Transport International Holdings Limited (0062) AI Stock Analysis

• Market Cap: HK$4.68B
• Dividend Yield: 5.62%
• Average Volume (3M): 122.36K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.18
• Revenue Growth: 4.19%
• EPS Growth: -54.47%
• Country: HK
• Employees: 11,337
• Sector: Industrials
• Sector Strength: 92
• Industry: Railroads
• EPS (TTM): 0.37
• Shares Outstanding: 525,917,970
• 10 Day Avg. Volume: 91,335
• 30 Day Avg. Volume: 122,361
• PEG Ratio: -0.90
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$10.00
• Price Target Upside: 12.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$10.00 ▲(12.61%Upside)

The stock of Transport International Holdings Limited is rated at 73, driven by strong technical analysis indicators and a robust financial foundation. However, its valuation is moderate, and cost management issues are a concern. The attractive dividend yield provides a compensating factor, making it appealing for income-focused investors.

Transport International Holdings Limited Business Overview & Revenue Model

Company Description

Transport International Holdings Limited (TIH) is a Hong Kong-based investment holding company primarily engaged in the provision of public transportation services. The company operates through its flagship subsidiary, The Kowloon Motor Bus Company (1933) Limited, which delivers franchised bus services in Hong Kong. TIH also has interests in non-franchised transport operations, property holdings, and development activities, providing a diversified portfolio within the transportation and real estate sectors.

How the Company Makes Money

Transport International Holdings Limited generates revenue primarily through its provision of public bus transportation services under The Kowloon Motor Bus Company (1933) Limited. The company's main revenue stream is the collection of fares from passengers using its extensive network of bus routes across Hong Kong. Additionally, TIH earns income from advertising on its buses and within its facilities. The company also benefits from its non-franchised transport services, which include hire-a-bus services and cross-boundary coach services. Moreover, TIH generates revenue through property holdings and development, leveraging its strategic locations to enhance real estate value. Furthermore, the company may engage in strategic partnerships and collaborations to optimize operations and expand market reach, although specific partnership details are not provided.

Transport International Holdings Limited Financial Statement Overview

Summary

Transport International Holdings Limited exhibits stable revenue growth and strong equity backing. However, recent declines in net profit margins indicate cost management challenges. The company's low leverage and positive cash flow trends provide a robust foundation, with opportunities for enhancing profitability and optimizing capital expenditures.

Income Statement

The company shows a consistent increase in revenue over the years, with a recent growth rate of 4.19% from 2023 to 2024. Gross profit margin stands at 28.96% in 2024, reflecting effective cost management. However, the net profit margin significantly decreased to 2.28% in 2024 from 5.09% in 2023, indicating challenges in controlling expenses or other cost pressures. EBIT and EBITDA margins are stable, but the decline in net income needs addressing.

Balance Sheet

The balance sheet demonstrates strong equity with a debt-to-equity ratio of 0.25, indicating low leverage and manageable debt levels. ROE is modest at 1.12% for 2024, suggesting limited profitability from equity. The equity ratio of 69.90% signifies a solid financial foundation, emphasizing stability and low risk in financing structure.

Cash Flow

Operating cash flow increased by 10.87% from 2023 to 2024, indicating healthy cash generation. The free cash flow to net income ratio is favorable, showing effective conversion of profits into cash. However, capital expenditures remain high, impacting free cash flow growth, which is positive yet moderate at 151.27% from 2023 to 2024, reflecting potential for improved capital management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.22B	7.88B	6.61B	7.20B	6.19B
Gross Profit	2.36B	2.20B	1.36B	1.84B	761.44M
EBITDA	1.44B	1.63B	1.60B	1.28B	2.74B
Net Income	187.28M	401.66M	143.64M	245.04M	1.90B
Balance Sheet
Total Assets	23.91B	24.19B	21.15B	19.95B	19.30B
Cash, Cash Equivalents and Short-Term Investments	1.71B	1.67B	2.02B	1.57B	2.18B
Total Debt	4.22B	4.65B	4.97B	3.14B	3.09B
Total Liabilities	7.20B	7.78B	7.77B	6.27B	6.12B
Stockholders Equity	16.71B	16.41B	13.38B	13.68B	13.19B
Cash Flow
Free Cash Flow	625.44M	248.81M	-230.75M	-152.23M	-74.10M
Operating Cash Flow	1.50B	1.37B	849.62M	1.32B	1.20B
Investing Cash Flow	-824.66M	-1.71B	-2.04B	-1.58B	-826.95M
Financing Cash Flow	-544.10M	-512.65M	1.72B	-48.90M	217.88M

Transport International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0062, the sentiment is Positive. The current price of 8.88 is above the 20-day moving average (MA) of 8.84, above the 50-day MA of 8.79, and above the 200-day MA of 8.10, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 60.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0062.

Transport International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0066	79 Outperform	$170.71B	10.81	8.65%	6.48%	5.32%	102.27%
0062	73 Outperform	HK$4.68B	23.82	1.11%	5.62%	4.19%	-54.47%
0525	65 Neutral	$21.15B	14.07	3.59%	3.87%	―	―
0077	58 Neutral	HK$114.20M	13.59	22.19%	9.52%	3.20%	―
Sector *	58 Neutral	HK$14.15B	4.41	-3.01%	7.30%	3.67%	-54.16%
0306	56 Neutral	HK$858.20M	6.75	6.38%	1.11%	45.42%	―

Transport International Holdings Limited Corporate Events

Transport International Holdings Limited Sets Nomination Committee Guidelines

Transport International Holdings Limited has outlined the terms of reference for its Nomination Committee, which is responsible for overseeing the structure and composition of the company’s Board of Directors. The committee’s duties include ensuring board diversity, assessing director independence, and recommending appointments and reappointments. This initiative aims to enhance corporate governance and align the board’s capabilities with the company’s strategic goals, potentially impacting its governance structure and stakeholder confidence.

Transport International Holdings Announces New Board of Directors

Transport International Holdings Limited has announced a new list of directors and their roles, effective from July 1, 2025. This update includes the appointment of Dr. Norman Leung Nai Pang as Chairman and Mr. Roger Lee Chak Cheong as Managing Director, reflecting a strategic realignment in the company’s leadership structure.

Transport International Expands Non-Franchised Bus Services with New Contracts

Transport International Holdings Limited announced that its subsidiary SBL has entered into new shuttle bus service contracts with AFFCC and iAdvantage, expanding its non-franchised bus services. These contracts, along with previous agreements with HKBAC and SHKRE, are considered continuing connected transactions under Hong Kong’s Listing Rules. The transactions are subject to reporting and annual review requirements but are exempt from circular and independent shareholder approval, indicating a streamlined regulatory process.

Transport International Holdings Announces Final Dividend with Scrip Option

Transport International Holdings Limited has announced a final dividend of HKD 0.5 per share for the financial year ending December 31, 2024. Shareholders have the option to receive their dividend in cash or opt for a scrip option at a conversion price of HKD 8.65 per share. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its financial strategy and stakeholder relations.

Transport International Holdings Announces Scrip Dividend Scheme

Transport International Holdings Limited has announced a Scrip Dividend Scheme for its shareholders, offering them the option to receive the final dividend for the year ended December 31, 2024, in cash or as new shares. The market value of the new shares is set at HK$8.65 per share, and eligible shareholders must elect their preferred option by June 16, 2025. This scheme allows shareholders flexibility in their dividend reception and could potentially impact the company’s share liquidity and market perception.

Transport International Holdings AGM Resolutions Passed

Transport International Holdings Limited announced that all resolutions proposed at their Annual General Meeting on May 15, 2025, were passed by shareholder poll. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and the re-appointment of KPMG as auditors. The approval of these resolutions reflects strong shareholder support and positions the company for continued governance and operational stability.

Transport International Holdings Announces 2025 AGM Agenda

Transport International Holdings Limited has announced its Annual General Meeting scheduled for May 15, 2025, at the Royal Plaza Hotel in Hong Kong. Key agenda items include reviewing the audited financial statements for 2024, declaring a final dividend, re-electing directors, appointing auditors, and setting their remuneration. Additionally, the company seeks approval to allot and issue additional shares, not exceeding 20% of the current issued shares, which could impact shareholder value and market positioning.