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

• Market Cap: HK$214.68M
• Dividend Yield: N/A
• Average Volume (3M): 906.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$1.50 ▲(40.19% Upside)

The score is primarily held back by weak financial performance (declining revenue, ongoing losses, and negative operating/free cash flow), with only partial offset from a relatively stable, low-leverage balance sheet. Technical indicators show modest near-term improvement, but longer-term trend measures remain weak. Valuation is also unfavorable/unclear due to negative earnings and no stated dividend yield.

Positive Factors

Low leverage / strong equity ratio

A low debt-to-equity mix and strong equity ratio reduce solvency risk and provide durable financial flexibility. This structural balance-sheet strength helps the firm absorb shocks, meet regulatory or client capital expectations, and preserves optionality for strategic initiatives over months.

Solid equity base

A substantial equity base gives the company a longer runway to address underperformance without immediate refinancing. For an asset manager, persistent equity buffers support client confidence and allow time for strategic adjustments, making this a lasting stabilizer over the medium term.

Lean operating footprint

A small employee base suggests a lean cost structure and operational flexibility. With limited fixed overheads, management can more readily adjust spending or reallocate resources to core revenue drivers, which supports faster execution of restructuring or efficiency programs over 2–6 months.

Negative Factors

Multi-year revenue decline

Sustained top-line erosion weakens fee income and scale economics central to asset managers. Declining revenues reduce margin leverage and limit reinvestment capacity, making recovery harder and threatening client retention and competitive position if trends persist over quarters.

Persistent net losses and negative margins

Ongoing net losses and negative operating margins indicate the core business is unprofitable. This undermines return generation, hampers internal capital accumulation, depresses ROE, and constrains strategic initiatives absent sustained improvement in operating performance.

Negative operating and free cash flow

Persistent negative operating and free cash flows create liquidity pressure and raise the likelihood of external financing or asset sales. Even with a solid equity base, continued cash burn depletes reserves and limits the firm's ability to invest in growth or withstand prolonged weak performance.

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

Company Description

Shanghai Realway Capital Assets Management Co., Ltd. is a principal investment firm specializing in real estate investment.

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: Positive
• Last Price: 1.07
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1835, the sentiment is Positive. The current price of 1.07 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.42, and below the 200-day MA of 1.85, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 71.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
1835	48 Neutral	HK$214.68M	-29.43	-2.82%	―	78.92%	75.20%
1140	48 Neutral	HK$2.28B	18.57	1.12%	―	-7.70%	101.92%
1226	47 Neutral	HK$288.82M	1.91	65.83%	―	35.11%	―
0612	42 Neutral	HK$523.08M	-4.65	-20.26%	―	-166.78%	85.53%

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

Shanghai Realway Capital Issues Supplemental Announcement on Consulting Agreement

Shanghai Realway Capital Assets Management Co., Ltd. has issued a supplemental announcement regarding its Consulting Management Services Framework Agreement. The announcement provides additional details on the determination of the Annual Caps and the pricing policy for the agreement. The service fee is a combination of a base fee and a share of the debt recovery amount, aligning with industry practices. The company has established internal control procedures to ensure the fairness and reasonableness of the pricing policy, which is in the interests of the company and its shareholders.

The most recent analyst rating on (HK:1835) stock is a Sell with a HK$1.00 price target. To see the full list of analyst forecasts on Shanghai Realway Capital Assets Management Co., Ltd. Class H stock, see the HK:1835 Stock Forecast page.

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.

The most recent analyst rating on (HK:1835) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shanghai Realway Capital Assets Management Co., Ltd. Class H stock, see the HK:1835 Stock Forecast page.