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Shanghai Electric Group Company Limited Class H (HK:2727)
:2727
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Shanghai Electric Group Company (2727) AI Stock Analysis

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HK:2727

Shanghai Electric Group Company

(2727)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
HK$5.00
▲(9.41% Upside)
The overall stock score reflects a combination of strong technical indicators and robust cash flow generation, offset by a high P/E ratio suggesting overvaluation. The company's stable financial performance and positive market momentum are significant strengths, while valuation concerns are the primary risk.

Shanghai Electric Group Company (2727) vs. iShares MSCI Hong Kong ETF (EWH)

Shanghai Electric Group Company Business Overview & Revenue Model

Company DescriptionShanghai Electric Group Company Limited, an equipment manufacturing conglomerate, provides clean energy, new energy and environmental protection, and industrial equipment, and modern services in the People's Republic of China. It offers coal-fired power generation and corollary, gas-fired power generation, wind power, nuclear power, and energy storage equipment, as well as vessels for chemical industry. The company also provides elevators, electric motors and ramps, and industrial basic parts; intelligent manufacturing, and construction industrialization equipment; and power grid and industrial intelligent power supply system solutions. In addition, it offers energy, and environmental protection and automation engineering; industrial internet; financing leases and insurance brokerage; international trade; and property services. Shanghai Electric Group Company Limited was incorporated in 2004 and is based in Shanghai, the People's Republic of China. Shanghai Electric Group Company Limited is a subsidiary of Shanghai Electric (Group) Corporation.
How the Company Makes MoneyShanghai Electric generates revenue primarily through the sale of its power generation equipment and services, along with electric power transmission and distribution products. The company benefits from a robust revenue model that includes project contracts for large-scale energy plants, equipment sales, and after-sales services. Key revenue streams include the construction and operation of energy projects, particularly in renewable energy sectors, as well as maintenance and upgrade services for existing installations. Significant partnerships with governmental bodies and other major enterprises in the energy sector further bolster its earnings, alongside strategic collaborations in international markets, enabling Shanghai Electric to tap into global demand for clean and efficient energy solutions.

Shanghai Electric Group Company Financial Statement Overview

Summary
Shanghai Electric Group Company shows a mixed financial performance with stable revenue and improved profitability in the TTM. The balance sheet is stable with manageable leverage, while cash flow generation is notably strong, supporting the company's liquidity position. Overall, the company demonstrates moderate profitability and financial stability with strong cash flow metrics, positioning itself well for future growth opportunities.
Income Statement
65
Positive
The company's income statement shows moderate performance with a stabilization in revenue at TTM compared to the previous fiscal year. The gross profit margin for the TTM is approximately 18.44%, indicating reasonable profitability. The net profit margin is lower but has improved from past losses to a positive 0.86% in the TTM. Revenue growth has been minimal, and EBIT and EBITDA margins reflect modest operational efficiency at 3.25% and 4.53%, respectively. Overall, the income statement reflects moderate profitability with some recovery from previous years' losses.
Balance Sheet
70
Positive
The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.72, indicating manageable leverage. Return on equity (ROE) is low at 1.89% in the TTM, reflecting limited profitability relative to equity. The equity ratio stands at 17.83%, suggesting a balanced capital structure. The company maintains a reasonable level of cash and short-term investments, contributing to financial stability. Overall, the balance sheet depicts a stable yet modestly leveraged financial position with room for improvement in profitability.
Cash Flow
72
Positive
Cash flow analysis shows a robust free cash flow in the TTM of 15.76 billion, with a free cash flow growth rate of 19.13% from the previous period. The operating cash flow to net income ratio is strong at 6.64, indicating efficient cash generation from operations. The free cash flow to net income ratio is exceptionally high at 15.57, pointing to strong cash flow relative to net income. Overall, the cash flow statement reflects strong cash generation and improvement in free cash flow, highlighting solid financial health in terms of liquidity and operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue120.62B116.19B114.80B117.62B131.39B137.29B
Gross Profit22.34B21.66B20.00B19.04B19.80B23.26B
EBITDA5.73B8.37B6.89B1.59B-9.31B9.19B
Net Income971.49M752.48M285.15M-2.31B-10.24B5.27B
Balance Sheet
Total Assets312.90B302.50B283.27B288.02B300.80B315.40B
Cash, Cash Equivalents and Short-Term Investments44.81B40.35B50.25B34.00B32.96B31.63B
Total Debt37.70B38.69B42.07B41.26B47.47B44.91B
Total Liabilities234.59B225.12B206.34B193.83B202.66B208.55B
Stockholders Equity54.02B53.19B52.80B54.86B58.13B66.40B
Cash Flow
Free Cash Flow14.79B13.24B3.57B4.44B-14.86B-1.71B
Operating Cash Flow1.57B17.64B7.80B8.48B-10.55B4.70B
Investing Cash Flow-25.59B-16.43B352.15M-7.32B5.86B-3.60B
Financing Cash Flow-3.99B-3.43B-13.73B-1.26B2.16B2.47B

Shanghai Electric Group Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.57
Price Trends
50DMA
4.14
Positive
100DMA
3.66
Positive
200DMA
3.20
Positive
Market Momentum
MACD
0.12
Positive
RSI
51.39
Neutral
STOCH
35.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2727, the sentiment is Neutral. The current price of 4.57 is below the 20-day moving average (MA) of 4.77, above the 50-day MA of 4.14, and above the 200-day MA of 3.20, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 35.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2727.

Shanghai Electric Group 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
77
Outperform
HK$30.14B12.6115.06%1.66%34.78%98.79%
75
Outperform
HK$78.62B18.377.71%2.16%20.99%-5.99%
74
Outperform
HK$149.59B11.5012.91%4.33%3.55%8.89%
74
Outperform
$71.28B27.536.78%1.13%25.84%26.05%
69
Neutral
€6.41B10.317.29%2.25%11.18%46.57%
65
Neutral
$141.41B61.851.93%7.59%376.62%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2727
Shanghai Electric Group Company
4.57
1.17
34.41%
HK:1072
Dongfang Electric
21.30
10.98
106.40%
HK:2338
Weichai Power Co
21.50
10.03
87.36%
HK:2208
Xinjiang Goldwind Science & Technology Co
14.30
7.63
114.30%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
2.19
1.50
216.93%
HK:1133
Harbin Electric Co. Ltd. Class H
14.83
12.09
441.04%

Shanghai Electric Group Company Corporate Events

Shanghai Electric Announces Upcoming Board Meeting for Quarterly Results
Oct 20, 2025

Shanghai Electric Group Company Limited has announced that its board of directors will meet on October 30, 2025, to review and approve the company’s third quarterly results for the period ending September 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric’s EGM Approves Key Financial Resolutions
Sep 22, 2025

Shanghai Electric Group Company Limited announced the successful conclusion of its Extraordinary General Meeting (EGM) held on September 22, 2025, where all proposed resolutions were passed. The meeting, attended by shareholders representing over 51% of the voting rights, approved key resolutions including a loan guarantee application and the registration and issuance of debt financing instruments. This development is expected to bolster the company’s financial strategy and enhance its market positioning, potentially impacting stakeholders positively by reinforcing the company’s operational capabilities and financial stability.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Announces EGM to Discuss Financial Strategies
Sep 1, 2025

Shanghai Electric Group Company Limited has announced an extraordinary general meeting (EGM) scheduled for September 22, 2025, to consider key financial resolutions. The agenda includes approving a loan guarantee application for up to EUR 90 million and the registration and issuance of debt financing instruments. These measures indicate the company’s strategic efforts to enhance its financial flexibility and operational capabilities, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Reports Strong Growth in 2025
Aug 30, 2025

Shanghai Electric Group Company Limited, a joint stock company based in China, specializes in the design, manufacture, and sale of energy and industrial equipment, along with integration services, making it a key player in the power generation and industrial equipment sectors. In its latest earnings report for the first half of 2025, Shanghai Electric reported a total revenue of RMB54,303 million, marking an 8.9% increase compared to the previous year. The company’s profit attributable to shareholders also saw a rise of 7.3%, reaching RMB821 million, with basic earnings per share up by 8.2% to RMB0.053 yuan. The company secured new orders worth RMB109.81 billion, reflecting strong demand across its energy and industrial equipment segments. Shanghai Electric’s strategic focus on national energy policies and global expansion has led to significant achievements in nuclear power, coal-fired power, and renewable energy sectors. The company has made notable progress in nuclear power equipment manufacturing and has been actively involved in significant national projects. Additionally, its advancements in wind power and energy storage technologies underscore its commitment to innovation and sustainability. Looking ahead, Shanghai Electric remains committed to aligning with national strategies, optimizing its industrial structure, and driving technological innovation to sustain its growth trajectory and enhance its competitive edge in the global market.

Shanghai Electric Reports Strong Revenue Growth in 2025 Interim Results
Aug 29, 2025

Shanghai Electric Group Company Limited reported an 8.9% increase in total revenue, reaching RMB54,303 million for the first half of 2025, compared to the same period last year. The company’s profit attributable to owners rose by 7.3% to RMB821 million, and new orders amounted to RMB109.81 billion, reflecting a strong operational performance. However, the Board decided not to declare an interim dividend, which may impact shareholder expectations.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Reports Impairment Provisions for H1 2025
Aug 29, 2025

Shanghai Electric Group Company Limited announced a provision for impairment for the first half of 2025, reflecting a net decrease of RMB944.20 million in profit before taxation. This provision includes credit impairment losses and asset impairment losses, which were assessed based on expected credit losses and asset valuation standards. The announcement highlights the company’s efforts to maintain transparency and accuracy in financial reporting, which may impact its financial performance and stakeholder confidence.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric to Host Online Briefing on 2025 Interim Results
Aug 29, 2025

Shanghai Electric Group Company Limited has announced a briefing session to discuss its interim results for the first half of 2025. The session, scheduled for September 10, 2025, will be conducted online, allowing the company to engage with investors and address their concerns regarding its financial performance and operational outcomes. This initiative reflects Shanghai Electric’s commitment to transparency and investor relations, potentially impacting its market positioning by fostering trust and confidence among stakeholders.

The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Announces Upcoming Board Meeting for Interim Results
Aug 18, 2025

Shanghai Electric Group Company Limited has announced that its board of directors will hold a meeting on August 29, 2025, to consider and approve the interim 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 operational progress, potentially impacting its market position and stakeholder interests.

The most recent analyst rating on (HK:2727) stock is a Sell with a HK$1.93 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric’s EGM Approves Key Resolutions for Strategic Advancement
Aug 8, 2025

Shanghai Electric Group Company Limited announced the successful conclusion of its extraordinary general meeting held on August 8, 2025, where all proposed resolutions were passed by shareholder vote. Key resolutions included the approval of a Euro 300 million guarantee by Shanghai Electric Automation Group Hong Kong Co., Ltd. to Broetje-Automation GmbH and its subsidiaries, and the abolishment of the Supervisory Committee with amendments to the Articles of Association. These decisions are expected to streamline operations and enhance the company’s governance structure, potentially impacting its strategic positioning and stakeholder relations positively.

The most recent analyst rating on (HK:2727) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

Shanghai Electric Announces Progress in Material Litigations
Aug 5, 2025

Shanghai Electric Group Company Limited has announced progress in its material litigations involving loans provided to SINOMEC Engineering Group Co., Ltd. The company has reached a settlement agreement with Pufa Machinery and Shanghai Pujin Enterprise Development Co., Ltd., recovering a substantial portion of the principal debt. However, the company continues to pursue claims against other debtors, with ongoing legal proceedings that may impact its financial performance depending on the outcomes. As of now, uncertainties remain regarding the final impact on the company’s profits, and shareholders are advised to exercise caution.

The most recent analyst rating on (HK:2727) stock is a Sell with a HK$1.93 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.

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 24, 2025