Hong Kong Shanghai Alliance Holdings (1001) AI Stock Analysis

Hong Kong Shanghai Alliance Holdings

(HKEX:1001)

Select Model

Rating:76Outperform

Price Target:HKD 0.42▲(16.11% Upside)

Action:reiterated

Date:10/21/26

Strong valuation and improving financial performance are primary drivers, supported by favorable technical momentum in the steel sector.

Positive Factors

Improving ProfitabilityThe substantial improvement in net, gross, and EBIT margins shows that the company has restored meaningful operating profitability after weaker earlier periods. If maintained, stronger margins can support internal funding, improve resilience, and provide a better base for earnings over the next several quarters.

Negative Factors

Multi-year Revenue DeclinePersistent revenue contraction indicates that demand or pricing conditions remain challenging and limits the company’s ability to generate operating leverage. Even with better margins, continued top-line pressure can constrain scale, reduce growth opportunities, and make future earnings improvement less dependable.

Hong Kong Shanghai Alliance Holdings (1001) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 229.14M
Dividend Yield: 9.31%
Average Volume (3M): 408.08K
Price to Earnings (P/E): 2.1
Beta (1Y): 0.29
Revenue Growth: 0.59%
EPS Growth: 19.42%
Country: Hong Kong
Employees: 264
Sector: Basic Materials
Sector Strength: 61
Industry: Steel

Hong Kong Shanghai Alliance Holdings Business Overview & Revenue Model

Company Description

Hong Kong Shanghai Alliance Holdings Limited, established in 1961 and headquartered in Wanchai, Hong Kong, is primarily engaged in the distribution and processing of construction materials across Hong Kong and Mainland China. Its operations are struc...

Hong Kong Shanghai Alliance Holdings Financial Statement Overview

Summary

Revenue decline offset by strong net income growth, margin expansion to 5%, debt reduction, and robust cash flows reaching 300 million.

Income Statement

65Positive

Balance Sheet

80Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.12B	2.12B	2.11B	2.30B	2.66B	2.81B
Gross Profit	355.83M	355.83M	347.17M	384.08M	351.98M	339.69M
EBITDA	191.57M	189.75M	159.88M	192.01M	184.41M	175.04M
Net Income	106.87M	106.87M	89.62M	78.78M	82.85M	65.50M
Balance Sheet
Total Assets	2.54B	2.54B	2.56B	2.65B	2.96B	3.37B
Cash, Cash Equivalents and Short-Term Investments	180.41M	180.41M	178.98M	145.30M	147.49M	188.93M
Total Debt	942.15M	942.15M	1.13B	1.29B	1.44B	1.52B
Total Liabilities	1.29B	1.29B	1.46B	1.61B	1.88B	2.25B
Stockholders Equity	1.16B	1.16B	1.00B	940.57M	961.15M	990.84M
Cash Flow
Free Cash Flow	298.75M	298.75M	224.24M	182.05M	420.00K	69.59M
Operating Cash Flow	300.32M	300.32M	227.31M	192.24M	3.20M	78.69M
Investing Cash Flow	-41.22M	-41.22M	-9.66M	-21.99M	-10.81M	-19.54M
Financing Cash Flow	-263.68M	-263.68M	-182.56M	-170.60M	-31.89M	9.80M

Hong Kong Shanghai Alliance Holdings Technical Analysis

Technical Analysis SentimentNegative

Last Price0.36

Price Trends

50DMA0.37Negative

100DMA0.38Negative

200DMA0.38Negative

Market Momentum

MACD-0.00Positive

RSI34.40Neutral

STOCH11.11Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1001, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.37, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 34.40 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1001.

Hong Kong Shanghai Alliance Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:1001 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1001	76Outperform	HKD 229.03M	2.14	9.59%	9.31%	0.59%	19.42%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:1182	55Neutral	HKD 211.46M	2.81	41.34%	―	509.72%	776.64%
HK:6890	53Neutral	HKD 424.38M	5.49	7.02%	12.86%	10.54%	67.22%
HK:2326	49Neutral	HKD 274.09M	-130.00	-0.97%	―	64.90%	90.91%
HK:1932	43Neutral	HKD 152.00M	-4.16	-10.40%	―	-6.78%	41.22%

* Basic Materials Sector Average

Performance Comparison

HK:1001 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1001	Hong Kong Shanghai Alliance Holdings	0.36	-0.01	-1.91%
HK:1182	Success Dragon International Holdings Ltd.	0.60	0.07	14.15%
HK:1932	CPM Group Ltd.	0.15	0.01	7.04%
HK:2326	New Provenance Everlasting Holdings Limited	0.01	0.00	30.00%
HK:6890	KangLi International Holdings Limited	0.70	0.39	123.64%
HK:0723	Reliance Global Holdings Limited	0.21	-0.03	-13.22%

Hong Kong Shanghai Alliance Holdings Corporate Events

Hong Kong Shanghai Alliance Secures New Steel Prefabrication Yard to Support Expansion

Aug 25, 2026

Hong Kong Shanghai Alliance Holdings has secured a new operational site at Sai Tso Wan Road in Tsing Yi, which has been formally approved by the Civil Engineering and Development Department as a Steel Reinforcing Bar Prefabrication Yard. The group wi...

Hong Kong Shanghai Alliance Shareholders Approve All AGM Resolutions and Final Dividend

Aug 21, 2026

Hong Kong Shanghai Alliance Holdings Limited reported that all resolutions proposed at its annual general meeting on 21 August 2026 were approved by shareholders through poll voting, with no shareholding or voting restrictions recorded. The AGM confi...

Hong Kong Shanghai Alliance Updates Registered Office Address in Bermuda

Jul 29, 2026

Hong Kong Shanghai Alliance Holdings Limited has announced a change to the address of its registered office in Bermuda, effective 3 August 2026. The new location will be Richmond House, 12 Par-la-Ville Road, Hamilton HM 08, Bermuda, as approved by th...

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 20, 2026

Hong Kong Shanghai Alliance Holdings AI Stock Analysis