Hong Kong Shanghai Alliance Holdings (1001) AI Stock Analysis

• Market Cap: HK$260.84M
• Dividend Yield: 17.56%
• Average Volume (3M): 165.33K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.02
• Revenue Growth: -19.85%
• EPS Growth: -8.43%
• Country: HK
• Employees: 247
• Sector: Services
• Sector Strength: N/A
• Industry: Industrial - Distribution
• EPS (TTM): 0.05
• Shares Outstanding: 636,508,300
• 10 Day Avg. Volume: 386,000
• 30 Day Avg. Volume: 165,333
• PEG Ratio: 0.51
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.01
• 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

• Rating: 81 Outperform
• Price Target: ―

The company exhibits strong financial performance with robust cash flow and reasonable profitability, although revenue growth is a concern. Technical indicators show positive momentum, and the stock appears undervalued with a high dividend yield. These factors contribute to a favorable outlook for the stock.

Hong Kong Shanghai Alliance Holdings Business Overview & Revenue Model

Company Description

Hong Kong Shanghai Alliance Holdings Limited, together with its subsidiaries, engages in the distribution and processing of construction materials in Hong Kong and Mainland China. It operates through: Steels Distribution and Processing Business, Building Products Distribution Business, and Property Investment and Fund Management Business segment. The company distributes construction materials, such as reinforcing steel, sheet piles, plates, and H-piles/H-beams; and cut and bent reinforcement and rebar couplers, as well as offers integrated rebar processing, rebars threading/coupling, traceability, and supply chain services. It also distributes and processes surface critical coils, such as pre-painted galvanized, galvanized, cold roll, hot roll, electro galvanized, galvanized, and silicon steel products, as well as slitting, cut to length, and stamping services. In addition, the company engages in property investment and holding, and project management businesses; and trades in sanitary wares and kitchen cabinets. Further, it involved in the investment of properties, project management, inventory management, consultation and design services, logistics, technical support, and installation solutions. It serves the commercial, government, hospitality, infrastructure, and residential industries. The company was formerly known as Van Shung Chong Holdings Limited and changed its name to Hong Kong Shanghai Alliance Holdings Limited in December 2015. Hong Kong Shanghai Alliance Holdings Limited was founded in 1961 and is headquartered in Wanchai, Hong Kong.

How the Company Makes Money

Hong Kong Shanghai Alliance Holdings generates revenue through a multi-faceted business model. In the building and construction materials sector, the company earns income by supplying a range of products, including steel and other essential materials, to the construction and infrastructure sectors. Its property investment and development division generates revenue through the rental income from its investment properties and the sale of developed properties. Additionally, the company provides engineering and architectural services, which include project management, design, and consulting services, contributing to its revenue streams. The company's strategic partnerships and its focus on expanding its service offerings further enhance its ability to generate income.

Hong Kong Shanghai Alliance Holdings Financial Statement Overview

Summary

Hong Kong Shanghai Alliance Holdings demonstrates solid financial performance with improvements in profitability and cash flow. The company is managing its costs effectively, although revenue growth remains a challenge. The balance sheet shows moderate leverage with stable equity levels, and the company is generating strong cash flows, enhancing its financial flexibility.

Income Statement

The company's gross profit margin has consistently improved, reaching 16.67% in the latest year, indicating effective cost management. However, total revenue has slightly decreased by 13.38% from the previous year, which is a concern. Net profit margin stands at a healthy 3.42%. The EBIT and EBITDA margins are 8.68% and 8.34%, respectively, showing reasonable profitability.

Balance Sheet

The debt-to-equity ratio is 1.37, suggesting moderate leverage. Return on equity is at 8.38%, which is respectable but could be improved. The equity ratio is 35.49%, indicating a stable capital structure, though there is room for strengthening equity further.

Cash Flow

The company has significantly improved its free cash flow, with a substantial increase over the previous year's low. The operating cash flow to net income ratio is 2.44, which is strong, showing efficient conversion of income to cash. The free cash flow to net income ratio is 2.31, indicating robust cash generation relative to profits.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.30B	2.66B	2.81B	2.07B	2.33B
Gross Profit	384.08M	351.98M	339.69M	253.02M	241.60M
EBITDA	217.32M	198.40M	175.04M	123.25M	62.49M
Net Income	78.78M	82.85M	65.50M	1.67M	-90.31M
Balance Sheet
Total Assets	2.65B	2.96B	3.37B	2.96B	2.73B
Cash, Cash Equivalents and Short-Term Investments	145.30M	147.49M	188.93M	119.10M	135.87M
Total Debt	1.29B	1.44B	1.52B	1.46B	1.44B
Total Liabilities	1.61B	1.88B	2.25B	1.95B	1.82B
Stockholders Equity	940.57M	961.15M	990.84M	887.72M	805.85M
Cash Flow
Free Cash Flow	182.05M	420.00K	69.59M	76.42M	69.19M
Operating Cash Flow	192.24M	3.20M	78.69M	78.62M	78.85M
Investing Cash Flow	-21.99M	-10.81M	-19.54M	-20.55M	-25.10M
Financing Cash Flow	-170.60M	-31.89M	9.80M	-60.53M	-57.32M

Hong Kong Shanghai Alliance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1001, the sentiment is Positive. The current price of 0.41 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.36, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 74.71 is Negative, neither overbought nor oversold. The STOCH value of 85.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1001.

Hong Kong Shanghai Alliance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1001	81 Outperform	HK$260.84M	2.95	9.24%	17.56%	-19.85%	-8.43%
8066	58 Neutral	HK$252.45M	461.11	1.12%	―	-24.68%	-89.16%
Sector *	56 Neutral	HK$2.69B	4.98	-9.32%	8.09%	12.55%	-102.16%
2239	53 Neutral	HK$321.68M	―	-25.78%	1.01%	-37.98%	-176.24%
SPGGF	―	$31.41M	―		―	―	―
8080	46 Neutral	HK$149.99M	―	-0.58%	―	-22.84%	-103.13%
8152	42 Neutral	HK$32.40M	―	-12.68%	―	-55.96%	-286.09%