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

• Market Cap: HK$856.08M
• Dividend Yield: 15.09%
• Average Volume (3M): 2.58M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.26
• Revenue Growth: -10.03%
• EPS Growth: -14.29%
• Country: HK
• Employees: 3,070
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Packaged Foods
• EPS (TTM): <0.01
• Shares Outstanding: 3,230,480,000
• 10 Day Avg. Volume: 4,397,970
• 30 Day Avg. Volume: 2,578,709
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 92.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and high valuation. The strong balance sheet and high dividend yield are positive factors, but they are outweighed by operational inefficiencies and negative market momentum.

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 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: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.26 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.30, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 27.98 is Positive, neither overbought nor oversold. The STOCH value of 15.49 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	77 Outperform	HK$1.16B	9.25	5.39%	8.64%	-1.88%	129.25%
3838	72 Outperform	HK$1.34B	2.57	12.45%	4.41%	-5.08%	359.16%
Sector *	63 Neutral	$20.78B	14.42	-3.73%	3.12%	2.73%	-10.04%
8476	57 Neutral	HK$1.34B	32.24	15.07%	0.78%	-13.70%	2.27%
0829	55 Neutral	HK$856.08M	29.78	1.14%	15.09%	-10.03%	-14.29%
QQFSF	―	$132.60M	33.33	0.79%	―	―	―
0809	55 Neutral	HK$890.74M	1.16		―	45.65%	-81.70%

Shenguan Holdings (Group) Limited Corporate Events

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.

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.