HSBC has lowered its target price for Shenzhen International to HK$7.00 while retaining a Buy rating, after rising revenue was overshadowed by a HK$221 million first-half loss.
HSBC has trimmed its target price for Shenzhen International Holdings, even as the infrastructure group reported a sharp rise in first-half revenue and a wider swing into loss, underscoring the tension between its growing operating footprint and weaker bottom-line performance.
The bank cut its valuation view to HK$7.00 from HK$10.30 while keeping a Buy rating, according to a report on Futunn. The revision followed Shenzhen International’s interim results for the six months to 30 June 2026, which showed revenue of HK$8.23 billion, up 23.4% from a year earlier.
That stronger top line did not translate into profit. Shenzhen International reported a loss attributable to ordinary shareholders of HK$221 million for the period, compared with a profit of HK$490 million a year earlier, according to GMT Eight. The earnings reversal was driven largely by fair value losses on investment properties and losses from joint ventures, even as the company expanded its logistics platform.
The logistics operations division generated HK$1.179 billion in revenue, up 19% year on year, but still recorded an attributable loss of HK$22 million as newer projects remained at an early stage. Port and related services brought in HK$2.775 billion, although attributable profit in that segment fell 12% to HK$10.59 million amid competitive pressure on margins, GMT Eight reported.
By 30 June 2026, Shenzhen International said it was managing 63 logistics port projects across 43 cities, with an operational area of 8.61 million square metres. That scale gives some support to the company’s growth strategy, but the market has focused more heavily on the impact of property valuations, project ramp-up costs and softer profit expectations. Yahoo Finance reported on 19 October 2026 that the Hong Kong-listed stock was down 38.4% so far this year, highlighting how quickly investor sentiment has turned.
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