Guangshen Railway Company (0525) AI Stock Analysis

• Market Cap: $21.25B
• Dividend Yield: 3.87%
• Average Volume (3M): 6.16M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.48
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 36,565
• Sector: Industrials
• Sector Strength: 90
• Industry: Railroads
• EPS (TTM): 0.07
• Shares Outstanding: 1,431,300,000
• 10 Day Avg. Volume: 6,550,987
• 30 Day Avg. Volume: 6,157,477
• PEG Ratio: -0.05
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.88
• 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: $1.96
• Price Target Upside: -0.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: HK$2.00 ▲(1.01%Upside)

The overall score reflects strong financial performance, particularly in revenue and profitability improvements, despite challenges in net profitability and free cash flow. Technical analysis indicates bullish momentum, but caution is advised due to overbought signals. Valuation is fair with a reasonable P/E ratio and dividend yield.

Guangshen Railway Company Business Overview & Revenue Model

Company Description

Guangshen Railway Company Limited engages in the railway passenger and freight transportation businesses in the People's Republic of China. Its passenger transportation services include the operation of Guangzhou-Shenzhen inter-city express trains, long-distance trains, and Guangzhou-Hong Kong city through trains. The company's freight transportation services comprise the transportation of full load and single load cargos, containers, bulky and heavy cargo, dangerous goods, perishable goods, and oversized cargos. It also provides railway network usage services; and other transportation-related services, such as railway operation, locomotive and passenger car leasing, passenger service, and luggage transportation services, as well as sells food, beverages, and merchandise on board the trains and in railway stations. In addition, the company is involved in the train repair, on-board catering, materials and supplies sale, goods sale, cargo loading and unloading, and other businesses related to railway transportation. Further, it offers warehousing, hotel management, and real estate construction services. The company was incorporated in 1996 and is based in Shenzhen, the People's Republic of China.

How the Company Makes Money

Guangshen Railway Company generates revenue primarily through its passenger and freight transportation services. The passenger segment is a significant contributor to its earnings, with income derived from ticket sales for both high-speed and conventional trains operating along its network. The freight transportation segment earns revenue by transporting various goods along its routes, capitalizing on the strategic location of its rail lines that connect key industrial and commercial hubs. Additionally, the company earns income from leasing railway facilities, providing railway-related services, and offering logistics solutions. Strategic partnerships with other transportation companies and government entities further enhance its revenue streams, ensuring a diversified and steady income base.

Guangshen Railway Company Financial Statement Overview

Summary

Guangshen Railway Company demonstrates a strong recovery trajectory in its financial statements. Revenue and operational profitability are on the rise, supported by a solid balance sheet and stable cash flow generation. Challenges remain in net profitability and capital expenditure management, but the company's financial health is improving steadily.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.39B	27.09B	26.19B	19.94B	20.21B	16.35B
Gross Profit	1.57B	1.71B	1.64B	-2.38B	-412.83M	-970.66M
EBITDA	1.39B	3.48B	3.43B	-661.49M	672.58M	1.09B
Net Income	981.41M	1.06B	1.06B	-1.99B	-973.96M	-558.10M
Balance Sheet
Total Assets	36.19B	36.57B	37.23B	37.04B	37.40B	36.78B
Cash, Cash Equivalents and Short-Term Investments	2.34B	1.93B	1.48B	1.30B	1.56B	1.55B
Total Debt	1.83B	2.13B	2.81B	2.88B	1.68B	1.38B
Total Liabilities	8.59B	9.50B	10.88B	11.79B	10.20B	8.62B
Stockholders Equity	27.64B	27.11B	26.39B	25.29B	27.24B	28.19B
Cash Flow
Free Cash Flow	389.53M	1.42B	94.06M	-1.85B	-57.79M	482.83M
Operating Cash Flow	210.36M	2.71B	1.12B	-193.45M	1.00B	1.34B
Investing Cash Flow	-1.20B	-1.28B	-822.84M	-1.43B	-926.11M	-927.51M
Financing Cash Flow	-1.68B	-982.24M	-110.70M	1.42B	-62.13M	-485.76M

Guangshen Railway Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.98
• 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:0525, the sentiment is Positive. The current price of 1.98 is above the 20-day moving average (MA) of 1.92, above the 50-day MA of 1.81, and above the 200-day MA of 1.93, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 66.11 is Neutral, neither overbought nor oversold. The STOCH value of 59.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0525.

Guangshen Railway Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	CHF6.97B	25.37	14.57%	2.57%	-2.17%	-30.07%
0525	65 Neutral	$21.25B	14.29	3.59%	3.87%	―	―
CRYYF	―	$7.27B	9.71	7.63%	5.41%	―	―
MTRJF	―	$21.76B	10.85	8.65%	6.49%	―	―
ZHUZF	―	$6.13B	11.07	9.62%	3.41%	―	―
KWO	―	€518.55M	20.70	1.11%	5.65%	―	―
2169	48 Neutral	HK$5.44B	85.53	7.42%	0.48%	-27.29%	-5.99%

Guangshen Railway Company Corporate Events

Guangshen Railway Approves Resolutions and Declares 2024 Final Dividend

Guangshen Railway Company Limited announced the successful passing of all ordinary resolutions during its Annual General Meeting held on June 18, 2025. The resolutions included the approval of the 2024 work reports, financial statements, profits distribution proposal, and the renewal of Deloitte Touche Tohmatsu as the company’s auditor. Additionally, the company declared a final cash dividend of RMB0.07 per share for 2024, to be distributed to shareholders listed on the register by July 2, 2025. This announcement reflects the company’s stable financial performance and commitment to shareholder returns.

Guangshen Railway Announces Final Dividend for 2024

Guangshen Railway Company Limited announced a final cash dividend of RMB 0.07 per share for the financial year ending December 31, 2024, with payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09341. This announcement updates previous disclosures regarding the currency and amount of the dividend, impacting shareholders’ returns and reflecting the company’s financial health and commitment to shareholder value.

Guangshen Railway Announces Director Resignation

Guangshen Railway Company Limited announced the resignation of Mr. Luo Jinglun from his position as a non-executive director due to a change in work arrangement. His departure will not affect the company’s board operations or its quorum, and the board has expressed gratitude for his contributions. The company will proceed with statutory procedures to elect a new director, ensuring continuity in governance.

Guangshen Railway Announces Board and Committee Structure

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 established three committees: the audit committee, remuneration committee, and nomination committee, with specific directors assigned to each, indicating a structured governance approach to enhance operational oversight and strategic decision-making.

Guangshen Railway Announces Proposed Final Dividend for 2024

Guangshen Railway Company Limited has announced a proposed final dividend of RMB 0.07 per share for the year ended December 31, 2024, pending shareholder approval at the upcoming annual general meeting on June 18, 2025. The dividend distribution is scheduled for August 15, 2025, and the register of members will be closed from June 27 to July 2, 2025, to determine eligible shareholders, potentially impacting shareholder returns and market perception.

Guangshen Railway Announces Final Dividend for 2024

Guangshen Railway Company Limited has announced a final cash dividend of RMB 0.07 per share for the financial year ending December 31, 2024. The announcement includes details about the ex-dividend date, record date, and payment date, as well as information on withholding tax rates applicable to different categories of shareholders. This update reflects the company’s commitment to returning value to its shareholders and provides clarity on the tax implications for investors, potentially impacting shareholder decisions and market perception.

Guangshen Railway Announces 2024 AGM to Shape Future Financial Strategies

Guangshen Railway Company Limited has announced its 2024 Annual General Meeting (AGM) scheduled for June 18, 2025, in Shenzhen, China. The meeting will address several key resolutions, including the approval of the company’s 2024 work reports, audited financial statements, profit distribution proposal, and the financial budget for 2025. Additionally, the renewal of Deloitte Touche Tohmatsu as the company’s auditor for 2025 will be reviewed. This AGM is significant as it will set the financial and operational direction for the company, impacting its stakeholders and market positioning.

Guangshen Railway Reports Mixed Financial Results for Q1 2025

Guangshen Railway Company Limited has released its unaudited first quarterly report for 2025, showing a 4.47% increase in revenues from operations compared to the same period last year. However, the company experienced a decline in net profit attributable to shareholders by 14.40%, and a decrease in net cash flow from operating activities by 5.58%. Despite these declines, the company’s total assets slightly decreased by 1.03%, while owners’ equity attributable to shareholders increased by 1.95%, reflecting a mixed financial performance for the quarter.