Shenguan Holdings (Group) Limited (0829) AI Stock Analysis

• Market Cap: HK$985.30M
• Dividend Yield: 13.11%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.28
• Revenue Growth: -10.03%
• EPS Growth: -14.29%
• Country: HK
• Employees: 3,070
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Packaged Foods
• EPS (TTM): <0.01
• Shares Outstanding: 3,230,480,000
• 10 Day Avg. Volume: 1,524,159
• 30 Day Avg. Volume: 1,510,319
• PEG Ratio: -1.21
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.57
• 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

• Rating: 59 Neutral
• Price Target: HK$0.50 ▲(66.67%Upside)

Shenguan Holdings' stock score reflects a mix of strengths and weaknesses. The company exhibits a solid balance sheet with low leverage, but faces challenges in revenue growth and operational efficiency. Despite bullish technical signals, overbought indicators suggest caution. The high dividend yield is a positive aspect, but the elevated P/E ratio raises valuation concerns. Improving cash flow and operational efficiency will be key to enhancing the overall financial health.

Shenguan Holdings (Group) Limited Business Overview & Revenue Model

Company Description

Shenguan Holdings (Group) Limited (0829) is a China-based company primarily engaged in the manufacture and sale of edible collagen sausage casings. The company operates in the sector of food manufacturing, providing high-quality, safe, and environmentally friendly sausage casing products to its clients. Shenguan Holdings has developed a strong reputation in the market due to its advanced technology and innovation in producing collagen casings that meet the diverse needs of the meat processing industry.

How the Company Makes Money

Shenguan Holdings generates revenue primarily through the sale of its edible collagen sausage casings. The company's products are sold to a wide range of clients, including meat processing companies, food manufacturers, and other businesses in the food supply chain. Shenguan Holdings leverages its proprietary technology to produce casings that are not only edible but also enhance the flavor and texture of sausages, thereby adding value for its customers. The company may also engage in partnerships and collaborations with key players in the food industry to expand its market reach and enhance its product offerings, though specific partnerships are not detailed. Revenue is primarily driven by product sales, with potential contributions from any auxiliary services related to the food manufacturing process.

Shenguan Holdings (Group) Limited Financial Statement Overview

Summary

The company's financial performance is mixed. While the balance sheet is strong with low leverage and substantial cash reserves, income and cash flow statements reveal challenges such as inconsistent revenue growth and cash generation issues. Operational inefficiencies are noted, with low and sometimes negative EBIT margins. Improving cash flow and operational performance is crucial.

Income Statement

The income statement shows a mixed performance. Gross profit margin has decreased over recent years, and the net profit margin has seen fluctuations. Revenue growth has been inconsistent, with a decline in 2024 compared to 2023. EBIT margin is low and even negative in some years, indicating potential operational inefficiencies. However, EBITDA margin remains relatively stable, suggesting some underlying operational strength.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio, indicating conservative leverage. The company maintains a high equity ratio, reflecting stability and a solid asset base. Return on equity has been declining, which is a concern, but overall, the company maintains financial resilience with substantial cash reserves.

Cash Flow

Cash flow performance has been uneven. Operating cash flow was zero in the latest year, indicating potential issues in generating cash from operations. Free cash flow has fluctuated and shows low growth, with no positive trend. The high operating cash flow to net income ratio in previous years indicates good cash generation relative to profits, but recent performance is concerning.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.11B	1.03B	1.17B	961.62M
Gross Profit	171.08M	170.86M	160.47M	310.49M	239.05M
EBITDA	90.44M	178.00M	79.11M	211.95M	186.65M
Net Income	26.66M	31.24M	23.57M	122.65M	90.75M
Balance Sheet
Total Assets	2.83B	2.96B	3.35B	3.31B	3.13B
Cash, Cash Equivalents and Short-Term Investments	503.80M	824.01M	953.95M	998.90M	717.28M
Total Debt	247.97M	277.37M	540.73M	427.95M	151.25M
Total Liabilities	536.49M	581.08M	834.97M	656.48M	441.48M
Stockholders Equity	2.30B	2.38B	2.52B	2.66B	2.69B
Cash Flow
Free Cash Flow	-234.02M	93.98M	34.24M	110.55M	367.03M
Operating Cash Flow	-143.25M	176.45M	106.04M	179.71M	443.14M
Investing Cash Flow	161.69M	298.11M	44.80M	-212.22M	-406.53M
Financing Cash Flow	-161.84M	-455.19M	-71.04M	104.16M	-116.79M

Shenguan Holdings (Group) Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0829, the sentiment is Neutral. The current price of 0.3 is below the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.29, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0829.

Shenguan Holdings (Group) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	77 Outperform	HK$1.02B	8.15	5.39%	16.34%	-1.88%	129.25%
8476	66 Neutral	HK$1.07B	25.59	15.07%	1.06%	-13.70%	2.27%
1583	66 Neutral	HK$1.04B	45.54	1.74%	1.57%	-0.82%	―
3838	65 Neutral	HK$1.36B	2.60	12.45%	23.11%	-5.08%	359.16%
Sector *	61 Neutral	HK$21.17B	12.34	0.81%	4.52%	2.72%	-47.45%
0829	59 Neutral	HK$985.30M	34.27	1.14%	13.11%	-10.03%	-14.29%
0809	57 Neutral	HK$819.48M	1.11		―	45.65%	-81.70%

Shenguan Holdings (Group) Limited Corporate Events

Shenguan Holdings Forms Nomination Committee to Enhance Board Governance

Shenguan Holdings (Group) Limited has established a Nomination Committee to oversee and recommend changes to the Board’s structure, ensuring alignment with the company’s corporate strategy. The committee, composed mainly of independent non-executive directors, is tasked with evaluating board composition, identifying qualified board candidates, assessing director independence, and advising on succession planning, thereby enhancing governance and strategic alignment.

Shenguan Holdings Announces AGM Results and Director Retirement

Shenguan Holdings (Group) Limited has announced the results of its Annual General Meeting, where all proposed resolutions were approved by shareholders. Additionally, the company has confirmed the retirement of Mr. Ru Xiquan as an executive director. The resolutions included the approval of audited accounts and the declaration of a final and special dividend for the year ended December 31, 2024, highlighting the company’s commitment to shareholder returns.

Shenguan Holdings Announces Board Composition and Roles

Shenguan Holdings (Group) Limited has announced the composition of its board of directors and their respective roles within the company. The announcement provides details on the executive, non-executive, and independent non-executive directors, as well as their participation in various board committees. This update is significant for stakeholders as it outlines the leadership structure and governance framework, which can impact the company’s strategic direction and decision-making processes.

Shenguan Holdings Announces AGM with Key Resolutions on Dividends and Share Issuance

Shenguan Holdings (Group) Limited has announced its upcoming annual general meeting scheduled for June 6, 2025. Key resolutions to be discussed include the approval of a final and special dividend for the year ended December 31, 2024, reappointment of Ernst & Young as auditors, and re-election of several directors. Additionally, the company seeks authorization to issue additional shares and securities, which could potentially impact its market positioning and shareholder value.