Shenzhen Investment (0604) AI Stock Analysis

• Market Cap: HK$7.47B
• Dividend Yield: 10.98%
• Average Volume (3M): 19.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: 62.19%
• EPS Growth: -168.07%
• Country: HK
• Employees: 18,710
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.29
• Shares Outstanding: 8,898,793,000
• 10 Day Avg. Volume: 15,240,152
• 30 Day Avg. Volume: 19,763,427
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -2.80
• 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: HK$0.78
• Price Target Upside: -14.54% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.49
• Revenue Forecast (FY): HK$200.19B

• Rating: 51 Neutral
• Price Target: HK$1.00 ▲(9.89% Upside)

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 Partnerships

Partnerships with government entities and developers enhance land acquisition and investment opportunities, supporting long-term growth.

Asset Base

A substantial asset base provides a buffer against liabilities and supports potential recovery and expansion efforts.

Revenue Diversification

Diverse revenue streams from sales, rentals, and infrastructure projects reduce reliance on a single income source, enhancing stability.

Negative Factors

Declining Revenue

Continued revenue decline indicates market challenges and could hinder the company's ability to invest in growth and innovation.

Profitability Issues

Deteriorating profit margins reflect operational inefficiencies and market pressures, impacting long-term financial health.

Liquidity Concerns

Negative cash flow indicates potential liquidity issues, which may affect the company's ability to fund operations and investments.

Shenzhen Investment Business Overview & Revenue Model

Company Description

Shenzhen 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 Money

Shenzhen 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.16B	15.57B	15.83B	31.54B	32.05B	18.80B
Gross Profit	5.13B	4.44B	5.11B	10.69B	12.43B	8.81B
EBITDA	3.23B	2.79B	3.23B	8.46B	10.57B	7.28B
Net Income	-3.34B	-1.82B	-261.40M	2.09B	-2.72B	3.72B
Balance Sheet
Total Assets	167.83B	171.17B	174.41B	163.47B	162.77B	152.28B
Cash, Cash Equivalents and Short-Term Investments	4.92B	5.79B	11.05B	11.67B	19.92B	16.17B
Total Debt	60.40B	65.12B	60.96B	51.40B	58.76B	46.10B
Total Liabilities	124.08B	125.85B	126.93B	113.91B	108.40B	96.87B
Stockholders Equity	36.76B	38.55B	42.34B	44.63B	49.17B	50.62B
Cash Flow
Free Cash Flow	3.21B	-2.76B	3.95B	-14.26B	-7.68B	-4.28B
Operating Cash Flow	4.20B	-1.84B	4.40B	-13.24B	-7.33B	-3.98B
Investing Cash Flow	-1.36B	-1.39B	353.24M	308.95M	494.34M	422.34M
Financing Cash Flow	-2.80B	-1.82B	-5.22B	7.59B	9.52B	9.47B

Shenzhen Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.83, above the 50-day MA of 0.87, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0604	51 Neutral	HK$7.47B	-2.24	-8.73%	10.98%	62.19%	-168.07%
0028	50 Neutral	HK$6.67B	3.24	7.40%	2.21%	216.43%	186.77%
0119	49 Neutral	HK$7.76B	461.36	0.04%	0.98%	22.28%	-98.68%
0173	46 Neutral	HK$6.68B	22.65	0.73%	3.32%	66.68%	-38.14%
0588	45 Neutral	HK$5.80B	-0.62	-41.74%	―	-44.25%	-406.20%
0081	45 Neutral	HK$7.33B	19.29	1.10%	0.50%	-24.86%	-76.06%

Shenzhen Investment Corporate Events

Shenzhen Investment Announces Q3 2025 Business Progress

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

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

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.

Shenzhen Investment Subsidiary Engages in Significant Loan Agreement

Shenzhen Investment, through its indirect non-wholly-owned subsidiary Shenzhen Taiyuntong, has entered into a Loan Agreement with its shareholders Shum Yip Terra and Shenzhen Metro Real Estate. The agreement involves providing loans totaling RMB2.53 billion, distributed proportionally based on shareholding interests, with a fixed annual interest rate of 0.05% over a 36-month term. This transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, subject to reporting and announcement requirements but exempt from circular and shareholders’ approval. The transaction highlights the company’s strategic financial maneuvers to support its subsidiaries without requiring additional security or guarantees, potentially impacting its financial structure 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.