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

• Market Cap: HK$936.84M
• Dividend Yield: 13.79%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.23
• Revenue Growth: -4.42%
• EPS Growth: -157.03%
• Country: HK
• Employees: 3,070
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.01
• Shares Outstanding: 3,230,480,000
• 10 Day Avg. Volume: 1,115,800
• 30 Day Avg. Volume: 1,945,678
• PEG Ratio: -1.91
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.88
• P/FCF Ratio: -3.81
• 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$0.50
• Price Target Upside: 66.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: HK$0.50 ▲(66.67% Upside)

The company's stable balance sheet and positive technical indicators are offset by challenges in profitability and cash flow generation. The high dividend yield is a positive aspect, but the negative P/E ratio raises concerns about future earnings potential.

Shenguan Holdings (Group) Limited Business Overview & Revenue Model

Company Description

Shenguan Holdings (Group) Limited, an investment holding company, manufactures and sells edible collagen sausage casing products in Mainland China, rest of Asia, and internationally. It also manufactures pharmaceutical products and intermediates, food products, skin care and health care products, bioactive collagen products, and fine chemicals for human usage. The company was incorporated in 2009 and is headquartered in Causeway Bay, Hong Kong. Shenguan Holdings (Group) Limited is a subsidiary of Rich Top Future Limited.

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 financial performance is mixed. The balance sheet is strong with low leverage and substantial cash reserves, earning a score of 78. However, the income statement and cash flow statement show challenges, with declining revenue growth and operational inefficiencies, resulting in scores of 62 and 55, respectively. Overall, the company needs to improve cash flow and operational efficiency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	1.02B	1.11B	1.03B	1.17B	961.62M
Gross Profit	143.78M	171.08M	170.86M	160.47M	310.49M	239.05M
EBITDA	70.13M	90.44M	178.00M	79.11M	211.95M	186.65M
Net Income	-22.15M	26.66M	31.24M	23.57M	122.65M	90.75M
Balance Sheet
Total Assets	2.84B	2.83B	2.96B	3.35B	3.31B	3.13B
Cash, Cash Equivalents and Short-Term Investments	558.60M	503.80M	824.01M	953.95M	998.90M	717.28M
Total Debt	420.07M	247.97M	277.37M	540.73M	427.95M	151.25M
Total Liabilities	710.61M	536.49M	581.08M	834.97M	656.48M	441.48M
Stockholders Equity	2.14B	2.30B	2.38B	2.52B	2.66B	2.69B
Cash Flow
Free Cash Flow	-27.32M	-234.02M	93.98M	34.24M	110.55M	367.03M
Operating Cash Flow	6.23M	-143.25M	176.45M	106.04M	179.71M	443.14M
Investing Cash Flow	137.84M	161.69M	298.11M	44.80M	-212.22M	-406.53M
Financing Cash Flow	-216.13M	-161.84M	-455.19M	-71.04M	104.16M	-116.79M

Shenguan Holdings (Group) Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0829, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.29, and above the 200-day MA of 0.27, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	8.55	5.31%	10.12%	-1.19%	-9.05%
3838	63 Neutral	HK$1.18B	2.60	11.75%	4.90%	-6.58%	16.23%
0829	62 Neutral	HK$936.84M	29.21	-0.99%	13.79%	-4.42%	-157.03%
1583	62 Neutral	HK$989.18M	94.24	1.73%	―	-1.70%	104.41%
8476	56 Neutral	HK$1.16B	27.94	14.28%	1.00%	-13.70%	2.27%
0809	52 Neutral	HK$846.20M	1.09	-39.38%	―	42.14%	-81.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Shenguan Holdings (Group) Limited Corporate Events

Shenguan Holdings Reports Revenue Decline and Loss in 2025 Interim Results

Shenguan Holdings reported a revenue decline of 1.9% for the first half of 2025 compared to the same period in 2024, with a significant shift from a profit of RMB 8.2 million to a loss of RMB 40.6 million. The company’s financial performance was impacted by increased costs, with gross profit decreasing and administrative expenses rising. The interim results indicate challenges in operational efficiency, as evidenced by longer inventory turnover days and increased net cash outflows from operating activities.

The most recent analyst rating on (HK:0829) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shenguan Holdings (Group) Limited stock, see the HK:0829 Stock Forecast page.

Shenguan Holdings Issues Profit Warning Amid Challenging Market Conditions

Shenguan Holdings (Group) Limited has issued a profit warning, indicating an expected loss of RMB35.0 million to RMB43.0 million for the first half of 2025, compared to a profit in the same period last year. The decline is attributed to a challenging business environment, increased inventory write-offs due to new product trials, valuation losses on investment properties, and financial adjustments related to inter-company loans and dividend taxation between its Hong Kong and PRC subsidiaries.

Shenguan Holdings Announces Board Meeting for Interim Results Review

Shenguan Holdings (Group) Limited has announced a board meeting scheduled for August 25, 2025, to review and approve the unaudited interim results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant as it may impact the company’s financial strategy and stakeholder returns, reflecting on its operational performance and market positioning.

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.