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Guangshen Railway Company
(0525)
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Rating:74Outperform
Price Target:
HK$2.50
▼(-1.96% Downside)
Action:Upgraded
Date:04/02/26
The score is driven primarily by improved profitability and significantly stronger recent cash flow alongside a conservatively leveraged balance sheet. Technicals are supportive with the stock trading above key moving averages and positive momentum, while valuation is also favorable with a low P/E and moderate dividend yield; thin margins and historically uneven cash generation temper the upside.
Positive Factors
Low leverage
A very low debt-to-equity (~0.05 in 2025) gives Guangshen Railway durable financial flexibility versus peers. For a capital-intensive rail operator this reduces refinancing and interest-rate risk, supports maintenance/capex funding and preserves capacity for dividends or strategic investment.
Negative Factors
Thin margins
Structural margins are narrow (net ~5%, gross ~6% in 2025), limiting the firm's ability to absorb cost shocks or fund higher returns on invested capital. For a rail operator with high fixed costs, thin margins constrain ROE and reduce the buffer against rising energy, labor, or maintenance expenses.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage
A very low debt-to-equity (~0.05 in 2025) gives Guangshen Railway durable financial flexibility versus peers. For a capital-intensive rail operator this reduces refinancing and interest-rate risk, supports maintenance/capex funding and preserves capacity for dividends or strategic investment.
Read all positive factors
Guangshen Railway Company (0525) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$21.30B
Dividend Yield3.48%
Average Volume (3M)5.87M
Price to Earnings (P/E)13.0
Beta (1Y)0.43
Revenue GrowthN/A
EPS GrowthN/A
CountryHK
Employees36,269
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)0.15
Shares Outstanding1,431,300,000
10 Day Avg. Volume3,958,602
30 Day Avg. Volume5,867,200
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.49
Price to Sales (P/S)0.48
P/FCF Ratio5.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.55Price Target Upside0.00%
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.19
Revenue Forecast (FY)HK$29.56B
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...
How the Company Makes Money
The company makes money mainly by charging for transportation services and related railway operations. Its key revenue stream is passenger transportation revenue, earned from ticket sales for train services it operates (typically including higher-...
Guangshen Railway Company Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
82
Very Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 28.69B | 27.09B | 26.19B | 19.94B | 20.21B |
| Gross Profit | 1.62B | 1.71B | 1.64B | -2.38B | -412.83M |
| EBITDA | 3.83B | 3.48B | 3.43B | -661.49M | 672.58M |
| Net Income | 1.43B | 1.06B | 1.06B | -1.99B | -973.96M |
Balance Sheet | |||||
| Total Assets | 36.94B | 36.57B | 37.23B | 37.04B | 37.40B |
| Cash, Cash Equivalents and Short-Term Investments | 4.15B | 1.93B | 1.48B | 1.30B | 1.56B |
| Total Debt | 1.33B | 2.13B | 2.81B | 2.88B | 1.68B |
| Total Liabilities | 8.69B | 9.50B | 10.88B | 11.79B | 10.20B |
| Stockholders Equity | 28.29B | 27.11B | 26.39B | 25.29B | 27.24B |
Cash Flow | |||||
| Free Cash Flow | 2.78B | 1.42B | 94.06M | -1.85B | -57.79M |
| Operating Cash Flow | 3.46B | 2.71B | 1.12B | -193.45M | 1.00B |
| Investing Cash Flow | -202.56M | -1.28B | -822.84M | -1.43B | -926.11M |
| Financing Cash Flow | -1.05B | -982.24M | -110.70M | 1.42B | -62.13M |
Guangshen Railway Company Technical Analysis
Negative
2.55
Price Trends
2.20
Negative
2.14
Negative
2.18
Negative
Market Momentum
-0.04
Positive
34.38
Neutral
14.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0525, the sentiment is Negative. The current price of 2.55 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.20, and above the 200-day MA of 2.18, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.38 is Neutral, neither overbought nor oversold. The STOCH value of 14.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0525.
Guangshen Railway Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$21.30B | 12.99 | 5.43% | 3.48% | ― | ― | |
71 Outperform | HK$1.33B | 7.15 | 8.94% | 1.38% | 10.86% | 90.59% | |
70 Outperform | HK$4.92B | 11.95 | 1.61% | 7.48% | 2.77% | 104.40% | |
66 Neutral | HK$192.60B | 13.11 | 6.97% | 4.35% | -7.58% | -6.97% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | HK$121.00M | 178.00 | 2.17% | 8.79% | 6.83% | -91.46% | |
53 Neutral | HK$2.08B | 30.01 | 7.07% | 0.87% | 7.50% | 2.55% |
* Industrials Sector Average
HK:0525
Guangshen Railway Company
2.04
0.26
14.54%
HK:0066
MTR
30.94
3.94
14.57%
HK:0062
Transport International Holdings Limited
9.20
1.03
12.55%
HK:2169
Canggang Railway Limited
0.52
-1.16
-69.05%
HK:0306
Kwoon Chung Bus Holdings Limited
2.79
1.04
59.43%
HK:0077
AMS Public Transport Holdings Limited
0.45
0.07
17.11%
Guangshen Railway Company Corporate Events
Guangshen Railway Posts Audited 2025 Results and Proposes Cash Dividend
Mar 30, 2026
Guangshen Railway Company Limited released its audited annual results for the year ended 31 December 2025, confirming that its 2025 annual report is available in both Chinese and English on the company and stock exchange websites, with all directo...
Guangshen Railway Proposes Final Dividend for 2025
Mar 30, 2026
Guangshen Railway Company Limited has proposed a final ordinary dividend of RMB 0.09 per share for the financial year ended 31 December 2025, subject to shareholder approval. Key details including the Hong Kong dollar equivalent, ex-dividend and r...
Guangshen Railway Sets March 2026 Board Meeting to Approve 2025 Annual Results
Mar 13, 2026
Guangshen Railway Company Limited has scheduled a board meeting for 9:30 a.m. on 30 March 2026 to review and approve the audited annual results for the financial year ended 31 December 2025. The meeting will also consider related matters necessary...
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.