SH Group (Holdings) Limited (1637) AI Stock Analysis

• Market Cap: HK$90.00M
• Dividend Yield: N/A
• Average Volume (3M): 51.60K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.59
• Revenue Growth: -30.55%
• EPS Growth: N/A
• Country: HK
• Employees: 157
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 8,400
• 30 Day Avg. Volume: 51,600
• PEG Ratio: -0.07
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 0.55
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 65 reflects a company in recovery, with strong technical indicators and a solid balance sheet. However, declining revenue and low profit margins are significant challenges. The stock's valuation is reasonable, but the lack of a dividend yield may deter some investors.

SH Group (Holdings) Limited Business Overview & Revenue Model

Company Description

SH Group (Holdings) Limited is a Hong Kong-based investment holding company that primarily operates within the construction and engineering sectors. The company focuses on providing comprehensive construction services, including civil engineering, building construction, and infrastructure development. Its core products and services encompass project management, planning, and execution, catering to both public and private sector clients.

How the Company Makes Money

SH Group (Holdings) Limited generates revenue through various streams, primarily by undertaking construction contracts for infrastructure and building projects. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and time-and-material contracts, allowing it to cater to diverse client needs. Key revenue streams include income from civil engineering works, building construction projects, and maintenance services. Additionally, the company may engage in joint ventures and partnerships with other firms in the industry, which can enhance project scope and execution capabilities, contributing to its overall earnings. The firm's ability to secure contracts through competitive bidding and maintain strong relationships with government entities and private developers plays a crucial role in sustaining its revenue growth.

SH Group (Holdings) Limited Financial Statement Overview

Summary

SH Group (Holdings) Limited is showing signs of recovery with improved profitability and strong cash flow growth. However, the company faces challenges with declining revenue and low profit margins. The balance sheet remains strong with low leverage, providing a stable foundation for future growth.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a revenue growth rate of -18.33%. Gross profit margin is low at 5.42%, and net profit margin is also weak at 0.89%. However, the company has managed to return to profitability with a positive net income, indicating some recovery from previous losses.

Balance Sheet

The balance sheet shows a strong equity position with a very low debt-to-equity ratio of 0.23%. Return on equity is modest at 2.30%, suggesting limited profitability relative to equity. The equity ratio is healthy, indicating a stable financial structure with low leverage risk.

Cash Flow

The company has shown a strong improvement in cash flow, with a free cash flow growth rate of 28.82%. The operating cash flow to net income ratio is 0.62, indicating good cash generation relative to net income. Free cash flow closely matches net income, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	745.05M	608.49M	876.18M	954.25M	753.33M	707.59M
Gross Profit	11.86M	32.97M	16.29M	8.66M	45.60M	61.40M
EBITDA	-16.57M	10.84M	-13.83M	-10.45M	23.86M	45.04M
Net Income	-12.98M	5.39M	-15.21M	-11.00M	11.73M	44.13M
Balance Sheet
Total Assets	410.50M	378.04M	495.45M	506.74M	508.11M	512.38M
Cash, Cash Equivalents and Short-Term Investments	80.56M	99.87M	44.63M	114.46M	249.54M	241.04M
Total Debt	11.65M	534.00K	37.59M	630.00K	2.75M	4.34M
Total Liabilities	190.34M	143.75M	266.54M	262.62M	217.28M	217.68M
Stockholders Equity	220.16M	234.29M	228.91M	244.12M	290.84M	294.70M
Cash Flow
Free Cash Flow	68.71M	88.51M	-119.71M	-118.04M	46.06M	138.60M
Operating Cash Flow	69.02M	88.52M	-119.39M	-117.51M	46.42M	138.84M
Investing Cash Flow	6.04M	3.04M	71.83M	-50.22M	-15.14M	-25.72M
Financing Cash Flow	-34.01M	-38.68M	30.84M	-20.44M	-17.78M	-16.44M

SH Group (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1637, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.21, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.18 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1637.

SH Group (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1591	66 Neutral	HK$57.60M	-10.14	-3.98%	―	-50.14%	-114.40%
1637	65 Neutral	HK$90.00M	16.67	2.33%	―	-30.55%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1472	50 Neutral	HK$64.00M	―	-3.05%	―	67.24%	-42.19%
1630	45 Neutral	HK$64.50M	-6.83	-8.05%	―	-29.39%	78.42%
1826	40 Underperform	HK$75.92M	-142.50	―	―	11.52%	98.72%
1718	39 Underperform	HK$53.81M	-0.49	-72.83%	―	4.32%	-143.93%

SH Group (Holdings) Limited Corporate Events

SH Group (Holdings) Limited Announces Unanimous Approval of AGM Resolutions

SH Group (Holdings) Limited successfully held its Annual General Meeting on August 29, 2025, where all proposed resolutions were unanimously approved by shareholders. These resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates to the board for share issuance and repurchase. The unanimous approval reflects strong shareholder support and positions the company for continued stability and growth.