Shenwan Hongyuan Group Co., Ltd. Class H (6806) AI Stock Analysis

• Market Cap: HK$136.26B
• Dividend Yield: 2.89%
• Average Volume (3M): 19.39M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 2.03
• Revenue Growth: 61.94%
• EPS Growth: 127.55%
• Country: HK
• Employees: 11,289
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.16
• Shares Outstanding: 2,504,000,000
• 10 Day Avg. Volume: 15,214,790
• 30 Day Avg. Volume: 19,393,712
• PEG Ratio: 0.62
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 2.08
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: HK$3.00 ▼(-0.66% Downside)

The score is driven primarily by improved TTM profitability but offset by materially higher leverage and weaker cash-flow momentum. Technical signals are currently bearish (below key moving averages with negative MACD), while valuation is supportive due to the low P/E and a moderate dividend yield.

Positive Factors

Profitability Improvement

The significant improvement in profitability, with increased revenue and net income, indicates strong operational performance and effective cost management, which can enhance long-term financial stability and shareholder value.

Governance Enhancements

The updates to governance structures, including committee rules, are likely to improve decision-making processes and risk management, strengthening the company's governance framework and potentially leading to better strategic outcomes.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and product offerings, which is crucial for maintaining competitive advantage and driving long-term business success.

Negative Factors

Rising Leverage

The sharp increase in leverage raises concerns about financial risk and the company's ability to manage debt obligations, which could impact its financial flexibility and stability in the long term.

Weak Cash Flow Generation

The significant decline in cash flow generation suggests potential challenges in liquidity management and operational efficiency, which could hinder the company's ability to invest in growth opportunities and meet financial commitments.

Historical Profitability Volatility

Volatility in operating profitability indicates potential inconsistencies in financial performance, which can undermine investor confidence and complicate strategic planning, affecting long-term growth prospects.

Shenwan Hongyuan Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shenwan Hongyuan Group Co., Ltd. provides various financial services to corporate, professional institutional, individuals, and non-professional institutional customers. It operates through four segments: Enterprise Finance, Personal Finance, Institutional Services and Trading, and Investment Management. The Enterprise Finance segment offers equity financing, debt financing, financial advisory, equity investment, and debt and other investment services. The Personal Finance segment provides securities and futures brokerage, margin financing and securities lending, stock-backed lending, and investment advisory services, as well as sells financial products. The Institutional Services and Trading segment offers prime brokerage, and research and consultation services for professional institutional clients; and equity, and fixed income currencies and commodities proprietary trading to institutional clients. The Investment Management segment provides asset management, mutual fund management, and private equity fund management services. The company was formerly known as Shenyin Wanguo Securities Co., Ltd and changed its name to Shenwan Hongyuan Group Co., Ltd. in January 2015. Shenwan Hongyuan Group Co., Ltd. was founded in 1988 and is based in Urumqi, China.

How the Company Makes Money

Shenwan Hongyuan Group Co., Ltd. generates revenue through multiple streams, primarily from its securities brokerage services, which include trading commissions and fees from retail and institutional clients. The company also earns significant income from its investment banking activities, such as underwriting, advisory services for mergers and acquisitions, and fund-raising services for corporate clients. Additionally, Shenwan Hongyuan's asset management division contributes to its earnings by managing investment portfolios for clients and earning management and performance fees. Wealth management services also play a crucial role in the company's revenue model, providing tailored financial planning and advisory services to high-net-worth individuals and earning fees based on assets under management. Strategic partnerships and collaborations with other financial institutions further enhance the company's ability to deliver comprehensive financial solutions and support its revenue growth.

Shenwan Hongyuan Group Co., Ltd. Class H Financial Statement Overview

Summary

Profitability improved strongly TTM (revenue +12.9%, net income up to 9.7B with higher net margin), but the balance sheet weakened with a sharp leverage jump (debt-to-equity 3.21 vs. 0.74 prior year) and cash generation deteriorated (operating cash flow down to 11.6B; free cash flow down sharply year over year).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 12.9% and profitability strengthened meaningfully versus 2024, with net income rising to 9.7B from 5.2B and a higher net margin (27.4% vs. 15.9%). Gross and operating profitability are also solid in the latest period. The main weakness is historical volatility in reported operating profitability across 2021–2023 (including unusually low/negative operating margin readings), which reduces confidence in consistency through cycles.

Balance Sheet

The company has a sizable equity base (121.5B TTM) and returns on equity improved to 8.7% TTM from 5.0% in 2024. However, leverage appears to have stepped up sharply in TTM, with debt-to-equity rising to 3.21 (from 0.74 in 2024) and total debt increasing materially, which elevates funding and balance-sheet risk for a capital-markets business.

Cash Flow

TTM free cash flow slightly exceeded net income (free cash flow to net income ~1.02), which is a constructive quality signal. That said, free cash flow fell sharply versus the prior year (down 88.8% TTM growth) and operating cash flow declined to 11.6B from 26.4B in 2024, pointing to weaker cash generation momentum and higher variability year to year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.27B	32.86B	20.91B	29.61B	33.53B	29.11B
Gross Profit	26.08B	24.11B	20.91B	19.86B	33.53B	29.11B
EBITDA	12.45B	8.21B	―	3.76B	―	―
Net Income	9.38B	5.21B	4.61B	2.79B	9.40B	7.77B
Balance Sheet
Total Assets	721.96B	697.60B	635.44B	613.12B	601.01B	491.12B
Cash, Cash Equivalents and Short-Term Investments	33.69B	253.03B	218.64B	230.55B	238.33B	209.59B
Total Debt	356.74B	77.25B	169.58B	179.22B	198.64B	168.31B
Total Liabilities	582.42B	564.25B	506.64B	496.44B	493.96B	401.03B
Stockholders Equity	111.19B	104.78B	100.15B	95.04B	95.22B	88.46B
Cash Flow
Free Cash Flow	-26.46B	25.88B	68.66B	36.71B	-41.28B	-18.03B
Operating Cash Flow	-26.06B	26.42B	69.25B	37.18B	-40.82B	-17.75B
Investing Cash Flow	2.48B	15.65B	-75.42B	-17.94B	32.04B	-11.85B
Financing Cash Flow	7.38B	-11.29B	-8.82B	-17.98B	31.66B	45.30B

Shenwan Hongyuan Group Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6806, the sentiment is Negative. The current price of 3.02 is below the 20-day moving average (MA) of 3.19, below the 50-day MA of 3.13, and above the 200-day MA of 2.95, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 47.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6806.

Shenwan Hongyuan Group Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6886	70 Outperform	HK$219.46B	9.22	10.50%	2.92%	10.82%	55.25%
3908	68 Neutral	HK$153.86B	10.08	8.93%	0.97%	64.00%	112.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6099	65 Neutral	HK$161.36B	11.49	9.41%	3.83%	51.04%	24.56%
6806	62 Neutral	HK$136.26B	7.72	8.79%	2.89%	61.94%	127.55%
6066	60 Neutral	HK$191.48B	11.51	13.03%	2.80%	36.57%	77.14%
6178	60 Neutral	HK$79.84B	12.81	5.22%	2.66%	30.38%	2.63%

Shenwan Hongyuan Group Co., Ltd. Class H Corporate Events

Shenwan Hongyuan Updates Risk Control Committee Rules

Shenwan Hongyuan Group Co., Ltd. has revised the working rules of its Risk Control Committee to enhance decision-making procedures and improve efficiency. The updated rules outline the committee’s responsibilities, including reviewing risk management policies and evaluating significant risks, thereby strengthening the company’s governance and risk management framework.

Shenwan Hongyuan Enhances Governance with Revised Committee Rules

Shenwan Hongyuan Group Co., Ltd. has revised the working rules of its Remuneration and Nomination Committee to enhance the nomination, assessment, and remuneration management system for directors and senior management. This move aims to improve corporate governance and ensure the committee operates effectively under the board’s supervision, with a majority of its members being independent non-executive directors. The changes are expected to strengthen the company’s governance structure and provide clarity in the roles and responsibilities of the committee, potentially impacting the company’s operational efficiency and stakeholder confidence.

Shenwan Hongyuan Enhances Governance with Revised Committee Rules

Shenwan Hongyuan Group Co., Ltd. has revised the working rules of its Remuneration and Nomination Committee to enhance its corporate governance structure. This move aims to improve the nomination, assessment, and remuneration management system for its directors and senior management, aligning with national laws and governance standards. The changes are expected to streamline the committee’s operations, ensuring accountability and effective resource allocation, which could positively impact the company’s governance and stakeholder relations.

Shenwan Hongyuan Updates Strategy and ESG Committee Rules

Shenwan Hongyuan Group Co., Ltd. has updated the working rules for its Strategy and ESG Committee, aiming to enhance decision-making efficiency and align with national regulations. The committee is tasked with advising on the company’s development strategies and major investment decisions, while also overseeing ESG matters, reflecting the company’s commitment to sustainable growth and governance.

Shenwan Hongyuan Approves Key Amendments at 2025 EGM

Shenwan Hongyuan Group Co., Ltd. recently held its 2025 first extraordinary general meeting (EGM) in Beijing, where key resolutions regarding amendments to the company’s Articles of Association and Rules of Procedure were voted on. The meeting was conducted in compliance with applicable laws and regulations, with a significant shareholder turnout and participation in the voting process. The resolutions were overwhelmingly approved, indicating strong shareholder support for the proposed changes, which may impact the company’s governance and operational procedures.

Shenwan Hongyuan Updates Interim Dividend Details for 2025

Shenwan Hongyuan Group Co., Ltd. announced an update regarding its interim dividend for the six months ended June 30, 2025. The update includes details on the default currency and amount of the dividend, exchange rate, ex-dividend date, and other important dates related to the dividend distribution. The dividend declared is RMB 0.35 per 10 shares, with a payment date set for December 24, 2025. The announcement also outlines the withholding tax implications for different types of shareholders, including individual and corporate investors, both resident and non-resident. This update is significant for stakeholders as it provides clarity on the financial returns and tax obligations associated with the company’s dividend distribution.

Shenwan Hongyuan Releases 2025 Q3 Unaudited Financial Report

Shenwan Hongyuan Group Co., Ltd. released its unaudited third quarterly report for 2025, prepared according to China Accounting Standards for Business Enterprises. The report was approved by the board of directors, ensuring the accuracy and completeness of the financial information presented. The announcement does not indicate any significant changes or impacts on the company’s operations or market positioning.

Shenwan Hongyuan Group Schedules Board Meeting for Quarterly Results

Shenwan Hongyuan Group Co., Ltd. announced that its board of directors will convene 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 as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market position and stakeholder interests.