HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Shenzhen International / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen International (152 HK)</a>'s loss-making 1H26 is disappointing, but looking ahead, the potential profit recovery in 2H26 is more important.  </li>
<li>It may potentially book a significant gain from the South China Logistics Park transformation in 2H26, possibly leading to an attractive dividend yield of 8.7%.</li>
<li>Its 0.33x 12-month forward P/B, 2SD below average, has already discounted the market concerns. Stripping out <a href="https://www.smartkarma.com/entities/shenzhen-expressway-co-ltd" target="_blank" data-smartkarma-citation="entities:340:1" rel="noopener">Shenzhen Expressway (600548 CH)</a> , its other assets are free. </li>
</ul>



Shenzhen International (152 HK)'s loss-making 1H26 is disappointing, but looking ahead, the potential profit recovery in 2H26 is more important.  
It may potentially book a significant gain from the South China Logistics Park transformation in 2H26, possibly leading to an attractive dividend yield of 8.7%.
Its 0.33x 12-month forward P/B, 2SD below average, has already discounted the market concerns. Stripping out Shenzhen Expressway (600548 CH) , its other assets are free. 


Shenzhen Intl (152 HK): Look Beyond the History

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<ul>
  <li>
<a href="https://smartkarma.com/entities/shenzhen-international-holdings-limited">Shenzhen International</a> is a key logistics and toll road infrastructure operator, strategically positioned within China's Greater Bay Area, offering exposure to the region's economic activity and trade flows.</li>
  <li>The company exhibits a compelling valuation with a low price-to-book ratio and a high dividend yield, supported by its state-owned background. However, this is contrasted by significant financial risks, including consistently negative free cash flow and high capital expenditures.</li>
  <li>Future growth is contingent on the successful execution of major toll road expansion projects and the continued development of its logistics park portfolio, though near-term profitability is pressured by market conditions and asset impairment risks.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
Shenzhen International is a key logistics and toll road infrastructure operator, strategically positioned within China's Greater Bay Area, offering exposure to the region's economic activity and trade flows.
  The company exhibits a compelling valuation with a low price-to-book ratio and a high dividend yield, supported by its state-owned background. However, this is contrasted by significant financial risks, including consistently negative free cash flow and high capital expenditures.
  Future growth is contingent on the successful execution of major toll road expansion projects and the continued development of its logistics park portfolio, though near-term profitability is pressured by market conditions and asset impairment risks.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Shenzhen International (152 HK) - Aug 2026

Thematic (Sector/Industry)

<ul>
<li>While 1H25 results are upcoming, the market's focus will start to move to the 2H25 earnings. There are five stocks whose earnings momentum will accelerate HoH. </li>
<li>
<a href="https://www.smartkarma.com/entities/sany-heavy-equipment-intl" target="_blank" data-smartkarma-citation="entities:11104:1" rel="noopener">Sany Heavy Equipment (631 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK)</a>, and <a href="https://www.smartkarma.com/entities/shenzhen-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen International (152 HK)</a> are having the best YTD performance. Still, there is more upside.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free" target="_blank" data-smartkarma-citation="entities:36229:1" rel="noopener">China Tourism Group Duty Free (1880 HK)</a> and <a href="https://www.smartkarma.com/entities/cimc-enric-holdings-ltd" target="_blank" data-smartkarma-citation="entities:47:1" rel="noopener">CIMC Enric Holdings (3899 HK)</a> are the laggards YTD, but a stronger earnings outlook should drive a pick-up in 2H25.</li>
</ul>


While 1H25 results are upcoming, the market's focus will start to move to the 2H25 earnings. There are five stocks whose earnings momentum will accelerate HoH. 

Sany Heavy Equipment (631 HK), Shanghai Electric Group Company (2727 HK), and Shenzhen International (152 HK) are having the best YTD performance. Still, there is more upside.

China Tourism Group Duty Free (1880 HK) and CIMC Enric Holdings (3899 HK) are the laggards YTD, but a stronger earnings outlook should drive a pick-up in 2H25.


China Strategy: Interesting Stock Picks for 2H25

<ul>
<li>While <a href="https://www.smartkarma.com/entities/shenzhen-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen International (152 HK)</a>'s FY24 result is at the low end of the positive profit alert range, its 2H24 net profit has still grown by 22.7%. </li>
<li>Better outlook at <a href="https://www.smartkarma.com/entities/shenzhen-expressway-co-h" target="_blank" data-smartkarma-citation="entities:2875:1" rel="noopener">Shenzhen Expressway (548 HK)</a> and margin improvement for logistics hubs will drive FY25. Upside will come from further gains at South China Logistics Park. </li>
<li>SZI's valuations of 5.9x PER, 8.4% yield, and 0.5x P/B for FY25F are attractive. As more deals are sealed to realise its asset value, its P/B discount will narrow.</li>
</ul>


While Shenzhen International (152 HK)'s FY24 result is at the low end of the positive profit alert range, its 2H24 net profit has still grown by 22.7%. 
Better outlook at Shenzhen Expressway (548 HK) and margin improvement for logistics hubs will drive FY25. Upside will come from further gains at South China Logistics Park. 
SZI's valuations of 5.9x PER, 8.4% yield, and 0.5x P/B for FY25F are attractive. As more deals are sealed to realise its asset value, its P/B discount will narrow.


Shenzhen Intl (152 HK): Delivered as Promised

<ul>
<li>The listing of Air China Cargo and progress on the transformation and upgrading of its South China Logistics Park again demonstrated <a href="https://www.smartkarma.com/entities/shenzhen-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen International (152 HK)</a>'s asset value. </li>
<li>Its 8.8% stake in Air China Cargo is now valued at HK$10.6bn, or 61% of its market capitalisation, suggesting its other assets are almost free.</li>
<li>Government approval on the South China Logistics Park transformation Phase I has been obtained, implying potential land value gains to be booked. </li>
</ul>


The listing of Air China Cargo and progress on the transformation and upgrading of its South China Logistics Park again demonstrated Shenzhen International (152 HK)'s asset value. 
Its 8.8% stake in Air China Cargo is now valued at HK$10.6bn, or 61% of its market capitalisation, suggesting its other assets are almost free.
Government approval on the South China Logistics Park transformation Phase I has been obtained, implying potential land value gains to be booked. 


Shenzhen Intl (152 HK): Realisation of Asset Values

Hong Kong

Shenzhen International Holdings Limited invests in, constructs, and operates logistics infrastructure facilities, including logistics parks, toll roads, and ports. The company also provides third-party logistics services, logistics information services, and general environmental protection businesses, offering value-added services like intelligent warehousing and integrated cold chain solutions. The company is headquartered in Hong Kong.

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Shenzhen International (152 HK)

Shenzhen Intl (152 HK): Look Beyond the History

Shenzhen Intl's disappointing 1H26 is a matter of the past, and 2H26 may see significant profit recovery given the possibly to book gains in South...

Osbert Tang, CFA

Primer: Shenzhen International (152 HK) - Aug 2026

Shenzhen International is a key logistics and toll road infrastructure operator, strategically positioned within China's Greater Bay Area,...

αSK Primers

China Strategy: Interesting Stock Picks for 2H25

Market focus shifting to 2H25 earnings, with five stocks expected to see earnings momentum acceleration, including Sany Intl, Shanghai Electric,...

Osbert Tang, CFA

Shenzhen Intl (152 HK): Delivered as Promised

Shenzhen Intl's 2H24 net profit grew 22.7%, with a positive FY25 outlook driven by Shenzhen Exp and logistics margin recovery. Valuations are...

Osbert Tang, CFA

Shenzhen Intl (152 HK): Realisation of Asset Values

Air China Cargo's listing and progress on the South China Logistics Park upgrade showcase SZI's asset values, with its 8.8% stake in Air China...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Shenzhen Intl (152 HK): Look Beyond the History

Shenzhen Intl's disappointing 1H26 is a matter of the past, and 2H26 may see significant profit recovery given the possibly to book gains in South...

Osbert Tang, CFA

Primer: Shenzhen International (152 HK) - Aug 2026

Shenzhen International is a key logistics and toll road infrastructure operator, strategically positioned within China's Greater Bay Area,...

αSK Primers

China Strategy: Interesting Stock Picks for 2H25

​Market focus shifting to 2H25 earnings, with five stocks expected to see earnings momentum acceleration, including Sany Intl, Shanghai Electric,...

Osbert Tang, CFA

Shenzhen Intl (152 HK): Delivered as Promised

​Shenzhen Intl's 2H24 net profit grew 22.7%, with a positive FY25 outlook driven by Shenzhen Exp and logistics margin recovery. Valuations are...

Osbert Tang, CFA

Shenzhen Intl (152 HK): Realisation of Asset Values

​Air China Cargo's listing and progress on the South China Logistics Park upgrade showcase SZI's asset values, with its 8.8% stake in Air China...

Osbert Tang, CFA

Market focus shifting to 2H25 earnings, with five stocks expected to see earnings momentum acceleration, including Sany Intl, Shanghai Electric,...

Shenzhen Intl's 2H24 net profit grew 22.7%, with a positive FY25 outlook driven by Shenzhen Exp and logistics margin recovery. Valuations are...

Air China Cargo's listing and progress on the South China Logistics Park upgrade showcase SZI's asset values, with its 8.8% stake in Air China...