Shineroad International Holdings Limited (1587) AI Stock Analysis

• Market Cap: HK$414.80M
• Dividend Yield: 3.63%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.23
• Revenue Growth: 3.24%
• EPS Growth: 47.81%
• Country: HK
• Employees: 125
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.03
• Shares Outstanding: 680,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.05
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -27.27
• 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: 71 Outperform
• Price Target: HK$0.50 ▼(-19.35% Downside)

The overall score reflects Shineroad International Holdings Limited's strong financial foundation and reasonable valuation. While the technical analysis shows positive momentum, the overbought condition could signal a short-term risk. Key risks include inconsistent revenue growth and cash flow challenges, which need to be addressed for long-term sustainability.

Positive Factors

Strong Profitability Margins

The company's improving profitability margins indicate effective cost management and pricing strategies, which can enhance long-term financial stability and shareholder value.

Healthy Balance Sheet

A strong balance sheet with low leverage provides financial flexibility and a buffer against economic downturns, supporting sustainable growth and investment opportunities.

Board Governance Enhancement

The formation of a Nomination Committee strengthens corporate governance, ensuring strategic alignment and effective oversight, which can improve decision-making and stakeholder confidence.

Negative Factors

Inconsistent Revenue Growth

Fluctuating revenue growth can hinder long-term planning and investment, potentially affecting market confidence and the company's ability to capitalize on growth opportunities.

Cash Flow Challenges

Challenges in cash flow management can restrict operational flexibility and investment capacity, posing risks to the company's ability to sustain growth and meet financial obligations.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could limit the company's ability to reinvest in its business and pursue strategic initiatives.

Shineroad International Holdings Limited Business Overview & Revenue Model

Company Description

Shineroad International Holdings Limited, an investment holding company, distributes food ingredients, food additives, and packaging materials in Mainland China and internationally. It serves food ingredients and additives processing companies, manufacturers, and trading companies. The company was founded in 1996 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Shineroad International Holdings Limited generates revenue primarily through its logistics and freight forwarding services. The company charges clients fees for the transportation of goods, including air freight, sea freight, and land transportation. Additionally, revenue streams include customs brokerage fees, warehousing charges, and value-added services such as cargo insurance and packaging. Significant partnerships with shipping lines, airlines, and logistics service providers enhance their service capabilities and efficiency, contributing to a steady flow of business. The company also benefits from economies of scale and operational efficiencies that arise from its extensive network and established relationships in the logistics industry.

Shineroad International Holdings Limited Financial Statement Overview

Summary

Shineroad International Holdings Limited displays solid financial health with strong profitability margins and a healthy balance sheet, supported by a low debt-to-equity ratio. However, inconsistent revenue growth and cash flow challenges, particularly negative free cash flow growth, pose future risks.

Income Statement

The company showed a strong recovery with improving gross profit margin and net profit margin over the years, although revenue has been fluctuating. The TTM data indicates a positive trajectory in profitability with an EBIT margin of 9.16% and EBITDA margin of 9.23%. However, revenue growth has been inconsistent, impacting the overall stability.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio and a strong equity ratio of 70.49%. Return on equity is healthy at 8.76%, showing effective use of equity. The financial structure supports stability and provides a cushion against potential risks.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow growth and declining operating cash flow. The operating cash flow to net income ratio of 0.89 indicates some cash flow constraints, although free cash flow to net income is negative, showing room for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	680.01M	661.64M	683.59M	728.31M	863.62M	655.32M
Gross Profit	127.67M	125.62M	114.46M	121.17M	150.64M	107.52M
EBITDA	61.96M	61.06M	36.18M	58.53M	84.44M	43.25M
Net Income	42.44M	43.69M	20.26M	47.66M	86.06M	34.90M
Balance Sheet
Total Assets	711.28M	707.52M	593.65M	552.85M	534.14M	421.57M
Cash, Cash Equivalents and Short-Term Investments	203.83M	185.18M	161.06M	184.70M	136.51M	224.94M
Total Debt	99.78M	96.59M	48.32M	23.25M	25.86M	8.44M
Total Liabilities	196.34M	208.56M	130.85M	101.42M	120.33M	84.29M
Stockholders Equity	514.95M	498.96M	462.81M	451.42M	413.81M	337.28M
Cash Flow
Free Cash Flow	-7.03M	-9.37M	-6.88M	93.51M	-16.02M	47.08M
Operating Cash Flow	-17.41M	39.03M	50.95M	94.36M	-15.28M	47.28M
Investing Cash Flow	10.39M	-48.08M	-87.83M	-33.43M	-79.53M	3.18M
Financing Cash Flow	13.53M	35.14M	12.20M	-16.67M	7.29M	-3.34M

Shineroad International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1587, the sentiment is Negative. The current price of 0.62 is above the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.63, and above the 200-day MA of 0.59, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.53 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1587.

Shineroad International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1587	71 Outperform	HK$414.80M	9.05	8.56%	3.63%	3.24%	47.81%
8413	65 Neutral	HK$206.84M	255.71	0.79%	―	-1.30%	-61.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0677	58 Neutral	HK$594.09M	-17.16	-2.66%	6.67%	0.09%	-274.36%
1705	56 Neutral	HK$152.00M	8.60	10.63%	12.66%	0.15%	-33.33%
0374	51 Neutral	HK$1.03B	371.23	0.23%	3.51%	0.55%	-88.72%
8491	48 Neutral	HK$183.36M	-8.10	-14.15%	―	-2.25%	58.33%