Shineroad International Holdings Limited (1587) AI Stock Analysis

• Market Cap: HK$428.40M
• Dividend Yield: 3.57%
• Average Volume (3M): 112.80K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.28
• Revenue Growth: -4.97%
• EPS Growth: 111.21%
• Country: HK
• Employees: 125
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Food Distribution
• EPS (TTM): 0.04
• Shares Outstanding: 680,000,000
• 10 Day Avg. Volume: 74,800
• 30 Day Avg. Volume: 112,800
• PEG Ratio: 0.13
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.11
• 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: 71 Outperform
• Price Target: HK$0.50 ▼(-20.63%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.

Shineroad International Holdings Limited Business Overview & Revenue Model

Company Description

Shineroad 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 Money

Shineroad 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

Shineroad International Holdings Limited displays solid financial health with strong profitability margins and a healthy balance sheet. Despite the robust balance sheet with low leverage and high equity, inconsistent revenue growth and cash flow issues could 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	661.64M	683.59M	728.31M	863.62M	655.32M
Gross Profit	125.62M	114.46M	121.17M	150.64M	107.52M
EBITDA	61.06M	36.18M	58.53M	84.44M	43.25M
Net Income	43.69M	20.26M	47.66M	86.06M	34.90M
Balance Sheet
Total Assets	707.52M	593.65M	552.85M	534.14M	421.57M
Cash, Cash Equivalents and Short-Term Investments	185.18M	161.06M	184.70M	136.51M	224.94M
Total Debt	96.59M	48.32M	23.25M	25.86M	8.44M
Total Liabilities	208.56M	130.85M	101.42M	120.33M	84.29M
Stockholders Equity	498.96M	462.81M	451.42M	413.81M	337.28M
Cash Flow
Free Cash Flow	-9.37M	-6.88M	93.51M	-16.02M	47.08M
Operating Cash Flow	39.03M	50.95M	94.36M	-15.28M	47.28M
Investing Cash Flow	-48.08M	-87.83M	-33.43M	-79.53M	3.18M
Financing Cash Flow	35.14M	12.20M	-16.67M	7.29M	-3.34M

Shineroad International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 0.63 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 0.02 indicates Negative momentum. The RSI at 81.97 is Negative, neither overbought nor oversold. The STOCH value of 60.42 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1705	74 Outperform	HK$188.00M	10.11	11.39%	21.28%	-0.45%	7.28%
1587	71 Outperform	HK$428.40M	9.04	9.10%	3.57%	-4.97%	111.21%
8413	66 Neutral	HK$122.01M	115.56	1.07%	―	3.44%	-43.75%
0677	66 Neutral	HK$585.61M	29.49	-1.12%	12.75%	1.30%	-85.43%
0374	64 Neutral	HK$988.32M	98.11	0.84%	4.62%	-8.35%	96.66%
Sector *	61 Neutral	HK$20.03B	11.90	0.81%	4.78%	2.72%	-47.45%
8491	40 Underperform	HK$223.22M	―	-22.75%	―	-4.08%	-12.24%

Shineroad International Holdings Limited Corporate Events

Shineroad International Forms Nomination Committee to Strengthen Board Governance

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

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

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.