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Shenzhen Investment Limited (HK:0604)
:0604
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Shenzhen Investment (0604) AI Stock Analysis

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HK:0604

Shenzhen Investment

(0604)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
HK$0.68
â–¼(-5.83% Downside)
Action:Reiterated
Date:08/06/26
Overall score reflects improving liquidity but weak profitability: strong 2025 operating/free cash flow and a sharp revenue rebound are positives, yet widening losses, compressed gross margin, and still-elevated leverage weigh heavily. Technically, the stock remains in a broader downtrend (below key moving averages) with mostly neutral momentum, and valuation is constrained by loss-making results (negative P/E) with no dividend yield data to offset.
Positive Factors
Operating cash generation
A strong turnaround to positive operating cash flow and free cash flow in 2025 indicates the company can generate real cash from operations. Durable cash generation supports working capital, project completions and deleveraging, improving financial flexibility over the medium term.
Negative Factors
Widening net losses
Substantial net losses and a -10.7% margin indicate the business is not yet converting revenue into sustainable profit. Persistent losses erode equity, limit reinvestment capacity and force reliance on cash flow improvements or external funding to sustain long-term operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash generation
A strong turnaround to positive operating cash flow and free cash flow in 2025 indicates the company can generate real cash from operations. Durable cash generation supports working capital, project completions and deleveraging, improving financial flexibility over the medium term.
Read all positive factors

Shenzhen Investment (0604) vs. iShares MSCI Hong Kong ETF (EWH)

Shenzhen Investment Business Overview & Revenue Model

Company Description
Shenzhen Investment Limited, an investment holding company, invests in, develops, and manages real estate properties in Mainland China. It operates through five segments: Property Development, Property Investment, Property Management, Manufacture,...
How the Company Makes Money
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Shenzhen Investment Financial Statement Overview

Summary
Mixed fundamentals: 2025 revenue rebounded sharply (+83.5% YoY) and cash flow turned strongly positive (operating cash flow 8.82B; free cash flow 8.02B), but profitability deteriorated with wider net losses (-4.37B; -10.7% margin) and a materially lower gross margin (16.5% vs ~28.5% in 2024). Leverage remains elevated (debt-to-equity ~1.15x) despite meaningful debt reduction in 2025.
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
62
Positive
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue40.36B15.57B15.83B31.54B32.05B
Gross Profit6.56B4.44B5.11B10.69B12.43B
EBITDA2.12B2.79B3.23B8.46B10.57B
Net Income-4.37B-1.82B-261.40M2.09B-2.72B
Balance Sheet
Total Assets144.60B171.17B174.41B163.47B162.77B
Cash, Cash Equivalents and Short-Term Investments8.64B5.79B11.05B11.67B19.92B
Total Debt40.95B65.12B60.96B51.40B58.76B
Total Liabilities101.16B125.85B126.93B113.91B108.40B
Stockholders Equity35.64B38.55B42.34B44.63B49.17B
Cash Flow
Free Cash Flow8.02B-2.76B3.95B-14.26B-7.68B
Operating Cash Flow8.82B-1.84B4.40B-13.24B-7.33B
Investing Cash Flow-1.95B-1.39B353.24M308.95M494.34M
Financing Cash Flow-7.93B-1.82B-5.22B7.59B9.52B

Shenzhen Investment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.72
Price Trends
50DMA
0.67
Negative
100DMA
0.73
Negative
200DMA
0.78
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
42.92
Neutral
STOCH
8.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0604, the sentiment is Negative. The current price of 0.72 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.67, and below the 200-day MA of 0.78, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.92 is Neutral, neither overbought nor oversold. The STOCH value of 8.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0604.

Shenzhen Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$4.93B-4.87-3.56%6.04%-65.47%-149.64%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
54
Neutral
HK$17.25B-12.60-14.91%1.66%76.41%-1330.18%
49
Neutral
HK$6.51B-7.25-2.27%1.45%-16.52%-406.41%
49
Neutral
HK$5.88B43.020.78%5.54%-48.06%7.94%
48
Neutral
HK$5.87B-1.57-10.38%8.82%78.67%-11.80%
40
Underperform
HK$5.16B-6.28-2.19%2.01%0.12%-5006.82%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0604
Shenzhen Investment
0.65
-0.21
-24.42%
HK:0173
K Wah International Holdings
2.07
-0.12
-5.66%
HK:0034
Kowloon Development Co
4.48
1.16
34.94%
HK:0119
Poly Property Group Co
1.30
-0.28
-17.78%
HK:0028
Tian An China Investments Co
3.31
-1.64
-33.14%
HK:1396
Guangdong - Hong Kong Greater Bay Area Holdings Ltd.
11.96
6.52
119.85%

Shenzhen Investment Corporate Events

Shenzhen Investment Ties New Loan Covenants to State Ownership and Shareholder Support
Jul 31, 2026
Shenzhen Investment Limited has entered into a new HK$400 million term loan facility with a bank, maturing in up to three years, which includes default triggers tied to the continued majority ownership and control of the company by Shum Yip and, i...
Shenzhen Investment Sets Framework for Century Valley Garden Property Services
Jul 22, 2026
Shenzhen Investment has announced that its non-wholly owned subsidiary Shum Yip Property Operation has signed a framework agreement with Shahe Century Valley Company to provide property management and related services for the Century Valley Garden...
Shenzhen Investment Deepens Greater Bay Area Footprint With New Theme Park Complex and Cross-Border Hub
Jul 14, 2026
Shenzhen Investment Limited has expanded its commercial real estate portfolio in the second quarter of 2026 by opening the Shum Yip Bay Front Upper Hills commercial complex and Magic World IP Theme Park, an integrated “commerce + theme park&...
Shenzhen Investment Tightens Loan Covenants With New Shareholder Support Threshold
Jul 8, 2026
Shenzhen Investment has amended the terms of a HK$4 billion three-year term loan facility originally accepted in March 2025, adding a new default trigger linked to the level of shareholder loans across the group. Under the supplemental agreement s...
Shenzhen Investment Secures HK$1.3 Billion Loans Under Tight State-Backed Covenants
Jun 30, 2026
Shenzhen Investment Limited has secured three new term loan facilities from a syndicate of banks totaling HK$1.3 billion, split into a HK$700 million tranche and two HK$300 million tranches, each with a tenor of up to three years. The facilities c...
Shenzhen Investment Shareholders Approve All AGM Resolutions and Debt-to-Equity Swap
Jun 18, 2026
Shenzhen Investment Limited reported that all resolutions at its 18 June 2026 annual general meeting were approved by shareholders via poll, including the adoption of 2025 financial statements, re-election of directors, reappointment of Ernst You...
Shenzhen Investment Sets June 2026 AGM and Seeks Share Buyback Mandate
May 20, 2026
Shenzhen Investment Limited has called its annual general meeting for 18 June 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025 along with the directors’ and independent au...
Shenzhen Investment Boosts Traffic and Sales as Flagship Projects Win Top Honors
May 18, 2026
Shenzhen Investment Limited reported that its core commercial projects continued to gain market and industry recognition in the first quarter of 2026, underscoring the strength of its operations in the Greater Bay Area. The Upper Hills complex and...
Shenzhen Investment Unit Uses Property Swap to Offset Shareholder Debt in Connected Deal
May 6, 2026
Shum Yip Group, the controlling shareholder of Shenzhen Investment and a key shareholder in subsidiary Shenye Wansheng, has moved to consolidate its stake by conditionally agreeing to acquire a 35.17% equity interest in Shenye Wansheng from Zhongs...
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: Aug 06, 2026