Shandong Hi-Speed Holdings Group Limited (0412) AI Stock Analysis

• Market Cap: HK$9.51B
• Dividend Yield: N/A
• Average Volume (3M): 113.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,992
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 6,019,431,000
• 10 Day Avg. Volume: 22,766,286
• 30 Day Avg. Volume: 113,578,696
• PEG Ratio: 0.51
• Price to Book (P/B): 7.69
• Price to Sales (P/S): 8.42
• P/FCF Ratio: -62.63
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$1.50 ▼(-11.76% Downside)

The overall stock score is primarily influenced by financial performance, which shows strong revenue growth but is offset by high leverage and inconsistent cash flows. Technical analysis indicates bearish momentum, and valuation metrics are weak due to negative earnings and lack of dividends. These factors collectively suggest caution in the current investment outlook.

Positive Factors

Revenue Growth Trajectory

Consistent multi-year revenue growth from HK$894.1M to HK$5.58B implies expansion of concession portfolio and higher traffic across assets. This durable top-line expansion improves scale economics, supports fixed-cost absorption, and strengthens long-term cash flow available for reinvestment and debt servicing.

Stable Gross Profitability

Sustained gross margins near 40–50% reflect disciplined cost management and structural operating leverage in toll operations. Stable gross profitability provides a durable cushion against demand swings, input cost inflation, and supports persistent operating cash generation for maintenance and concession commitments.

Toll-road Asset Base and Business Model

A strategic focus on toll-road investments yields long-duration concession revenues and predictable traffic-linked cash flows. The asset-backed, regulated nature of toll concessions increases revenue visibility and facilitates project financing, supporting durable earnings and capital allocation planning over multi-year horizons.

Negative Factors

Elevated Leverage

A rise in debt-to-equity to 7.36 indicates heavy reliance on borrowings. Elevated leverage raises interest costs, amplifies refinancing risk and sensitivity to rate moves, and constrains financial flexibility to fund capex or absorb traffic downturns, threatening long-term balance sheet resilience.

Volatile Operating Cash Flow

Erratic operating cash flow and inconsistent free cash flow reduce predictability of internal funding for maintenance and concession obligations. Persistent volatility forces greater dependence on external financing, increasing funding risk and limiting the firm’s ability to self-fund growth or cushion cyclical shocks.

Net Margins Compressed by Debt Servicing

Healthy EBITDA margins are materially eroded at the net level by heavy interest expense. Sustained debt servicing pressure limits retained earnings and equity rebuilding, reducing capacity to invest in new concessions, pay dividends or improve the capital structure over the medium term.

Shandong Hi-Speed Holdings Group Limited Business Overview & Revenue Model

Company Description

Shandong Hi-Speed Holdings Group Limited, an investment holding company, provides various financial services in the People's Republic of China. The company operates through four segments: Standard Investment, Nonstandard Investment, License Business, and Financial Leasing. The company engages in the investments in listed securities and listed bonds for interest income, dividend income and capital appreciation; direct investment business including investments in debt instruments, unlisted bonds, notes, unlisted equity investments, and investment funds; provision of money lending services, securities brokerage services, asset management services, advisory services, and asset trading platform; and direct financial leasing and advisory services. The company also provides corporate, business factoring, securities brokerage, asset management, financial investments, investment management, and related financial services; and issues guaranteed bonds. The company was formerly known as China Shandong Hi-Speed Financial Group Limited and changed its name to Shandong Hi-Speed Holdings Group Limited in July 2022. Shandong Hi-Speed Holdings Group Limited is headquartered in Central, Hong Kong.

How the Company Makes Money

Shandong Hi-Speed Holdings Group Limited generates revenue primarily through the operation of toll roads and expressways, where it collects toll fees from vehicles using its infrastructure. This revenue model is bolstered by the increasing demand for efficient transportation solutions in China, driven by urbanization and economic development. Additionally, the company may earn income from construction contracts related to infrastructure projects, including public-private partnerships (PPPs) that involve government collaboration. Key partnerships with local governments and other stakeholders enhance its operational capacity and expand its project portfolio, further contributing to its earnings. The company may also benefit from ancillary services related to transportation, such as advertising and service areas along its toll facilities.

Shandong Hi-Speed Holdings Group Limited Financial Statement Overview

Summary

Shandong Hi-Speed Holdings demonstrates solid revenue growth and operational efficiency, but faces challenges with high leverage and inconsistent cash flow performance. The company's financial health is supported by strong revenue and gross margins, but the substantial debt burden and equity erosion pose risks to financial stability.

Income Statement

The company shows a strong revenue growth trajectory, increasing from HK$894.1M in 2019 to HK$5.58B in 2024, with a notable jump from 2022 onwards. Gross profit margins have remained stable around 40-50% over recent years, indicating consistent cost management. However, net profit margins have been relatively low due to significant debt servicing costs. The EBIT and EBITDA margins are healthy, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which increased from 1.25 in 2019 to 7.36 in 2024, indicating a significant reliance on debt financing. The equity ratio has decreased over time, reflecting reduced shareholder equity relative to total assets. However, the company maintains substantial cash reserves, which provide a buffer against potential liquidity issues.

Cash Flow

Cash flow from operations has been volatile, with significant negative figures in the past, but improvements are seen in recent years. The free cash flow position has been erratic, reflecting the challenges in managing capital expenditures and operational cash generation. The ratio of operating cash flow to net income is unavailable for the latest period, indicating potential concerns in cash-based profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.22B	5.58B	5.53B	4.19B	1.07B	1.27B
Gross Profit	2.45B	2.68B	2.44B	2.26B	738.63M	-309.94M
EBITDA	2.85B	3.74B	3.47B	2.66B	7.59M	105.12M
Net Income	816.82M	353.52M	324.56M	-169.06M	30.41M	-25.65M
Balance Sheet
Total Assets	67.53B	66.17B	66.19B	68.96B	18.76B	21.04B
Cash, Cash Equivalents and Short-Term Investments	11.04B	9.08B	8.41B	10.08B	8.67B	11.38B
Total Debt	46.70B	44.97B	45.37B	47.25B	11.44B	12.53B
Total Liabilities	49.61B	48.42B	48.99B	53.38B	11.72B	12.90B
Stockholders Equity	6.55B	6.11B	5.57B	7.07B	6.97B	7.98B
Cash Flow
Free Cash Flow	-164.16M	-750.67M	1.70B	5.26B	-12.12B	-3.15B
Operating Cash Flow	1.21B	471.26M	3.33B	6.16B	-12.06B	-3.12B
Investing Cash Flow	-906.65M	-1.80B	-60.83M	464.86M	10.17B	-1.69B
Financing Cash Flow	-2.74B	-2.10B	655.77M	-3.50B	-1.77B	1.54B

Shandong Hi-Speed Holdings Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0412, the sentiment is Negative. The current price of 1.7 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.62, and below the 200-day MA of 8.53, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0412.

Shandong Hi-Speed Holdings Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6099	65 Neutral	HK$161.36B	11.49	9.41%	3.83%	51.04%	24.56%
6806	62 Neutral	HK$136.26B	7.72	8.79%	2.89%	61.94%	127.55%
6178	60 Neutral	HK$79.84B	12.81	5.22%	2.66%	30.38%	2.63%
1456	57 Neutral	HK$59.54B	15.27	4.95%	1.18%	365.12%	170.00%
3958	55 Neutral	HK$92.15B	11.94	5.91%	3.48%	22.13%	63.08%
0412	50 Neutral	HK$9.51B	―	―	―	―	―

Shandong Hi-Speed Holdings Group Limited Corporate Events

Shandong Hi-Speed Units Sign Connected Lease Deal for New Photovoltaic Project in Shandong

Shandong Hi-Speed Holdings Group and Shandong Hi-Speed New Energy Group have announced a connected transaction under which SDHS Linteng will lease a designated area in Linyi City, Shandong Province, to SHNE (Shandong) for the construction and operation of photovoltaic power generation projects. The lease, recognised as a right-of-use asset of about RMB51.3 million for each of the two listed companies under HKFRS 16, is treated as a one-off connected transaction under Hong Kong’s Listing Rules, triggering reporting and announcement obligations but exempting the parties from circular and independent shareholders’ approval requirements. The deal strengthens the group’s push into photovoltaic power, supports the expansion of its renewable energy portfolio in Shandong, and underscores the growing role of intra-group asset coordination in scaling its new energy operations while maintaining regulatory compliance for connected transactions.

The most recent analyst rating on (HK:0412) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Shandong Hi-Speed Holdings Group Limited stock, see the HK:0412 Stock Forecast page.

Shandong Hi-Speed Holdings Enters EPC Contract for Wind Farm Project

Shandong Hi-Speed Holdings Group Limited has announced that its subsidiary, Zhaoping Shangao, has entered into an EPC contract with CCCC FHEC, FHSW Engineering, and PowerChina Henan for a 100MW wind farm project in Guangxi, China. This transaction, valued at approximately RMB674.6 million, is considered a discloseable transaction under Hong Kong’s Listing Rules, indicating its significance for the company’s strategic expansion in renewable energy.

The most recent analyst rating on (HK:0412) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Shandong Hi-Speed Holdings Group Limited stock, see the HK:0412 Stock Forecast page.