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Shenwan Hongyuan (H.K.) Limited (0218) Fair Value & Analysis

Financial Services · HK · Market cap HK$1.4B

SH Shenwan Hongyuan (H.K.) Limited 0218 · HK
PriceHK$1.01
Fair ValueHK$1.32
Upside+31.3%
Quality53/100
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Weak Growth
Highly profitable · 20.1% net margin
Low debt · negative free cash flow
Ranks above peers (10/12)
Moderate moat 55/100
Evidence: High Range HK$0.9900 – HK$1.65 Share as image

Fair value as of: Aug 2, 2026

From 7 valuation models · updated 9 days ago

Share price +12.9% over the past month.

A solid business, screening 31% undervalued on our models.

What matters now

  • Solid quality (53/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

HK$3.01 HK$0.2600 Fair Value HK$1.32 Nov 2020 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$0.2600 – HK$3.01 · fair‑value band HK$0.9900 – HK$1.65 · the HK$1.01 price screens below the HK$1.32 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Shenwan Hongyuan (H.K.) Limited (0218) currently trades at HK$1.01, while our model-based Fair Value estimate is HK$1.32, implying the stock looks roughly 31.3% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Shenwan Hongyuan (H.K.) Limited generated revenue of HK$601M at a net margin of 20.1%. It earns a return on equity of 4.5%. Net debt stands at HK$1.3B. The stock trades on a trailing P/E of 11.4. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$0.9900 (bear case) to HK$1.65 (bull case); at HK$1.01, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 63% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 11% fair-value upside, at 31%, 0218 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$1.25 HK$1.22 HK$1.04 76
P/E Multiple HK$0.7600 HK$1.01 HK$1.26 63
P/B Multiple HK$0.9900 HK$1.32 HK$1.65 55
All 7 models by family
DCF Models
Owner Earnings HK$1.88 HK$3.30 HK$5.91 31
Earnings-Based
Graham-Dodd HK$0.5300 HK$3.67 HK$5.16 54
Lynch FV HK$1.90 HK$2.71 HK$3.52 50
Multiples
P/E Multiple HK$0.7600 HK$1.01 HK$1.26 63
P/B Multiple HK$0.9900 HK$1.32 HK$1.65 55
Asset-Based
NCAV (Graham) HK$0.8800 HK$1.18 HK$1.76 50
Economic Profit
Residual Income HK$1.25 HK$1.22 HK$1.04 76

Widest divergence: DCF Models (HK$3.30) versus Multiples (HK$1.01). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$601M
Revenue growth (YoY) +312%
Net margin 20.1%
Return on equity 4.5%
Free cash flow −HK$1.8B FY2025
P/E ratio 11.4
More key figures
Operating margin 25.3%
EPS (TTM) HK$0.0400
EPS growth (YoY) -33.5%
Net debt HK$1.3B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 43 · Market factors (momentum, volatility) 24

Profitability 27
Margins and returns on capital today
Quality Growth 90
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 16
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Shenwan Hongyuan (H.K.) Limited, an investment holding company, engages in the brokerage, corporate finance, asset management, financing and loans, and investment and other businesses in Hong Kong. The company operates through Enterprise Finance, Wealth Management, Institutional Services and Trading, and Asset Management segments.

Full company description

Shenwan Hongyuan (H.K.) Limited, an investment holding company, engages in the brokerage, corporate finance, asset management, financing and loans, and investment and other businesses in Hong Kong. The company operates through Enterprise Finance, Wealth Management, Institutional Services and Trading, and Asset Management segments. The Enterprise Finance segment offers stock underwriting sponsorship, bond underwriting, and financial advisory services for corporate clients; and self-financing equity, debt, and other investments. The Wealth Management segment provides securities, futures, and options brokerage services; and wealth management, over-the-counter, and securities margin financing products to individual clients and non-professional institutional investors through a combination of online and offline methods. The Institutional Services and Trading segment provides stock brokerage and trading services; research consulting, fixed income bonds, foreign exchange, over-the-counter derivatives and other trading investments, and investment and financing solutions, as well as fixed income, currencies and commodities, structured products, and stock business. The Asset Management segment offers public and private fund management, investment advisory, and discretionary managed account services. It offers management and treasury and share custodian and nominee services; leases computer equipment; and holds properties. The company was formerly known as Shenyin Wanguo (H.K.) Limited and changed its name to Shenwan Hongyuan (H.K.) Limited in May 2015. The company was incorporated in 1972 and is headquartered in Hong Kong, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shenwan Hongyuan (H.K.) Limited reported revenue of HK$666M in FY2025 versus HK$730M in FY2021, a compound −2.3%/yr. Reported net income was HK$121M in FY2025.

Growth Quality 17/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$666M
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+35.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.5%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.5%
Revenue −2.3%/yr
FY21 HK$730M
FY22 HK$270M
FY23 HK$439M
FY24 HK$55.3M
FY25 HK$666M
Net income
FY21 −HK$95.8M
FY22 −HK$880M
FY23 −HK$192M
FY24 −HK$161M
FY25 HK$121M

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Cite: Fair Value Calculator (2026). "Shenwan Hongyuan (H.K.) Limited Fair Value". https://www.fairvalue-calculator.com/stock/0218

Peer Group

Capital Markets · 423 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Above median
Fair Value upside +31% · Above median
Return on equity (TTM) 4% · Below median
Return on assets 1% · Below median
Net margin (TTM) 20% · Above median
Operating margin (TTM) 25% · Above median
Revenue growth 312% · Top 25%

Valuation Multiples vs Capital Markets median · lower = cheaper

P/E (TTM) 11.4× · Cheaper than median
P/B 0.52× · Cheaper than 75% of peers
P/S (TTM) 2.37× · Cheaper than median
EV/EBITDA 2.1× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 75 · sector 9
FUTURE 100 · sector 96
PAST 18 · sector 30
HEALTH 100 · sector 93
DIVIDEND 0 · sector 36

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Capital Markets stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Huatai Securities Co HTSC $0.2700 $0.0400 -85%
Mirae Asset Securities Co 006800 38,750 KRW 31,645 KRW -18%
Meritz Financial Group 138040 117,000 KRW 87,706 KRW -25%
Korea Investment Holdings 071050 239,000 KRW 318,825 KRW +33%
NH Investment & Securities Co 005940 31,000 KRW 37,133 KRW +20%
Samsung Securities Co 016360 107,700 KRW 126,487 KRW +17%
Motilal Oswal Financial Services Limited MOTILALOFS ₹967.00 ₹299.65 -69%
Kiwoom Securities Co 039490 322,000 KRW 358,091 KRW +11%
SSI Securities Corporation SSI 24,250 VND 28,021 VND +16%
Bolsas y Mercados Argentinos S.A BYMA 313.75 ARS 120.22 ARS -62%

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Frequently asked questions

Is Shenwan Hongyuan (H.K.) Limited (0218) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$1.32 versus a price of HK$1.01, about +31% (undervalued).
What is the fair value of 0218?
Our model-based fair value for Shenwan Hongyuan (H.K.) Limited is HK$1.32 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$1.01.
What is the quality score of 0218?
Shenwan Hongyuan (H.K.) Limited has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Shenwan Hongyuan (H.K.) Limited (0218)?
Shenwan Hongyuan (H.K.) Limited reported trailing-twelve-month revenue of about HK$601M (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0218?
The net profit margin of Shenwan Hongyuan (H.K.) Limited is about 20.1%, meaning it keeps roughly 20.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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