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Shenzhen Investment (HK:0604)
:0604

Shenzhen Investment (0604) AI Stock Analysis

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HK

Shenzhen Investment

(OTC:0604)

Rating:48Neutral
Price Target:
Shenzhen Investment faces significant financial challenges with declining revenues, negative profitability, and cash flow issues. While the asset base is strong, the current stock price trends are weak, and the valuation reflects ongoing losses despite a high dividend yield. The absence of earnings call data and new corporate events limits insights into future guidance.

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 currently under financial stress, with declining revenues, negative profitability, and increased financial leverage. The company also faces cash flow challenges, which suggest potential liquidity risks despite a solid asset base.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
15.57B15.83B31.54B32.05B18.80B
Gross Profit
4.44B5.11B10.69B12.43B8.81B
EBIT
2.73B3.50B7.73B10.80B9.60B
EBITDA
2.79B3.23B8.46B11.18B9.84B
Net Income Common Stockholders
-1.82B-261.40M2.09B-2.10B3.72B
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.79B11.05B11.67B19.92B16.17B
Total Assets
171.17B174.41B163.47B162.77B152.28B
Total Debt
65.12B45.15B50.71B42.11B34.94B
Net Debt
59.33B30.76B39.04B22.19B18.77B
Total Liabilities
125.85B126.93B113.91B108.40B96.87B
Stockholders Equity
38.55B42.34B44.63B49.17B50.62B
Cash FlowFree Cash Flow
0.003.95B-14.26B-7.68B-4.28B
Operating Cash Flow
0.004.40B-13.24B-7.33B-3.98B
Investing Cash Flow
0.00353.24M308.95M494.34M422.34M
Financing Cash Flow
0.00-5.22B7.59B9.52B9.47B

Shenzhen Investment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.75
Price Trends
50DMA
0.76
Negative
100DMA
0.80
Negative
200DMA
0.84
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
46.14
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0604, the sentiment is Negative. The current price of 0.75 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.76, and below the 200-day MA of 0.84, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.14 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0604.

Shenzhen Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$2.54B5.3149.10%3.73%3.11%-2.34%
75
Outperform
$124.42B19.761.94%10.12%-7.64%-32.01%
71
Outperform
$117.07B8.613.52%4.66%-3.04%-20.01%
70
Outperform
$75.95B19.982.17%0.24%-30.38%-43.73%
69
Neutral
$152.13B8.974.15%2.16%-10.21%-40.22%
61
Neutral
$2.83B10.720.40%6.10%5.80%-21.26%
48
Neutral
HK$6.94B-4.50%11.54%-1.22%-596.60%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0604
Shenzhen Investment
0.75
-0.21
-21.87%
HK:0331
FSE Lifestyle Services Limited
5.67
0.39
7.39%
HK:0083
Sino Land Co
8.31
0.67
8.70%
HK:0688
China Overseas Land & Investment
13.90
0.48
3.58%
HK:0012
Henderson Land Development Co
25.70
5.81
29.22%
HK:1113
CK Asset Holdings
33.45
5.58
20.02%

Shenzhen Investment Corporate Events

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.

Shenzhen Investment Limited Announces Change of Share Registrar
Apr 1, 2025

Shenzhen Investment Limited has announced a change in its share registrar, effective from April 15, 2025. The new share registrar will be Tricor Investor Services Limited, and all applications for the registration of share transfers should be lodged with them from the effective date. This change is part of the company’s operational adjustments and may impact stakeholders involved in share transactions.

Shenzhen Investment Reports Significant Losses in 2024
Mar 28, 2025

Shenzhen Investment Limited reported its final results for the year ending December 31, 2024, showing a significant decline in profitability. The company experienced a net loss of HK$1,537,357,000 compared to a profit the previous year, primarily due to increased finance costs and impairment losses on investments. This downturn in financial performance may impact the company’s market position and stakeholder confidence.

Shenzhen Investment Issues Profit Warning Amid Rising Losses
Mar 26, 2025

Shenzhen Investment Limited has issued a profit warning, indicating that the company expects to report a significant increase in net losses for the fiscal year 2024, ranging between HK$1,700 million to HK$1,900 million, compared to a net loss of HK$261 million in 2023. This anticipated loss is attributed to impairment losses on its interest in an associated company and joint venture, signaling potential challenges in its financial performance and urging shareholders and investors to exercise caution.

Shenzhen Investment Issues Profit Warning for FY 2024
Mar 21, 2025

Shenzhen Investment Limited has issued a profit warning, indicating an expected unaudited consolidated net loss attributable to equity shareholders between approximately HK$1,000 million to HK$1,200 million for the fiscal year 2024. This anticipated increase in net loss is primarily due to a decrease in gross profit margin, increased losses from joint ventures and associates, a loss from changes in the fair value of investment properties, and an increase in impairment provisions for properties and related assets.

Shenzhen Investment Secures HK$4 Billion Loan Facility
Mar 20, 2025

Shenzhen Investment Limited has entered into a HK$4 billion term loan facility agreement with several banks for a period of up to three years. The agreement includes conditions that could trigger an event of default if Shum Yip Holdings ceases to maintain a certain level of ownership and control over the company. This financial arrangement underscores the company’s strategic financial management and highlights its reliance on its major shareholder, Shum Yip Holdings, which is backed by the Shenzhen Municipal People’s Government.

Shenzhen Investment Schedules Board Meeting to Approve Annual Results
Mar 18, 2025

Shenzhen Investment Limited has announced a board meeting scheduled for March 28, 2025, to approve the annual results for the year ended December 31, 2024, and to consider a final dividend payment. This meeting is crucial for stakeholders as it will determine the company’s financial performance and potential returns to shareholders.

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.