SHTML generally means the file can be parsed by the server for specific server-side replacements, before the HTML is presented to the browser. The term for this is server-side includes, or SSI. The main benefit being, you can write some code that gets "caught" by the server before the browser sees it and get replaced with the contents of another file, such as an external textfile. This is very useful if you want a small portion of HTML to be the same on every page of your site (such as a navbar), but you can edit it externally to update your whole website.
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