Sheng Yuan Holdings Limited (0851) AI Stock Analysis

• Market Cap: HK$282.23M
• Dividend Yield: N/A
• Average Volume (3M): 19.00K
• Price to Earnings (P/E): 38.1
• Beta (1Y): 0.14
• Revenue Growth: 144.16%
• EPS Growth: -62.50%
• Country: HK
• Employees: 17
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 881,970,500
• 10 Day Avg. Volume: 5,064
• 30 Day Avg. Volume: 19,004
• PEG Ratio: -0.03
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 4.05
• P/FCF Ratio: 5.67
• 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: 62 Neutral
• Price Target: HK$0.31 ▲(9.64% Upside)

The score is driven primarily by improving financial performance (sharp 2024 recovery in revenue, profitability, cash generation, and balance sheet strength) and supported by bullish technical momentum. Offsetting these positives are a relatively high P/E valuation and the company’s history of volatile results.

Positive Factors

Revenue and margin recovery

A large revenue jump and margin rebound reflect improved operational execution and stronger demand for core assets. This durability supports higher cash generation and gives management room to scale projects or deleverage over the medium term, improving resilience versus prior years.

Improved operating and free cash flow

Positive operating and free cash flow indicate the business is converting earnings into liquidity, enabling reinvestment, reductions in external financing needs, and a buffer for development cycles. Sustained cash generation materially increases financial optionality over 2-6 months.

Stronger balance sheet and lower leverage

Restored equity and reduced leverage materially lower refinancing and covenant risk, improving the company's ability to fund projects, absorb shocks, or pursue opportunistic acquisitions. This structural improvement supports medium-term financial stability.

Negative Factors

Historic earnings and cash volatility

Prior multi-year losses, negative margins and past negative cash flows show the company has experienced meaningful operational volatility. Such a track record raises the risk that current improvements may not be sustained, challenging forecasting and counterparties' confidence.

Small operational scale

A very small headcount for a property developer/investor suggests reliance on external contractors and concentrated management bandwidth. Limited internal scale can constrain simultaneous project execution, governance oversight, and rapid portfolio expansion over the medium term.

Concentration in real estate activities

Core exposure to property investment and development keeps revenue and cash flow tied to real estate cycles and regulatory dynamics. Even with some financial investments, sector concentration raises structural susceptibility to macro or policy shifts that could impair medium-term performance.

Sheng Yuan Holdings Limited Business Overview & Revenue Model

Company Description

Sheng Yuan Holdings Limited, an investment holding company, provides various financial services in Hong Kong and Mainland China. It operates through: Securities Brokerage and Financial Services, Asset Management Services, Proprietary Trading, and Trading Business segments. The company offers administrative services; discretionary and non-discretionary dealing services for securities and futures contracts; securities placing and underwriting services; margin financing and money lending services; and corporate finance advisory and general advisory services. It is also involved in the provision of fund management and discretionary portfolio management, and investment advisory services; securities trading; and trading of chemical products, and energy and minerals products. Sheng Yuan Holdings Limited serves professional investors and retail investors. The company was founded in 1998 and is based in Central, Hong Kong.

How the Company Makes Money

Sheng Yuan Holdings Limited generates revenue through multiple streams, primarily from property rental income, property sales, and real estate development projects. The company earns money by leasing commercial and residential properties, thereby securing a steady flow of rental income. Additionally, revenue is generated from the sale of developed properties and land parcels, capitalizing on favorable market conditions and demand. The company may also derive earnings from strategic investments in financial markets and partnerships with other entities in large-scale infrastructure projects, which can provide substantial returns. Overall, Sheng Yuan's diversified approach helps mitigate risks while maximizing potential earnings across its various business segments.

Sheng Yuan Holdings Limited Financial Statement Overview

Summary

Sheng Yuan Holdings Limited has shown a strong financial recovery in 2024, characterized by significant revenue growth, improved profitability, and a stronger balance sheet. While current metrics indicate positive trends, the historical volatility and past financial difficulties present a risk factor.

Income Statement

Sheng Yuan Holdings Limited experienced a substantial revenue increase from HK$11.19 million in 2023 to HK$51.00 million in 2024, marking a strong turnaround. The gross profit margin also improved significantly, reflecting a healthier operational efficiency. However, the net profit margin, while positive this year at 62.5%, was negative in previous years, indicating volatility. The EBIT and EBITDA margins have also recovered, showing improved core profitability, but past losses highlight risk.

Balance Sheet

The company's balance sheet shows a strong improvement in equity, with stockholders' equity turning positive in 2024. The debt-to-equity ratio is low, reflecting decreased leverage, which is a positive sign of financial health. However, past high leverage and negative equity pose concerns. The equity ratio has improved, suggesting better financial stability.

Cash Flow

Operating cash flow turned positive in 2024, indicating improved cash generation from operations. The free cash flow also increased, which is a positive indicator for financial flexibility. However, previous negative cash flows highlight past operational struggles. The cash flow to net income ratios are healthy, showing good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.41M	51.00M	11.19M	59.94M	43.31M	44.55M
Gross Profit	35.22M	38.66M	1.16M	36.44M	27.84M	32.22M
EBITDA	13.47M	37.57M	-20.85M	8.04M	21.32M	23.76M
Net Income	7.42M	31.89M	-27.77M	-5.80M	4.65M	12.01M
Balance Sheet
Total Assets	141.99M	146.75M	143.05M	214.69M	158.91M	79.91M
Cash, Cash Equivalents and Short-Term Investments	82.73M	101.00M	62.41M	95.86M	69.36M	34.67M
Total Debt	1.83M	2.63M	4.17M	151.66M	145.10M	111.66M
Total Liabilities	20.07M	30.16M	58.35M	251.84M	190.22M	130.67M
Stockholders Equity	121.92M	116.59M	84.70M	-37.16M	-31.31M	-50.76M
Cash Flow
Free Cash Flow	-3.86M	36.42M	-30.83M	28.43M	6.83M	7.73M
Operating Cash Flow	-3.86M	36.42M	-30.42M	28.43M	6.83M	7.73M
Investing Cash Flow	-57.41M	-38.01M	803.00K	2.65M	-19.53M	50.00K
Financing Cash Flow	-1.54M	-1.74M	-3.15M	-2.88M	47.40M	-3.07M

Sheng Yuan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0851, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.22, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 72.66 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0851.

Sheng Yuan Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8350	67 Neutral	HK$360.00M	20.95	47.28%	―	55.42%	159.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0851	62 Neutral	HK$282.23M	38.10	6.49%	―	144.16%	-62.50%
2263	61 Neutral	HK$295.00M	38.82	2.10%	―	-9.48%	130.30%
0211	52 Neutral	HK$208.92M	-4.19	-17.99%	―	―	―
0356	45 Neutral	HK$177.79M	-17.57	-15.38%	―	―	―

Sheng Yuan Holdings Limited Corporate Events

Sheng Yuan Holdings Limited Announces Leadership Transition

Sheng Yuan Holdings Limited has announced changes in its administrative leadership. Mr. Chiu Ming King has resigned as company secretary and authorized representative, with no disagreements cited. Ms. So Lai Shan, a seasoned professional with over a decade of experience in corporate services and governance, has been appointed to these roles effective December 17, 2025. The transition signifies the company’s commitment to maintaining strong compliance and governance standards, with potential positive impacts on operational efficiency.

The most recent analyst rating on (HK:0851) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on Sheng Yuan Holdings Limited stock, see the HK:0851 Stock Forecast page.

Sheng Yuan Holdings Announces Expiration of 2014 Share Option Scheme

Sheng Yuan Holdings Limited has issued a supplemental announcement regarding its 2024 Annual Report, specifically focusing on its 2014 Share Option Scheme. The announcement details the expiration of the scheme on 14 October 2024, resulting in no shares available for grant or issue as of 31 December 2024. The scheme allowed for options to be granted to employees, directors, and approved persons, with a maximum grant limit of 5% of issued shares. The expiration of the scheme means no further options can be exercised, impacting potential incentives for eligible participants.

The most recent analyst rating on (HK:0851) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Sheng Yuan Holdings Limited stock, see the HK:0851 Stock Forecast page.