Shandong International Trust Corp. Class H (1697) AI Stock Analysis

• Market Cap: HK$1.68B
• Dividend Yield: N/A
• Average Volume (3M): 677.47K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.87
• Revenue Growth: -31.46%
• EPS Growth: -10.06%
• Country: HK
• Employees: 288
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.04
• Shares Outstanding: 1,164,735,000
• 10 Day Avg. Volume: 260,280
• 30 Day Avg. Volume: 677,472
• PEG Ratio: 5.12
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 3.34
• P/FCF Ratio: 13.23
• 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: 55 Neutral
• Price Target: HK$0.36 ▼(-6.67% Downside)

Overall score is driven primarily by steady financial stability (strong equity position and low leverage) but offset by declining revenue and cash flow consistency concerns. Technicals are weak with the stock trading below major moving averages, while valuation is moderately supportive due to a ~11x P/E.

Positive Factors

Very strong balance sheet and low leverage

An equity ratio near 79% and negligible debt provide durable financial resilience. This capital buffer supports trust‑product underwriting, regulatory compliance and loss absorption during downturns, enabling steady operations and optionality for selective growth or capital returns over the medium term.

High underlying profit margins

Elevated gross and operating margins indicate a structurally efficient, fee‑based business model with strong cost control. Even if top-line slips, high margins help preserve earnings power, fund reinvestment in origination capabilities and sustain fiduciary service economics over a multi‑quarter horizon.

Positive free cash flow in latest year

Generating free cash flow provides lasting flexibility to support product origination, meet liquidity needs and self‑fund selective investments. Despite prior variability, a positive free cash flow year reduces reliance on external funding and improves the company’s capacity to navigate funding cycles over coming quarters.

Negative Factors

Sustained multi-year revenue decline

A structural decline in revenue erodes the firm’s core fee base and economies of scale. Persistent top‑line shrinkage pressures long‑term inorganic growth prospects, limits reinvestment capacity, and forces reliance on margin maintenance or balance‑sheet actions to preserve earnings over multiple quarters.

Low return on equity

ROE of ~1.3% signals the company is delivering limited returns on a large equity base, reducing shareholder earnings power. With a capital‑intensive trust model, persistently low ROE constrains dividend potential and suggests either underutilized capital or low‑yield asset allocation unless strategic changes raise asset returns.

Inconsistent operating cash flow visibility

Unclear or volatile operating cash flow undermines reliable funding for trust products and credit commitments. This steady‑state uncertainty complicates forecasting, increases liquidity risk and may necessitate precautionary liquidity buffers or external funding, raising long‑term operating cost and strategic constraints.

Shandong International Trust Corp. Class H Business Overview & Revenue Model

Company Description

Shandong International Trust Co., Ltd., a non-bank financial institution, provides various trust services in the People's Republic of China. It operates in Trust Business and Proprietary Business segments. The company offers private equity investment banking services to various enterprises and institutions through real estate trusts, infrastructure trusts, and industrial and commercial enterprises trusts; and asset and wealth management services to institutional investors and high-net-worth individuals through equity Investment, securities investment, indirect investment, family, discretionary wealth management, and other trusts. It also provides administrative services to the trustors through administrative management trusts. In addition, the company offers professional, personalized, and integrated financial services; and invests its asset in various types of equity products, such as listed shares and mutual funds, as well as wealth management products. The company was incorporated in 1987 and is headquartered in Jinan, the People's Republic of China.

How the Company Makes Money

The company generates revenue primarily through its trust management services, which involve managing assets on behalf of clients for a fee. Key revenue streams include management fees from trust products, performance-based fees, and interest income from loans issued to clients. Additionally, Shandong International Trust engages in investment activities, where it earns returns on its own investments in various asset classes. Strategic partnerships with banks and other financial institutions also enhance its service offerings and expand its client base, contributing positively to its earnings.

Shandong International Trust Corp. Class H Financial Statement Overview

Summary

The company's financial performance is mixed, with strong operational efficiency indicated by high EBIT and EBITDA margins. However, revenue decline and cash flow volatility are significant concerns. The balance sheet is strong with low leverage, but the modest ROE suggests room for improvement.

Income Statement

The company's revenue has declined significantly over the years, and the 2024 figures show a substantial drop from previous years. Although gross profit margin remains strong at approximately 67.4% for 2024, the net profit margin stands at 28.0%, reflecting pressure on profitability. The EBIT and EBITDA margins are robust at 57.6% and 65.1%, respectively, indicating operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 78.7% for 2024, which is a positive indicator of financial stability. The debt-to-equity ratio is low at 0.03, suggesting low leverage and financial risk. ROE for 2024 is 1.3%, indicating modest returns on equity which could be an area for improvement.

Cash Flow

The cash flow statement presents a mixed picture. Although there is positive free cash flow in 2024, there is a lack of consistent operating cash flow data in recent years, which could indicate cash flow volatility. The free cash flow growth rate and operating cash flow to net income ratio could not be calculated due to missing data, impacting the overall cash flow assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	586.93M	510.27M	925.73M	852.02M	568.13M	556.11M
Gross Profit	420.39M	343.73M	797.84M	707.28M	424.09M	556.11M
EBITDA	332.29M	332.29M	442.30M	776.00M	1.03B	1.37B
Net Income	139.71M	142.79M	158.63M	280.43M	468.52M	627.82M
Balance Sheet
Total Assets	14.08B	14.28B	14.17B	14.46B	19.06B	20.68B
Cash, Cash Equivalents and Short-Term Investments	0.00	808.67M	512.95M	2.24B	1.59B	969.53M
Total Debt	0.00	296.83M	1.01B	2.07B	1.62B	100.69M
Total Liabilities	2.74B	3.04B	3.08B	3.52B	8.41B	10.51B
Stockholders Equity	11.35B	11.24B	11.09B	10.93B	10.65B	10.18B
Cash Flow
Free Cash Flow	-403.43M	128.95M	-1.36B	-3.75B	-1.75B	225.22M
Operating Cash Flow	-390.44M	152.38M	-1.33B	-3.73B	-1.73B	237.67M
Investing Cash Flow	56.13M	217.89M	375.43M	4.12B	928.03M	261.45M
Financing Cash Flow	212.42M	-62.50M	-1.12B	256.26M	1.42B	-494.63M

Shandong International Trust Corp. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1697, the sentiment is Negative. The current price of 0.39 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.37, and above the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1697.

Shandong International Trust Corp. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0806	58 Neutral	HK$4.69B	19.12	6.68%	0.44%	28.57%	342.11%
0245	56 Neutral	HK$1.99B	1.94	22.46%	―	56.35%	―
1697	55 Neutral	HK$1.68B	11.34	1.22%	―	-31.46%	-10.06%
1835	48 Neutral	HK$214.68M	-29.43	-2.82%	―	78.92%	75.20%
0612	42 Neutral	HK$523.08M	-4.65	-20.26%	―	-166.78%	85.53%

Shandong International Trust Corp. Class H Corporate Events

Shandong International Trust Announces Resignation of Non-Executive Director

Shandong International Trust Co., Ltd., a Hong Kong-listed Chinese trust and financial services provider, has announced a change in its board composition, reflecting ongoing governance adjustments within the company. Non-executive director Duan Xiaoxu has resigned from the board and from her role on the audit committee effective 5 January 2026, citing work adjustment, with both the company and Duan confirming there is no disagreement or issues requiring shareholder attention, while the board expressed gratitude for her contributions and outlined the remaining mix of executive, non-executive and independent non-executive directors overseeing the company.

The most recent analyst rating on (HK:1697) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shandong International Trust Corp. Class H stock, see the HK:1697 Stock Forecast page.

Shandong International Trust Details Board and Committee Structure

Shandong International Trust Co., Ltd. has announced the current composition of its board of directors, which comprises one executive director, Mr. Yue Zengguang, serving as chairperson, two non-executive directors including vice-chairperson Mr. Chen Liuyi, and three independent non-executive directors, reflecting a governance structure with substantial independent oversight. The company has also detailed the membership of its five board committees—Audit, Nomination and Remuneration, Strategies and Risk Management, Trust and Consumer Rights Protection, and Related Party Transaction Control—clarifying leadership roles and cross-memberships among directors, a move that underscores regulatory compliance, strengthens internal controls, and offers greater transparency for investors and other stakeholders on how key oversight and risk functions are allocated at the board level.

The most recent analyst rating on (HK:1697) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shandong International Trust Corp. Class H stock, see the HK:1697 Stock Forecast page.

Shandong International Trust Renews Connected Transaction Frameworks With Controlling Shareholder Lucion Group

Shandong International Trust Co., Ltd., a Hong Kong–listed PRC trust and financial services provider, relies on group synergies with its controlling shareholder Lucion Group and affiliated entities for technology, financial services and trust-related business. The company has renewed several framework agreements with Lucion Group and Lucion Science and Technology for a further three-year term from 1 January 2026 to 31 December 2028, covering information technology services, financial services, financing and investment, and trust business. These renewed framework agreements constitute continuing connected transactions under Hong Kong Listing Rules, triggering reporting, announcement and annual review requirements, with one trust framework agreement also requiring a circular and independent shareholders’ approval due to its higher transaction cap. The company will convene a general meeting and dispatch a circular to shareholders, underscoring both its ongoing operational dependence on intra-group arrangements and the heightened regulatory oversight intended to protect minority shareholders’ interests.

The most recent analyst rating on (HK:1697) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shandong International Trust Corp. Class H stock, see the HK:1697 Stock Forecast page.

Shandong International Trust Co. Cancels Board of Supervisors, Streamlines Governance

Shandong International Trust Co., Ltd. announced the cancellation of its board of supervisors following the approval of amendments to its Articles of Association by the Shandong Financial Regulatory Office. This change, effective from November 10, 2025, delegates the functions and powers of the board of supervisors to the audit committee under the board of directors. The company expressed gratitude to the outgoing supervisors for their contributions, and the transition is expected to streamline governance and oversight within the organization.

The most recent analyst rating on (HK:1697) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shandong International Trust Corp. Class H stock, see the HK:1697 Stock Forecast page.

Shandong International Trust Co., Ltd. Strengthens Governance with New Audit Committee

Shandong International Trust Co., Ltd. has established an audit committee under its Board of Directors to enhance its decision-making processes, prevent operational risks, and ensure stable operations. This committee is tasked with reviewing financial information, supervising audit work, and maintaining internal controls, which could strengthen the company’s governance and transparency, potentially impacting its market position and stakeholder trust positively.

The most recent analyst rating on (HK:1697) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shandong International Trust Corp. Class H stock, see the HK:1697 Stock Forecast page.

Shandong International Trust Co. Enhances Risk Management with New Committee

Shandong International Trust Co., Ltd. has established a Strategies and Risk Management Committee under its Board of Directors to enhance decision-making, prevent operational risks, and ensure stable operations. This committee is tasked with proposing medium and long-term development strategies, monitoring major risks, and ensuring compliance with laws and regulations, thereby strengthening the company’s risk management framework and strategic planning.

The most recent analyst rating on (HK:1697) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shandong International Trust Corp. Class H stock, see the HK:1697 Stock Forecast page.

Shandong International Trust Approves Fund Transfers at Extraordinary General Meeting

Shandong International Trust Co., Ltd. held its 2025 second extraordinary general meeting (EGM) on November 7, where shareholders approved the transfer of interests in the Parent Fund and Wanhe Fund. The resolutions were passed unanimously by the attending shareholders, representing 30.75% of the company’s total issued share capital. The meeting complied with legal and corporate governance standards, with no opposition or abstentions from the voting shareholders.

The most recent analyst rating on (HK:1697) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shandong International Trust Corp. Class H stock, see the HK:1697 Stock Forecast page.

Shandong International Trust Co. Announces 2025 Extraordinary General Meeting

Shandong International Trust Co., Ltd. has announced the convening of its second extraordinary general meeting for 2025, scheduled to take place on November 7, 2025. The meeting will address resolutions regarding the transfer of interests in the Parent Fund and Wanhe Fund, which could impact the company’s investment strategies and stakeholder interests.

The most recent analyst rating on (HK:1697) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shandong International Trust Corp. Class H stock, see the HK:1697 Stock Forecast page.