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Shenzhen Investment Holdings Bay Area Development Company (HK:0737)
:0737
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Shenzhen Investment Holdings Bay Area Development Company (0737) AI Stock Analysis

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HK:0737

Shenzhen Investment Holdings Bay Area Development Company

(0737)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
HK$2.00
â–²(9.89% Upside)
The overall stock score of 71 reflects strong valuation metrics, particularly the high dividend yield and reasonable P/E ratio, which are appealing to investors. However, financial performance is hindered by inconsistent revenue growth and cash flow issues, while technical indicators suggest weak market momentum.

Shenzhen Investment Holdings Bay Area Development Company (0737) vs. iShares MSCI Hong Kong ETF (EWH)

Shenzhen Investment Holdings Bay Area Development Company Business Overview & Revenue Model

Company DescriptionShenzhen Investment Holdings Bay Area Development Company (0737) is a prominent player in the real estate and infrastructure sectors, primarily focused on the development and investment in projects within the Guangdong-Hong Kong-Macau Greater Bay Area. The company specializes in urban development, property management, and investment in public utilities, aiming to enhance regional economic growth and improve living standards through its diverse portfolio of residential, commercial, and mixed-use developments.
How the Company Makes MoneyThe company generates revenue through several key streams, including the sale of residential and commercial properties, property leasing, and management services. Additionally, it earns income from investments in infrastructure projects and public utilities, often through public-private partnerships with local governments. Revenue is further bolstered by strategic collaborations with other developers and stakeholders in the Greater Bay Area, allowing for an expanded project pipeline and shared resources. The company's ability to secure land leases and navigate regulatory frameworks effectively also plays a critical role in its financial performance.

Shenzhen Investment Holdings Bay Area Development Company Financial Statement Overview

Summary
Strong profitability is indicated by high margins, but the revenue decline raises concerns. The balance sheet is stable with moderate leverage and good equity returns, while cash flow variability suggests potential constraints in cash generation.
Income Statement
75
Positive
The gross profit margin in 2024 is approximately 39.21%, indicating strong efficiency in production relative to revenue. The net profit margin is approximately 52.39%, reflecting high profitability, partly due to significant non-operating income. However, revenue has declined from the previous year by 6.91%, indicating potential challenges in maintaining top-line growth. The EBIT margin is 32.64%, and the EBITDA margin is 58.72%, suggesting solid operational efficiency despite the revenue drop.
Balance Sheet
70
Positive
The debt-to-equity ratio stands at 0.998, indicating a balanced approach to leveraging, though slightly high. Return on equity (ROE) is strong at 10.13%, reflecting efficient use of equity. However, the equity ratio is 35.54%, showing moderate reliance on liabilities to finance assets. The company maintains a healthy cash position relative to its debt obligations.
Cash Flow
65
Positive
The free cash flow has fluctuated, with a decline from a positive position in 2023 to zero in 2024, suggesting potential issues in cash generation. The operating cash flow to net income ratio is unavailable, limiting insight into cash efficiency. The free cash flow to net income ratio is also unavailable due to missing data, posing a challenge in assessing cash profitability comprehensively.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue802.71M879.49M944.78M789.70M613.51M0.00
Gross Profit361.98M344.98M300.82M189.89M257.47M0.00
EBITDA544.56M557.89M457.35M718.76M1.22B-35.20M
Net Income454.32M460.92M528.48M278.57M711.43M688.66M
Balance Sheet
Total Assets13.03B12.80B12.41B12.22B14.74B6.62B
Cash, Cash Equivalents and Short-Term Investments1.40B1.11B1.01B925.46M2.21B1.56B
Total Debt4.40B4.54B4.05B3.98B1.94B1.08B
Total Liabilities5.25B5.16B4.71B4.83B2.09B1.62B
Stockholders Equity4.63B4.55B4.75B4.54B8.36B4.98B
Cash Flow
Free Cash Flow521.85M294.04M159.08M-231.09M-183.59M-52.04M
Operating Cash Flow546.54M568.94M467.85M87.18M-183.05M-50.90M
Investing Cash Flow287.18M47.65M234.53M310.00M1.22B-19.44M
Financing Cash Flow-472.97M-366.89M-696.19M-1.78B-8.75M533.27M

Shenzhen Investment Holdings Bay Area Development Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.82
Price Trends
50DMA
1.82
Negative
100DMA
1.78
Positive
200DMA
1.73
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
47.03
Neutral
STOCH
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0737, the sentiment is Neutral. The current price of 1.82 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.82, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.03 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0737.

Shenzhen Investment Holdings Bay Area Development Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$7.43B9.785.94%5.77%7.04%7.64%
73
Outperform
$18.24B8.989.06%6.31%-20.02%42.97%
72
Outperform
HK$3.38B6.3810.79%5.33%0.20%-17.12%
71
Outperform
$5.61B11.4310.13%8.81%-20.64%-16.80%
71
Outperform
HK$25.36B12.566.54%3.65%5.19%-45.04%
64
Neutral
HK$3.52B7.4710.92%6.12%-21.80%-8.00%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0737
Shenzhen Investment Holdings Bay Area Development Company
1.82
0.09
5.08%
HK:1052
Yuexiu Transport Infrastructure
4.33
0.68
18.70%
HK:0107
Sichuan Expressway Co
5.00
1.94
63.61%
HK:0548
Shenzhen Expressway Co
7.32
0.50
7.38%
HK:1576
Qilu Expressway Co., Ltd. Class H
1.79
-0.39
-17.89%
HK:1785
Chengdu Expressway Co., Ltd. Class H
2.04
-0.17
-7.69%

Shenzhen Investment Holdings Bay Area Development Company Corporate Events

Shenzhen Investment Holdings Bay Area Development to Review Financial Results
Oct 9, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited has announced a board meeting scheduled for October 24, 2025, to approve the financial results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0737) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenzhen Investment Holdings Bay Area Development Company stock, see the HK:0737 Stock Forecast page.

Shenzhen Investment Holdings Reports Varied Toll Revenue in August 2025
Sep 29, 2025

In August 2025, Shenzhen Investment Holdings Bay Area Development Company reported varied toll revenue changes across its expressways due to modifications in the surrounding road networks. The GS Superhighway saw a slight decrease in revenue, while the GZ West Superhighway experienced a notable decline, and the Coastal Expressway recorded a minor increase. These fluctuations highlight the impact of external infrastructure changes on the company’s operations, with potential implications for stakeholders regarding traffic volume and revenue expectations.

The most recent analyst rating on (HK:0737) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenzhen Investment Holdings Bay Area Development Company stock, see the HK:0737 Stock Forecast page.

Shenzhen Investment Holdings Bay Area Development Company Announces New Engineering Contracts
Sep 26, 2025

Shenzhen Investment Holdings Bay Area Development Company has entered into agreements for mechanical and electrical engineering construction works related to the Approved Road Section R&E Project. The contracts, awarded after a competitive bidding process, involve Guangdong Xinyue and Beijing GK Feida with contract prices of RMB422,290,446 and RMB288,964,259 respectively. These transactions are classified as discloseable and connected transactions under the Hong Kong Listing Rules, requiring notification and announcement but exempt from circular and shareholder approval requirements. The directors have confirmed that the terms are fair, reasonable, and in the company’s interest.

The most recent analyst rating on (HK:0737) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenzhen Investment Holdings Bay Area Development Company stock, see the HK:0737 Stock Forecast page.

Shenzhen Investment Holdings Adjusts Dividend Dates Amid Weather Concerns
Sep 22, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited announced a change in the book closure date, record date, and the last date for the return of the dividend election form due to unstable weather conditions. Despite these changes, the payment date for the interim dividend remains unchanged, ensuring minimal impact on stakeholders and maintaining the company’s operational schedule.

The most recent analyst rating on (HK:0737) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenzhen Investment Holdings Bay Area Development Company stock, see the HK:0737 Stock Forecast page.

Shenzhen Investment Holdings Announces Changes to Interim Dividend Schedule
Sep 22, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited announced a change in the book closure date and record date for its interim dividend for the six months ended 30 June 2025. The interim dividend declared is RMB 0.0755 per share, with an option for shareholders to receive the dividend in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09825. The payment date for the dividend is set for 7 November 2025, and the ex-dividend date is 22 September 2025. This update may impact shareholders’ planning and the company’s financial operations as it adjusts its dividend distribution schedule.

The most recent analyst rating on (HK:0737) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenzhen Investment Holdings Bay Area Development Company stock, see the HK:0737 Stock Forecast page.

Shenzhen Investment Holdings Reports Mixed Toll Revenue for July 2025
Aug 28, 2025

In July 2025, Shenzhen Investment Holdings Bay Area Development Company Limited reported a mixed performance in toll revenue across its expressways. The GS Superhighway experienced a slight decline of 0.4% in monthly toll revenue, while the GZ West Superhighway saw a significant drop of 17%. The Coastal Expressway also faced a 9% decrease. These changes were attributed to alterations in the surrounding road network, affecting traffic volumes. The announcement highlights the provisional nature of the statistics and advises investors to exercise caution when interpreting the data.

The most recent analyst rating on (HK:0737) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenzhen Investment Holdings Bay Area Development Company stock, see the HK:0737 Stock Forecast page.

Bay Area Development Approved to Issue RMB2 Billion Panda Bonds
Aug 28, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited has received approval from the China Securities Regulatory Commission to issue up to RMB2 billion in corporate bonds, known as Panda Bonds, to professional investors in the Chinese Mainland. These bonds, which may be issued in multiple tranches over 24 months, are proposed to be listed on the Shenzhen Stock Exchange, potentially impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (HK:0737) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenzhen Investment Holdings Bay Area Development Company stock, see the HK:0737 Stock Forecast page.

Shenzhen Investment Holdings Updates Pricing Policy for Coastal Expressway Agreement
Aug 25, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited has provided additional details on its pricing policy for the 2025-2027 Coastal Expressway (Shenzhen Section) Operation and Maintenance Management Entrusted Agreement. The company has considered factors such as highway mileage, traffic volume, and employee costs, aiming to optimize costs and maximize shareholder interests. The fees set for the operation and maintenance services are competitive compared to market rates and are aligned with the company’s other expressway projects in the region.

The most recent analyst rating on (HK:0737) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Shenzhen Investment Holdings Bay Area Development Company stock, see the HK:0737 Stock Forecast page.

Shenzhen Investment Holdings Reports Mixed Interim Results for 2025
Aug 15, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited reported its interim results for the first half of 2025, highlighting significant developments in both its expressway operations and real estate ventures. The company saw a substantial increase in toll revenue from the Coastal Expressway due to new openings and adjustments, while facing challenges on other expressways due to network changes. The Grand Park City project contributed RMB703 million in contract sales. Despite a 3% decrease in profit attributable to shareholders, the company maintained a 100% payout ratio for its interim dividend, reflecting its commitment to returning value to shareholders.

Shenzhen Investment Holdings Announces Interim Dividend for 2025
Aug 15, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited has announced an interim dividend of RMB 0.0755 per share for the six months ending June 30, 2025. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09825, with a payment date set for November 7, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may enhance its attractiveness to investors seeking stable income. The decision to offer a currency option for the dividend payment indicates a strategic approach to accommodate shareholders’ preferences, potentially strengthening investor relations.

Shenzhen Investment Holdings Bay Area Development to Announce Mid-Year Financial Results
Aug 4, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited has announced a board meeting scheduled for August 15, 2025, to approve the financial results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, impacting stakeholders and potentially influencing its market position in the investment and development sector.

Shenzhen Investment Holdings Secures New Repair Services Agreement for Coastal Expressway
Jul 29, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited has announced a new agreement with Qizhen Engineering Company for repair services on the Coastal Expressway (Shenzhen Section) from 2025 to 2028. This agreement follows a competitive tendering process and is classified as a continuing connected transaction under Hong Kong’s Listing Rules. The arrangement exempts the company from certain regulatory requirements due to the percentage ratios involved, impacting the company’s operational focus on infrastructure maintenance and strengthening its market position in expressway management.

Shenzhen Investment Holdings Reports Mixed Toll Revenue Results for June 2025
Jul 28, 2025

In June 2025, Shenzhen Investment Holdings Bay Area Development Company Limited reported varied changes in toll revenue across its expressways due to alterations in the surrounding road network. The GS Superhighway and GZ West Superhighway experienced declines in monthly toll revenue by 4% and 16% respectively, while the Coastal Expressway saw a 21% increase. These fluctuations highlight the impact of infrastructural changes on the company’s operations and may influence stakeholder decisions.

Shenzhen Investment Holdings Announces New Coastal Expressway Management Agreement
Jul 25, 2025

Shenzhen Investment Holdings Bay Area Development Company Limited has announced a new agreement for the operation and maintenance of the Coastal Expressway (Shenzhen Section) from 2025 to 2027. This agreement, entered into with the Operation Development Company, is a continuing connected transaction under the Hong Kong Listing Rules. The arrangement is exempt from certain requirements due to the applicable percentage ratios, thus only subject to announcement and reporting obligations. This development ensures the continued smooth operation of the expressway, impacting the company’s operational stability and stakeholder interests.

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: Oct 23, 2025