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

• Market Cap: HK$1.70B
• Dividend Yield: N/A
• Average Volume (3M): 677.47K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.93
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(35.14% Upside)

The overall stock score reflects strong operational efficiency and a solid balance sheet, offset by challenges in revenue growth and cash flow consistency. Technical indicators suggest bearish momentum, while valuation appears reasonable. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Operational Efficiency

High EBIT and EBITDA margins indicate effective cost management and operational strength, which can sustain profitability even with revenue challenges.

Balance Sheet Health

A strong equity position and low debt-to-equity ratio suggest financial stability and low financial risk, providing resilience against economic fluctuations.

Gross Profit Margin

A strong gross profit margin indicates effective pricing strategies and cost control, supporting long-term profitability despite revenue declines.

Negative Factors

Revenue Decline

Significant revenue decline poses a challenge to growth and market competitiveness, potentially impacting future earnings and strategic positioning.

Cash Flow Volatility

Inconsistent cash flow can hinder the company's ability to reinvest in growth opportunities and manage financial obligations effectively.

Modest ROE

Low ROE suggests inefficiencies in utilizing shareholder equity, which may limit the company's attractiveness to investors seeking higher returns.

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: Neutral
• Last Price: 0.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1697, the sentiment is Neutral. The current price of 0.37 is above the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.37, and below the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 18.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$4.29B	17.56	6.68%	0.44%	28.57%	342.11%
0245	56 Neutral	HK$2.05B	2.02	22.46%	―	56.35%	―
1697	55 Neutral	HK$1.70B	11.49	1.22%	―	-31.46%	-10.06%
0612	42 Neutral	HK$523.08M	-4.65	-20.26%	―	-166.78%	85.53%
1835	40 Underperform	HK$161.01M	-18.87	-2.82%	―	78.92%	75.20%

Shandong International Trust Corp. Class H Corporate Events

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.

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.

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.

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.

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.

Shandong International Trust Delays Circular Dispatch for Fund Transfer Agreements

Shandong International Trust Co., Ltd. announced a delay in the dispatch of a circular related to the Parent Fund Transfer Agreement and the Wanhe Fund Transfer Agreement. The circular, initially scheduled for release by 6 October 2025, will now be dispatched around 17 October 2025 due to additional time required for preparation. This postponement may affect stakeholders’ timelines and decision-making processes regarding the fund transfers.

Shandong International Trust Announces Fund Interest Transfers

Shandong International Trust Co., Ltd. announced the conditional agreements to sell its interests in the Parent Fund and Wanhe Fund to Lucion Venture Capital and Shandong High-Tech, respectively, for a total consideration of RMB203.5437 million. These transactions are classified as disclosable and connected transactions under the Listing Rules, requiring shareholder approval. The agreements are significant as they involve connected persons of the company, potentially impacting its financial structure and stakeholder relations.