Sheng Yuan Holdings Limited (0851) AI Stock Analysis

• Market Cap: €188.74M
• Dividend Yield: N/A
• Average Volume (3M): 18.28K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.02
• Revenue Growth: 144.16%
• EPS Growth: -62.50%
• Country: HK
• Employees: 17
• Sector: Real Estate
• Sector Strength: 53
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 881,970,500
• 10 Day Avg. Volume: 27,640
• 30 Day Avg. Volume: 18,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €0.46
• Price Target Upside: 128.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score for Sheng Yuan Holdings Limited is primarily influenced by its financial performance, which shows a strong recovery but is tempered by historical volatility. Technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

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 its securities brokerage services, asset management fees, and corporate finance advisory services. In the securities brokerage segment, the company earns commissions from executing trades on behalf of clients. The asset management division collects management fees based on the assets under management and performance fees for surpassing certain benchmarks. Additionally, the corporate finance advisory services provide significant revenue through fees charged for advising on mergers and acquisitions, capital raising, and other financial transactions. Partnerships with financial institutions and a strong client base in Asia contribute to the company's earnings.

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. The company must maintain its current trajectory to ensure sustained financial health and stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.00M	11.19M	59.94M	43.31M	44.55M
Gross Profit	38.66M	1.16M	36.44M	27.84M	32.22M
EBITDA	37.57M	-20.85M	8.63M	19.85M	23.76M
Net Income	31.89M	-27.77M	-5.80M	4.65M	12.01M
Balance Sheet
Total Assets	146.75M	143.05M	214.69M	158.91M	79.91M
Cash, Cash Equivalents and Short-Term Investments	101.00M	62.41M	95.86M	69.36M	34.67M
Total Debt	2.63M	4.17M	151.66M	145.10M	111.66M
Total Liabilities	30.16M	58.35M	251.84M	190.22M	130.67M
Stockholders Equity	116.59M	84.70M	-37.16M	-31.31M	-50.76M
Cash Flow
Free Cash Flow	36.42M	-30.83M	28.43M	6.83M	7.73M
Operating Cash Flow	36.42M	-30.42M	28.43M	6.83M	7.73M
Investing Cash Flow	-38.01M	803.00K	3.43M	-19.53M	50.00K
Financing Cash Flow	-1.54M	-3.15M	-2.43M	47.40M	-3.07M

Sheng Yuan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0851, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.28, and below the 200-day MA of 0.23, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 16.83 is Positive, neither overbought nor oversold. The STOCH value of 49.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2263	68 Neutral	HK$255.00M	87.93	―	―	-21.78%	-19.44%
8350	56 Neutral	HK$162.24M	9.44	―	―	55.42%	159.42%
0851	50 Neutral	€188.74M	25.48	6.49%	―	144.16%	-62.50%
0211	48 Neutral	HK$182.53M	-3.10	-20.87%	―	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Sheng Yuan Holdings Limited Corporate Events

Sheng Yuan Holdings Reports Decline in Interim Profits for 2025

Sheng Yuan Holdings Limited announced its unaudited interim results for the six months ending June 30, 2025, revealing a significant decline in profit compared to the same period in 2024. The company’s revenue decreased from HK$14,410,000 to HK$12,098,000, and profit before income tax fell from HK$30,384,000 to HK$6,984,000, indicating a challenging period for the company. Despite these setbacks, the company maintained a positive net income of HK$5,332,000, although this was substantially lower than the previous year’s figure of HK$29,803,000. The announcement highlights the financial difficulties faced by the company, which may impact its market positioning and stakeholder confidence.

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.

Sheng Yuan Holdings Issues Profit Warning Amid Declining Gains

Sheng Yuan Holdings Limited has issued a profit warning, indicating a significant decrease in net profit for the first half of 2025 compared to the same period in 2024. The expected net profit of approximately HK$5.3 million is a sharp decline from the HK$29.8 million recorded previously, primarily due to the absence of non-recurring gains from the disposal of debt instruments. The interim results are still being finalized and may differ from the preliminary figures announced.

Sheng Yuan Holdings to Review Interim Results and Dividend

Sheng Yuan Holdings Limited has announced that its board of directors will hold a meeting on August 21, 2025, to consider and approve the interim results for the six months ending June 30, 2025. The meeting will also discuss the potential payment of an interim dividend. This announcement could impact the company’s financial operations and shareholder expectations, as it pertains to the company’s performance and dividend decisions.