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Shenzhen Investment Limited (HK:0604)
:0604

Shenzhen Investment (0604) AI Stock Analysis

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HK

Shenzhen Investment

(OTC:0604)

Rating:51Neutral
Price Target:
HK$1.00
▲(12.36%Upside)
The overall score reflects significant financial challenges, particularly in profitability and cash flow. Technical indicators provide some neutral to slightly positive signals, while the valuation is mixed, with an attractive dividend yield but a negative P/E ratio. Financial performance is the most critical concern, overshadowing other aspects.

Shenzhen Investment (0604) vs. iShares MSCI Hong Kong ETF (EWH)

Shenzhen Investment Business Overview & Revenue Model

Company DescriptionShenzhen Investment Limited (0604) is a leading real estate development and investment company based in China. The company primarily focuses on the development, sale, and management of residential and commercial properties. It operates across various sectors, including residential, commercial, and industrial real estate, with a strong presence in the Shenzhen region. Shenzhen Investment is committed to delivering high-quality properties and services to its customers and is known for its innovative approach to urban development and investment strategies.
How the Company Makes MoneyShenzhen Investment Limited generates revenue primarily through the sale and leasing of residential and commercial properties. The company develops properties, which are then sold or leased to generate income. Key revenue streams include property sales, rental income, and property management services. Additionally, Shenzhen Investment benefits from strategic partnerships and joint ventures with other real estate developers and financial institutions, contributing to its overall earnings. The company's financial performance is also influenced by market demand, property prices, and the economic conditions in the regions where it operates.

Shenzhen Investment Financial Statement Overview

Summary
Shenzhen Investment is facing significant financial headwinds with declining revenues, profitability issues, and increasing financial leverage. Cash flow challenges further exacerbate the situation, suggesting potential liquidity risks. While the company retains a solid asset base, strategic actions are needed to enhance financial health and stabilize operations.
Income Statement
45
Neutral
Shenzhen Investment's income statement reveals significant challenges. The company has experienced a sharp decline in revenue over the past two years, with a negative revenue growth rate from 2022 to 2023 and then a further decrease in 2024. The gross profit margin and net profit margin have deteriorated, with the company reporting a net loss in both 2023 and 2024. The EBIT and EBITDA margins are also under pressure, reflecting reduced profitability.
Balance Sheet
50
Neutral
The balance sheet shows weakened financial stability. The debt-to-equity ratio has increased due to rising debt levels and shrinking equity, indicating higher financial leverage. The equity ratio has decreased, reflecting a lower proportion of equity in the company's asset base. Despite these challenges, the company maintains a substantial asset base, which provides some buffer against liabilities.
Cash Flow
40
Negative
Shenzhen Investment's cash flow statement highlights liquidity issues. The absence of positive operating cash flow in 2024 is concerning, especially following a positive cash flow in 2023. The free cash flow has turned negative, indicating potential difficulties in funding operations and investments without external financing. The operating cash flow to net income ratio is unavailable for 2024, adding to uncertainty about cash flow management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.57B15.83B31.54B32.05B18.80B
Gross Profit4.44B5.11B10.69B12.43B8.81B
EBITDA2.79B3.23B8.46B11.18B9.84B
Net Income-1.82B-261.40M2.09B-2.72B3.72B
Balance Sheet
Total Assets171.17B174.41B163.47B162.77B152.28B
Cash, Cash Equivalents and Short-Term Investments5.79B14.40B11.67B19.92B16.17B
Total Debt65.12B45.15B50.71B42.11B46.10B
Total Liabilities125.85B126.93B113.91B108.40B96.87B
Stockholders Equity38.55B42.34B44.63B49.17B50.62B
Cash Flow
Free Cash Flow-2.76B3.95B-14.26B-7.68B-4.28B
Operating Cash Flow-1.84B4.40B-13.24B-7.33B-3.98B
Investing Cash Flow-1.39B353.24M308.95M494.34M422.34M
Financing Cash Flow-1.82B-5.22B7.59B9.52B9.47B

Shenzhen Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.89
Price Trends
50DMA
0.78
Positive
100DMA
0.80
Positive
200DMA
0.84
Positive
Market Momentum
MACD
0.04
Negative
RSI
60.30
Neutral
STOCH
25.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0604, the sentiment is Positive. The current price of 0.89 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.78, and above the 200-day MA of 0.84, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 60.30 is Neutral, neither overbought nor oversold. The STOCH value of 25.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0604.

Shenzhen Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
HK$6.44B6.233.05%7.73%-20.27%-59.83%
53
Neutral
$1.18B3.34-0.11%7.12%-1.52%-126.00%
51
Neutral
$7.92B-4.50%10.11%-1.22%-596.60%
49
Neutral
HK$5.81B-26.83%2.39%
49
Neutral
$5.92B29.870.53%1.35%-3.13%-87.57%
47
Neutral
$6.57B9.14-0.77%2.23%8.27%-117.00%
44
Neutral
$6.37B19.000.81%4.95%17.77%-58.36%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0604
Shenzhen Investment
0.89
-0.03
-3.26%
HK:0081
China Overseas Grand Oceans Group Limited
1.81
0.04
2.26%
HK:0028
Tian An China Investments Co
4.48
0.57
14.64%
HK:0588
Beijing North Star Company
0.92
0.28
43.75%
HK:0173
K Wah International Holdings
2.02
0.39
24.23%
HK:0119
Poly Property Group Co
1.55
0.10
7.04%

Shenzhen Investment Corporate Events

Shenzhen Investment Acquires Key Land Use Rights in Shenzhen
Jun 30, 2025

Shenzhen Investment has announced the acquisition of land use rights in Shenzhen for approximately RMB1,120.68 million. This acquisition, part of the Phase II Project of the First Urban Renewal Unit in Chegongmiao Tairan Industrial Zone, involves a site area of 16,866.54 square meters and a gross floor area of 200,200 square meters, with a 50-year term for innovative industrial use. The transaction is considered a discloseable transaction under Hong Kong’s Listing Rules, impacting the company’s strategic positioning in urban development and industrial innovation.

Shenzhen Investment Forms Nomination Committee to Enhance Board Governance
Jun 30, 2025

Shenzhen Investment has established a Nomination Committee to oversee the structure, size, and composition of its Board of Directors, ensuring diversity and alignment with the company’s corporate strategy. The committee is empowered to review board composition, recommend changes, and identify qualified individuals for board membership, which may impact the company’s governance and strategic direction.

Shenzhen Investment Limited Updates Nomination Committee
Jun 30, 2025

Shenzhen Investment Limited announced changes in its Nomination Committee, appointing Ms. Cai Xun and Prof. Gong Peng as new members, effective June 30, 2025. This decision aligns with the amended Corporate Governance Code and listing rules set to take effect on July 1, 2025, potentially enhancing the company’s governance and compliance with regulatory standards.

Shenzhen Investment Limited Announces Board Composition and Committee Roles
Jun 30, 2025

Shenzhen Investment Limited has announced the composition of its Board of Directors, detailing the roles and functions of each member. The Board includes both executive and independent non-executive directors, with Mr. Wang Yuwen serving as Chairman. The announcement also outlines the membership of three Board committees: Audit, Remuneration, and Nomination, highlighting the leadership roles within these committees. This structured governance approach is likely to impact the company’s strategic direction and operational oversight, potentially influencing stakeholder confidence and market perception.

Shenzhen Investment Limited Reports Unusual Trading Activity
Jun 27, 2025

Shenzhen Investment Limited has observed unusual price and trading volume movements in its shares. The company’s board has conducted reasonable inquiries and found no underlying reasons or undisclosed information that could explain these changes. The board assures that the company’s business operations and financial position remain stable, advising shareholders and potential investors to exercise caution when dealing with its securities.

Shenzhen Investment Limited Passes All Resolutions at AGM
May 28, 2025

Shenzhen Investment Limited announced the successful passing of all proposed resolutions at its Annual General Meeting held on May 28, 2025. The resolutions included the re-election of directors, authorization for directors to fix remuneration, and the appointment of Ernst & Young as auditors. Additionally, mandates were granted to directors for share buybacks and the issuance of new shares, reflecting strong shareholder support and strategic positioning for future growth.

Shenzhen Investment Limited Announces Board Composition
Apr 29, 2025

Shenzhen Investment Limited has announced the composition of its Board of Directors, which includes both executive and independent non-executive directors. The board is chaired by Mr. Wang Yuwen, who also serves as the company’s president. The announcement also details the membership of three board committees: Audit, Remuneration, and Nomination, highlighting the roles of various directors within these committees. This update is crucial for stakeholders as it reflects the company’s governance structure and the leadership overseeing its strategic direction.

Shenzhen Investment Appoints New Chairman to Ensure Stability
Apr 29, 2025

Shenzhen Investment Limited has appointed Mr. Wang Yuwen as the Chairman of the Board, effective from April 29, 2025. Mr. Wang, who has been with the company since December 2022, brings extensive experience in management and business operations. His dual role as Chairman and President is temporary, ensuring stability and strategic execution until a new President is appointed. This decision reflects the company’s commitment to maintaining operational stability and protecting shareholder interests.

Shenzhen Investment Sets Agenda for 2025 Annual General Meeting
Apr 28, 2025

Shenzhen Investment Limited has announced its upcoming Annual General Meeting scheduled for May 28, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements for 2024, re-election of directors, re-appointment of Ernst & Young as auditors, and granting a mandate to the directors for share buybacks. These resolutions, if approved, could impact the company’s governance and financial strategies, potentially influencing shareholder value and market perception.

Shenzhen Investment Reports Strong Q1 2025 Performance and Strategic Expansions
Apr 16, 2025

Shenzhen Investment Limited reported significant progress in its business operations for the first quarter of 2025, with an 83.5% year-on-year increase in unaudited contracted sales, amounting to approximately RMB 3,133 million. The company also expanded its urban property management and commercial operations, winning bids for projects in various regions and successfully hosting international events, which boosted traffic and sales at its managed locations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025