Shaw Brothers Holdings Limited (0953) AI Stock Analysis

• Market Cap: HK$404.59M
• Dividend Yield: N/A
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 285.0
• Beta (1Y): 0.16
• Revenue Growth: 206.38%
• EPS Growth: N/A
• Country: HK
• Employees: 51
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): <0.01
• Shares Outstanding: 1,419,610,000
• 10 Day Avg. Volume: 1,035,800
• 30 Day Avg. Volume: 2,569,066
• PEG Ratio: -0.26
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 3.07
• P/FCF Ratio: -24.27
• 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: 45 Neutral
• Price Target: HK$0.50 ▲(66.67% Upside)

The overall stock score reflects significant financial performance challenges, with declining revenues and negative cash flows. Technical analysis indicates weak market momentum, and the high P/E ratio suggests overvaluation. These factors collectively result in a low attractiveness score for Shaw Brothers Holdings Limited.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams across entertainment and real estate sectors provide resilience against industry-specific downturns, supporting long-term stability.

Strategic Partnerships

These partnerships expand audience reach and strengthen market position, potentially leading to increased revenue and competitive advantage in the long term.

Strong Cash Position

A strong cash position and low leverage provide financial flexibility to invest in growth opportunities and weather economic uncertainties, enhancing long-term viability.

Negative Factors

Declining Revenue and Profitability

Consistent declines in revenue and profitability indicate operational inefficiencies and market challenges, threatening long-term financial health and competitiveness.

Negative Cash Flow

Inconsistent cash flow performance limits the company's ability to fund operations and growth initiatives, posing risks to sustainability and strategic execution.

Decreasing Stockholders' Equity

A decline in stockholders' equity suggests weakening financial stability, which could hinder the company's ability to attract investment and support future growth.

Shaw Brothers Holdings Limited Business Overview & Revenue Model

Company Description

Shaw Brothers Holdings Limited, an investment holding company, invests in, produces, and distributes films, drama, and non-drama in the People's Republic of China and Hong Kong. It also provides artiste and event management services and others. The company was formerly known as Meike International Holdings Limited and changed its name to Shaw Brothers Holdings Limited in June 2016. Shaw Brothers Holdings Limited was incorporated in 2009 and is based in Causeway Bay, Hong Kong.

How the Company Makes Money

Shaw Brothers Holdings Limited generates revenue through multiple streams, primarily from film and television production and distribution. The company produces and distributes a wide range of films and television shows, which generate income from box office sales, licensing deals, and television broadcasting rights. Additionally, Shaw Brothers earns revenue from its real estate holdings through rental income and property sales. The company has established strategic partnerships with various content platforms and broadcasters, enhancing its distribution capabilities and expanding its audience reach. These partnerships, along with its historical library of film content, significantly contribute to its earnings.

Shaw Brothers Holdings Limited Financial Statement Overview

Summary

Shaw Brothers Holdings Limited faces challenges in revenue growth and profitability, with declining income statement metrics. Despite a strong cash position and low leverage on the balance sheet, the company struggles with cash flow generation. The overall financial health is concerning, with a need for strategic improvements to reverse the downward trajectory.

Income Statement

Shaw Brothers Holdings Limited has experienced declining revenues, with a significant drop from 2019 to 2024. The gross profit margin has decreased, indicating challenges in maintaining profitability. The company has consistently reported negative EBIT and EBITDA figures in recent years, highlighting operational inefficiencies. The net profit margin is negative, reflecting ongoing losses.

Balance Sheet

The company maintains a strong cash position, with substantial cash and short-term investments exceeding total liabilities, resulting in negative net debt. The debt-to-equity ratio is low, demonstrating low leverage. However, the equity ratio has seen a slight decline, and stockholders' equity has decreased over the years, indicating potential risks to financial stability.

Cash Flow

The cash flow statement shows inconsistent performance, with negative operating and free cash flows in recent years, indicating cash management challenges. The company lacks positive free cash flow growth, and the operating cash flow to net income ratio is unfavorable due to negative earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.27M	51.63M	64.54M	161.05M	215.52M	114.37M
Gross Profit	39.27M	21.94M	30.29M	50.31M	80.88M	42.11M
EBITDA	7.97M	-13.13M	-2.62M	-3.39M	38.99M	-12.35M
Net Income	1.37M	-5.78M	-2.90M	-302.00K	16.40M	2.26M
Balance Sheet
Total Assets	458.54M	512.56M	491.53M	533.12M	582.75M	586.93M
Cash, Cash Equivalents and Short-Term Investments	284.91M	318.15M	306.20M	365.49M	375.30M	293.03M
Total Debt	4.61M	7.34M	10.82M	9.77M	6.50M	760.00K
Total Liabilities	56.88M	105.77M	61.48M	95.09M	172.33M	181.58M
Stockholders Equity	426.18M	430.51M	449.21M	452.79M	418.98M	413.59M
Cash Flow
Free Cash Flow	-14.21M	-6.54M	-30.06M	-19.57M	55.71M	-4.38M
Operating Cash Flow	-14.19M	-6.39M	-29.56M	-19.48M	57.72M	-3.59M
Investing Cash Flow	46.27M	-37.00M	-69.47M	2.04M	-29.80M	-1.41M
Financing Cash Flow	-1.09M	-2.57M	-2.96M	2.79M	-1.34M	-14.28M

Shaw Brothers Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0953, the sentiment is Negative. The current price of 0.3 is above the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.30, and above the 200-day MA of 0.22, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0953.

Shaw Brothers Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1003	46 Neutral	HK$1.08B	―	―	―	―	―
0953	45 Neutral	HK$404.59M	285.00	0.29%	―	206.38%	―
1132	45 Neutral	HK$187.58M	-6.38	24.24%	―	-7.90%	93.34%
8172	42 Neutral	HK$79.97M	-3.64	-27.50%	―	-86.40%	53.43%
8082	41 Neutral	HK$140.07M	-2.76	-374.96%	―	-60.87%	-61.34%
1326	39 Underperform	HK$70.08M	-0.21	―	―	60.31%	-73.59%

Shaw Brothers Holdings Limited Corporate Events

Shaw Brothers Sets New Annual Caps for Artiste Management Deals Through 2028

Shaw Brothers Holdings Limited has announced new annual caps for continuing connected transactions under its artiste management agreements and related performance guarantees for the three financial years ending 31 December 2026, 2027 and 2028. Based on historical receipts by subsidiary Tailor Made, the company has set annual caps of RMB20 million each year for Artiste Management Agreement 1 and Performance Guarantee 1, and RMB3 million each year for Artiste Management Agreement 2 and Performance Guarantee 2, reflecting an expectation of higher transaction volumes and providing a framework for ongoing artiste management activities with connected parties through 2028.

The most recent analyst rating on (HK:0953) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shaw Brothers Holdings Limited stock, see the HK:0953 Stock Forecast page.