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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

Shanghai Electric Group Company

(OTC:2727)

Rating:65Neutral
Price Target:
HK$3.00
â–²(6.01%Upside)
The overall stock score of 64.5 reflects a company with strong cash flow generation and stable financial health, despite a high P/E ratio suggesting potential overvaluation. The stock shows moderate technical strength with short-term bullish momentum, although the absence of a dividend yield might deter income-focused investors. Financial performance is the most significant factor, with technical analysis and valuation also playing substantial roles.

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 Group Company Limited generates revenue primarily through the sale of its diverse range of equipment and services. The company earns significant income from manufacturing and selling power generation equipment such as turbines and boilers, particularly for coal-fired, gas-fired, and nuclear power plants. Additionally, Shanghai Electric profits from its industrial equipment segment, which includes elevators, escalators, and printing machinery. The company also provides integrated services such as construction, engineering, and maintenance for power plants and industrial facilities. Furthermore, strategic partnerships and joint ventures, especially in international markets, contribute to revenue by expanding its market reach and leveraging local expertise.

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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
117.84B116.19B114.80B117.62B131.39B137.29B
Gross Profit
21.73B21.66B20.00B19.04B19.80B23.26B
EBIT
3.83B3.70B3.36B4.18B4.51B8.75B
EBITDA
5.33B8.37B6.89B1.59B-9.31B9.19B
Net Income Common Stockholders
1.01B752.48M285.15M-2.31B-10.24B5.27B
Balance SheetCash, Cash Equivalents and Short-Term Investments
44.60B40.35B50.25B34.00B32.96B31.63B
Total Assets
300.47B302.50B283.27B288.02B300.80B315.40B
Total Debt
38.53B38.69B42.07B41.26B47.47B44.91B
Net Debt
1.63B6.13B11.90B14.91B22.12B20.67B
Total Liabilities
222.38B225.12B206.34B193.83B202.66B208.55B
Stockholders Equity
53.56B53.19B52.80B54.86B58.13B66.40B
Cash FlowFree Cash Flow
15.76B13.24B3.57B4.44B-14.86B-1.71B
Operating Cash Flow
6.73B17.64B7.80B8.48B-10.55B4.70B
Investing Cash Flow
-20.18B-16.43B352.15M-7.32B5.86B-3.60B
Financing Cash Flow
-4.42B-3.43B-13.73B-1.26B2.16B2.47B

Shanghai Electric Group Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.83
Price Trends
50DMA
2.62
Positive
100DMA
2.74
Positive
200DMA
2.54
Positive
Market Momentum
MACD
0.04
Negative
RSI
61.03
Neutral
STOCH
90.02
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 2.83 is above the 20-day moving average (MA) of 2.73, above the 50-day MA of 2.62, and above the 200-day MA of 2.54, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 90.02 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
65
Neutral
$109.18B40.371.91%―2.20%―
$7.53B9.048.13%5.23%――
$18.32B11.0813.40%10.29%――
$5.10B12.465.64%1.67%――
DECE3
€460.72M7.675.40%19.10%――
€1.44B6.4611.35%1.08%――
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2727
Shanghai Electric Group Company
2.83
1.31
86.18%
DNGFF
Dongfang Electric
1.28
-0.37
-22.42%
WEICF
Weichai Power Co
2.06
0.25
13.81%
XJNGF
Xinjiang Goldwind Science & Technology Co
0.84
0.38
82.61%
DE:CE3
Chongqing Machinery & Electric Co. Ltd. Class H
0.12
0.05
71.43%
DE:HP6H
Harbin Electric Co. Ltd. Class H
0.67
0.37
123.33%

Shanghai Electric Group Company Corporate Events

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.

Shanghai Electric Announces Progress on Shanghai Land Resumption Project
Apr 21, 2025

Shanghai Electric Group Company Limited has announced progress on a land resumption project in Shanghai, involving the signing of a Non-residential Building Demolition and Relocation Compensation Agreement. This agreement, adjusted to extend the signing deadline to April 30, 2025, includes an incentive fee for timely execution, reflecting the company’s strategic asset management and potential financial gain, subject to annual audit confirmation.

Shanghai Electric Announces A Share Repurchase Plan
Apr 10, 2025

Shanghai Electric Group Company Limited announced a plan to repurchase A shares through centralized price bidding, with the aim of reducing its registered capital. The repurchase amount is set between RMB150 million and RMB300 million, with a maximum price of RMB12.29 per share. This strategic move is intended to preserve the company’s value, protect shareholder interests, and support its long-term sustainable development. The plan, approved by the board, will be submitted for consideration at the general meeting and relevant class meetings, with the repurchase period set within three months from approval.

Shanghai Electric to Hold 2024 Annual Results Briefing
Apr 10, 2025

Shanghai Electric Group Company Limited has announced a briefing session to discuss its 2024 annual results, scheduled for April 21, 2025. The session aims to provide investors with a detailed understanding of the company’s financial performance and operational outcomes for the year 2024, fostering transparency and engagement with stakeholders.

Shanghai Electric Announces Board Meeting for Quarterly Results Review
Apr 10, 2025

Shanghai Electric Group Company Limited has announced an upcoming board meeting scheduled for April 28, 2025, where the board will review and approve the company’s first quarterly results for the period ending March 31, 2025. This meeting is crucial for stakeholders as it provides insights into the company’s financial performance and strategic direction for the upcoming quarters.

Shanghai Electric to Optimize Fund Management with J-Yuan Trust Investment
Apr 10, 2025

Shanghai Electric Group Company Limited announced its decision to invest temporarily idle funds into a fixed-income trust scheme managed by J-Yuan Trust Co., Ltd. This strategic move aims to enhance the efficiency of the company’s fund management by leveraging low-risk investment products that align with the company’s risk appetite and financial strategy. The company has set a maximum daily balance of RMB2 billion for these investments, ensuring a focus on medium to low-risk fixed-income assets. The management fee rate negotiated with J-Yuan Trust is deemed fair and reasonable, aligning with industry standards and benefiting shareholders.

Shanghai Electric Appoints New Employee Director to Board
Apr 3, 2025

Shanghai Electric Group Company Limited has announced the election of Mr. Wang Chenhao as the employee director for the fifth session of its Board. Mr. Wang, who has a diverse background in management and supervision roles across various companies, will bring his extensive experience to the board. His appointment is expected to influence the company’s strategic direction positively, leveraging his expertise in party committee operations and discipline inspection. This move could enhance the company’s governance and operational efficiency, potentially impacting its market positioning and stakeholder relations.

Shanghai Electric Announces Board Composition and Roles
Apr 3, 2025

Shanghai Electric Group Company Limited has announced the composition of its Board of Directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which could impact the company’s strategic direction and decision-making processes, potentially affecting stakeholders and the company’s position in the market.

Shanghai Electric Leverages Idle Funds for Strategic Trust Investment
Mar 28, 2025

Shanghai Electric Group Company Limited announced its decision to invest temporarily idle funds into a fixed-income trust scheme managed by J-Yuan Trust Co., Ltd. This move, approved by the company’s board, aims to enhance fund management efficiency while ensuring capital security. The investment, capped at a maximum daily balance of RMB2,000 million, is classified as a connected transaction due to the involvement of Shanghai Electric’s controlling shareholder, SEGC, which also holds a significant stake in J-Yuan Trust’s controlling shareholder. This transaction does not require independent shareholder approval as per the Listing Rules, indicating a strategic financial maneuver to optimize asset utilization without breaching regulatory thresholds.

Shanghai Electric Unveils Corporate Value and Return Enhancement Plan
Mar 28, 2025

Shanghai Electric Group Company Limited has announced a Corporate Value and Return Enhancement Action Plan aimed at improving company quality, enhancing investor returns, and protecting investor rights. The plan focuses on strengthening core businesses, advancing technology-driven development, and prioritizing shareholder returns. By investing in research and development and fostering innovation through partnerships with universities and research institutions, the company aims to accelerate its transformation in high-end equipment industries. Additionally, Shanghai Electric is committed to providing consistent and stable cash dividends to investors, balancing long-term interests and sustainable development.

Shanghai Electric Reports Modest Revenue Growth in 2024
Mar 28, 2025

Shanghai Electric Group Company Limited announced its annual results for the year ended December 31, 2024, reporting a total revenue of RMB116,186 million, marking a 1.2% increase year-on-year. The company’s profits attributable to owners rose to RMB752 million, and new orders increased by 11.9% to RMB153.60 billion. Despite these gains, the board proposed not to declare any final dividend for the year, which may impact shareholder expectations.

Shanghai Electric Announces 2024 Impairment Provisions
Mar 28, 2025

Shanghai Electric Group Company Limited announced a provision for impairment for the year 2024, which was approved at the 108th meeting of its board of directors. The company reported a net decrease of RMB3,264.25 million in profit before taxation due to credit and asset impairment losses. These impairments were calculated in accordance with the Accounting Standards for Business Enterprises, reflecting the company’s financial and operational conditions. The announcement highlights the company’s efforts to maintain transparency and accuracy in its financial reporting, potentially impacting stakeholders’ perception of its financial health.

Shanghai Electric Announces No Profit Distribution for 2024
Mar 28, 2025

Shanghai Electric Group Company Limited announced that it will not distribute any profits or convert capital reserves into share capital for the year 2024. This decision is due to the company recording negative accumulated distributable profits at the end of 2024, which does not meet the conditions for cash dividend distribution as per relevant regulations. Despite this, the company aims to enhance its profitability and core competitiveness to benefit shareholders in the future.

Shanghai Electric’s Subsidiary Asset Transfer Faces Challenges
Mar 24, 2025

Shanghai Electric Group Company Limited announced the progress of transferring project assets of its subsidiary, Ningbo Hi-Firm Environmental Protection Company, through public tender. The initial tender did not attract any interested parties, leading to a second tender at a reduced price, which also failed to solicit interest. The company plans a third tender at a further reduced price, with the possibility of terminating the public tender if no interest is shown. This strategic move reflects Shanghai Electric’s efforts to optimize asset management and potentially impacts its financial positioning and stakeholder interests.

Shanghai Electric Relists Subsidiary Assets at Reduced Price
Mar 13, 2025

Shanghai Electric Group Company Limited announced the progress of transferring project assets of its subsidiary, Ningbo Hi-Firm Environmental Protection Company Limited, through a public tender. The initial tender, listed at RMB90.66 million, did not attract any interested buyers. Consequently, the company has decided to relist the assets at a reduced price of RMB81.5940 million, which is 10% below the appraised value. This move is part of Shanghai Electric’s strategy to optimize asset management and potentially improve financial performance by divesting non-core assets.

Shanghai Electric Schedules Board Meeting to Review Annual Results
Mar 11, 2025

Shanghai Electric Group Company Limited has announced that its board of directors will hold a meeting on March 28, 2025, to consider and approve the annual results for the year ending December 31, 2024. This meeting is a crucial step for the company as it reviews its financial performance and strategizes for future operations, potentially impacting its market positioning and stakeholder interests.

Shanghai Electric Completes Equity Transfer of Environmental Subsidiary
Mar 11, 2025

Shanghai Electric Group Company Limited has announced the successful transfer of 100% equity of its subsidiary, Shanghai Electric Group (Suning) Environmental Technology Co., Ltd., to Shanghai Environment Group Co., Ltd. through a public tender. The transaction, valued at RMB157 million, reflects the appraised value of the subsidiary’s equity as of March 2024. This strategic move is expected to streamline Shanghai Electric’s operations and potentially enhance its focus on core business areas, while Shanghai Environment Group, a company engaged in urban waste management and environmental protection projects, strengthens its market position through this acquisition.

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.