on an arm’s‑length basis and benchmarked against an independent valuation, ensuring continuity of operations while falling under the Stock Exchange’s continuing connected transaction regime that requires disclosure and annual review but no independent shareholders’ approval.

The most recent analyst rating on (HK:0363) stock is a Buy with a HK$16.50 price target. To see the full list of analyst forecasts on Shanghai Industrial Holdings stock, see the HK:0363 Stock Forecast page.

Shanghai Industrial Holdings Confirms Completion of Internal Reorganisation Without Change in Ultimate Control

Shanghai Industrial Holdings has announced the completion of an internal reorganisation under which Golden Bell has been registered as the owner of all issued shares of SIIC, the company’s immediate controlling shareholder. As a result, Golden Bell now indirectly holds approximately 63.16% of Shanghai Industrial Holdings, 70.44% of Shanghai Industrial Urban Development Group and 50.12% of SIIC Environment, but the voting rights and ultimate control remain with the Shanghai Government, meaning there is no effective change of control in these listed entities. The Hong Kong Takeovers Executive has granted SIIC Shanghai and Golden Bell a waiver from the obligation to make a general offer for the shares of Shanghai Industrial Holdings, SIUD, SIIC Environment and Shanghai Pharmaceuticals following the reorganisation, and the company has cautioned shareholders and investors to exercise care when dealing in its securities.

The most recent analyst rating on (HK:0363) stock is a Buy with a HK$16.50 price target. To see the full list of analyst forecasts on Shanghai Industrial Holdings stock, see the HK:0363 Stock Forecast page.

Shanghai Industrial Holdings to Sell Equity Stake in Healthcare Associate

Shanghai Industrial Holdings, through its indirect subsidiary SIUD Shanghai Healthcare Management, has entered into an agreement to sell its 19% equity interest in a target company to Shanghai Lingfeng Medical for RMB73,598,000. This transaction will result in Shanghai Lingfeng Medical becoming the sole owner of the target company, which will no longer be an associate of Shanghai Industrial Holdings. The disposal is classified as a connected transaction under the Hong Kong Listing Rules due to the relationships between the involved parties, but it is exempt from the circular and independent shareholders’ approval requirements.

The most recent analyst rating on (HK:0363) stock is a Hold with a HK$15.00 price target. To see the full list of analyst forecasts on Shanghai Industrial Holdings stock, see the HK:0363 Stock Forecast page.

Shanghai Industrial Holdings Enters Procurement Agreement with Shanghai Pharmaceuticals

Shanghai Industrial Holdings, through its subsidiary Wing Fat Printing, has entered into a Procurement Framework Agreement with Shanghai Pharmaceuticals Holding. This agreement, effective from January 1, 2026, to December 31, 2026, allows Wing Fat Group to supply printed packaging materials for pharmaceutical products to Shanghai Pharmaceuticals Holding Group, subject to an annual procurement cap. The agreement is classified as a continuing connected transaction under Hong Kong’s Listing Rules, requiring only reporting, announcement, and annual review due to its size. This strategic move aligns with the company’s efforts to strengthen its market position in the pharmaceutical packaging sector.

The most recent analyst rating on (HK:0363) stock is a Hold with a HK$15.50 price target. To see the full list of analyst forecasts on Shanghai Industrial Holdings stock, see the HK:0363 Stock Forecast page.

Shanghai Industrial Holdings Announces Internal Reorganization

Shanghai Industrial Holdings, a company indirectly controlled by the Shanghai Government, has announced a proposed internal reorganization. The reorganization involves changing the registered owner of its immediate controlling shareholder, SIIC, to Golden Bell. Despite this change, the ultimate control of the company remains with the Shanghai Government, as all entities involved are wholly owned by it. This announcement is made voluntarily, and stakeholders are advised to exercise caution when dealing with the company’s securities.

The most recent analyst rating on (HK:0363) stock is a Hold with a HK$15.50 price target. To see the full list of analyst forecasts on Shanghai Industrial Holdings stock, see the HK:0363 Stock Forecast page.