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Shineroad International Holdings Limited (HK:1587)
:1587
Hong Kong Market

Shineroad International Holdings Limited (1587) AI Stock Analysis

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HK

Shineroad International Holdings Limited

(1587)

Rating:72Outperform
Price Target:
Shineroad International Holdings Limited has a strong financial foundation with commendable profitability and a robust balance sheet. However, challenges in cash flow management and inconsistent revenue growth temper the outlook. Technical indicators show moderate upward movement, and the stock appears undervalued, offering potential for growth. These factors collectively contribute to a solid overall score.

Shineroad International Holdings Limited (1587) vs. iShares MSCI Hong Kong ETF (EWH)

Shineroad International Holdings Limited Business Overview & Revenue Model

Company DescriptionShineroad International Holdings Limited (1587) is a company engaged in the food ingredients industry, primarily focusing on the distribution and sale of food additives and ingredients. The company operates in various sectors including the food and beverage industry, providing essential components for the production of a wide range of consumer food products. Shineroad International Holdings Limited is dedicated to supplying high-quality food ingredients to manufacturers to enhance the taste, texture, and shelf life of food products.
How the Company Makes MoneyShineroad International Holdings Limited makes money primarily through the sale and distribution of food ingredients and additives. The company's revenue model is centered on sourcing high-quality ingredients from various suppliers and distributing them to manufacturers in the food and beverage industry. Key revenue streams include the sale of emulsifiers, preservatives, flavor enhancers, and nutritional supplements. The company may also engage in strategic partnerships with food manufacturers to develop customized ingredient solutions, thereby increasing its revenue opportunities. Additionally, factors such as the company's broad distribution network, established relationships with suppliers, and its ability to meet the diverse needs of food manufacturers significantly contribute to its earnings.

Shineroad International Holdings Limited Financial Statement Overview

Summary
Overall, Shineroad International Holdings Limited displays solid financial health with strong profitability margins and a healthy balance sheet. The company needs to address cash flow challenges to ensure sustainable growth. The stability provided by low leverage and high equity is a major strength, but inconsistent revenue growth and cash flow issues could pose future risks.
Income Statement
75
Positive
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
80
Positive
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
65
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
661.64M683.59M728.31M863.62M655.32M
Gross Profit
125.62M114.46M121.17M150.64M107.52M
EBIT
60.63M27.44M58.16M83.97M42.73M
EBITDA
61.06M36.18M58.53M84.44M43.25M
Net Income Common Stockholders
43.69M20.26M47.66M86.06M34.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
185.18M161.06M184.70M136.51M224.94M
Total Assets
707.52M593.65M552.85M534.14M421.57M
Total Debt
96.59M48.32M23.25M25.86M8.44M
Net Debt
-88.58M-109.18M-158.95M-108.99M-214.93M
Total Liabilities
208.56M130.85M101.42M120.33M84.29M
Stockholders Equity
498.96M462.81M451.42M413.81M337.28M
Cash FlowFree Cash Flow
-9.37M-6.88M93.51M-16.02M47.08M
Operating Cash Flow
39.03M50.95M94.36M-15.28M47.28M
Investing Cash Flow
-48.08M-87.83M-33.43M-79.53M3.18M
Financing Cash Flow
35.14M12.20M-16.67M7.29M-3.34M

Shineroad International Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.58
Price Trends
50DMA
0.55
Positive
100DMA
0.52
Positive
200DMA
0.46
Positive
Market Momentum
MACD
0.01
Negative
RSI
69.43
Neutral
STOCH
69.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1587, the sentiment is Positive. The current price of 0.58 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.55, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.43 is Neutral, neither overbought nor oversold. The STOCH value of 69.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1587.

Shineroad International Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$150.00M5.6616.04%26.67%-0.45%7.28%
72
Outperform
HK$394.40M8.329.10%2.83%-4.97%111.21%
66
Neutral
HK$577.12M29.061.54%12.94%1.30%-85.43%
65
Neutral
$8.75B15.134.69%4.84%3.64%-2.51%
64
Neutral
HK$988.32M40.192.03%4.62%-8.35%96.66%
57
Neutral
HK$127.82M61.112.20%0.26%
34
Underperform
HK$207.28M-22.75%-4.08%-12.24%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1587
Shineroad International Holdings Limited
0.58
0.16
38.10%
HK:8491
Cool Link (Holdings) Ltd.
0.52
0.08
18.18%
HK:8413
Asia Grocery Distribution Limited
0.11
-0.03
-21.43%
HK:1705
B & S International Holdings Ltd.
0.40
0.06
17.65%
HK:0374
Four Seas Mercantile Holdings Limited
2.60
0.19
7.88%
HK:0677
Golden Resources Development International Limited
0.33
-0.07
-17.50%

Shineroad International Holdings Limited Corporate Events

Shineroad International Forms Nomination Committee to Strengthen Board Governance
Jun 6, 2025

Shineroad International Holdings Limited has established a Nomination Committee to oversee the structure and composition of its Board of Directors. The committee’s responsibilities include reviewing the board’s structure, assessing board diversity, and making recommendations for board appointments and succession planning. This move aims to enhance corporate governance and ensure the board’s alignment with the company’s strategic goals.

Shineroad International Holdings Announces Board Composition
Jun 6, 2025

Shineroad International Holdings Limited has announced the composition of its board of directors and the roles within its three committees. The board includes both executive and independent non-executive directors, with Mr. Huang Haixiao serving as the Chairman. The announcement outlines the leadership structure, which includes Mr. Tan Wee Seng as the chairman of the audit, remuneration, and nomination committees. This structure is crucial for the company’s governance and strategic decision-making processes.

Shineroad International Approves Key Resolutions at AGM
May 16, 2025

Shineroad International Holdings Limited announced that all proposed ordinary resolutions were approved at their Annual General Meeting held on May 16, 2025. The resolutions included the approval of audited financial statements, re-election of directors, re-appointment of the auditor, declaration of a final dividend, and granting of an issue mandate to the directors. These approvals reflect strong shareholder support and may enhance the company’s operational flexibility and shareholder value.

Shineroad International Holdings Announces Key Resolutions for 2025 AGM
Apr 17, 2025

Shineroad International Holdings Limited has announced its upcoming annual general meeting scheduled for May 16, 2025, in Shanghai, China. The meeting will address several key resolutions, including the approval of the company’s audited financial statements for 2024, the re-election of directors, the re-appointment of Ernst & Young as auditors, and the declaration of a final dividend of HK2.25 cents per share. Additionally, the meeting will consider authorizing the board to manage the issuance of additional shares, subject to certain conditions. These resolutions are crucial for the company’s governance and financial planning, potentially impacting shareholder returns and the company’s strategic direction.

Shineroad International Revises Final Dividend for 2024
Mar 27, 2025

Shineroad International Holdings Limited announced a revised final cash dividend for the year ended December 31, 2024, correcting the previously declared amount to HKD 0.0225 per share. This update reflects the company’s commitment to providing accurate financial information to its stakeholders, with the payment scheduled for July 21, 2025. The announcement may impact shareholder expectations and market perceptions of the company’s financial health.

Shineroad International Holdings Reports Strong Profit Growth Despite Revenue Dip
Mar 27, 2025

Shineroad International Holdings Limited reported its annual results for the year ended 31 December 2024, showing a revenue decrease of 3.22% to RMB661.6 million compared to the previous year. Despite the drop in revenue, the company achieved a significant increase in gross profit by 9.69% and more than doubled its profit attributable to owners, reaching RMB43.7 million, a 115.27% rise from 2023. The board has recommended a final dividend of HK2.25 cents per ordinary share, reflecting the company’s robust financial performance and commitment to returning value to shareholders.

Shineroad International Announces Final Dividend for 2024
Mar 27, 2025

Shineroad International Holdings Limited has announced a final ordinary cash dividend of HKD 0.025 per share for the financial year ending December 31, 2024. The dividend will be paid on July 21, 2025, following shareholder approval on May 16, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, potentially impacting investor sentiment and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.