Sichuan Expressway Co (0107) AI Stock Analysis

• Market Cap: $17.00B
• Dividend Yield: 6.05%
• Average Volume (3M): 4.37M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.11
• Revenue Growth: -13.19%
• EPS Growth: 18.52%
• Country: HK
• Employees: 4,548
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.15
• Shares Outstanding: 895,320,000
• 10 Day Avg. Volume: 2,377,200
• 30 Day Avg. Volume: 4,365,210
• PEG Ratio: 3.06
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.89
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sichuan Expressway Co has a strong technical position with its stock trading well above key moving averages, suggesting positive momentum. The stable financial performance, despite revenue challenges, and attractive dividend yield further support the stock's appeal. However, attention to leverage and revenue growth remains important.

Sichuan Expressway Co Business Overview & Revenue Model

Company Description

Sichuan Expressway Company Limited, together with its subsidiaries, invests in, constructs, operates, and manages expressway infrastructure projects in Sichuan Province, the People's Republic of China. It operates through five segments: Toll Roads and Bridges; City Operation; Financial Investment; Energy Investment; and Transportation, Tourism, Culture, and Education. The Toll Roads and Bridges segment engages in the operation of expressways and a high-grade toll bridges. The City Operation segment provides construction and upgrade services under the service concession arrangements and construction contracts, and advertising services, as well as engages in the investment, development, and rental of properties along expressways. The Financial Investment segment is involved in finance lease operation, financial investment, and factoring businesses. The Energy Investment segment operates gas stations along expressways; and sells petrochemicals and other oil products. The Transportation, Tourism, Culture, and Education segment engages in the education operations. It also offers logistics and property development services. Sichuan Expressway Company Limited was incorporated in 1997 and is based in Chengdu, the People's Republic of China.

How the Company Makes Money

Sichuan Expressway Co., Ltd. generates revenue primarily through the collection of toll fees from vehicles using its expressway network. The toll fees are a critical revenue stream, reflecting the traffic volume and usage of these roads. Additionally, the company may receive revenue from ancillary services such as service area operations, advertising, and road maintenance services. Key partnerships with local governments and strategic alliances with other infrastructure firms can also contribute to its earnings by facilitating the expansion and enhancement of its expressway projects. The company’s financial performance is influenced by factors such as economic conditions, regulatory policies, and infrastructure development plans in the region.

Sichuan Expressway Co Financial Statement Overview

Summary

Sichuan Expressway Co has a stable financial profile with strong operational margins and efficient cash generation. However, the revenue decline and increased leverage pose potential risks. Strategic focus on revenue growth and debt management could enhance financial health.

Income Statement

Sichuan Expressway Co has demonstrated a mixed performance in its income statement. The gross profit margin has seen a slight improvement from 25.15% in 2023 to 31.86% in 2024, indicating better cost management. However, the net profit margin has decreased from 10.18% to 14.08% due to a drop in total revenue by 11.05%, which could be concerning. The EBIT margin is robust at 17.98%, and the EBITDA margin is a healthy 38.50%, reflecting strong operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet of Sichuan Expressway Co shows a moderate financial position. The debt-to-equity ratio has increased from 2.21 in 2023 to 1.98 in 2024, indicating increased leverage, which may pose risks. The return on equity (ROE) has improved to 7.93% from 7.57%, suggesting better utilization of equity. However, the equity ratio has decreased from 27.18% to 30.14%, reflecting a stable but leveraged capital structure.

Cash Flow

Sichuan Expressway Co's cash flow statement reveals a stable but cautious picture. Operating cash flow to net income ratio is strong at 2.53, indicating good cash generation relative to net income. However, the free cash flow growth rate cannot be assessed due to missing data. The free cash flow to net income ratio is 0.45, showing that a significant portion of net income is reinvested back into the business.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.20B	10.36B	11.65B	9.91B	9.10B	5.46B
	Gross Profit
3.30B	3.30B	2.93B	1.80B	2.35B	1.95B
	EBIT
1.95B	1.86B	2.32B	1.53B	2.27B	1.65B
	EBITDA
2.74B	3.98B	3.75B	2.50B	3.81B	1.92B
	Net Income Common Stockholders
1.52B	1.46B	1.19B	624.23M	1.87B	674.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.51B	2.95B	1.98B	2.55B	3.84B	3.23B
	Total Assets
63.37B	61.07B	57.66B	40.26B	40.73B	40.46B
	Total Debt
37.99B	36.49B	34.58B	19.35B	20.04B	18.38B
	Net Debt
33.47B	33.55B	32.60B	16.80B	16.20B	15.15B
	Total Liabilities
42.22B	41.57B	40.99B	21.54B	22.28B	23.93B
	Stockholders Equity
20.04B	18.40B	15.67B	17.81B	17.36B	15.53B
Cash Flow		Free Cash Flow
315.14M	652.40M	―	―	―	―
	Operating Cash Flow
0.00	3.70B	3.23B	2.01B	1.58B	2.29B
	Investing Cash Flow
―	―	―	―	―	―
	Financing Cash Flow
2.08B	464.23M	―	190.61M	641.85M	690.58M

Sichuan Expressway Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.35
• 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:0107, the sentiment is Positive. The current price of 4.35 is above the 20-day moving average (MA) of 4.17, above the 50-day MA of 3.76, and above the 200-day MA of 3.37, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 67.70 is Neutral, neither overbought nor oversold. The STOCH value of 57.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0107.

Sichuan Expressway Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0107	73 Outperform	$17.00B	8.35	8.46%	6.05%	-13.19%	18.52%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%

Sichuan Expressway Co Corporate Events

Sichuan Expressway Reports Q1 2025 Financial Results: Profitability Up Despite Revenue Dip

Sichuan Expressway Company Limited reported its unaudited financial results for the first quarter of 2025, showing a decrease in operating revenue by 8.08% compared to the same period last year. However, the company achieved a 16.61% increase in net profit attributable to shareholders, indicating improved profitability despite reduced revenue. The net cash flows from operating activities saw a significant decline of 35.88%, which may impact the company’s liquidity position. The total assets and owners’ equity also showed growth, suggesting a stable financial foundation.

Sichuan Expressway Announces 2024 AGM with Key Resolutions

Sichuan Expressway Company Limited has announced its 2024 Annual General Meeting, scheduled for May 22, 2025, in Chengdu, China. The meeting will address several resolutions, including the approval of a non-financial corporate debt financing instrument, profit and dividend distribution plans for 2024, and the re-appointment of auditors. These decisions are pivotal for the company’s financial strategy and governance, impacting stakeholders by ensuring continued transparency and accountability in its operations.

Sichuan Expressway Schedules Board Meeting for Q1 Results Review

Sichuan Expressway Company Limited has announced that its board of directors will convene on April 29, 2025, to review and approve the unaudited financial results for the first quarter of 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction for stakeholders.

Leadership Changes at Sichuan Expressway: New Chairlady Appointed

Sichuan Expressway Company Limited announced the resignation of Mr. Luo Maoquan as the supervisor and chairman of the supervisory committee due to his personal retirement, effective April 14, 2025. His departure will not affect the supervisory committee’s operations, and Madam Li Tao has been recommended to act as the chairlady until a new chairman is elected.

Sichuan Expressway Co. Reports Increased Profits Despite Revenue Decline in 2024

Sichuan Expressway Co. reported its 2024 annual results, highlighting a decrease in net revenue by approximately 11.51% to RMB10.25 billion. Despite the revenue drop, the company saw a significant increase in profit attributable to owners by 21.72% to RMB1.45 billion, and earnings per share rose by 21.85% to RMB0.474. The company proposed a final cash dividend of RMB0.29 per share, up from RMB0.24 in the previous year. These results indicate a strong financial performance in terms of profitability, despite a challenging revenue environment, which could positively impact shareholder value and market perception.

Sichuan Expressway Announces Final Dividend for 2024

Sichuan Expressway Company Limited announced a final cash dividend of RMB 0.29 per share for the financial year ending December 31, 2024. The dividend will be subject to a withholding tax of 10% for non-resident enterprise and individual shareholders, while mainland domestic individual investors and securities investment funds investing through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect will face a 20% tax rate. The payment date for the dividend is set for July 11, 2025, and the announcement reflects the company’s commitment to returning value to its shareholders.

Sichuan Expressway Co. Proposes Debt Financing Instruments

Sichuan Expressway Co. has announced a proposal for the registration and issuance of non-financial corporate debt financing instruments. The company plans to issue up to RMB3 billion in medium-term notes and RMB3 billion in super short-term commercial papers, targeting institutional investors in the PRC’s inter-bank bond market. The proceeds will be used for enterprise business activities, including funding projects under construction, proposed investments, and replenishing working capital.

Sichuan Expressway Terminates Acquisition Agreement with Shudao Innovation

Sichuan Expressway Company Limited announced the termination of its Acquisition Agreement with Shudao Innovation Investment, initially aimed at acquiring a target equity interest. This decision means the company will not issue consideration shares to Shudao, circumventing the need for a Whitewash Waiver, and ensuring no change in voting rights or mandatory offer obligations. The Board of Sichuan Expressway believes this termination will not adversely affect the company’s current business or financial status.