China Shun Ke Long Holdings Limited (0974) AI Stock Analysis

• Market Cap: HK$293.36M
• Dividend Yield: N/A
• Average Volume (3M): 57.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -18.80%
• EPS Growth: -61.03%
• Country: HK
• Employees: 784
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): -0.01
• Shares Outstanding: 290,457,000
• 10 Day Avg. Volume: 35,500
• 30 Day Avg. Volume: 57,500
• PEG Ratio: -0.02
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -7.03
• 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: 44 Neutral
• Price Target: HK$1.00 ▼(-9.09% Downside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is primarily weighed down by weak financial performance (declining revenue, worsening losses, negative operating/free cash flow, and higher leverage). Technical indicators also point to a weak trend (below key moving averages, negative MACD, RSI below 50). Valuation is only a modest offset because a negative P/E reflects ongoing losses and dividend yield data is unavailable.

Positive Factors

Diversified retail and wholesale model

China Shun Ke Long's mix of supermarkets, convenience stores, wholesale distribution and food processing diversifies revenue streams and customer touchpoints. This reduces reliance on a single channel, smooths seasonal swings, and supports operational resilience and inventory leverage over the medium term.

Supplier partnerships and sourcing capabilities

Established supplier and manufacturer partnerships, plus sourcing/importing capabilities, provide structural procurement advantages. They help secure inventory, enable competitive pricing, broaden product assortment and support loyalty programs—bolstering margin resilience and assortment competitiveness over months.

Exposure to stable FMCG/grocery demand

Operating in grocery/FMCG offers exposure to essential, recurring consumer demand that is less cyclical than discretionary sectors. This structural stability underpins baseline sales, repeat purchases and store-level cash flows, improving predictability and resilience over a 2–6 month horizon.

Negative Factors

Declining revenue and compressing margins

An 11.1% revenue decline together with gross margin compression and net margin deterioration indicate structural pressure on sales mix, pricing and cost control. Persistent top-line weakness and margin erosion undermine internal profitability and reduce scope for reinvestment or margin recovery in coming quarters.

Negative operating and free cash flow

Free cash flow swinging to -36.1M and negative operating cash flow signal weakened cash conversion and working capital stress. This reduces the company's ability to fund capex, store upkeep or inventory autonomously and likely increases reliance on external financing, constraining strategic options over the medium term.

Rising leverage and shrinking equity

Leverage rising to a debt-to-equity of 1.45 alongside shrinking shareholders' equity raises interest and refinancing risk. Combined with ongoing losses, higher leverage limits financial flexibility, increases solvency vulnerability and could force defensive capital allocation choices over the next several quarters.

China Shun Ke Long Holdings Limited Business Overview & Revenue Model

Company Description

China Shun Ke Long Holdings Limited, an investment holding company, operates and manages supermarket chain stores in the People's Republic of China (PRC). It operates in two segments, Retail Outlet Operation and Wholesale Distribution. The company also franchises its retail outlets, as well as operates online stores. As of December 31, 2021, it operated 67 retail outlets in Guangdong Province of the PRC; and 1 retail outlets in the Macau Special Administrative Region of the PRC. The company was founded in 2003 and is based in Foshan, the People's Republic of China. China Shun Ke Long Holdings Limited is a subsidiary of CCOOP International Holdings Limited.

How the Company Makes Money

China Shun Ke Long Holdings Limited generates revenue through multiple channels, primarily from its retail and wholesale operations. The company earns money by selling a variety of consumer products directly to customers through its supermarket and convenience store chains. Additionally, it engages in bulk sales to other retailers and businesses, leveraging economies of scale to maximize profit margins. Key revenue streams include sales from food items, beverages, and household products. The company's revenue is also supported by strategic partnerships with suppliers and manufacturers, which enable it to offer competitive pricing and a diverse product range. Seasonal promotions and loyalty programs further contribute to customer retention and increased sales, enhancing overall earnings.

China Shun Ke Long Holdings Limited Financial Statement Overview

Summary

Weak fundamentals: revenues are declining (-11.1%), profitability is deteriorating (net margin worsening from -4.0% to -11.5%), and cash generation has turned negative (free cash flow from 11.3M to -36.1M). Leverage has increased (debt-to-equity 1.45) alongside shrinking equity, raising financial risk.

Income Statement

The income statement shows a concerning trend with declining revenues and persistent losses. The gross profit margin has decreased from 15.9% to 12.1% over the past year, while the net profit margin remains negative, worsening from -4.0% to -11.5%. The company is experiencing significant challenges in maintaining profitability, as indicated by negative EBIT and EBITDA margins. Revenue growth is negative at -11.1% for the latest period, indicating declining sales performance.

Balance Sheet

The balance sheet reveals a fragile financial position with decreasing stockholders' equity and rising debt levels. The debt-to-equity ratio has increased from 0.65 to 1.45, indicating increased leverage and potential risk. Return on equity is negative due to ongoing losses. However, the company maintains a moderate equity ratio of 26.7%, suggesting some buffer against total liabilities.

Cash Flow

Cash flow analysis shows a worrying decline in free cash flow from 11.3 million to -36.1 million. The operating cash flow has turned negative, reflecting challenges in generating cash from operations. The free cash flow to net income ratio is not favorable, indicating inefficiencies in translating earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	530.72M	592.94M	667.41M	638.76M	741.63M	888.75M
Gross Profit	61.91M	71.88M	91.20M	102.21M	107.84M	125.82M
EBITDA	-26.21M	-28.82M	16.39M	26.91M	25.95M	45.29M
Net Income	-52.58M	-67.98M	-26.75M	-25.00M	-38.05M	-16.50M
Balance Sheet
Total Assets	273.62M	304.70M	365.51M	389.82M	481.58M	600.28M
Cash, Cash Equivalents and Short-Term Investments	25.52M	21.15M	48.68M	48.97M	103.34M	147.47M
Total Debt	102.64M	117.83M	97.16M	71.09M	154.20M	216.34M
Total Liabilities	195.23M	222.34M	215.09M	213.06M	280.74M	360.81M
Stockholders Equity	77.47M	81.35M	149.18M	175.60M	199.75M	238.16M
Cash Flow
Free Cash Flow	-8.83M	-36.07M	11.28M	39.11M	50.49M	17.91M
Operating Cash Flow	1.02M	-25.38M	16.53M	43.94M	59.76M	25.75M
Investing Cash Flow	-9.34M	-10.07M	-4.24M	-3.57M	36.83M	-3.56M
Financing Cash Flow	9.50M	7.78M	-12.94M	-95.66M	-96.79M	-39.10M

China Shun Ke Long Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0974, the sentiment is Negative. The current price of 1.1 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 1.09, and above the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0974.

China Shun Ke Long Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3686	74 Outperform	HK$802.44M	1.76	30.11%	6.43%	-2.42%	49.65%
8413	65 Neutral	HK$217.29M	-71.66	0.79%	―	-1.30%	-61.11%
0831	63 Neutral	HK$260.43M	4.47	4.08%	6.06%	-3.58%	-52.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1446	49 Neutral	HK$219.74M	-6.16	-6.43%	―	-6.79%	49.40%
0974	44 Neutral	HK$293.36M	-16.15	-50.57%	―	-18.80%	-61.03%