Shanghai Realway Capital Assets Management Co., Ltd. Class H (1835) AI Stock Analysis

• Market Cap: HK$153.34M
• Dividend Yield: N/A
• Average Volume (3M): 906.00
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: 78.92%
• EPS Growth: 75.20%
• Country: HK
• Employees: 62
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.02
• Shares Outstanding: 38,340,000
• 10 Day Avg. Volume: 2,720
• 30 Day Avg. Volume: 906
• PEG Ratio: 0.26
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 9.80
• P/FCF Ratio: -16.61
• 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: 40 Underperform
• Price Target: HK$1.00 ▼(-4.76% Downside)

Shanghai Realway Capital Assets Management Co., Ltd. is currently facing significant financial and market challenges. The most impactful factors are the company's declining financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a poor valuation. These factors collectively result in a low overall stock score.

Positive Factors

Business Model

The asset management business model provides a steady income stream through management fees, ensuring consistent revenue as long as AUM is maintained.

Balance Sheet Health

Low leverage enhances financial stability, reducing risk and providing flexibility to navigate financial challenges.

Revenue Growth Potential

Exposure to growth sectors like real estate and private equity can drive future revenue growth as these markets expand.

Negative Factors

Declining Revenue

Persistent revenue decline indicates challenges in maintaining market share or competitive position, impacting long-term growth.

Negative Cash Flows

Negative cash flows highlight operational inefficiencies and liquidity risks, potentially limiting investment and growth opportunities.

Profitability Challenges

Negative profitability margins indicate operational challenges, affecting the company's ability to generate sustainable profits.

Shanghai Realway Capital Assets Management Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shanghai Realway Capital Assets Management Co., Ltd. Class H (1835) is a prominent investment management firm based in Shanghai, China. The company specializes in asset management services, focusing on private equity, real estate investment, and other financial services tailored to institutional and high-net-worth individual clients. Realway Capital aims to deliver superior investment returns through strategic asset allocation and rigorous risk management across various sectors, including real estate, infrastructure, and alternative investments.

How the Company Makes Money

The company generates revenue primarily through management fees and performance-based fees associated with its asset management services. Management fees are typically charged as a percentage of assets under management (AUM), providing a steady income stream as clients invest in various funds managed by the firm. Performance fees, on the other hand, are earned when the funds exceed certain benchmark returns, aligning the company's interests with those of its investors. Additionally, Realway Capital may engage in partnership arrangements with other financial institutions and investment firms, further enhancing its revenue through joint ventures and co-investment opportunities. The firm also benefits from market trends in real estate and private equity sectors, capitalizing on favorable investment conditions to increase its AUM and overall profitability.

Shanghai Realway Capital Assets Management Co., Ltd. Class H Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenue, persistent losses, and negative cash flows. While the balance sheet shows stability with low leverage, the income and cash flow statements highlight operational and profitability issues. The company needs to address its operational inefficiencies and enhance revenue growth to improve its financial health.

Income Statement

The company has experienced a significant decline in revenue over the past few years, with a sharp drop from 2019 to 2024. The gross profit margin has remained 100% due to the absence of cost of goods sold, but the net profit margin has been negative due to consistent net losses. EBIT and EBITDA margins are also negative, indicating operational challenges and a lack of profitability. The revenue growth rate is negative, reflecting declining sales.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating minimal leverage. The equity ratio is strong, suggesting financial stability. However, the return on equity is negative due to net losses, which is a concern for profitability and shareholder value. Overall, the company maintains a solid equity base amidst declining financial performance.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, reflecting operational struggles. The free cash flow has declined significantly, highlighting cash flow management issues. The operating cash flow to net income ratio is not favorable, indicating inefficiencies in converting income to cash. This presents liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.93M	26.31M	17.87M	36.75M	54.20M	69.07M
Gross Profit	29.93M	26.31M	17.87M	36.75M	-90.00K	69.07M
EBITDA	-3.86M	-7.50M	-48.07M	-28.51M	-37.87M	10.79M
Net Income	-7.47M	-13.11M	-56.73M	-34.49M	-39.38M	4.43M
Balance Sheet
Total Assets	295.31M	289.84M	334.15M	362.38M	391.56M	443.58M
Cash, Cash Equivalents and Short-Term Investments	111.28M	112.94M	149.45M	201.74M	139.22M	84.90M
Total Debt	23.95M	21.82M	21.27M	2.53M	4.83M	967.00K
Total Liabilities	31.66M	28.89M	61.12M	31.91M	25.19M	37.78M
Stockholders Equity	262.16M	259.69M	272.93M	329.69M	364.04M	403.02M
Cash Flow
Free Cash Flow	-28.26M	-15.52M	7.15M	-5.48M	-8.09M	-23.63M
Operating Cash Flow	-25.43M	-12.68M	7.71M	-5.42M	-7.57M	-23.40M
Investing Cash Flow	16.81M	18.84M	941.00K	-19.86M	-15.53M	60.19M
Financing Cash Flow	-8.41M	-8.99M	-9.24M	11.47M	-5.16M	-3.77M

Shanghai Realway Capital Assets Management Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.05
• 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:1835, the sentiment is Negative. The current price of 1.05 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.77, and below the 200-day MA of 1.89, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1835.

Shanghai Realway Capital Assets Management Co., Ltd. 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%
1140	48 Neutral	HK$1.87B	15.43	1.12%	―	-7.70%	101.92%
0612	42 Neutral	HK$523.08M	-4.65	-20.26%	―	-166.78%	85.53%
1835	40 Underperform	HK$153.34M	-21.51	-2.82%	―	78.92%	75.20%
1226	39 Underperform	HK$317.70M	2.13	65.83%	―	35.11%	―

Shanghai Realway Capital Assets Management Co., Ltd. Class H Corporate Events

Shanghai Realway Capital’s Subsidiary Enters Consulting Agreement with Xinhe Credit

Shanghai Realway Capital Assets Management Co., Ltd. announced that its indirect subsidiary, Yuanhui Qichuang, has entered into a Consulting Management Services Framework Agreement with Xinhe Credit. This agreement involves Yuanhui Qichuang providing consulting management services for Xinhe Credit’s distressed personal loan assets, including strategy formulation, inventory checks, and legal consultations. The transaction is considered a continuing connected transaction under Hong Kong’s Listing Rules, requiring annual review and reporting but exempt from shareholder approval. The Board has approved the agreement, deeming it fair and in the company’s and shareholders’ best interests.