Shin Hwa World Limited (0582) AI Stock Analysis

• Market Cap: HK$704.94M
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• 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: 5,071,502,400
• 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: 48 Neutral
• Price Target: HK$0.14 ▲(13.33% Upside)

The score is held back primarily by weak financial performance (persistent losses and poor operating cash flow) despite a relatively steadier balance sheet. Technicals are supportive with price above key moving averages and positive MACD, but the very overbought RSI raises near-term risk. Valuation remains unattractive/unclear due to a negative P/E and no dividend yield data.

Positive Factors

Manageable leverage and strong equity base

A stable debt-to-equity ratio and high equity ratio provide durable financial flexibility, reducing refinancing pressure during downturns. This steadier capital structure supports the company's ability to absorb cyclical volatility and fund operations or investments without immediate reliance on costly external debt.

Improved gross profit margin in 2024

A notable improvement in gross margin signals sustainable operational progress — better cost control or a favorable revenue mix. If maintained, higher gross margins enhance the company's ability to convert revenue into operating profit and improve resilience while it addresses structural losses over the coming months.

Positive EPS growth trend

A strong EPS growth rate indicates improving bottom-line performance relative to prior periods, suggesting management is making progress on profitability levers. Over a 2-6 month horizon, continued EPS improvement would support operational credibility and reduce reliance on external remediation measures.

Negative Factors

Persistent net losses

Ongoing net losses erode retained earnings and weaken long-term shareholder value. Persistent unprofitability constrains reinvestment capacity and increases dependence on external capital, complicating strategic initiatives and limiting the firm's ability to finance growth or shore up operations sustainably.

Weak operating cash flow and FCF

Consistently weak operating cash flow undermines liquidity and the capacity to fund working capital or capex from operations. Lack of reliable free cash flow heightens refinancing and liquidity risk, making the company more vulnerable to shocks and limiting options for strategic investment or deleveraging.

Declining and inconsistent revenue

Sustained revenue decline and volatility reduce scale benefits and make fixed-cost absorption harder, pressuring margins. Structural top-line weakness suggests demand or competitive challenges that must be addressed to restore sustainable profitability and improve long-term cash generation.

Shin Hwa World Limited Business Overview & Revenue Model

Company Description

Shin Hwa World Ltd. is an investment holding company, which engages in the development and operation of the integrated leisure and entertainment resort, gaming and entertainment facilities, and property development. It operates through the following segments: Integrated Resort Development, Gaming Business, and Property Development. The company was founded on October 30, 2001 and is headquartered in Hong Kong.

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

Financial statements indicate weak fundamentals: inconsistent revenue, ongoing net losses, and volatile EBIT/EBITDA margins. The balance sheet looks comparatively steadier with manageable leverage, but negative ROE and poor/unstable operating cash flow materially weigh on overall financial strength.

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: Positive
• Last Price: 0.12
• 50DMA: Positive
• 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:0582, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.13, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 29.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$240.37M	7.76	2.95%	8.10%	-0.75%	35.42%
1655	67 Neutral	HK$152.40M	2.06	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0582	48 Neutral	HK$704.94M	-0.48	-7.56%	―	-15.22%	59.00%
0959	44 Neutral	HK$92.34M	-10.27	―	―	―	63.51%
1371	43 Neutral	HK$28.72M	-0.40	―	―	66.22%	73.39%
8308	42 Neutral	HK$88.88M	-1.30	-34.01%	―	-0.31%	34.83%

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.