SH Group (Holdings) Limited (1637) AI Stock Analysis

• Market Cap: HK$90.00M
• Dividend Yield: N/A
• Average Volume (3M): 51.60K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.59
• Revenue Growth: -40.54%
• EPS Growth: N/A
• Country: HK
• Employees: 157
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 8,400
• 30 Day Avg. Volume: 51,600
• PEG Ratio: -0.07
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 0.55
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$0.26 ▲(22.86% Upside)

The overall stock score of 65 reflects a company in recovery, with strong technical indicators and a solid balance sheet. However, declining revenue and low profit margins are significant challenges. The stock's valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Cash Flow Growth

Strong cash flow growth enhances the company's ability to reinvest in projects, reduce debt, and provide a buffer against economic downturns.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and reduces the risk of financial distress, allowing for more strategic investments.

Profitability Recovery

Returning to profitability suggests operational improvements and potential for sustainable earnings, enhancing long-term shareholder value.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which could impact long-term growth prospects.

Low Profit Margins

Low profit margins suggest limited pricing power and cost management issues, which can hinder profitability and investment capacity.

Revenue Growth Challenges

Significant revenue decline highlights difficulties in contract acquisition and execution, posing risks to future financial performance.

SH Group (Holdings) Limited Business Overview & Revenue Model

Company Description

SH Group (Holdings) Limited (1637) is a Hong Kong-based investment holding company engaged primarily in the development and management of properties, along with other businesses in the hospitality and leisure sectors. The company focuses on creating value through its various subsidiaries and investments, which include real estate ventures and hospitality services that cater to both local and international markets.

How the Company Makes Money

SH Group (Holdings) Limited generates revenue primarily through property development and management, leasing of commercial and residential properties, and providing hospitality services. Key revenue streams include rental income from its real estate portfolio, sales of developed properties, and revenue from its hospitality ventures such as hotels and resorts. The company may also engage in partnerships with other firms in the real estate and hospitality sectors to enhance its service offerings and expand its market reach, contributing to its overall earnings.

SH Group (Holdings) Limited Financial Statement Overview

Summary

SH Group (Holdings) Limited is showing signs of recovery with improved profitability and strong cash flow growth. However, the company faces challenges with declining revenue and low profit margins. The balance sheet remains strong with low leverage, providing a stable foundation for future growth.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a revenue growth rate of -18.33%. Gross profit margin is low at 5.42%, and net profit margin is also weak at 0.89%. However, the company has managed to return to profitability with a positive net income, indicating some recovery from previous losses.

Balance Sheet

The balance sheet shows a strong equity position with a very low debt-to-equity ratio of 0.23%. Return on equity is modest at 2.30%, suggesting limited profitability relative to equity. The equity ratio is healthy, indicating a stable financial structure with low leverage risk.

Cash Flow

The company has shown a strong improvement in cash flow, with a free cash flow growth rate of 28.82%. The operating cash flow to net income ratio is 0.62, indicating good cash generation relative to net income. Free cash flow closely matches net income, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	745.05M	608.49M	876.18M	954.25M	753.33M	707.59M
Gross Profit	11.86M	32.97M	16.29M	8.66M	45.60M	61.40M
EBITDA	-16.57M	10.84M	-13.83M	-10.45M	23.86M	45.04M
Net Income	-12.98M	5.39M	-15.21M	-11.00M	11.73M	44.13M
Balance Sheet
Total Assets	410.50M	378.04M	495.45M	506.74M	508.11M	512.38M
Cash, Cash Equivalents and Short-Term Investments	80.56M	99.87M	44.63M	114.46M	249.54M	241.04M
Total Debt	11.65M	534.00K	37.59M	630.00K	2.75M	4.34M
Total Liabilities	190.34M	143.75M	266.54M	262.62M	217.28M	217.68M
Stockholders Equity	220.16M	234.29M	228.91M	244.12M	290.84M	294.70M
Cash Flow
Free Cash Flow	68.71M	88.51M	-119.71M	-118.04M	46.06M	138.60M
Operating Cash Flow	69.02M	88.52M	-119.39M	-117.51M	46.42M	138.84M
Investing Cash Flow	6.04M	3.04M	71.83M	-50.22M	-15.14M	-25.72M
Financing Cash Flow	-34.01M	-38.68M	30.84M	-20.44M	-17.78M	-16.44M

SH Group (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Positive
• 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:1637, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.22, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 56.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1637.

SH Group (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1591	66 Neutral	HK$57.60M	-10.14	-12.77%	―	11.27%	-1272.22%
1637	65 Neutral	HK$90.00M	16.67	4.53%	―	-40.54%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1630	52 Neutral	HK$64.50M	-3.55	-14.78%	―	-28.21%	34.59%
1472	50 Neutral	HK$63.00M	―	-4.84%	―	71.16%	-67.47%
1718	48 Neutral	HK$53.81M	-0.49	-46.48%	―	-0.64%	13.72%
1826	44 Neutral	HK$75.92M	-142.50	―	―	11.52%	98.72%

SH Group (Holdings) Limited Corporate Events

SH Group Reports Improved Profitability Amid Revenue Decline

SH Group (Holdings) Limited reported its interim results for the six months ended 30 September 2025, showing a significant decrease in revenue to HK$164.6 million from HK$330.0 million in the previous year. However, the company managed to turn a gross loss into a gross profit of HK$2.8 million and reduced its loss attributable to owners to HK$3.9 million, down from HK$8.7 million, indicating some operational improvements despite the revenue decline.

SH Group Announces Board Meeting to Review Interim Results

SH Group (Holdings) Limited has announced an upcoming board meeting scheduled for November 25, 2025, to discuss and approve the unaudited interim results for the six months ending September 30, 2025, and to consider the declaration of an interim dividend. This meeting could have implications for the company’s financial strategy and shareholder returns, highlighting the company’s ongoing commitment to transparency and stakeholder engagement.

SH Group Reports Significant Reduction in Net Loss

SH Group (Holdings) Limited has announced a significant reduction in its net loss for the six months ending September 30, 2025. The company attributes this improvement to effective cost control measures, enhanced operational efficiency, and an increase in the value of financial assets. This announcement indicates a positive shift in the company’s financial health, which may impact its market positioning and investor confidence.