Shenwan Hongyuan Group Co., Ltd. Fundamental Analysis (HKSE: 6806.HK)
Shenwan Hongyuan Group Co., Ltd. Fundamental Analysis (HKSE: 6806.HK)
Shenwan Hongyuan Group Co., Ltd. (HKSE: 6806.HK) shows strong financial fundamentals with a PE ratio of 4.80, profit margin of 31.96%, and ROE of 9.64%. The company generates $62.8B in annual revenue with strong year-over-year growth of 17.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6806.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak6806.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent6806.HK trades at attractive valuation levels.
Growth Score
Excellent6806.HK delivers strong and consistent growth momentum.
Financial Health Score
Weak6806.HK carries high financial risk with limited liquidity.
Profitability Score
Moderate6806.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 6806.HK Expensive or Cheap?
P/E Ratio
6806.HK trades at 4.80 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6806.HK's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Shenwan Hongyuan Group Co., Ltd. at 0.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -17.84 times EBITDA. This is generally considered low.
How Well Does 6806.HK Make Money?
Net Profit Margin
For every $100 in sales, Shenwan Hongyuan Group Co., Ltd. keeps $31.96 as profit after all expenses.
Operating Margin
Core operations generate 36.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.64 in profit for every $100 of shareholder equity.
ROA
Shenwan Hongyuan Group Co., Ltd. generates $1.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shenwan Hongyuan Group Co., Ltd. generates strong operating cash flow of $30.55B, reflecting robust business health.
Free Cash Flow
Shenwan Hongyuan Group Co., Ltd. generates strong free cash flow of $29.78B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.65 in free cash annually.
FCF Yield
6806.HK converts 16.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 6806.HK Stacks Against Its Sector Peers
| Metric | 6806.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.80 | 20.76 | Better (Cheaper) |
| ROE | 9.64% | 644.00% | Weak |
| Net Margin | 31.96% | -1529.00% (disorted) | Strong |
| Debt/Equity | 3.57 | 0.88 | Weak (High Leverage) |
| Current Ratio | 0.62 | 830.27 | Weak Liquidity |
| ROA | 1.32% | -577.00% (disorted) | Weak |
6806.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shenwan Hongyuan Group Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3.05%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
22.42%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
112.10%
Industry Style: Value, Dividend, Cyclical
High Growth