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

• Market Cap: HK$339.83M
• Dividend Yield: N/A
• Average Volume (3M): 144.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -12.82%
• EPS Growth: -149.56%
• Country: HK
• Employees: 784
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Grocery Stores
• EPS (TTM): N/A
• Shares Outstanding: 290,457,000
• 10 Day Avg. Volume: 407,300
• 30 Day Avg. Volume: 144,566
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$1.50
• Price Target Upside: 51.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: HK$1.50 ▲(51.52% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and increased leverage. Technical analysis provides some positive signals, but the overbought RSI suggests caution. Valuation metrics are unfavorable due to negative earnings and lack of dividends.

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 its retail operations by selling a diverse array of products in its supermarket chain. Key revenue streams include direct sales from its physical stores, income from its distribution business where it supplies goods to other retailers, and possibly additional services such as membership fees or loyalty programs that enhance consumer engagement and spending. The company's profitability is influenced by factors such as consumer demand, product pricing, and cost management. Strategic partnerships with suppliers and efficient supply chain management also play crucial roles in maintaining competitive pricing and product availability, thereby supporting its revenue model.

China Shun Ke Long Holdings Limited Financial Statement Overview

Summary

China Shun Ke Long Holdings Limited exhibits significant financial challenges, with declining revenues, persistent losses, and increased leverage. The income statement shows negative growth and profit margins, while the balance sheet reflects rising debt and reduced equity. Cash flow is also negative, indicating inefficiencies in operations.

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	667.41M	592.94M	667.41M	638.76M	741.63M	888.75M
Gross Profit	91.20M	71.88M	91.20M	102.21M	107.84M	125.82M
EBITDA	-16.40M	-28.82M	16.39M	26.91M	25.95M	45.29M
Net Income	-26.75M	-67.98M	-26.75M	-25.00M	-38.05M	-16.50M
Balance Sheet
Total Assets	365.51M	304.70M	365.51M	389.82M	481.58M	600.28M
Cash, Cash Equivalents and Short-Term Investments	48.68M	21.15M	48.68M	48.97M	103.34M	147.47M
Total Debt	97.16M	117.83M	97.16M	71.09M	154.20M	216.34M
Total Liabilities	215.09M	222.34M	215.09M	172.98M	280.74M	284.00M
Stockholders Equity	149.18M	81.35M	149.18M	175.60M	199.75M	238.16M
Cash Flow
Free Cash Flow	11.28M	-36.07M	11.28M	39.11M	50.49M	17.91M
Operating Cash Flow	16.53M	-25.38M	16.53M	43.94M	59.76M	25.75M
Investing Cash Flow	-4.24M	-10.07M	-4.24M	-3.57M	36.83M	-3.56M
Financing Cash Flow	-12.94M	7.78M	-12.94M	-95.66M	-96.79M	-39.10M

China Shun Ke Long Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.99
• 50DMA: Positive
• 100DMA: Positive
• 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:0974, the sentiment is Positive. The current price of 0.99 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.81, and above the 200-day MA of 0.84, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 35.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$650.08M	6.15	16.86%	7.14%	4.41%	10.39%
Sector *	67 Neutral	S$3.20B	10.78	14.90%	4.58%	7.79%	-10.29%
0831	63 Neutral	HK$275.98M	10.53	4.08%	8.70%	-3.58%	-52.60%
8413	62 Neutral	HK$110.39M	107.78	1.07%	―	3.44%	-43.75%
0974	45 Neutral	HK$339.83M	―	-58.78%	―	-12.82%	-149.56%
1446	44 Neutral	HK$301.73M	―	-5.09%	―	-7.73%	60.42%
1699	―	HK$89.96M	―		―	―	―

China Shun Ke Long Holdings Limited Corporate Events

China Shun Ke Long Holdings Schedules Board Meeting to Review Interim Results

China Shun Ke Long Holdings Limited announced that its board of directors will hold a meeting on 22 August 2025 to consider and approve the interim results for the six months ended 30 June 2025, and to discuss the potential declaration of an interim dividend. This meeting is significant as it may impact the company’s financial strategy and shareholder returns, reflecting on its operational performance and market positioning.

China Shun Ke Long Announces Key Management and Location Changes

China Shun Ke Long Holdings Limited announced a change in its company secretary, authorised representative, and process agent, with Mr. Qiu Minghao resigning due to personal commitments and Ms. Pang Hui taking over these roles effective 30 June 2025. Ms. Pang brings over a decade of experience in corporate governance and compliance management, having worked with various multinational corporations and holding significant qualifications in law and corporate governance. Additionally, the company’s principal place of business in Hong Kong has been relocated to a new address, also effective from 30 June 2025.

China Shun Ke Long Holdings Secures Unanimous Shareholder Support at AGM

China Shun Ke Long Holdings Limited announced that all resolutions proposed at its Annual General Meeting on June 6, 2025, were unanimously passed by shareholders. The resolutions included re-election of directors, authorization of director remuneration, re-appointment of auditors, and granting of mandates for share issuance and repurchase, indicating strong shareholder support and strategic alignment.

China Shun Ke Long Holdings Limited Updates Nomination Committee

China Shun Ke Long Holdings Limited has announced changes to its Nomination Committee, appointing Ms. Wang Hui, an Executive Director and CEO, and Mr. Cheng Hok Kai Frederick, an Independent Non-executive Director, as new members. This strategic move, effective from May 28, 2025, could potentially influence the company’s governance and decision-making processes, reflecting a shift in its leadership dynamics.

China Shun Ke Long Holdings Limited Announces Board Composition and Governance Structure

China Shun Ke Long Holdings Limited has announced the composition of its board of directors and the roles of its members. The board includes a mix of executive, non-executive, and independent non-executive directors, with committees established for audit, remuneration, and nomination. This announcement highlights the company’s governance structure, which is crucial for maintaining transparency and accountability, potentially impacting investor confidence and stakeholder relations.

China Shun Ke Long Holdings Updates Nomination Committee Terms

China Shun Ke Long Holdings Limited has revised the terms of reference for its Nomination Committee, which is responsible for board member appointments. The committee will consist of at least three members, primarily independent non-executive directors, and will meet at least once a year. This revision aims to enhance governance and ensure diverse representation within the company’s leadership.