Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H (2411) AI Stock Analysis

• Market Cap: HK$3.83B
• Dividend Yield: 0.38%
• Average Volume (3M): 9.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -15.49%
• EPS Growth: -544.89%
• Country: HK
• Employees: 2,581
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.26
• Shares Outstanding: 1,818,837,500
• 10 Day Avg. Volume: 6,473,400
• 30 Day Avg. Volume: 9,585,550
• PEG Ratio: 0.02
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -37.16
• 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: 46 Neutral
• Price Target: HK$2.00 ▲(6.95% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenue and profitability, and increased leverage. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to negative earnings.

Positive Factors

Market Access

Partnerships with major retailers and e-commerce platforms enhance market access, supporting long-term revenue growth through expanded distribution channels.

Strategic Collaborations

Collaborations with industry players can lead to shared resources and innovation, improving operational efficiencies and competitive positioning over time.

Technological Advancements

Investments in technology can drive production efficiencies and cost savings, supporting sustainable margins and competitive advantage in the long term.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Negative Cash Flow

Negative operating cash flow raises concerns about liquidity and the company's ability to fund operations and growth initiatives without external financing.

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, especially if revenue and profitability challenges persist, affecting long-term stability.

Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H Business Overview & Revenue Model

Company Description

Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H (2411) is a diversified industrial enterprise based in Shenzhen, China. The company operates across various sectors, including manufacturing, logistics, and technology, with a strong focus on the production and distribution of consumer goods, electronics, and industrial equipment. Pagoda is recognized for its commitment to innovation, quality, and sustainability, offering a range of products that cater to both domestic and international markets.

How the Company Makes Money

The company generates revenue primarily through its manufacturing operations, which produce a wide array of consumer goods and industrial products. Key revenue streams include direct sales of these products to retailers and distributors, as well as contract manufacturing services for other brands. Additionally, Pagoda benefits from partnerships with major retailers and e-commerce platforms, facilitating broader market access and distribution. The company also engages in logistics services, which further contribute to its earnings by optimizing supply chain efficiencies for itself and its partners. Factors such as economies of scale, technological advancements in production, and strategic collaborations with other industry players enhance its profitability.

Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H Financial Statement Overview

Summary

Shenzhen Pagoda Industrial faces significant financial challenges. Revenue and profitability metrics have declined, resulting in negative margins and cash flow issues. Increased leverage poses potential financial risks, necessitating a focus on stabilizing revenue and improving operational efficiency.

Income Statement

The company experienced a revenue decline from the previous year. Gross profit margin deteriorated from 11.54% to 7.42%, and the net profit margin turned negative, indicating challenges in maintaining profitability. EBIT and EBITDA margins also turned negative, reflecting operational difficulties.

Balance Sheet

The debt-to-equity ratio increased to 1.08, indicating higher leverage, although equity remains stable at 34.61% of total assets. Return on Equity turned negative due to net losses, signaling potential financial risks if trends continue.

Cash Flow

Cash flow from operations has significantly declined, showing a negative operating cash flow in the latest year. Free cash flow growth is also negative, highlighting liquidity concerns. The ratios of cash flows to net income are not calculable due to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.06B	10.27B	11.39B	11.31B	10.29B	8.85B
Gross Profit	357.54M	761.96M	1.31B	1.31B	1.16B	807.43M
EBITDA	-726.46M	-276.31M	584.16M	558.46M	453.54M	215.63M
Net Income	-816.59M	-386.03M	361.72M	323.30M	230.34M	49.06M
Balance Sheet
Total Assets	7.28B	7.82B	7.59B	6.81B	6.42B	5.24B
Cash, Cash Equivalents and Short-Term Investments	3.70B	2.50B	2.30B	2.09B	1.85B	1.07B
Total Debt	2.93B	2.92B	2.41B	1.80B	2.02B	1.22B
Total Liabilities	4.82B	5.01B	4.25B	3.79B	3.71B	2.72B
Stockholders Equity	2.37B	2.71B	3.22B	2.95B	2.64B	2.45B
Cash Flow
Free Cash Flow	-241.38M	-53.91M	-166.24M	414.71M	239.92M	135.33M
Operating Cash Flow	-113.08M	164.58M	-48.53M	589.18M	283.88M	292.90M
Investing Cash Flow	242.55M	-760.20M	282.56M	619.85M	-577.90M	-372.66M
Financing Cash Flow	-666.68M	239.09M	414.89M	-307.78M	404.05M	217.15M

Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.87
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2411, the sentiment is Neutral. The current price of 1.87 is above the 20-day moving average (MA) of 1.85, below the 50-day MA of 2.03, and above the 200-day MA of 1.63, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 31.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2411.

Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2420	74 Outperform	HK$1.63B	8.89	27.30%	3.87%	23.59%	―
9896	64 Neutral	HK$51.16B	20.11	20.87%	3.13%	13.14%	-19.58%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0178	56 Neutral	HK$1.92B	25.00	8.44%	4.75%	-3.18%	-36.46%
2411	46 Neutral	HK$3.83B	-3.55	-29.04%	0.38%	-15.49%	-544.89%
1759	44 Neutral	HK$231.12M	-18.20	-3.11%	―	50.72%	-434.09%
0493	41 Neutral	HK$699.13M	―	―	―	49.53%	22.07%

Shenzhen Pagoda Industrial (Group) Corp. Ltd. Class H Corporate Events

Shenzhen Pagoda Grants 150.5 Million RSUs to Employees

Shenzhen Pagoda Industrial (Group) Corporation Limited announced the grant of 150,500,000 Restricted Share Units (RSUs) to 14 employees, representing approximately 8.27% of the total shares in issue. These RSUs are subject to performance-based vesting conditions, aligning with the company’s strategic growth and individual performance assessments, and are set to vest fully by April 30, 2029.

Shenzhen Pagoda Completes H Share Full Circulation

Shenzhen Pagoda Industrial (Group) Corporation Limited has announced the completion of its H Share Full Circulation, converting 85,448,554 Unlisted Shares into H Shares. This conversion marks a significant milestone for the company, as it now has 100% of its shares listed as H Shares on the Hong Kong Stock Exchange, enhancing its market presence and potentially increasing its attractiveness to investors.

Shenzhen Pagoda Industrial Approves Key Resolutions at Extraordinary General Meeting

Shenzhen Pagoda Industrial (Group) Corp. Ltd., a company incorporated in China, announced the successful passing of all proposed resolutions at its 2025 second extraordinary general meeting. The key resolutions included the adoption of a Restricted Share Unit Scheme for H Shares and the authorization for the Board to manage related matters. This development may enhance the company’s governance and align shareholder interests, potentially impacting its market positioning positively.

Shenzhen Pagoda Receives Approval for Full Circulation of H Shares

Shenzhen Pagoda Industrial (Group) Corp. Ltd. has received approval from the Stock Exchange of Hong Kong for the listing and full circulation of 85,448,554 H Shares, which were converted from Unlisted Shares. This move, involving three participating shareholders, will result in a complete transition of the company’s share capital to H Shares, potentially increasing market liquidity and investor engagement.

Shenzhen Pagoda Receives CSRC Approval for H Share Conversion

Shenzhen Pagoda Industrial (Group) Corporation Limited has received approval from the China Securities Regulatory Commission (CSRC) for the conversion of 85,448,554 Unlisted Shares into H Shares, which will be listed on the Main Board of the Hong Kong Stock Exchange. This move is part of the company’s H Share Full Circulation plan, aimed at enhancing market liquidity and potentially increasing shareholder value, although the completion of the process is subject to further regulatory requirements.

Shenzhen Pagoda Announces 2025 Extraordinary General Meeting

Shenzhen Pagoda Industrial (Group) Corporation Limited has announced that it will hold its 2025 second extraordinary general meeting on October 30, 2025, in Shenzhen, China. The meeting will focus on considering and potentially approving the adoption of a Restricted Share Unit Scheme (H Share) and authorizing the Board to manage related matters. This announcement could impact the company’s governance and shareholder engagement, as it involves significant decisions regarding share management.

Shenzhen Pagoda Announces Closure of Register for EGM

Shenzhen Pagoda Industrial (Group) Corporation Limited has announced the closure of its register of members to determine shareholder eligibility for an upcoming extraordinary general meeting (EGM). The register will be closed from October 24 to October 30, 2025, during which no share transfers will be registered. Shareholders on the register by October 30, 2025, will be eligible to attend and vote at the EGM.

Shenzhen Pagoda Completes H Share Placement, Raising HK$327 Million

Shenzhen Pagoda Industrial (Group) Corp. Ltd. has successfully completed the placement of 279,500,000 new H shares under a general mandate, raising approximately HK$327.0 million in gross proceeds. The company plans to use the net proceeds of HK$325.0 million to pay trade payables, repay bank loans, and cover general working capital and administrative expenses. This strategic move is expected to enhance the company’s financial stability and operational efficiency, potentially improving its market position.

Shenzhen Pagoda Extends Completion Date for New H Shares Placement

Shenzhen Pagoda Industrial (Group) Corporation Limited announced an extension to the completion date for the placing of 279,500,000 new H shares under a general mandate. The extension, agreed upon with the Placing Agent, moves the completion date to October 9, 2025, allowing additional time to fulfill the conditions precedent. This development ensures compliance with the Listing Rules and maintains the terms of the Placing Agreement, advising shareholders and potential investors to exercise caution when dealing in the H shares.

Shenzhen Pagoda Postpones EGM and Cancels Book Closure

Shenzhen Pagoda Industrial (Group) Corp. Ltd. has announced the postponement of its Extraordinary General Meeting (EGM) initially scheduled for October 17, 2025. Consequently, the book closure period from October 14 to October 17, 2025, has been canceled. The company will announce the new date for the EGM and the revised book closure period in due course.

Shenzhen Pagoda Announces Register Closure for Upcoming EGM

Shenzhen Pagoda Industrial (Group) Corporation Limited has announced the closure of its register of members in preparation for an extraordinary general meeting (EGM) scheduled for October 17, 2025. The closure will take place from October 14 to October 17, 2025, during which no share transfers will be registered. Shareholders listed on the register by October 17, 2025, will be eligible to attend and vote at the EGM.

Shenzhen Pagoda Announces New H Share Placement to Raise HK$325 Million

Shenzhen Pagoda Industrial (Group) Corp. Ltd. has entered into a Placing Agreement with First Shanghai Securities Limited to issue 279,500,000 new H Shares at a placing price of HK$1.17 per share. This move is expected to raise approximately HK$325.0 million in net proceeds, representing a significant discount to the recent trading prices. The placement aims to increase the company’s share capital without requiring shareholder approval, potentially impacting shareholder value and market perception.