Shin Hwa World Limited (0582) AI Stock Analysis

• Market Cap: HK$441.83M
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: -15.22%
• EPS Growth: 59.00%
• Country: HK
• Employees: 1,558
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.14
• Shares Outstanding: 3,651,481,400
• 10 Day Avg. Volume: 1,462,372
• 30 Day Avg. Volume: 2,114,955
• PEG Ratio: <0.01
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.18
• 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: 46 Neutral
• Price Target: HK$0.12 ▼(-2.50% Downside)

The overall stock score is primarily impacted by financial performance challenges, including consistent net losses and cash flow issues. Technical analysis provides some positive signals with short-term bullish momentum, but valuation metrics are unattractive due to ongoing losses and lack of dividends. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Gross Profit Margin Improvement

Improved gross profit margins suggest better cost management and operational efficiency, which can enhance long-term profitability.

Stable Equity Base

A stable equity base and manageable leverage levels provide financial stability and flexibility for future growth initiatives.

Diversified Revenue Model

A diversified revenue model across theme parks, hospitality, and real estate reduces dependency on a single income stream, enhancing resilience.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term planning and investment, posing challenges to sustainable business expansion.

Net Losses and Cash Flow Issues

Ongoing net losses and cash flow issues indicate financial instability, limiting the company's ability to invest in growth and innovation.

Negative Return on Equity

Negative return on equity reflects inefficiencies in generating returns from shareholders' investments, potentially deterring future investment.

Shin Hwa World Limited Business Overview & Revenue Model

Company Description

Shin Hwa World Limited (0582) is a diversified entertainment and leisure company based in Hong Kong. The company operates across various sectors, primarily focusing on theme parks, hospitality, and cultural tourism. Its core offerings include the management of theme parks, entertainment attractions, and various hospitality services aimed at providing a comprehensive leisure experience for families and tourists.

How the Company Makes Money

Shin Hwa World Limited generates revenue through multiple streams. The primary source of income comes from ticket sales and entry fees for its theme parks and attractions. Additionally, the company earns money through food and beverage sales, merchandise, and in-park experiences. Revenue is also supplemented by the hospitality sector, including hotel bookings and accommodation services. Partnerships with local and international brands for promotional events and co-marketing initiatives further enhance earnings. Moreover, the company may engage in real estate development linked to its entertainment ventures, contributing to a diverse revenue model.

Shin Hwa World Limited Financial Statement Overview

Summary

Shin Hwa World Limited shows a mixed financial picture. Improvements in gross profit margins are overshadowed by consistent net losses and cash flow issues, indicating financial instability. The balance sheet is relatively strong with a stable equity base, but ongoing challenges in profitability and liquidity are concerning.

Income Statement

Revenue growth has been inconsistent over the years with notable fluctuations. Gross profit margin improved significantly in 2024, reflecting better cost management or operational efficiency. However, the company has consistently posted net losses, impacting net profit margins negatively. The EBIT and EBITDA margins have also shown volatility, indicating challenges in achieving operational profitability.

Balance Sheet

The debt-to-equity ratio appears stable, indicating manageable leverage levels. However, the company has a high equity ratio, suggesting a strong equity base relative to total assets. Despite this, the consistent net losses have adversely affected return on equity, which remains negative.

Cash Flow

The company has struggled with positive operating cash flows, particularly in recent years, impacting its ability to generate free cash flow. The absence of consistent free cash flow growth and the inability to cover net income with cash flow are concerns, indicating liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	959.90M	1.07B	1.03B	1.38B	1.34B	763.72M
Gross Profit	745.97M	432.38M	69.65M	188.43M	-11.14M	-488.65M
EBITDA	-92.60M	-171.17M	-115.69M	356.05M	-307.39M	-1.33B
Net Income	-507.00M	-494.14M	-522.44M	-216.91M	-1.06B	-2.12B
Balance Sheet
Total Assets	8.29B	7.89B	9.20B	10.06B	11.51B	13.55B
Cash, Cash Equivalents and Short-Term Investments	117.51M	310.92M	266.04M	566.21M	820.92M	647.42M
Total Debt	1.30B	1.24B	1.42B	1.56B	2.12B	2.54B
Total Liabilities	1.63B	1.55B	1.80B	1.94B	2.70B	3.10B
Stockholders Equity	6.65B	6.34B	7.41B	8.12B	8.81B	10.45B
Cash Flow
Free Cash Flow	-264.88M	-219.08M	-136.69M	142.07M	313.16M	10.43M
Operating Cash Flow	-246.60M	-199.93M	-113.41M	154.59M	345.10M	17.89M
Investing Cash Flow	-19.75M	-18.29M	-21.19M	-11.57M	-29.27M	264.49M
Financing Cash Flow	171.70M	276.24M	-100.80M	-433.15M	-98.27M	-66.47M

Shin Hwa World Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 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:0582, the sentiment is Neutral. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0582.

Shin Hwa World Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1245	73 Outperform	HK$261.89M	8.46	2.95%	5.19%	-0.75%	35.42%
1655	67 Neutral	HK$135.00M	―	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8308	49 Neutral	HK$113.88M	―	-34.01%	―	-0.31%	34.83%
0582	46 Neutral	HK$441.83M	―	-7.56%	―	-15.22%	59.00%
1371	41 Neutral	€40.15M	―	―	―	66.22%	73.39%
0959	20 Underperform	HK$92.34M	-2.02	―	―	―	63.51%

Shin Hwa World Limited Corporate Events

Shin Hwa World Limited’s Rights Issue Oversubscribed

Shin Hwa World Limited announced the results of its Rights Issue, which offered one Rights Share for every existing share held. The Rights Issue was oversubscribed, with valid applications exceeding the total number of Rights Shares offered by approximately 3.69%. The allocation of excess Rights Shares was conducted on a pro-rata basis, fulfilling all conditions set out in the prospectus and rendering the Rights Issue unconditional. The over-subscription resulted in the full discharge of the Underwriter’s obligations under the Underwriting Agreement.

Shin Hwa World Limited Revises Rights Issue Timetable

Shin Hwa World Limited has announced a revised timetable for its Rights Issue, which involves offering one rights share for every share held on the record date. The revision is due to additional time required for administrative procedures, allowing more time for qualifying shareholders to participate. The new timeline extends the latest time for acceptance and payment for rights shares to October 24, 2025, and the latest time for terminating the underwriting agreement to October 27, 2025. Other terms and conditions remain unchanged.

Shin Hwa World Limited Secures Unanimous Approval for Rights Issue

Shin Hwa World Limited announced that the proposed resolution for a rights issue and related underwriting agreement was unanimously approved by shareholders at the Special General Meeting held on September 16, 2025. The resolution received 100% of the votes in favor, with no opposition, indicating strong shareholder support. The company has no controlling shareholders, and no directors or their associates hold shares, ensuring an unbiased voting process. This approval is a significant step for Shin Hwa World Limited, potentially impacting its financial strategy and market position.

Shin Hwa World Limited Reports Increased Losses in H1 2025

Shin Hwa World Limited reported its unaudited interim results for the first half of 2025, revealing a decrease in revenue to HK$410,374,000 from HK$524,725,000 in the same period of 2024. The company experienced a net loss of HK$244,395,000, which widened compared to the previous year’s loss of HK$231,540,000, primarily due to reduced revenue and increased financial costs. Despite the challenging financial performance, the company continues to navigate the competitive gaming and property markets.

Shin Hwa World Limited Announces Special General Meeting for Rights Issue Approval

Shin Hwa World Limited has announced a special general meeting to be held on September 16, 2025, to discuss and potentially approve a proposed rights issue. The rights issue involves the issuance of up to 1,825,740,693 new shares at a subscription price of HK$0.1 per share, on a one-for-one basis to qualifying shareholders. The company has entered into an underwriting agreement with SR Wealth Securities Limited to manage the rights issue on a best-effort basis. This move is aimed at raising capital and may impact the company’s financial structure and shareholder value.

Shin Hwa World Limited Schedules Board Meeting to Discuss Interim Results

Shin Hwa World Limited has announced that its board of directors will hold a meeting on August 28, 2025. The meeting will focus on approving the interim results for the first half of 2025, considering the payment of an interim dividend, and addressing other business matters. This announcement indicates the company’s commitment to transparency and shareholder engagement, potentially impacting investor confidence and market perception.

Shin Hwa World Limited Issues Profit Warning Amid Revenue Decline

Shin Hwa World Limited has issued a profit warning, anticipating an increase of up to 12% in consolidated net loss for the first half of 2025 compared to the same period in 2024. This expected loss is attributed to a decline in revenue from its integrated resort and gaming business due to pressure on room prices and reduced customer spending, as well as a decrease in the fair value of its investment properties. The company is also assessing potential impairment losses on intangible assets, which may further impact its financial results.