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

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HK:1637

SH Group (Holdings) Limited

(HKEX:1637)

Select Model
Rating:54.4Neutral
Price Target:HKD 0.80â–²(8.44% Upside)
Action:reiterated
Date:11/11/26

The score is primarily constrained by weak revenue and profitability performance and inconsistent cash-flow trends. A very strong balance sheet and favorable technical trend provide support, but the high P/E ratio and overbought momentum reduce the overall attractiveness.

Positive Factors
Low LeverageMinimal debt relative to equity lowers solvency and refinancing pressure, giving SH Group more flexibility to withstand construction cycles and fund operations. The sizable, stable equity base also provides a durable cushion if project conditions weaken.
Negative Factors
Revenue DeclineA shrinking top line points to weaker business volume and limits the company’s ability to grow earnings through scale. Continued revenue contraction could reduce operating leverage, weaken market momentum, and make recovery dependent on winning new work or improving execution.

SH Group (Holdings) Limited (1637) vs. iShares MSCI Hong Kong ETF (EWH)

-50%0%50%100%150%200%250%300%HK:1637+265.67%EWH+8.17%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
HKD 304.00M
Dividend Yield
―
Average Volume (3M)
301.56K
Price to Earnings (P/E)
49.0
Beta (1Y)
0.52
Revenue Growth
-36.22%
EPS Growth
11.11%
Country
Hong Kong
Employees
121
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

SH Group (Holdings) Limited Business Overview & Revenue Model

Company Description

SH Group (Holdings) Limited operates as an investment holding entity, providing electrical and mechanical (E&M) engineering solutions to both public sector and commercial clients across Hong Kong. Its services encompass the supply, installation, and...

SH Group (Holdings) Limited Financial Statement Overview

Summary

The company has a conservative balance sheet with very low leverage, but this is offset by declining revenue, thin profitability, and volatile cash-flow trends.

Income Statement

41Neutral

Balance Sheet

78Positive

Cash Flow

44Neutral
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue388.10M388.10M608.49M876.18M954.25M753.33M
Gross Profit27.19M27.19M32.97M16.29M8.66M45.60M
EBITDA8.38M3.64M10.84M-11.60M-10.45M23.86M
Net Income5.99M5.99M5.39M-15.21M-11.00M11.73M
Balance Sheet
Total Assets367.47M367.47M378.04M495.45M506.74M508.11M
Cash, Cash Equivalents and Short-Term Investments150.76M150.76M99.87M44.63M114.46M249.54M
Total Debt1.83M1.83M534.00K37.59M630.00K2.75M
Total Liabilities147.18M147.18M143.75M266.54M262.62M217.28M
Stockholders Equity220.28M220.28M234.29M228.91M244.12M290.84M
Cash Flow
Free Cash Flow48.25M48.25M88.51M-119.71M-118.04M46.06M
Operating Cash Flow48.62M48.62M88.52M-119.39M-117.51M46.42M
Investing Cash Flow6.27M6.27M3.04M71.83M-50.22M-15.14M
Financing Cash Flow-1.78M-1.78M-38.68M30.84M-20.44M-17.78M

SH Group (Holdings) Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price0.73

Price Trends

50DMA0.65Positive
100DMA0.56Positive
200DMA0.48Positive

Market Momentum

MACD0.03Negative
RSI69.28Neutral
STOCH83.84Negative

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 0.73 is above the 20-day moving average (MA) of 0.65, above the 50-day MA of 0.65, and above the 200-day MA of 0.48, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 69.28 is Neutral, neither overbought nor oversold. The STOCH value of 83.84 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

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:1637 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:1637HK:163754NeutralHKD 302.00M49.002.66%―-36.22%11.11%
HK:0385HK:038554NeutralHKD 133.85M-2.40-2.95%4.13%-24.47%-220.53%
HK:1582HK:158249NeutralHKD 232.50M17.871.82%7.10%28.02%-68.80%
HK:1447HK:144742NeutralHKD 232.00M9.186.28%3.70%-5.52%-3.29%

* Industrials Sector Average

Performance Comparison

0%100%200%HK:1637HK:0385HK:1408HK:1447HK:1582HK:1615Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
HK:1637 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1637SH Group (Holdings) Limited0.730.53265.67%
HK:0385Chinney Alliance Group Limited0.24-0.15-38.89%
HK:1408Macau E&M Holding Limited0.390.1563.87%
HK:1447SFK Construction Holdings Ltd.0.540.0919.47%
HK:1582CR Construction Group Holdings Limited0.470.1027.03%
HK:1615AB Builders Group Limited0.470.25117.59%

SH Group (Holdings) Limited Corporate Events

SH Group Wins Unanimous Shareholder Backing at 2026 AGM

Aug 17, 2026

Shareholders of SH Group (Holdings) Limited have unanimously approved all resolutions at the company’s annual general meeting held on 17 August 2026, with 300,052,901 votes cast in favour and none against. The meeting confirmed the adoption of the au...

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: Nov 11, 2026