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

• Market Cap: HK$856.08M
• Dividend Yield: 15.38%
• Average Volume (3M): 690.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• 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: 838,600
• 30 Day Avg. Volume: 690,400
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

Shenguan Holdings' overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The strong balance sheet is a positive factor, but operational inefficiencies and cash flow issues are significant concerns. The high dividend yield offers some appeal, but the negative P/E ratio and weak market momentum weigh heavily on the overall score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and substantial cash reserves provides financial stability and flexibility for future investments.

Product Diversification

Diversification into health supplements reduces reliance on a single market and taps into growing consumer demand for health-oriented products.

Market Position

Strong partnerships and market reach solidify Shenguan's position in the industry, supporting sustained revenue streams and competitive advantage.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth indicates potential challenges in market demand or operational execution, affecting long-term financial performance.

Cash Flow Issues

Zero operating cash flow suggests difficulties in cash generation, which can impact the company's ability to fund operations and growth initiatives.

Declining Profit Margins

Declining profit margins may indicate rising costs or pricing pressures, potentially reducing profitability and affecting long-term sustainability.

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 collagen products, which are utilized extensively in the food processing industry, particularly in the production of sausages and other meat products. The company's revenue model is anchored in its ability to produce and supply high-quality collagen casings, which are essential for food manufacturers. Additionally, Shenguan has diversified its income streams by expanding into the health supplement market, offering various collagen-based products directly to consumers. Significant partnerships with food producers and distributors enhance its market reach and contribute to steady revenue growth. Factors such as increasing consumer demand for protein-rich and health-oriented products, along with ongoing investments in production technology, further bolster the company's earnings.

Shenguan Holdings (Group) Limited Financial Statement Overview

Summary

The financial performance shows a stable balance sheet with low leverage and substantial cash reserves, but challenges in revenue growth and cash generation. The income statement and cash flow statement reveal operational inefficiencies and recent cash flow concerns.

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: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.26, and above the 200-day MA of 0.28, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of -16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	72 Outperform	HK$1.01B	8.42	5.08%	10.44%	-1.19%	-9.05%
1583	63 Neutral	HK$981.63M	93.53	0.79%	0.00%	-1.70%	104.41%
3838	63 Neutral	HK$1.09B	2.41	10.38%	5.38%	-6.58%	16.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0829	54 Neutral	HK$856.08M	-36.30	-0.99%	15.38%	-4.42%	-157.03%
0809	44 Neutral	HK$1.18B	0.78	―	―	42.14%	-81.25%