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

• Market Cap: HK$102.56M
• Dividend Yield: N/A
• Average Volume (3M): 22.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• 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 ▼(-17.50% 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

High gross profit margin

A 77% gross margin indicates durable product-level pricing power or a premium product mix in packaged foods. This structural margin cushion helps absorb input cost shocks and supports long-term margin recovery as revenue stabilizes, improving resilience versus low-margin peers.

Strong free cash flow generation

30% FCF growth and FCF roughly matching net income show the business is generating cash despite accounting losses. Reliable cash conversion provides durable funding for operations, investment or deleveraging without immediate reliance on external financing.

Manageable leverage

A debt-to-equity near 0.94 signals moderate leverage that preserves financial flexibility. Combined with improving cash generation, this balance sheet positioning reduces refinancing risk and allows strategic investment or restructuring over the coming months.

Negative Factors

Declining revenue trend

Recent revenue decline reflects weakening demand or market share erosion in a core packaged foods market. Sustained top-line contraction reduces economies of scale and limits the company's ability to leverage its strong gross margins into improved profitability over the medium term.

Negative profitability and ROE

Material negative net margins and deeply negative ROE indicate persistent inability to convert sales into shareholder returns. Over months, continued losses will erode equity, constrain reinvestment, and increase pressure for cost cuts, asset sales, or external capital.

Declining operating margins

Falling EBIT/EBITDA margins point to structural cost or SG&A pressures despite high gross margins. If operating efficiency isn't restored, profitability recovery will be limited even if revenue stabilizes, undermining sustainable earnings improvement.

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.

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 0.03, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 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$109.08M	1.61	11.07%	―	37.73%	150.54%
8362	56 Neutral	HK$81.20M	-14.10	-2.28%	―	-0.97%	-140.00%
2147	51 Neutral	HK$42.34M	-0.17	-18.01%	―	56.39%	-86.79%
0932	48 Neutral	HK$102.56M	-2.04	-34.17%	―	-3.05%	-204.26%
1676	43 Neutral	HK$61.76M	-0.63	-78.83%	―	22.31%	2.36%
0841	43 Neutral	HK$104.08M	1.70	-21.93%	―	75.21%	18.42%