Shanghai Industrial Urban Development Group Ltd (0563) AI Stock Analysis

• Market Cap: HK$1.53B
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 23.54%
• EPS Growth: -204.92%
• Country: HK
• Employees: 745
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.10
• Shares Outstanding: 4,780,415,000
• 10 Day Avg. Volume: 2,172,720
• 30 Day Avg. Volume: 2,328,366
• PEG Ratio: 0.03
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 2.49
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(56.25% Upside)

The overall stock score reflects significant financial challenges, with declining profitability and high leverage as major concerns. Technical analysis shows moderate strength, providing some stability. The high dividend yield offers potential value, but the negative P/E ratio highlights profitability issues.

Positive Factors

Revenue Growth

The company has demonstrated strong revenue growth, indicating successful market penetration and demand for its developments.

Parent Company Support

As a subsidiary of Shanghai Industrial Holdings, the company benefits from enhanced operational capabilities and market reach.

Diverse Revenue Streams

The company's strategy of diversifying into income-generating properties provides a steady rental income, reducing reliance on property sales.

Negative Factors

High Leverage

High leverage poses financial risks, especially in volatile real estate markets, potentially impacting long-term financial stability.

Negative Profit Margin

The negative profit margin indicates profitability challenges, which could hinder reinvestment and growth opportunities.

Cash Flow Issues

Negative operating cash flow highlights liquidity issues, limiting the company's ability to fund operations and growth internally.

Shanghai Industrial Urban Development Group Ltd Business Overview & Revenue Model

Company Description

Shanghai Industrial Urban Development Group Limited, an investment holding company, primarily engages in the development and sale of residential and commercial properties in the People's Republic of China. The company is also involved in property investment and management activities. Its property portfolio includes residential communities, office buildings, shopping arcades, star-grade hotels, and apartments. The company has 28 real estate projects located primarily in Shanghai, Beijing, Tianjin, Kunshan, Wuxi, Shenyang, Xi'an, Chongqing, Yantai, Wuhan, and Shenzhen. In addition, it engages in the operation of hotels. The company was formerly known as Neo-China Land Group (Holdings) Limited and changed its name to Shanghai Industrial Urban Development Group Limited in September 2010. The company was incorporated in 1992 and is headquartered in Central, Hong Kong. Shanghai Industrial Urban Development Group Limited is a subsidiary of Shanghai Industrial Investment (Holdings) Company Limited.

How the Company Makes Money

The company generates revenue primarily through property development and sales, where it constructs residential and commercial properties and sells them to end-users or investors. Additionally, it earns income from leasing properties to tenants, which provides a steady cash flow. Key revenue streams include sales of developed properties, rental income from its investment portfolio, and income from joint ventures or partnerships with other real estate developers or municipalities. Furthermore, government policies and urbanization trends in China significantly influence its earnings, as the company often collaborates with local governments on urban renewal and infrastructure projects, which can lead to lucrative contracts and funding opportunities.

Shanghai Industrial Urban Development Group Ltd Financial Statement Overview

Summary

The company faces significant financial challenges. The income statement reflects declining profitability with a negative net profit margin. The balance sheet shows high leverage, and cash flow issues amplify these concerns, suggesting potential liquidity problems.

Income Statement

The company's revenue showed volatility, with a significant drop in 2024 compared to the previous year. Gross profit margin decreased, and net income turned negative, indicating profitability challenges. The negative net profit margin in 2024 is a concern, although past EBIT and EBITDA margins were relatively stable.

Balance Sheet

The debt-to-equity ratio remains high, indicating significant leverage which could pose risks in the real estate market. The equity ratio has decreased over time, reflecting a higher proportion of liabilities compared to assets. However, the company maintains substantial cash reserves, providing some financial buffer.

Cash Flow

The cash flow situation is concerning, with operating cash flow turning negative in recent years, highlighting potential liquidity issues. Free cash flow has also been volatile, indicating challenges in generating cash from operations. The absence of free cash flow growth is a drawback.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.29B	12.44B	7.95B	11.02B	11.02B	6.36B
Gross Profit	1.78B	2.13B	3.33B	2.97B	3.54B	2.20B
EBITDA	1.35B	1.66B	2.85B	2.53B	4.58B	1.70B
Net Income	-591.76M	-331.19M	494.57M	406.82M	572.33M	521.76M
Balance Sheet
Total Assets	47.44B	48.98B	59.02B	57.45B	71.87B	67.43B
Cash, Cash Equivalents and Short-Term Investments	3.59B	5.35B	5.99B	4.51B	14.16B	9.61B
Total Debt	18.94B	17.95B	18.05B	17.75B	20.09B	18.22B
Total Liabilities	28.37B	29.87B	38.51B	36.58B	49.13B	41.91B
Stockholders Equity	12.96B	13.03B	14.01B	14.56B	15.21B	14.37B
Cash Flow
Free Cash Flow	-754.24M	710.21M	3.06B	-6.26B	-2.45B	1.71B
Operating Cash Flow	-713.09M	853.12M	3.29B	-6.13B	-2.34B	2.24B
Investing Cash Flow	-108.28M	-493.26M	-691.81M	-831.70M	3.29B	-1.41B
Financing Cash Flow	-648.95M	-794.22M	-1.03B	-1.81B	3.44B	-1.95B

Shanghai Industrial Urban Development Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0563, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.33, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.08 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 Negative sentiment for HK:0563.

Shanghai Industrial Urban Development Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1321	61 Neutral	HK$1.18B	12.42	1.84%	―	-54.44%	120.18%
0563	52 Neutral	HK$1.53B	-2.58	-4.51%	―	23.54%	-204.92%
0194	49 Neutral	HK$1.67B	-4.14	-3.74%	6.35%	54.72%	59.72%
0095	48 Neutral	HK$1.85B	-0.26	-28.76%	―	-58.04%	-65.03%
0230	46 Neutral	€3.25B	-1.07	-114.48%	―	-26.58%	-40.96%
1668	38 Underperform	€1.22B	-0.14	―	―	―	―

Shanghai Industrial Urban Development Group Ltd Corporate Events

Shanghai Industrial Urban Development Group Ltd Disposes of Equity Interest in Associate

Shanghai Industrial Urban Development Group Ltd announced the disposal of its 19% indirect interest in a Target Company to Shanghai Lingfeng Medical, which will become the sole owner of the Target Company. The transaction, valued at RMB73,598,000, is classified as a connected transaction under the Listing Rules due to the relationships between the involved parties, but it is exempt from the circular and independent shareholders’ approval requirements.

Shanghai Industrial Urban Development Group Strengthens Nomination Committee

Shanghai Industrial Urban Development Group Ltd has announced the appointment of Ms. Zhou Yadong and Dr. Chan Ho Wah, Terence to its Nomination Committee. This move aligns with recent amendments to the Listing Rules and the Corporate Governance Code, aiming to enhance the board’s effectiveness and diversity, thereby improving corporate governance practices.

Shanghai Industrial Urban Development Group Ltd Announces Board Composition and Committee Roles

Shanghai Industrial Urban Development Group Ltd has announced the composition of its board of directors, which includes seven members with defined roles and functions. The company has also outlined the membership of its four board committees, which are crucial for its governance and strategic decision-making processes, potentially impacting its operational efficiency and stakeholder relations.

Shanghai Industrial Urban Development Group Ltd Issues 2025 Corporate Bonds

Shanghai Industrial Urban Development Group Ltd announced the successful issuance of its 2025 corporate bonds (Phase I) through its subsidiary, Shanghai Urban Development (Holdings) Co., Ltd. The issuance, amounting to RMB1,150,000,000, is aimed at professional institutional investors and is expected to result in significant financial cost savings for the Group. This move reflects the capital market’s confidence in the Group’s capabilities and brand image, and the funds raised will be used to replace internal funds previously used for repaying maturing corporate bonds.

Shanghai Industrial Urban Development Group Ltd Announces Internal Reorganization

Shanghai Industrial Urban Development Group Ltd announced a proposed internal reorganization involving its controlling shareholder, SIIC. The Shanghai Government plans to change the registered owner of SIIC to Golden Bell, which is wholly owned by the Shanghai Government. This reorganization will not affect the ultimate control of the company, as the Shanghai Government will continue to be the controlling shareholder, maintaining its interest in approximately 70.44% of the company’s issued shares.

Shanghai Industrial Urban Development Group Ltd Announces Auditor Change

Shanghai Industrial Urban Development Group Ltd has announced a change in its auditing firm due to regulatory requirements mandating auditor rotation. Deloitte Touche Tohmatsu has resigned, and Ernst & Young has been appointed as the new auditor. The decision to change auditors is not expected to impact the company’s financial audit for the year ending December 2025. The board expressed gratitude to Deloitte for its services and emphasized that the change is in the best interest of the company and its shareholders.