Guangshen Railway Company (0525) AI Stock Analysis

• Market Cap: HK$23.03B
• Dividend Yield: 3.48%
• Average Volume (3M): 5.87M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 36,565
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.06
• Shares Outstanding: 1,431,300,000
• 10 Day Avg. Volume: 3,958,602
• 30 Day Avg. Volume: 5,867,200
• PEG Ratio: 0.00
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 10.15
• 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: 63 Neutral
• 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and increased demand for both passenger and freight services, enhancing long-term business prospects.

Improved Gross Profit Margins

Improved gross profit margins suggest enhanced operational efficiency, which can lead to better profitability and competitive positioning in the market.

Stable Balance Sheet

A stable balance sheet with reduced leverage enhances financial stability, providing the company with the flexibility to invest in growth opportunities.

Negative Factors

Net Profit Margins

Suboptimal net profit margins can limit reinvestment capabilities and shareholder returns, potentially affecting long-term financial health.

Free Cash Flow Growth

Inconsistent free cash flow growth can constrain the company's ability to fund operations and strategic initiatives, impacting long-term sustainability.

Return on Equity

A modest return on equity indicates that the company may not be efficiently generating profits from its equity base, potentially affecting investor confidence.

Guangshen Railway Company Business Overview & Revenue Model

Company Description

Guangshen 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 Money

Guangshen 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 net profit margins and free cash flow growth remain areas for improvement.

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	28.13B	27.09B	26.19B	19.94B	20.21B	16.35B
Gross Profit	1.79B	1.71B	1.64B	-2.38B	-412.83M	-970.66M
EBITDA	1.61B	3.48B	3.43B	-661.49M	672.58M	1.09B
Net Income	1.26B	1.06B	1.06B	-1.99B	-973.96M	-558.10M
Balance Sheet
Total Assets	36.75B	36.57B	37.23B	37.04B	37.40B	36.78B
Cash, Cash Equivalents and Short-Term Investments	2.93B	1.93B	1.48B	1.30B	1.56B	1.55B
Total Debt	1.33B	2.13B	2.81B	2.88B	1.68B	1.38B
Total Liabilities	8.93B	9.50B	10.88B	11.79B	10.20B	8.62B
Stockholders Equity	27.86B	27.11B	26.39B	25.29B	27.24B	28.19B
Cash Flow
Free Cash Flow	1.17B	1.42B	94.06M	-1.85B	-57.79M	482.83M
Operating Cash Flow	1.82B	2.71B	1.12B	-193.45M	1.00B	1.34B
Investing Cash Flow	-1.11B	-1.28B	-822.84M	-1.43B	-926.11M	-927.51M
Financing Cash Flow	-1.94B	-982.24M	-110.70M	1.42B	-62.13M	-485.76M

Guangshen Railway Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 2.55 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 2.20, and above the 200-day MA of 2.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 58.83 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0066	76 Outperform	HK$215.05B	12.42	9.59%	4.35%	-0.99%	80.58%
3898	76 Outperform	HK$76.68B	13.99	9.42%	4.07%	14.48%	12.74%
0062	67 Neutral	HK$5.55B	20.51	1.61%	7.48%	2.87%	-35.74%
3969	65 Neutral	HK$60.50B	10.71	7.39%	5.51%	0.19%	4.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0525	63 Neutral	HK$23.03B	16.16	4.61%	3.48%	―	―
2169	51 Neutral	HK$2.72B	40.24	7.66%	0.87%	-14.80%	11.92%

Guangshen Railway Company Corporate Events

Guangshen Railway Announces EGM Results and New Director Appointments

Guangshen Railway Company Limited announced the successful passing of all resolutions at its Extraordinary General Meeting held on December 4, 2025. Key decisions included the appointment of Ms. Zhong Ning and Mr. Li Danjiang as non-executive directors and the approval of a Comprehensive Services Framework Agreement with China State Railway Group Co., Ltd. These developments are expected to strengthen the company’s governance and operational framework, potentially enhancing its market position 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 Updates Shareholder Meeting Procedures

Guangshen Railway Company Limited has amended its rules of procedure for shareholders’ meetings, reflecting updates in the legal and regulatory framework. These amendments aim to ensure that shareholders’ meetings are conducted in accordance with relevant laws and regulations, enhancing the governance and operational efficiency of the company. The changes are expected to strengthen the company’s compliance with the Company Law and Securities Law of China, potentially impacting its stakeholders by ensuring more structured and legally compliant shareholder engagements.

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 Updates Board Procedures to Boost Governance

Guangshen Railway Company Limited has amended its Rules of Procedure for the Board of Directors to enhance governance and operational efficiency. The amendments, approved by a special resolution at a shareholders’ meeting, outline the board’s functions and powers, including decision-making on financial budgets, investment proposals, and corporate governance policies, which are aimed at improving transparency and strategic decision-making.

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 Announces Board Changes and Audit Committee Expansion

Guangshen Railway Company Limited announced the resignation of Mr. Zhang Zhe as a non-executive director due to board composition adjustments, with no impact on the company’s operations. Mr. Liu Qiyi was elected as the employee representative director and appointed to the audit committee, alongside Mr. Li Danjiang, as part of the board’s expansion efforts.

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 Announces Board Composition and Committee Roles

Guangshen Railway Company Limited has announced the composition of its board of directors and the roles within its established committees. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement clarifies the governance structure of the company, potentially impacting its strategic decisions and stakeholder engagement.

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 Enhances Audit Committee Governance

Guangshen Railway Company Limited has updated its Audit Committee Terms of Reference to enhance internal control and corporate governance. The amendments, approved by the board of directors, aim to improve supervision of financial statements, internal controls, compliance with laws, and the qualifications of auditors, thereby strengthening the company’s operational integrity 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 to Hold EGM for Key Resolutions and Appointments

Guangshen Railway Company Limited announced an extraordinary general meeting scheduled for December 4, 2025, to discuss and approve several resolutions. These include a comprehensive services framework agreement with China State Railway Group Co., Ltd., amendments to the company’s Articles of Association, and the appointment of new non-executive directors. The outcomes of this meeting could significantly impact the company’s governance structure and operational agreements, potentially influencing its strategic direction and stakeholder relationships.

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.