Shanghai Electric Group Company (2727) AI Stock Analysis

• Market Cap: HK$127.99B
• Dividend Yield: N/A
• Average Volume (3M): 113.68M
• Price to Earnings (P/E): 54.1
• Beta (1Y): 0.94
• Revenue Growth: 7.59%
• EPS Growth: 376.62%
• Country: HK
• Employees: 40,260
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.02
• Shares Outstanding: 2,924,482,000
• 10 Day Avg. Volume: 189,576,446
• 30 Day Avg. Volume: 113,678,979
• PEG Ratio: 0.10
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 0.92
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$4.00 ▲(0.76% Upside)

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 Business Overview & Revenue Model

Company Description

Shanghai Electric Group Company Limited (stock code: 2727) is a leading Chinese multinational corporation specializing in the manufacturing and supply of power generation equipment, electric power transmission and distribution equipment, and industrial automation systems. The company operates through various segments including power generation, environmental protection, and manufacturing of electric equipment, serving a diverse clientele in sectors such as energy, transportation, and infrastructure. Its core products encompass steam turbines, gas turbines, generators, and renewable energy solutions like wind and solar power technologies.

How the Company Makes Money

Shanghai 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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.46B	116.19B	114.80B	117.62B	131.39B	137.29B
Gross Profit	22.76B	21.66B	20.00B	19.04B	19.80B	23.26B
EBITDA	4.73B	8.37B	7.41B	1.59B	-9.31B	9.10B
Net Income	1.08B	752.48M	285.15M	-2.31B	-10.24B	5.27B
Balance Sheet
Total Assets	348.17B	302.50B	283.27B	288.02B	300.80B	315.40B
Cash, Cash Equivalents and Short-Term Investments	49.80B	40.35B	50.25B	34.00B	32.96B	31.63B
Total Debt	76.49B	38.69B	42.07B	41.26B	47.47B	44.91B
Total Liabilities	261.66B	225.12B	206.34B	193.83B	202.66B	208.55B
Stockholders Equity	59.02B	53.19B	52.80B	54.86B	58.13B	66.40B
Cash Flow
Free Cash Flow	14.62B	13.24B	3.57B	4.44B	-14.86B	-1.71B
Operating Cash Flow	2.42B	17.64B	7.80B	8.48B	-10.55B	4.70B
Investing Cash Flow	-27.30B	-16.43B	352.15M	-7.32B	5.86B	-3.60B
Financing Cash Flow	-4.44B	-3.43B	-13.73B	-1.26B	2.16B	2.47B

Shanghai Electric Group Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2727, the sentiment is Negative. The current price of 3.97 is below the 20-day moving average (MA) of 4.04, below the 50-day MA of 4.30, and above the 200-day MA of 3.42, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 15.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2727.

Shanghai Electric Group Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1072	75 Outperform	HK$87.59B	24.17	7.71%	1.69%	20.99%	-5.99%
2338	74 Outperform	$171.21B	13.11	12.91%	3.98%	3.55%	8.89%
2208	74 Outperform	$75.06B	28.20	6.78%	1.14%	25.84%	26.05%
1133	74 Outperform	HK$35.51B	15.60	15.06%	1.44%	34.78%	98.79%
2722	65 Neutral	HK$7.15B	11.68	7.29%	2.50%	11.18%	46.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2727	54 Neutral	HK$127.99B	54.09	1.93%	―	7.59%	376.62%

Shanghai Electric Group Company Corporate Events

Shanghai Electric Announces Extraordinary General Meeting for Key Resolutions

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.

Shanghai Electric Reports Significant Impairment for Q3 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.

Shanghai Electric Enters Key Agreements with SEGC

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.

Shanghai Electric Reports Revenue Growth in Q3 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.

Shanghai Electric Renews MESMEE Purchase Framework Agreement

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.

Shanghai Electric Announces Board Changes with New Director Nomination

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.

Shanghai Electric Schedules Investor Briefing for 2025 Q3 Results

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.

Shanghai Electric Announces Upcoming Board Meeting for Quarterly Results

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.

Shanghai Electric’s EGM Approves Key Financial Resolutions

Shanghai Electric Group Company Limited announced the successful conclusion of its Extraordinary General Meeting (EGM) held on September 22, 2025, where all proposed resolutions were passed. The meeting, attended by shareholders representing over 51% of the voting rights, approved key resolutions including a loan guarantee application and the registration and issuance of debt financing instruments. This development is expected to bolster the company’s financial strategy and enhance its market positioning, potentially impacting stakeholders positively by reinforcing the company’s operational capabilities and financial stability.