Shun Tak Holdings (0242) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: N/A
• Average Volume (3M): 3.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -21.25%
• EPS Growth: 24.06%
• Country: HK
• Employees: 1,709
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -0.04
• Shares Outstanding: 3,017,661,900
• 10 Day Avg. Volume: 2,191,226
• 30 Day Avg. Volume: 3,281,627
• PEG Ratio: -0.11
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 1.09
• Enterprise Value/Market Cap: 4.62
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 4.43
• Enterprise Value/Ebitda: 10.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$1.00 ▲(31.58% Upside)

Shun Tak Holdings faces significant challenges with profitability and cash flow, reflected in its financial performance score. Technical indicators suggest a bearish trend, and poor valuation metrics further weigh down the stock's attractiveness. Improvements in operational efficiency and revenue growth are crucial for enhancing its financial health.

Shun Tak Holdings Business Overview & Revenue Model

Company Description

Shun Tak Holdings Limited (0242) is a diversified investment holding company based in Hong Kong, primarily engaged in the transportation, property development and investment, and hospitality sectors. The company operates high-speed ferries and other transportation services linking Hong Kong with Macau and mainland China. In addition, Shun Tak is involved in property management and development projects, including residential and commercial properties, and owns a portfolio of hotels and serviced apartments, enhancing its presence in the hospitality industry.

How the Company Makes Money

Shun Tak Holdings generates revenue through several key streams: first, its transportation segment, which includes ferry services, earns money from ticket sales and related ancillary services. Second, the property development and investment division generates income through the sale and leasing of residential and commercial real estate. Additionally, the hospitality segment contributes revenue through hotel room bookings, food and beverage services, and event hosting. The company has strategic partnerships with various stakeholders in the tourism and real estate sectors, enabling it to expand its reach and enhance its service offerings, which further boosts its earnings.

Shun Tak Holdings Financial Statement Overview

Summary

Shun Tak Holdings faces significant challenges in profitability and cash flow generation, with persistent net losses and declining revenues. Despite a stable balance sheet with manageable leverage, improvements in operational efficiency and revenue growth are crucial.

Income Statement

Shun Tak Holdings has experienced a decline in revenue over the past few years, with a significant drop from 2019 to 2022. The company is also facing persistent net losses, as indicated by negative net income figures for the past few years. Gross profit margin is relatively strong at approximately 49.9% in 2024, but the negative net profit margin is a major concern, indicating that the company is struggling with profitability.

Balance Sheet

The company maintains a healthy equity base with a debt-to-equity ratio of approximately 0.51 in 2024, showcasing a balanced leverage position. However, the company's total assets have been decreasing, which could affect future growth opportunities. Return on Equity is negative due to negative net income, which is concerning for shareholder returns.

Cash Flow

Shun Tak Holdings has shown volatility in its cash flow generation, with inconsistent free cash flow figures. The operating cash flow to net income ratio is not calculable for 2024 due to zero operating cash flow, which raises concerns about the company's ability to generate cash from operations. The absence of free cash flow growth further indicates challenges in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10B	4.88B	4.07B	3.49B	4.83B	4.19B
Gross Profit	2.39B	2.43B	1.85B	1.25B	1.96B	1.78B
EBITDA	1.03B	962.71M	233.38M	523.12M	2.09B	1.93B
Net Income	-516.29M	-823.95M	-676.73M	-558.22M	962.43M	262.44M
Balance Sheet
Total Assets	50.20B	50.20B	51.82B	55.02B	59.56B	60.94B
Cash, Cash Equivalents and Short-Term Investments	8.48B	7.81B	6.63B	6.55B	7.82B	5.48B
Total Debt	15.17B	15.54B	15.69B	16.03B	17.79B	18.04B
Total Liabilities	17.02B	17.47B	17.76B	19.24B	21.34B	23.02B
Stockholders Equity	31.10B	30.44B	31.72B	33.39B	35.36B	35.08B
Cash Flow
Free Cash Flow	2.57B	1.83B	1.45B	778.57M	2.05B	747.33M
Operating Cash Flow	2.61B	1.89B	1.72B	1.11B	2.18B	848.91M
Investing Cash Flow	-1.27B	-683.01M	-927.25M	-682.86M	-213.73M	-1.47B
Financing Cash Flow	-1.79B	-780.21M	-1.34B	-1.17B	-420.21M	-4.88B

Shun Tak Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Positive
• 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:0242, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.77, and above the 200-day MA of 0.65, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0242.

Shun Tak Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0050	―	HK$1.71B	8.59	2.77%	5.20%	-0.67%	3.24%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1168	―	$2.61B	0.53	46.53%	―	26.59%	―
0251	―	HK$752.65M	-3.36	-5.69%	4.00%	-1.26%	54.17%
0978	―	€1.42B	-0.75	-20.96%	4.29%	-16.06%	-529.92%
0242	―	$2.29B	-4.44	-1.67%	―	-21.25%	24.06%
0480	―	€1.63B	―	-3.45%	―	-55.51%	-67.95%

Shun Tak Holdings Corporate Events

Shun Tak Holdings Reports Improved Interim Results but No Dividend

Shun Tak Holdings Limited reported an unaudited consolidated interim loss of HK$120 million for the first half of 2025, a significant improvement from a HK$428 million loss in the same period in 2024. Despite the improvement, the company decided not to declare an interim dividend, reflecting ongoing challenges in its financial performance and market conditions.

Shun Tak Holdings Schedules Board Meeting for Interim Results and Dividend Consideration

Shun Tak Holdings Limited has announced that its board of directors will meet on August 29, 2025, to approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the declaration of an interim dividend, which could have implications for the company’s financial strategy and shareholder returns.

Shun Tak Holdings Confirms Compliance with Listing Rules in 2024 Annual Report

Shun Tak Holdings Limited has issued a supplemental announcement regarding its 2024 Annual Report, confirming compliance with the Hong Kong Stock Exchange’s Listing Rules concerning disclosed transactions with Occasions Asia Pacific Limited. The company assures stakeholders that no other related party transactions require additional shareholder approval or reporting, maintaining transparency and adherence to regulatory requirements.

Shun Tak Holdings Delays Circular Dispatch for Property Disposal

Shun Tak Holdings Limited announced a delay in the dispatch of a circular related to a major transaction involving the disposal of properties. The delay is due to the extended time required to prepare the property valuation report and relevant financial information. The company has received a waiver from the Stock Exchange to extend the dispatch deadline to on or before 25 September 2025. This delay may impact stakeholders’ timelines for reviewing the transaction details.

Shun Tak Holdings Announces Major Property Disposal in Zhuhai

Shun Tak Holdings Limited has announced a major transaction involving the disposal of office and retail properties located in Zhuhai, China, for approximately RMB724.2 million. This transaction, which exceeds 25% of the applicable percentage ratios, is classified as a major transaction under the Listing Rules, and has received written approval from shareholders holding more than 50% of the voting rights, negating the need for a general meeting.