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

Shanghai Electric Group Company (2727) AI Stock Analysis

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HK:2727

Shanghai Electric Group Company

(2727)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$4.00
▼(-10.71% Downside)
Shanghai Electric Group Company has a moderate overall stock score driven by strong cash flow and financial stability. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which negatively impacts the stock's attractiveness. The lack of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Cash Generation
Strong cash generation indicates efficient operations and provides the company with the flexibility to invest in growth opportunities and manage debt.
Revenue Model
A diversified revenue model with project contracts and after-sales services ensures stable income streams and resilience against market fluctuations.
Market Position
Strong market position in power generation and renewable energy sectors enhances competitive advantage and supports long-term growth potential.
Negative Factors
Profitability
While profitability has improved, the low net profit margin indicates challenges in achieving higher profitability, which could impact long-term financial performance.
Leverage
Although leverage is manageable, any increase could strain financial flexibility, affecting the company's ability to invest in future growth.
Return on Equity
Low ROE suggests limited profitability relative to equity, which may hinder the company's ability to generate returns for shareholders over the long term.

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, an equipment manufacturing conglomerate, provides clean energy, new energy and environmental protection, and industrial equipment, and modern services in the People's Republic of China. It offers coal-fired power generation and corollary, gas-fired power generation, wind power, nuclear power, and energy storage equipment, as well as vessels for chemical industry. The company also provides elevators, electric motors and ramps, and industrial basic parts; intelligent manufacturing, and construction industrialization equipment; and power grid and industrial intelligent power supply system solutions. In addition, it offers energy, and environmental protection and automation engineering; industrial internet; financing leases and insurance brokerage; international trade; and property services. Shanghai Electric Group Company Limited was incorporated in 2004 and is based in Shanghai, the People's Republic of China. Shanghai Electric Group Company Limited is a subsidiary of Shanghai Electric (Group) Corporation.
How the Company Makes MoneyShanghai Electric generates revenue primarily through the sale of its power generation equipment and services, along with electric power transmission and distribution products. The company benefits from a robust revenue model that includes project contracts for large-scale energy plants, equipment sales, and after-sales services. Key revenue streams include the construction and operation of energy projects, particularly in renewable energy sectors, as well as maintenance and upgrade services for existing installations. Significant partnerships with governmental bodies and other major enterprises in the energy sector further bolster its earnings, alongside strategic collaborations in international markets, enabling Shanghai Electric to tap into global demand for clean and efficient energy solutions.

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
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
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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue124.46B116.19B114.80B117.62B131.39B137.29B
Gross Profit22.76B21.66B20.00B19.04B19.80B23.26B
EBITDA4.73B8.37B7.41B1.59B-9.31B9.10B
Net Income1.08B752.48M285.15M-2.31B-10.24B5.27B
Balance Sheet
Total Assets348.17B302.50B283.27B288.02B300.80B315.40B
Cash, Cash Equivalents and Short-Term Investments49.80B40.35B50.25B34.00B32.96B31.63B
Total Debt76.49B38.69B42.07B41.26B47.47B44.91B
Total Liabilities261.66B225.12B206.34B193.83B202.66B208.55B
Stockholders Equity59.02B53.19B52.80B54.86B58.13B66.40B
Cash Flow
Free Cash Flow14.62B13.24B3.57B4.44B-14.86B-1.71B
Operating Cash Flow2.42B17.64B7.80B8.48B-10.55B4.70B
Investing Cash Flow-27.30B-16.43B352.15M-7.32B5.86B-3.60B
Financing Cash Flow-4.44B-3.43B-13.73B-1.26B2.16B2.47B

Shanghai Electric Group Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.48
Price Trends
50DMA
4.20
Positive
100DMA
4.13
Positive
200DMA
3.49
Positive
Market Momentum
MACD
0.08
Negative
RSI
66.00
Neutral
STOCH
82.44
Negative
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 4.48 is above the 20-day moving average (MA) of 4.11, above the 50-day MA of 4.20, and above the 200-day MA of 3.49, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 82.44 is Negative, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$179.23B14.1312.91%3.98%3.55%8.89%
74
Outperform
HK$40.36B16.8915.06%1.44%34.78%98.79%
73
Outperform
HK$98.55B24.157.71%1.69%20.99%-5.99%
65
Neutral
HK$7.92B12.747.29%2.50%11.18%46.57%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
54
Neutral
HK$142.77B61.441.93%7.59%376.62%
53
Neutral
HK$135.87B34.876.78%1.14%25.84%26.05%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2727
Shanghai Electric Group Company
4.51
1.89
72.14%
HK:1072
Dongfang Electric
25.04
16.22
183.90%
HK:2338
Weichai Power Co
21.30
8.59
67.56%
HK:2208
Xinjiang Goldwind Science & Technology Co
17.32
11.25
185.10%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
2.22
1.49
204.11%
HK:1133
Harbin Electric Co. Ltd. Class H
18.47
16.14
693.04%

Shanghai Electric Group Company Corporate Events

Shanghai Electric Calls January 2026 EGM to Elect New Board
Jan 5, 2026

Shanghai Electric Group Company Limited has called an extraordinary general meeting for 26 January 2026 in Shanghai to seek shareholder approval for a new slate of directors for its sixth board session. The proposed resolutions cover the election of two executive directors, two non-executive directors and three independent non-executive directors, reflecting a comprehensive refresh of the board’s composition. Voting will be conducted by poll, with A share and H share holders voting as a single class, and the H share register will be temporarily closed ahead of the meeting, underscoring the formal governance process as the company reshapes its leadership structure.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 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 Moves to Form New Three-Year Board, Emphasising Independence and Governance
Dec 30, 2025

Shanghai Electric Group Company Limited has initiated the formation of its sixth board of directors, with the current board approving a slate of executive, non-executive and independent non-executive director candidates to be submitted to shareholders for election by cumulative voting at a forthcoming general meeting. The proposed board will serve a three-year term, includes an employee director to be elected separately, and features three independent non-executive director candidates whose independence has been vetted in line with Hong Kong Listing Rules, while outgoing non-executive director Mr. Shao Jun will retire without disagreement; remuneration has been structured to link executive pay to company performance, provide fixed fees for independent directors and no pay for non-executives, reflecting an emphasis on board diversity, regulatory compliance and governance stability that is important for shareholders and the company’s market standing.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 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 to Exit Loss-Making Energy Storage Subsidiary via RMB1 Tender
Dec 30, 2025

Shanghai Electric Group Company Limited has approved the disposal of its 47.4% equity stake in subsidiary Shanghai Electric Guoxuan New Energy Technology Co., Ltd. via a public tender on the Shanghai United Assets and Equity Exchange, setting a nominal starting tender price of RMB1 based on a pre-assessment of the subsidiary’s total equity value. The company will also waive its right of first refusal over an additional 3.6% stake in Electric Guoxuan held by an employee shareholding platform, enabling a full exit by its side of shareholders. Management said Electric Guoxuan’s core business—100Ah lithium iron phosphate battery-based energy storage products aimed at backup power and overseas residential storage—no longer aligns with Shanghai Electric’s strategic focus on large-capacity batteries for domestic power energy storage, and the subsidiary has posted persistent operating losses since its establishment. The transaction, which is neither a material asset restructuring nor a related-party deal, is intended to streamline the group’s portfolio, cut exposure to a loss-making, non-core business line, and reallocate resources toward its main energy storage strategy.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 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 to Divest Shanghai Office Property via Public Tender for RMB166 Million
Dec 30, 2025

Shanghai Electric Group Company Limited has approved the transfer by public tender of its property and ancillary facilities at No. 188 Linchun Road in Shanghai’s Minhang District, currently used as offices by its subsidiary Shanghai Electric Power Generation Group, at a tender price set at an appraised value of RMB166.34 million. The move is part of a broader plan to relocate the subsidiary to a new site, consolidate office premises across group subsidiaries, and thereby centralize management, improve operational efficiency and cut external leasing costs; the transaction, to be conducted on the Shanghai United Assets and Equity Exchange, is not classified as a material asset restructuring or a related-party transaction and does not require shareholder approval, signalling a routine but efficiency-focused optimization of the group’s real estate portfolio.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 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 Group’s EGM Approves Key Resolutions and New Director Appointment
Dec 15, 2025

Shanghai Electric Group Company Limited successfully held its Extraordinary General Meeting (EGM) on December 15, 2025, where all proposed resolutions were passed. The meeting saw significant shareholder participation, with over 54% of shares represented. Key resolutions included the approval of continuing connected transactions under two framework agreements and the appointment of Dr. Chen Xinyuan as an independent non-executive director. The results of the EGM reflect strong shareholder support and compliance with regulatory requirements, indicating a stable governance structure and strategic alignment for future operations.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 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 Announces Board Composition and Governance Structure
Dec 15, 2025

Shanghai Electric Group Company Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes executive directors, non-executive directors, and independent non-executive directors, with several committees established to oversee various aspects of the company’s governance. This announcement underscores Shanghai Electric’s commitment to strong corporate governance and strategic oversight, which is likely to enhance its operational efficiency and industry positioning.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 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 Announces Extraordinary General Meeting for Key Resolutions
Nov 24, 2025

Shanghai Electric Group Company Limited has announced an Extraordinary General Meeting (EGM) scheduled for December 15, 2025, to discuss and approve several key resolutions. These include continuing connected transactions under the Financial Services Framework Agreement and the Daily Connected Transaction Framework Agreement, as well as the appointment of an Independent Non-executive Director. The outcomes of this meeting could influence the company’s operational strategies and stakeholder relations, potentially impacting its market positioning and future business dealings.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 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 Reports Significant Impairment for Q3 2025
Oct 30, 2025

Shanghai Electric Group Company Limited announced a provision for impairment for the first three quarters of 2025, resulting in a net decrease of RMB1,500.52 million in profit before taxation. The impairment tests conducted were in accordance with the Accounting Standards for Business Enterprises, addressing credit and asset impairments primarily due to bad debt losses and inventory write-downs, which reflect the company’s efforts to maintain accurate financial reporting.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$5.00 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 Enters Key Agreements with SEGC
Oct 30, 2025

Shanghai Electric Group Company Limited has entered into two significant agreements with its controlling shareholder, SEGC. The Financial Services Framework Agreement involves SE Finance providing deposit, loan, and bill discounting services to SEGC Group, while the Daily Connected Transaction Framework Agreement covers a range of services including electrical engineering, mechanical products, and financial leasing. These agreements are subject to various reporting and approval requirements under Hong Kong’s Listing Rules, reflecting their impact on Shanghai Electric’s operational and financial engagements with SEGC.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$5.00 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 Reports Revenue Growth in Q3 2025
Oct 30, 2025

Shanghai Electric Group Company Limited announced its unaudited financial results for the nine months ending September 30, 2025, showing a 7.42% increase in total revenue compared to the previous year. The company’s net profit attributable to shareholders rose by 8.48%, with a significant improvement in net profit after excluding non-recurring items, indicating strong operational performance and a positive outlook for stakeholders.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$5.00 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 Renews MESMEE Purchase Framework Agreement
Oct 30, 2025

Shanghai Electric Group Company Limited has announced the renewal of its MESMEE Purchase Framework Agreement with MESMEE, a joint venture with Mitsubishi Electric, for three years starting January 2026. This agreement involves the purchase of elevator products and related services, with anticipated transactions under the agreement expected to be between 1% and 5% of applicable percentage ratios. The agreement is subject to specific reporting and review requirements but is exempt from independent shareholders’ approval, reflecting its strategic importance in maintaining Shanghai Electric’s competitive positioning in the high-end elevator market.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$5.00 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 Announces Board Changes with New Director Nomination
Oct 30, 2025

Shanghai Electric Group Company Limited has announced the resignation of Dr. Xu Jianxin as an independent non-executive director due to the completion of his six-year tenure. To maintain the required proportion of independent directors on the board, Dr. Xu will continue his duties until a new director is elected. The company has proposed Dr. Chen Xinyuan as a candidate for the independent non-executive director position. Dr. Chen brings extensive expertise in finance, accounting, and corporate governance, and his appointment is expected to strengthen the company’s strategic and audit committees.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$5.00 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 Schedules Investor Briefing for 2025 Q3 Results
Oct 30, 2025

Shanghai Electric Group Company Limited announced a briefing session for its 2025 third quarterly results, scheduled for November 11, 2025. This session aims to provide investors with a comprehensive understanding of the company’s performance over the first three quarters of 2025. The session will be held online, allowing investors to interact with key company executives and address their concerns regarding the company’s operating results and financial indicators. This initiative reflects Shanghai Electric’s commitment to transparency and active engagement with its stakeholders, potentially strengthening its market position and investor relations.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$5.00 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 Announces Upcoming Board Meeting for Quarterly Results
Oct 20, 2025

Shanghai Electric Group Company Limited has announced that its board of directors will meet on October 30, 2025, to review and approve the company’s third quarterly results for the period ending September 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

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: Nov 19, 2025