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Guangshen Railway Company Class H (HK:0525)
:0525
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Guangshen Railway Company (0525) AI Stock Analysis

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HK:0525

Guangshen Railway Company

(OTC:0525)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
HK$2.50
▼(-1.96% Downside)
Guangshen Railway Company's stock score is driven by solid financial performance and reasonable valuation. However, bearish technical indicators and challenges in net profitability and free cash flow growth limit the overall score.

Guangshen Railway Company (0525) vs. iShares MSCI Hong Kong ETF (EWH)

Guangshen Railway Company Business Overview & Revenue Model

Company DescriptionGuangshen Railway Company Limited (stock code: 0525) is a leading railway transportation enterprise in China, primarily engaged in the operation of passenger and freight rail services. The company operates along the key Guangzhou-Shenzhen line and extends its services to various regions, including the Hong Kong Special Administrative Region. Guangshen Railway is known for its high-speed passenger trains, which cater to the growing demand for efficient and rapid transit within the Pearl River Delta, as well as freight services that support logistics and supply chain needs across the region.
How the Company Makes MoneyGuangshen Railway generates revenue primarily through passenger ticket sales, which account for a significant portion of its income. The company offers various classes of service on its high-speed trains, catering to different customer segments and preferences, thus maximizing ticket revenue. Additionally, freight transportation services represent another key revenue stream, where the company hauls goods and commodities, benefiting from the increasing demand for logistics solutions. The company also earns income from ancillary services, including on-board services and advertising. Strategic partnerships, such as collaborations with local tourism agencies and businesses, enhance its service offerings and drive additional traffic to its trains. Furthermore, government support and investments in infrastructure development play a crucial role in bolstering Guangshen Railway's operational capabilities and market position.

Guangshen Railway Company Financial Statement Overview

Summary
Guangshen Railway Company shows a positive trend in financial performance with improved gross profit margins and revenue growth. The balance sheet is stable with reduced leverage, but challenges remain in net profitability and capital expenditure management.
Income Statement
75
Positive
Guangshen Railway Company has shown a positive trend in its income statement metrics. The gross profit margin has improved from 2022 to TTM (Trailing-Twelve-Months), indicating better operational efficiency. Revenue growth is evident with a TTM revenue increase compared to the previous year. Although net profit margins are recovering, they remain below optimal levels due to fluctuating net income. The EBIT and EBITDA margins have improved, reflecting stronger core profitability.
Balance Sheet
70
Positive
The balance sheet reveals a stable equity position with a favorable equity ratio, indicating strong financial stability. The debt-to-equity ratio has improved over the years, suggesting reduced leverage and financial risk. However, the return on equity remains modest, reflecting a need for higher profitability to enhance shareholder returns.
Cash Flow
65
Positive
Cash flow analysis shows strong operating cash flow relative to net income, indicating efficient cash generation from operations. However, free cash flow growth has been inconsistent, with significant capital expenditures impacting free cash flow. The company needs to manage its capital investments carefully to ensure consistent free cash flow generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue28.13B27.09B26.19B19.94B20.21B16.35B
Gross Profit1.79B1.71B1.64B-2.38B-412.83M-970.66M
EBITDA1.61B3.48B3.43B-661.49M672.58M1.09B
Net Income1.26B1.06B1.06B-1.99B-973.96M-558.10M
Balance Sheet
Total Assets36.75B36.57B37.23B37.04B37.40B36.78B
Cash, Cash Equivalents and Short-Term Investments2.93B1.93B1.48B1.30B1.56B1.55B
Total Debt1.33B2.13B2.81B2.88B1.68B1.38B
Total Liabilities8.93B9.50B10.88B11.79B10.20B8.62B
Stockholders Equity27.86B27.11B26.39B25.29B27.24B28.19B
Cash Flow
Free Cash Flow1.17B1.42B94.06M-1.85B-57.79M482.83M
Operating Cash Flow1.82B2.71B1.12B-193.45M1.00B1.34B
Investing Cash Flow-1.11B-1.28B-822.84M-1.43B-926.11M-927.51M
Financing Cash Flow-1.94B-982.24M-110.70M1.42B-62.13M-485.76M

Guangshen Railway Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.55
Price Trends
50DMA
2.41
Positive
100DMA
2.17
Positive
200DMA
2.00
Positive
Market Momentum
MACD
0.02
Positive
RSI
44.70
Neutral
STOCH
31.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0525, the sentiment is Neutral. The current price of 2.55 is above the 20-day moving average (MA) of 2.52, above the 50-day MA of 2.41, and above the 200-day MA of 2.00, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 31.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0525.

Guangshen Railway Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$169.40B9.619.59%4.60%-0.99%80.58%
$64.76B14.499.42%1.22%14.02%13.27%
€5.57B21.011.61%7.51%2.87%-35.74%
HK$56.60B9.737.39%5.46%0.19%4.36%
$10.79B15.437.44%2.01%2.89%-14.66%
HK$24.73B18.114.57%3.36%
HK$3.12B46.157.66%0.82%-14.80%11.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0525
Guangshen Railway Company
2.28
0.19
8.93%
HK:3969
China Railway Signal & Communication
3.41
0.39
12.99%
HK:0066
MTR
28.50
1.24
4.56%
HK:3898
Zhuzhou CRRC Times Electric Co
39.62
11.74
42.12%
HK:0062
Transport International Holdings Limited
10.69
2.97
38.51%
HK:2169
Canggang Railway Limited
0.82
-0.09
-9.89%

Guangshen Railway Company Corporate Events

Guangshen Railway Reports Strong Q3 Financial Performance
Oct 30, 2025

Guangshen Railway Company Limited has released its third quarterly report for 2025, showing a notable increase in financial performance. The company reported a 2.24% rise in revenues from operations and a 16.98% increase in net profit attributable to shareholders compared to the same period last year. Despite a decline in net profit after extraordinary gains or losses, the overall financial indicators suggest a positive trajectory for the company, which could strengthen its position in the railway industry.

The most recent analyst rating on (HK:0525) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway Secures Land Use for New Railway Project
Oct 30, 2025

Guangshen Railway Company has entered into two easement agreements with Guangshan Company and GRGC’s Guangzhou Headquarters to facilitate the construction of the new Guangzhou (Xintang)–Shanwei Railway Project. These agreements involve land use arrangements at Xintang Station and the Zengcheng Section, with financial considerations of RMB140.5512 million and RMB208.9367 million, respectively. The transactions are classified as connected transactions under Hong Kong’s Listing Rules due to GRGC’s significant shareholding in Guangshen Railway, but they are exempt from certain approval requirements.

The most recent analyst rating on (HK:0525) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway Announces Board Changes with Director Resignation and New Appointment
Oct 30, 2025

Guangshen Railway Company Limited announced the resignation of Mr. Hu Dan as a non-executive director due to a change in work arrangement, which will not affect the company’s board operations. Concurrently, the company proposed the appointment of Mr. Li Danjiang as a new non-executive director, pending shareholder approval, with no remuneration or allowance for his service.

The most recent analyst rating on (HK:0525) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway Announces Board Composition and Committee Roles
Oct 30, 2025

Guangshen Railway Company Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has also established three committees: audit, remuneration, and nomination, with specific directors assigned as members or chairpersons. This announcement highlights the company’s governance structure, which is crucial for its operational oversight and strategic decision-making, potentially impacting its stakeholders by ensuring robust corporate governance.

The most recent analyst rating on (HK:0525) stock is a Buy with a HK$3.00 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway to Announce Q3 2025 Financial Results
Sep 30, 2025

Guangshen Railway Company Limited has announced that its board of directors will hold a meeting on October 30, 2025, to review and approve the unaudited third quarterly results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance over the past nine months, which could impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:0525) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway Proposes New Non-Executive Director Appointment
Sep 25, 2025

Guangshen Railway Company Limited has announced the proposed appointment of Ms. Zhong Ning as a non-executive director for the tenth session of its board. This appointment, recommended by the nomination committee and subject to shareholder approval, reflects the company’s strategic board composition efforts. Ms. Zhong brings extensive experience in finance and railway operations, potentially strengthening the company’s governance and operational oversight.

The most recent analyst rating on (HK:0525) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway and CSRG Forge Strategic Service Agreement
Sep 25, 2025

Guangshen Railway Company has entered into a Comprehensive Services Framework Agreement with CSRG to facilitate mutual provision of services between the two groups. This agreement outlines proposed annual caps for various services over the next three years, indicating significant financial commitments and strategic collaboration. The transactions are classified as continuing connected transactions under the Listing Rules, necessitating approval from independent shareholders and adherence to reporting and review requirements.

The most recent analyst rating on (HK:0525) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway Proposes Governance Restructuring
Sep 25, 2025

Guangshen Railway Company Limited has announced proposed amendments to its Articles of Association and the abolition of its supervisory committee. This strategic move aims to streamline governance by transferring the supervisory committee’s functions to the Audit Committee of the Board, pending shareholder approval at a general meeting.

The most recent analyst rating on (HK:0525) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway Releases 2025 Interim Results with Cautious Financial Strategy
Aug 28, 2025

Guangshen Railway Company Limited announced its unaudited interim results for the first half of 2025, with the Board confirming the accuracy and completeness of the report. Despite the detailed financial disclosures, the company decided not to distribute dividends or increase share capital during this period, highlighting a cautious approach amid potential risks outlined in the report.

The most recent analyst rating on (HK:0525) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Guangshen Railway Company stock, see the HK:0525 Stock Forecast page.

Guangshen Railway Schedules Board Meeting for Interim Results
Aug 11, 2025

Guangshen Railway Company Limited has scheduled a board meeting on August 28, 2025, to discuss and approve the interim results for the first half of the year. This announcement may impact the company’s operational transparency and provide insights into its financial health, potentially affecting stakeholder confidence and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 01, 2025