Shunten International (Holdings) Ltd. (0932) AI Stock Analysis

• Market Cap: HK$93.24M
• Dividend Yield: N/A
• Average Volume (3M): 22.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -3.05%
• EPS Growth: -204.26%
• Country: HK
• Employees: 245
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): >-0.01
• Shares Outstanding: 3,107,893,600
• 10 Day Avg. Volume: 34,092,400
• 30 Day Avg. Volume: 22,212,266
• PEG Ratio: <0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 3.15
• 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: 48 Neutral
• Price Target: HK$0.03 ▼(-25.00% Downside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is held down primarily by weak financial performance (declining revenue and losses) and bearish technicals (price below key moving averages with negative MACD). Cash flow strength and manageable leverage provide some support, but valuation is constrained by negative earnings and the absence of a dividend yield.

Positive Factors

Free Cash Flow Strength

Consistent free cash flow growth and a near-1 FCF-to-net-income ratio indicate the business converts reported results into real cash. Over a multi-month horizon this supports funding operations, servicing debt, and investing in the business despite accounting losses, improving resilience.

High Gross Margin

A 77% gross margin signals strong product economics or pricing power in packaged foods. This durable structural advantage provides room to cover fixed and operating costs and can support margin recovery if revenue stabilizes or cost control programs are implemented.

Manageable Leverage

A sub-1.0 debt-to-equity ratio reflects moderate leverage, giving financial flexibility. Combined with positive free cash flow, this leaves capacity to refinance, invest or absorb shocks without extreme balance-sheet strain, supporting medium-term operational continuity.

Negative Factors

Declining Revenue Trend

A multi-year decline in revenue erodes scale and weakens competitive position in packaged foods. Persistent top-line contraction reduces leverage on fixed costs, pressures margins and cash generation, and makes it harder to fund marketing, distribution or product investment needed to regain growth.

Negative Profitability and Returns

Sustained negative net margins and deeply negative ROE signal the company is not generating returns on capital. This undermines shareholder value and limits reinvestment capacity, forcing difficult choices between cutting costs, raising capital, or accepting continued dilution over the medium term.

Weak Operating Cash Conversion

Low conversion of net income into operating cash (0.17) and falling operating margins indicate earnings quality and cost-structure problems. Even with headline FCF growth, weak conversion suggests volatility in ongoing cash generation and persistent operational inefficiencies to address.

Shunten International (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Shunten International (Holdings) Limited, an investment holding company, engages in marketing, sale, and distribution of health and beauty supplements and products in Hong Kong, Taiwan, and internationally. The company provides its products under its proprietary brands and private label brands. It is also involved in property investment, license and trademark holding, e-commerce promotion, Chinese medical consultation, and health food processing businesses. In addition, it sells and distributes healthcare products; trades in health supplements; and provides general administrative services. The company was formerly known as RM Group Holdings Limited and changed its name to Shunten International (Holdings) Limited in February 2018. Shunten International (Holdings) Limited was founded in 2002 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

Shunten International generates revenue through multiple streams, primarily by engaging in the trading and manufacturing of consumer products. The company profits from direct sales of its products to retailers and wholesalers, leveraging its established supply chain and distribution networks. Additionally, Shunten International may earn income through partnerships with manufacturers and suppliers, allowing it to offer a wider range of products without incurring significant production costs. The company's revenue model may also include service agreements and contracts for custom manufacturing solutions, further diversifying its income sources.

Shunten International (Holdings) Ltd. Financial Statement Overview

Summary

Overall fundamentals are weak: revenue declined (-2.62%) and profitability is negative (net margin -17.68%, negative ROE -26.53%). Offsetting this, cash generation is a relative bright spot with strong free cash flow growth (+30.24%) and free cash flow roughly matching net income (FCF/NI 0.99), while leverage appears manageable (debt-to-equity 0.94).

Income Statement

The income statement shows a declining trend in revenue with a negative growth rate of -2.62% in the latest year. Gross profit margin remains strong at 77%, but the company struggles with profitability, evidenced by a negative net profit margin of -17.68% and declining EBIT and EBITDA margins. The company needs to address its cost structure and improve revenue growth to enhance profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.94, indicating manageable leverage. However, the return on equity is negative at -26.53%, suggesting inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company needs to focus on improving asset utilization and profitability to enhance shareholder value.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 30.24%, indicating improved cash generation. The operating cash flow to net income ratio is 0.17, suggesting some challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 0.99, reflecting effective cash management despite profitability issues.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	204.15M	205.05M	235.59M	216.13M	155.64M	223.15M
Gross Profit	153.34M	157.95M	184.21M	166.31M	107.31M	161.45M
EBITDA	-28.13M	-14.67M	21.47M	55.24M	-18.47M	-76.59M
Net Income	-44.55M	-36.24M	571.00K	41.04M	-43.89M	-127.38M
Balance Sheet
Total Assets	280.62M	288.90M	344.33M	339.45M	246.77M	208.33M
Cash, Cash Equivalents and Short-Term Investments	10.97M	5.53M	12.70M	13.11M	35.28M	36.65M
Total Debt	121.83M	128.92M	122.18M	86.50M	121.54M	154.91M
Total Liabilities	157.80M	153.56M	172.73M	196.04M	144.12M	189.29M
Stockholders Equity	124.09M	136.62M	172.89M	146.01M	105.16M	21.05M
Cash Flow
Free Cash Flow	13.39M	23.66M	33.77M	2.94M	10.46M	31.05M
Operating Cash Flow	13.87M	24.02M	38.78M	4.84M	10.46M	31.18M
Investing Cash Flow	-472.00K	-342.00K	-4.95M	-15.27M	30.29M	4.21M
Financing Cash Flow	-21.16M	-30.84M	-34.10M	7.45M	-61.66M	-55.73M

Shunten International (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 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:0932, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of -23.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0932.

Shunten International (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1695	60 Neutral	HK$106.92M	1.61	11.24%	―	37.73%	150.54%
8362	56 Neutral	HK$74.20M	-14.10	-1.83%	―	-0.97%	-140.00%
2147	51 Neutral	HK$40.99M	-0.17	-28.48%	―	56.39%	-86.79%
0932	48 Neutral	HK$93.24M	-2.04	-30.43%	―	-3.05%	-204.26%
1676	43 Neutral	HK$62.02M	-0.63	-70.35%	―	22.31%	2.36%
0841	43 Neutral	HK$108.17M	1.70	-20.08%	―	75.21%	18.42%