Shenglong Splendecor International Limited (8481) AI Stock Analysis

Top Page

Shenglong Splendecor International Limited

(HKEX:8481)

Select Model

Rating:63Neutral

Price Target:HKD 0.37▲(6.57% Upside)

Action:reiterated

Date:10/31/26

The score is held back primarily by weak cash flow quality and rising leverage despite strong profitability improvements. Technicals are moderately positive (above key short/mid-term averages with healthy momentum), and valuation looks attractive given the very low P/E, but funding risk from negative free cash flow meaningfully tempers the overall rating.

Positive Factors

Margin ExpansionMaterial gross- and net-margin expansion shows that the company has improved profitability substantially over several years. If maintained, the stronger margin structure can provide greater resilience, support internal reinvestment, and increase earnings capacity even when revenue growth is uneven.

Negative Factors

Rising LeverageThe substantial increase in debt and debt-to-equity ratio reduces financial flexibility and raises refinancing exposure. A heavier liability burden could constrain future investment or shareholder distributions, while making the company less resilient if operating conditions soften.

Shenglong Splendecor International Limited (8481) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 169.24M
Dividend Yield: ―
Average Volume (3M): 475.40K
Price to Earnings (P/E): 3.0
Beta (1Y): 0.37
Revenue Growth: -5.13%
EPS Growth: -4.83%
Country: Hong Kong
Employees: 396
Sector: Basic Materials
Sector Strength: 61
Industry: Paper, Lumber & Forest Products

Shenglong Splendecor International Limited Business Overview & Revenue Model

Company Description

Shenglong Splendecor International Limited operates as an investment holding firm primarily engaged in the manufacturing and distribution of decorative printing materials. The company's diverse product range includes decorative papers, melamine-impre...

How the Company Makes Money

null

Shenglong Splendecor International Limited Financial Statement Overview

Summary

Income statement trends are strong (material margin expansion and higher net income), but overall financial quality is capped by balance-sheet risk (debt rising to ~1.67x equity) and especially weak cash conversion/negative free cash flow (2025 FCF around -HK$219m), increasing reliance on external funding.

Income Statement

78Positive

Balance Sheet

57Neutral

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	540.46M	570.58M	585.65M	540.54M	448.80M	494.96M
Gross Profit	187.29M	198.00M	190.35M	156.09M	101.95M	94.41M
EBITDA	93.46M	123.82M	113.84M	79.03M	50.83M	43.78M
Net Income	44.54M	73.88M	47.51M	28.35M	12.06M	13.60M
Balance Sheet
Total Assets	1.19B	1.15B	874.92M	694.07M	580.96M	593.95M
Cash, Cash Equivalents and Short-Term Investments	100.06M	145.17M	55.62M	84.45M	10.28M	25.09M
Total Debt	629.16M	551.09M	381.04M	251.44M	217.02M	190.58M
Total Liabilities	874.11M	818.24M	596.09M	438.53M	353.80M	378.56M
Stockholders Equity	315.41M	329.30M	278.83M	255.54M	227.16M	215.39M
Cash Flow
Free Cash Flow	-259.62M	-218.98M	-113.39M	49.92M	-64.08M	-33.04M
Operating Cash Flow	-33.18M	39.12M	57.40M	72.95M	-9.97M	30.83M
Investing Cash Flow	-69.41M	-102.55M	-173.21M	-29.82M	-9.74M	-75.98M
Financing Cash Flow	151.07M	141.25M	94.21M	24.19M	16.87M	43.24M

Shenglong Splendecor International Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price0.35

Price Trends

50DMA0.31Positive

100DMA0.33Positive

200DMA0.37Negative

Market Momentum

MACD0.00Negative

RSI58.91Neutral

STOCH68.12Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8481, the sentiment is Positive. The current price of 0.35 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.31, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of 0.00 indicates Negative momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8481.

Shenglong Splendecor International Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:8481 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:8481	63Neutral	HKD 141.81M	3.01	13.82%	―	-5.13%	-4.83%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:2002	49Neutral	HKD 1.86B	11.43	2.76%	2.87%	14.95%	-15.17%
HK:3363	48Neutral	HKD 145.00M	3.43	3.15%	3.86%	15.13%	59.45%
HK:0731	40Underperform	HKD 360.72M	-3.68	-55.61%	―	27.73%	-478.69%
HK:1812	39Underperform	HKD 4.25B	-1.06	-447.20%	―	4.20%	52.87%
HK:1822	34Underperform	HKD 242.78M	-2.81	-61.16%	―	-24.81%	-131.67%

* Basic Materials Sector Average

Performance Comparison

HK:8481 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8481	Shenglong Splendecor International Limited	0.35	-0.24	-40.68%
HK:1812	Shandong Chenming Paper Holdings Co., Ltd. Class H	0.46	-0.30	-39.47%
HK:1822	China Wood International Holding Co., Limited	0.12	0.02	25.51%
HK:2002	China Sunshine Paper Holdings Co. Ltd.	1.75	0.05	2.65%
HK:3363	Zhengye International Holdings Co., Ltd.	0.29	-0.07	-18.54%
HK:0731	C&D Newin Paper & Pulp Corporation Limited	0.26	0.05	21.43%

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 31, 2026

Shenglong Splendecor International Limited AI Stock Analysis

Top Page