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Shanghai Electric Group Company Limited Class H (HK:2727)
:2727
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Shanghai Electric Group Company (2727) AI Stock Analysis

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HK:2727

Shanghai Electric Group Company

(OTC:2727)

Rating:66Neutral
Price Target:
HK$3.00
▼(-10.71%Downside)
Shanghai Electric Group Company exhibits strong technical momentum, contributing positively to its score. However, the high P/E ratio indicates potential overvaluation, which tempers the overall score. The company's robust cash flow performance boosts its financial health, but moderate overall profitability and valuation concerns keep the score moderate.

Shanghai Electric Group Company (2727) vs. iShares MSCI Hong Kong ETF (EWH)

Shanghai Electric Group Company Business Overview & Revenue Model

Company DescriptionShanghai Electric Group Company Limited is a leading multinational enterprise headquartered in Shanghai, China, specializing in the manufacturing of power generation equipment, industrial equipment, and integration services. The company operates across several sectors, including energy equipment, industrial equipment, and modern services. Its core products and services include thermal and nuclear power equipment, transmission and distribution equipment, elevators, and industrial automation systems, demonstrating a strong presence in both domestic and international markets.
How the Company Makes MoneyShanghai Electric Group Company makes money primarily through the manufacturing and sale of power generation and industrial equipment. Its revenue model is diversified across several key streams: sales of thermal, nuclear, and renewable energy equipment; sales and maintenance of industrial equipment such as elevators and automation systems; and providing integrated services that include engineering, procurement, and construction (EPC) projects. The company also engages in partnerships with other global enterprises to enhance its technological capabilities and market reach. Additionally, the company benefits from China's infrastructure development initiatives and international expansion, which drive demand for its products and services.

Shanghai Electric Group Company Financial Statement Overview

Summary
Shanghai Electric Group Company shows a mixed financial performance with stable revenue and improved profitability in the TTM. The balance sheet is stable with manageable leverage, while cash flow generation is notably strong, supporting the company's liquidity position. Overall, the company demonstrates moderate profitability and financial stability with strong cash flow metrics, positioning itself well for future growth opportunities.
Income Statement
65
Positive
The company's income statement shows moderate performance with a stabilization in revenue at TTM compared to the previous fiscal year. The gross profit margin for the TTM is approximately 18.44%, indicating reasonable profitability. The net profit margin is lower but has improved from past losses to a positive 0.86% in the TTM. Revenue growth has been minimal, and EBIT and EBITDA margins reflect modest operational efficiency at 3.25% and 4.53%, respectively. Overall, the income statement reflects moderate profitability with some recovery from previous years' losses.
Balance Sheet
70
Positive
The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.72, indicating manageable leverage. Return on equity (ROE) is low at 1.89% in the TTM, reflecting limited profitability relative to equity. The equity ratio stands at 17.83%, suggesting a balanced capital structure. The company maintains a reasonable level of cash and short-term investments, contributing to financial stability. Overall, the balance sheet depicts a stable yet modestly leveraged financial position with room for improvement in profitability.
Cash Flow
72
Positive
Cash flow analysis shows a robust free cash flow in the TTM of 15.76 billion, with a free cash flow growth rate of 19.13% from the previous period. The operating cash flow to net income ratio is strong at 6.64, indicating efficient cash generation from operations. The free cash flow to net income ratio is exceptionally high at 15.57, pointing to strong cash flow relative to net income. Overall, the cash flow statement reflects strong cash generation and improvement in free cash flow, highlighting solid financial health in terms of liquidity and operational efficiency.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue116.19B114.80B117.62B131.39B137.29B
Gross Profit21.66B20.00B19.04B19.80B23.26B
EBITDA8.37B6.89B1.59B-9.31B9.19B
Net Income752.48M285.15M-2.31B-10.24B5.27B
Balance Sheet
Total Assets302.50B283.27B288.02B300.80B315.40B
Cash, Cash Equivalents and Short-Term Investments40.35B50.25B34.00B32.96B31.63B
Total Debt38.69B42.07B41.26B47.47B44.91B
Total Liabilities225.12B206.34B193.83B202.66B208.55B
Stockholders Equity53.19B52.80B54.86B58.13B66.40B
Cash Flow
Free Cash Flow13.24B3.57B4.44B-14.86B-1.71B
Operating Cash Flow17.64B7.80B8.48B-10.55B4.70B
Investing Cash Flow-16.43B352.15M-7.32B5.86B-3.60B
Financing Cash Flow-3.43B-13.73B-1.26B2.16B2.47B

Shanghai Electric Group Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.36
Price Trends
50DMA
2.86
Positive
100DMA
2.76
Positive
200DMA
2.76
Positive
Market Momentum
MACD
0.13
Negative
RSI
80.20
Negative
STOCH
48.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2727, the sentiment is Positive. The current price of 3.36 is above the 20-day moving average (MA) of 3.01, above the 50-day MA of 2.86, and above the 200-day MA of 2.76, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 80.20 is Negative, neither overbought nor oversold. The STOCH value of 48.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2727.

Shanghai Electric Group Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
€17.35B9.8511.35%0.57%30.12%139.92%
75
Outperform
$84.00B19.508.13%0.15%15.29%-9.20%
75
Outperform
$153.49B12.5313.40%0.27%-1.07%16.00%
74
Outperform
$43.40B16.035.64%0.28%10.95%28.53%
68
Neutral
€5.38B11.745.40%2.31%8.61%38.69%
66
Neutral
$116.36B47.221.91%2.20%
58
Neutral
HK$14.94B4.73-2.78%5.01%3.80%-54.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2727
Shanghai Electric Group Company
3.36
1.85
122.52%
HK:1133
Harbin Electric Co. Ltd. Class H
7.60
5.14
208.57%
HK:2338
Weichai Power Co
17.26
5.38
45.34%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.40
0.88
168.71%
HK:1072
Dongfang Electric
19.52
9.37
92.39%
HK:2208
Xinjiang Goldwind Science & Technology Co
7.15
3.03
73.33%

Shanghai Electric Group Company Corporate Events

Shanghai Electric Announces Board Composition and Roles
Jul 22, 2025

Shanghai Electric Group Company Limited has announced the composition of its board of directors and their roles within the company. This announcement provides clarity on the leadership structure, which is crucial for stakeholders and investors to understand the company’s governance and strategic direction.

The most recent analyst rating on (HK:2727) stock is a Sell with a HK$1.93 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Announces Key Resolutions for Upcoming EGM
Jul 22, 2025

Shanghai Electric Group Company Limited has announced an extraordinary general meeting scheduled for August 8, 2025, to consider key resolutions. These include a proposal for Shanghai Electric Automation Group Hong Kong Co., Ltd. to provide a guarantee of Euro 300 million to Broetje-Automation GmbH and its subsidiaries, and the abolishment of the Supervisory Committee with amendments to the Articles of Association. These resolutions could significantly impact the company’s operational structure and financial commitments, potentially affecting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2727) stock is a Sell with a HK$1.93 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Announces Key Management Reshuffle
Jul 22, 2025

Shanghai Electric Group Company Limited announced significant changes in its senior management, with the resignation of key figures including Mr. Dong Jianhua, Ms. Yang Hong, and Ms. Fu Min. The company assured stakeholders that these changes will not disrupt its operations. New appointments include Dr. Hu Xupeng as the secretary to the Board, Mr. Qiu Jiayou as vice president, and Mr. Wei Xudong as chief financial officer, among others, indicating a strategic shift and continuity in leadership to maintain stability and growth.

The most recent analyst rating on (HK:2727) stock is a Sell with a HK$1.93 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Proposes Governance Reforms with Supervisory Committee Abolition
Jul 22, 2025

Shanghai Electric Group Company Limited has announced a proposal to abolish its supervisory committee, with the audit committee of the Board assuming its responsibilities. This move is part of a broader governance reform aimed at enhancing corporate governance in compliance with relevant Chinese laws and regulations. The proposed changes, including amendments to the Articles of Association, require shareholder approval at a general meeting.

The most recent analyst rating on (HK:2727) stock is a Sell with a HK$1.93 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Completes Asset Transfer Through Public Tender
Jun 4, 2025

Shanghai Electric Group Company Limited has announced the successful transfer of project assets of its subsidiary, Ningbo Hi-Firm Environmental Protection Company Limited, through a public tender. The assets, located in Yuyao City, were acquired by Ningbo Haosite Metal Materials Co., Ltd. for RMB73.4346 million. This transaction is part of Shanghai Electric’s strategic asset management and optimization efforts, potentially enhancing its operational efficiency and market positioning.

The most recent analyst rating on (HK:2727) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Successfully Concludes AGM with Strong Shareholder Support
May 30, 2025

Shanghai Electric Group Company Limited successfully held its Annual General Meeting (AGM), along with A Share and H Share Class Meetings, on May 30, 2025. All proposed resolutions were passed with significant shareholder participation, reflecting strong governance and compliance with legal standards. The meetings were conducted according to the Company Law and Articles of Association, with a substantial percentage of shares represented in the voting process, indicating robust shareholder engagement.

The most recent analyst rating on (HK:2727) stock is a Buy with a HK$2.90 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Appoints New Nomination Committee Members
May 28, 2025

Shanghai Electric Group Company Limited has announced the appointment of three new members to its Nomination Committee. This strategic move is expected to strengthen the company’s governance structure and enhance its decision-making processes, potentially impacting its industry positioning positively.

The most recent analyst rating on (HK:2727) stock is a Buy with a HK$2.90 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Announces Strategic Land Resumption in Shanghai
May 28, 2025

Shanghai Electric Group Company Limited has announced the resumption of land use rights for a property located at No. 8, Guangxing Road, Shanghai. The transaction, approved by the company’s board, involves a total compensation of RMB239,979,273.9 to be paid by the Zhongshan Street Office of the People’s Government of Songjiang District, Shanghai. This strategic move is expected to streamline the company’s operations and optimize its asset management, potentially enhancing its market positioning and operational efficiency.

The most recent analyst rating on (HK:2727) stock is a Buy with a HK$2.90 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Announces Board Composition and Roles
May 28, 2025

Shanghai Electric Group Company Limited has announced the composition of its Board of Directors, highlighting the roles and functions of each member. This update reflects the company’s commitment to maintaining a structured governance framework, which is crucial for its strategic planning and operational efficiency.

The most recent analyst rating on (HK:2727) stock is a Buy with a HK$2.90 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Announces 2024 AGM and Key Resolutions
Apr 28, 2025

Shanghai Electric Group Company Limited has announced its annual general meeting for 2024, scheduled for May 30, 2025. Key resolutions to be discussed include the approval of the company’s annual report, financial results, profit distribution plan, and the re-appointment of Ernst & Young Hua Ming LLP as auditors. Additionally, the meeting will address the ratification of emoluments for directors and supervisors, renewal of liability insurance, and approval of a guarantee budget for various subsidiaries, highlighting the company’s strategic financial planning and commitment to operational transparency.

Shanghai Electric Plans A Share Repurchase Strategy
Apr 28, 2025

Shanghai Electric Group Company Limited has announced a class meeting for holders of H Shares to be held on May 30, 2025, following their annual general meeting. The meeting aims to discuss and approve a special resolution regarding the repurchase of A shares through centralized price bidding, covering aspects such as the purpose, type, method, period, use, and funding of the share repurchase. This move could impact the company’s financial strategies and shareholder value, reflecting its commitment to optimizing capital structure and enhancing shareholder returns.

Shanghai Electric Adopts Electronic Dissemination for Corporate Communications
Apr 28, 2025

Shanghai Electric Group Company Limited has announced the adoption of electronic dissemination for its corporate communications, replacing printed copies with digital versions available on their website and the HKEXnews website. This move aims to streamline communication with shareholders and reduce environmental impact, although non-registered shareholders must ensure their email addresses are provided to intermediaries to receive notifications. The transition to electronic communication reflects a broader industry trend towards digital solutions, potentially enhancing operational efficiency and stakeholder engagement.

Shanghai Electric Reports Strong Q1 2025 Financial Performance
Apr 28, 2025

Shanghai Electric Group Company Limited announced its unaudited financial results for the first quarter of 2025, revealing a notable increase in total revenue and net profit attributable to shareholders compared to the previous year. The company reported a total revenue of RMB 22.25 billion, marking an 8.06% increase, and a significant rise in net profit attributable to shareholders by 145.69%. Despite the positive revenue and profit growth, the company experienced a negative net cash flow from operating activities, indicating potential liquidity challenges. These results highlight Shanghai Electric’s strengthened financial performance and improved profitability, which may enhance its competitive positioning in the industrial manufacturing sector.

Shanghai Electric Adopts Electronic Corporate Communications
Apr 28, 2025

Shanghai Electric Group Company Limited has announced a shift to electronic dissemination of corporate communications, replacing printed copies with digital versions available on their website and the HKEXnews platform. This move aims to enhance efficiency and accessibility for shareholders, but requires stakeholders to provide functional email addresses to ensure timely receipt of communications. Those who fail to provide an email address will need to actively check online for updates or receive printed communications by default.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025