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Shenzhen Investment Limited (HK:0604)
:0604

Shenzhen Investment (0604) AI Stock Analysis

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HK:0604

Shenzhen Investment

(0604)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
HK$0.84
▼(-7.25% Downside)
The overall stock score of 51 reflects significant financial challenges, including declining revenues and profitability issues, which are the most impactful factors. Technical analysis provides some positive signals, but the valuation is mixed with a high dividend yield countered by a negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
Strategic Shenzhen position and government partnerships
Close partnerships with local governments and private developers give the company durable access to land, approvals and co-investment opportunities. This structural advantage supports steady project pipelines, reduces land sourcing friction and improves long-term project win rates.
Diversified revenue mix across real estate and infrastructure
Revenue from sales, leasing, infrastructure projects and joint ventures diversifies cash sources and softens exposure to residential cyclical swings. Infrastructure and rental income provide more predictable long-term cash flows and resilience during property market downturns.
Substantial asset base provides a financial buffer
A large asset base supports collateral value for refinancing, potential asset monetization and negotiating leverage with lenders or partners. Over a multi-month horizon this buffer can help manage liquidity stress and enable strategic disposals to shore up cash if needed.
Negative Factors
Declining revenues and deteriorating profitability
Sustained revenue contraction and consecutive net losses signal weakening core operating performance. Over 2-6 months this trend undermines margin recovery, restricts reinvestment capacity and raises questions about the current business model's ability to restore profitable growth.
Negative operating cash flow and free cash flow
Loss of operating cash generation and negative free cash flow increase reliance on external financing and limit internal reinvestment. Persisting cash deficits raise liquidity risk, could force asset sales or higher-cost borrowing, and constrain strategic initiatives over the medium term.
Rising leverage and weakened equity base
Higher leverage and a shrinking equity ratio increase refinancing and interest rate sensitivity. This structural rise in financial risk can limit capital allocation flexibility, increase default probability under stress, and raise funding costs across the investment cycle.

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

Shenzhen Investment Business Overview & Revenue Model

Company DescriptionShenzhen Investment Limited, together with its subsidiaries, invests in, develops, and manages real estate properties in Mainland China. It operates through five segments: Property Development, Property Investment, Property Management, Manufacture, and Others. The company invests in and develops residential and commercial properties; invests in commercial properties for rental income; manages properties; and manufactures and sells industrial and commercial products. It also manufactures and sells aluminum alloy, agricultural, and LCM products; provides construction services; and operates hotels and warehouses. The company was founded in 1992 and is based in Tsim Sha Tsui, Hong Kong. Shenzhen Investment Limited is a subsidiary of Shum Yip Holdings Company Limited.
How the Company Makes MoneyShenzhen Investment generates revenue primarily through the sale and leasing of real estate properties. Its key revenue streams include residential and commercial property sales, rental income from its property portfolio, and returns from infrastructural projects. The company strategically partners with local government entities and private developers to secure land and investment opportunities, which contributes to its earnings. Furthermore, Shenzhen Investment may also earn income through various financial investments and joint ventures, further diversifying its revenue base.

Shenzhen Investment Financial Statement Overview

Summary
Shenzhen Investment is facing significant financial headwinds. The company is grappling 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.16B15.57B15.83B31.54B32.05B18.80B
Gross Profit5.13B4.44B5.11B10.69B12.43B8.81B
EBITDA3.23B2.79B3.23B8.46B10.57B7.28B
Net Income-3.34B-1.82B-261.40M2.09B-2.72B3.72B
Balance Sheet
Total Assets167.83B171.17B174.41B163.47B162.77B152.28B
Cash, Cash Equivalents and Short-Term Investments4.92B5.79B11.05B11.67B19.92B16.17B
Total Debt60.40B65.12B60.96B51.40B58.76B46.10B
Total Liabilities124.08B125.85B126.93B113.91B108.40B96.87B
Stockholders Equity36.76B38.55B42.34B44.63B49.17B50.62B
Cash Flow
Free Cash Flow3.21B-2.76B3.95B-14.26B-7.68B-4.28B
Operating Cash Flow4.20B-1.84B4.40B-13.24B-7.33B-3.98B
Investing Cash Flow-1.36B-1.39B353.24M308.95M494.34M422.34M
Financing Cash Flow-2.80B-1.82B-5.22B7.59B9.52B9.47B

Shenzhen Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.91
Price Trends
50DMA
0.85
Positive
100DMA
0.87
Positive
200DMA
0.86
Positive
Market Momentum
MACD
<0.01
Negative
RSI
58.71
Neutral
STOCH
43.33
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 0.91 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.85, and above the 200-day MA of 0.86, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
61
Neutral
HK$9.29B23.411.10%0.50%-24.86%-76.06%
51
Neutral
HK$7.83B-2.34-8.73%10.98%62.19%-168.07%
50
Neutral
HK$6.74B3.227.40%2.21%216.43%186.77%
46
Neutral
HK$8.01B27.240.73%3.32%66.68%-38.14%
45
Neutral
HK$6.14B-0.64-41.74%-44.25%-406.20%
45
Neutral
HK$9.17B527.270.04%0.98%22.28%-98.68%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0604
Shenzhen Investment
0.88
0.09
11.39%
HK:0588
Beijing North Star Company
0.80
0.10
14.29%
HK:0173
K Wah International Holdings
2.54
0.88
53.10%
HK:0119
Poly Property Group Co
2.40
1.01
72.79%
HK:0028
Tian An China Investments Co
4.60
0.19
4.38%
HK:0081
China Overseas Grand Oceans Group Limited
2.61
1.00
62.11%

Shenzhen Investment Corporate Events

Shenzhen Investment Announces Retirement of Executive Director Shi Xiaomei
Jan 23, 2026

Shenzhen Investment Limited announced that executive director Ms. Shi Xiaomei has retired from the board with effect from 23 January 2026 upon reaching the company’s retirement age. The company said Ms. Shi has no disagreement with the board and there are no matters related to her departure that need to be brought to shareholders’ attention, while the board expressed its appreciation for her contributions during her tenure and confirmed the current composition of three executive and three independent non-executive directors.

The most recent analyst rating on (HK:0604) stock is a Hold with a HK$0.82 price target. To see the full list of analyst forecasts on Shenzhen Investment stock, see the HK:0604 Stock Forecast page.

Shenzhen Investment Outlines Board and Committee Composition
Jan 23, 2026

Shenzhen Investment Limited, a Hong Kong-incorporated company listed under stock code 00604, has announced the current composition of its board of directors and their roles within key governance committees. The board comprises three executive directors, led by chairman Mr. Wang Yuwen, and three independent non-executive directors, reflecting a structure designed to balance management oversight with independent judgment. The company also detailed membership of its three board committees—Audit, Remuneration and Nomination—confirming that the independent non-executive directors chair and populate the Audit and Remuneration Committees, while both executive and independent directors serve on the Nomination Committee. This allocation underscores the company’s focus on corporate governance, transparency, and checks and balances at board level, providing clarity to shareholders and other stakeholders on oversight responsibilities as of 23 January 2026.

The most recent analyst rating on (HK:0604) stock is a Hold with a HK$0.82 price target. To see the full list of analyst forecasts on Shenzhen Investment stock, see the HK:0604 Stock Forecast page.

Shenzhen Investment Showcases Award-Winning Urban Operations and Tech-Driven Retail in Q4 2025
Jan 19, 2026

Shenzhen Investment Limited reported that its comprehensive urban operation business continued to gain market recognition in the fourth quarter of 2025, with subsidiary Shum Yip Operations receiving multiple national and regional property service awards, including recognition as a leading quality brand and a top-ranked property service provider in the Greater Bay Area among Shenzhen municipal state-owned peers. The Group also highlighted improved operational service quality and efficiency, driven by high-end commercial and technology-focused initiatives such as introducing South China’s first SHANGHAI TANG store and the country’s first humanoid robot-themed retail flagship at Upper Hills, joining the Golden Key International Alliance for its office buildings, and winning an application innovation award for smart city services through human-robot collaboration in a Shenzhen sanitation project, underscoring its push into technology-driven, service-oriented urban operations.

The most recent analyst rating on (HK:0604) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Shenzhen Investment stock, see the HK:0604 Stock Forecast page.

Shenzhen Investment Announces Q3 2025 Business Progress
Nov 3, 2025

Shenzhen Investment Limited has announced significant progress in its business operations for the third quarter of 2025. The company has been actively upgrading its properties, including the launch of ‘The Gardens’ at Upper Hills, which integrates international cuisine and high-end cinema functions. This initiative aims to enhance the shopping mall’s dining options and commercial value. Additionally, the company’s operational strength has been recognized with several awards, and it has successfully attracted 13 Fortune 500 companies to its Upper Hills office buildings. The expansion of operational projects is accelerating, with a successful bid for the Huafu Village Project in partnership with a state-owned enterprise.

The most recent analyst rating on (HK:0604) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Shenzhen Investment stock, see the HK:0604 Stock Forecast page.

Shenzhen Investment Announces Potential Equity Transfer in Strategic Move
Oct 30, 2025

Shenzhen Investment Limited announced a letter of intent for a potential transaction involving the transfer of a 70% equity interest in Shenzhen Jinghua Displays Electronics Co., Ltd. to Shahe Industrial Co., Ltd. This move aligns with the company’s strategy to transform into a real-estate asset manager and integrated operation service provider. The transaction, if realized, would be a connected transaction and may impact the company’s market positioning and stakeholder interests.

The most recent analyst rating on (HK:0604) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Shenzhen Investment stock, see the HK:0604 Stock Forecast page.

Shenzhen Investment Enhances Loan Management with Strategic Partnerships
Oct 30, 2025

Shenzhen Investment Limited announced a supplemental disclosure regarding its loan transactions under an Investment Cooperation Agreement with Shenzhen Taiyuntong. The loans, provided to shareholders Shum Yip Terra and Shenzhen Metro Real Estate, are part of a closed-loop fund management regime, ensuring surplus cash is used efficiently. This approach aligns with financial operation standards and reflects the company’s strategic management of resources. The involvement of Shenzhen Metro Real Estate, a state-owned enterprise, underscores the high creditworthiness and government backing, reinforcing the company’s strong industry positioning.

The most recent analyst rating on (HK:0604) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Shenzhen Investment stock, see the HK:0604 Stock Forecast page.

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: Nov 13, 2025