Shenzhen Expressway Co (0548) AI Stock Analysis

• Market Cap: $25.95B
• Dividend Yield: 8.83%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.26
• Revenue Growth: -5.91%
• EPS Growth: -54.35%
• Country: HK
• Employees: 7,254
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.54
• Shares Outstanding: 747,500,060
• 10 Day Avg. Volume: 1,914,254
• 30 Day Avg. Volume: 1,921,777
• PEG Ratio: -0.29
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.18
• 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

• Rating: 71 Outperform
• Price Target: ―

The stock score for Shenzhen Expressway Co is primarily driven by its solid valuation, characterized by a competitive P/E ratio and an attractive dividend yield. Financial performance shows stable operational margins but faces challenges in profitability and revenue growth. Technical indicators suggest mild upward momentum with caution as the stock approaches overbought levels.

Shenzhen Expressway Co Business Overview & Revenue Model

Company Description

Shenzhen Expressway Corporation Limited, together with its subsidiaries, primarily invests in, constructs, operates, and manages toll highways and roads, as well as other urban and transport infrastructure in the People's Republic of China. The company provides construction management and highways operation management services for government and other enterprises, as well as project development and management, advertising, construction consulting, inter-network toll collection, and financial services; and billboard leasing, advertising agency, and design production and related services. It also invests in industries and project construction; and offers property management, real estate development, and engineering consulting services. In addition, the company provides infrastructure construction, environment protection construction, equipment manufacturing, capital market, apartment rental and management, environmental technology development consultation, land development, architecture and engineering, and environmental projects and advisory services. It operated and invested in 17 toll highway projects. The company was incorporated in 1996 and is based in Shenzhen, the People's Republic of China. Shenzhen Expressway Corporation Limited is a subsidiary of Shenzhen International Holdings Limited.

How the Company Makes Money

Shenzhen Expressway Co generates its revenue primarily through the collection of toll fees from vehicles using its operated expressways and highways. The company benefits from the high traffic volumes in economically vibrant regions, which ensures a steady stream of income. Additionally, Shenzhen Expressway Co engages in strategic partnerships and joint ventures to enhance its infrastructure portfolio, potentially increasing its revenue base. The company's investment in environmental projects also provides an additional revenue stream, although the majority of its earnings are still derived from toll operations.

Shenzhen Expressway Co Financial Statement Overview

Summary

Shenzhen Expressway Co demonstrates stable operational margins and a solid capital structure, although profitability and revenue growth have faced challenges. Despite the decline in net income and revenue, the company maintains good liquidity and cash flow generation capabilities.

Income Statement

The income statement reflects a mixed performance with a declining revenue trend over the recent periods. The gross profit margin for the latest year is approximately 31.6%, indicating efficiency in managing production costs. However, the net profit margin dropped from 25.0% to 12.4%, signaling a decline in profitability. EBIT and EBITDA margins are solid at 19.4% and 43.8%, respectively, but the revenue growth rate is negative, showing a revenue decline of 0.5% compared to the previous year.

Balance Sheet

The balance sheet shows a moderately leveraged position with a debt-to-equity ratio of 1.22. Return on equity decreased to 5.2%, reflecting lower profitability relative to equity. The equity ratio stands at 32.4%, indicating a stable capital structure with a considerable portion of assets financed by equity. The company maintains a significant cash position, which helps in managing liquidity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow from the previous year, reflecting reduced cash generation from operations. The operating cash flow to net income ratio is strong at 3.25, indicating that earnings are well-supported by cash flows. However, the free cash flow to net income ratio is lower at 1.45, suggesting reliance on non-operating activities for cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.98B	9.25B	9.30B	9.37B	10.87B	8.03B
	Gross Profit
2.87B	2.92B	3.35B	3.02B	3.79B	2.81B
	EBIT
1.88B	1.80B	3.01B	3.91B	3.13B	2.71B
	EBITDA
2.78B	4.05B	5.55B	4.75B	5.22B	3.97B
	Net Income Common Stockholders
1.38B	1.15B	2.33B	2.02B	2.61B	2.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.31B	3.04B	2.62B	4.75B	4.41B	5.55B
	Total Assets
73.15B	67.56B	67.51B	69.20B	60.61B	55.14B
	Total Debt
29.41B	26.70B	27.88B	31.17B	20.71B	15.42B
	Net Debt
21.23B	23.79B	25.73B	27.53B	16.52B	9.87B
	Total Liabilities
40.76B	40.36B	39.51B	41.84B	32.84B	28.87B
	Stockholders Equity
27.06B	21.90B	22.36B	21.35B	24.64B	23.04B
Cash Flow		Free Cash Flow
413.32M	1.66B	2.00B	1.28B	143.13M	―
	Operating Cash Flow
0.00	3.72B	4.09B	3.37B	3.94B	1.10B
	Investing Cash Flow
―	―	-923.61M	―	―	―
	Financing Cash Flow
5.50B	―	―	―	1.67B	3.59B

Shenzhen Expressway Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0548, the sentiment is Positive. The current price of 6.83 is above the 20-day moving average (MA) of 6.70, above the 50-day MA of 6.56, and below the 200-day MA of 6.84, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 87.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0548.

Shenzhen Expressway Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0548	71 Outperform	$25.95B	12.71	5.52%	8.83%	-5.91%	-54.35%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
AUHEF		$3.79B	8.64	14.00%	6.66%	―	―
GZITF		$805.70M	8.81	5.60%	7.02%	―	―
JEXYF		$10.15B	9.96	13.04%	4.90%	―	―
SEXHF		$2.49B	8.94	8.46%	6.61%	―	―
1576	69 Neutral	HK$4.18B	7.96	12.09%	7.87%	23.94%	-9.82%

Shenzhen Expressway Co Corporate Events

Shenzhen Expressway Co Reports Q1 2025 Financials: Revenue Drops, Profit and Cash Flow Rise

Shenzhen Expressway Co released its first quarterly report for 2025, highlighting a 13.06% decrease in revenue compared to the same period in 2024, while net profit attributable to owners increased by 1.50%. Despite the drop in revenue, the company saw a 28.96% increase in net cash flow from operating activities, indicating strong operational cash generation. The report also noted a rise in total assets and owners’ equity, reflecting a solid financial position. The announcement underscores the company’s resilience and ability to maintain profitability and cash flow amidst revenue challenges, which could reassure stakeholders about its financial stability.

Shenzhen Expressway Reports March 2025 Toll Revenue

Shenzhen Expressway Co reported its unaudited toll revenue for March 2025, highlighting significant contributions from key expressways in Guangdong province, such as the Outer Ring Project and Coastal Project. The announcement underscores the company’s robust operational performance, although it cautions investors about potential discrepancies between unaudited and actual data due to estimation and data sorting processes.

Shenzhen Expressway Co Announces 2025 Q1 Results Presentation

Shenzhen Expressway Co has announced its 2025 First Quarterly Results Presentation and Online Investor Meeting, scheduled for April 30, 2025. The event will be held online, allowing shareholders and investors to participate via the Panorama Global Roadshow platform. This presentation provides an opportunity for stakeholders to engage with the company’s executive team and gain insights into its financial performance and strategic direction.

Shenzhen Expressway Co Issues 2025 Phase I Super Short-term Commercial Paper

Shenzhen Expressway Co announced the issuance of its 2025 Phase I Super Short-term Commercial Paper in the interbank market of the PRC, with a total issuance amount of RMB1.5 billion at an interest rate of 1.64%. This strategic financial move is expected to enhance the company’s liquidity and support its operational and expansion plans, potentially strengthening its market position and providing benefits to its stakeholders.

Shenzhen Expressway Co Completes RMB2 Billion Bond Issuance

Shenzhen Expressway Co has successfully completed the issuance of its Phase I Renewable Corporate Bonds in the PRC, raising a total of RMB2 billion. The issuance was divided into two types, with Type I bonds having a term of 3+N years and a coupon rate of 2.05%, and Type II bonds having a term of 5+N years and a coupon rate of 2.20%. This strategic financial move is expected to support the company’s ongoing infrastructure projects and strengthen its market position.

Shenzhen Expressway to Review Q1 2025 Financial Results

Shenzhen Expressway Corporation Limited has announced a board meeting scheduled for April 29, 2025, to review and approve the unaudited first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholders’ interests.

Shenzhen Expressway Co to Issue Phase I Renewable Bonds

Shenzhen Expressway Co announced its plan to issue the first phase of renewable corporate bonds, with a size not exceeding RMB2 billion, to professional investors in the PRC. This issuance is part of a larger RMB4 billion bond program approved by the China Securities and Regulatory Committee, aimed at enhancing the company’s financial flexibility and market positioning.

Shenzhen Expressway Reports February 2025 Toll Revenue

Shenzhen Expressway Co announced its unaudited toll revenue for February 2025, highlighting its financial performance across various expressways in China. The report shows significant toll revenue from key projects like the Outer Ring Project and Qinglian Expressway, indicating robust operational performance. However, the company cautions investors that these figures are preliminary and subject to adjustments, urging careful consideration of the data.

Shenzhen Expressway Announces Final Dividend for 2024

Shenzhen Expressway Corporation Limited has announced a final cash dividend of RMB 0.244 per share for the financial year ending December 31, 2024, with the payment date set for August 25, 2025. The announcement includes details on withholding tax rates applicable to different types of shareholders, highlighting the company’s commitment to shareholder returns while adhering to tax regulations. This dividend declaration underscores Shenzhen Expressway’s stable financial performance and its strategic focus on rewarding investors, potentially enhancing its attractiveness to both domestic and international stakeholders.

Shenzhen Expressway Co Reports 2024 Financial Results with Profit Decline

Shenzhen Expressway Co announced its 2024 annual results, reporting a slight decrease in revenue by 0.53% to RMB9.25 billion and a significant drop in net profit by 50.80% to RMB1.15 billion. The decline in profit was attributed to reduced real estate income from its associated enterprise, United Land, and asset impairment provisions. The company proposed a final cash dividend of RMB 0.244 per share, subject to shareholder approval. This financial performance reflects challenges in the company’s operations, including wind resource fluctuations and decreased revenue from certain projects, impacting its industry positioning and stakeholder returns.

Shenzhen Expressway Raises RMB4.7 Billion Through A Share Issuance

Shenzhen Expressway Co has announced the issuance of 357,085,801 A Shares to specific targets, raising approximately RMB4.7 billion. The issuance aims to strengthen the company’s financial position and involves key subscribers such as XTC Company, Jiangsu Yunshan Capital Management, and Anhui Expressway. The shares are subject to lock-up periods, ensuring stability in the company’s shareholder structure and compliance with regulatory requirements.

Shenzhen Expressway Co Announces 2024 Annual Results Presentation

Shenzhen Expressway Co announced the schedule for its 2024 Annual Results Presentation, which will be held both onsite and online on March 24 and 25, 2025. The presentation will provide insights into the company’s financial performance and strategic direction, with participation from key executives. This event is crucial for stakeholders, as it offers an opportunity to engage with the company’s leadership and gain a deeper understanding of its future plans.

Shenzhen Expressway Co Completes RMB2.3 Billion Bond Issuance

Shenzhen Expressway Co announced the completion of its Phase I Corporate Bonds issuance in the PRC, raising RMB2.3 billion. The bonds, issued at RMB100 each with a five-year term and a final coupon rate of 2.29%, were aimed at professional investors and are expected to strengthen the company’s financial position and support its infrastructure projects.

Shenzhen Expressway Co Reports January 2025 Toll Revenue

Shenzhen Expressway Co announced its unaudited toll revenue for January 2025, highlighting its financial performance across multiple expressway projects. The company reported substantial revenue from its expressways in the Shenzhen region and other parts of Guangdong province, as well as from projects in other provinces. The announcement provides a snapshot of the company’s operational scale and market presence, although it cautions investors about potential discrepancies between these preliminary figures and future audited reports.

Shenzhen Expressway Co Registers for RMB3 Billion Commercial Paper Issue

Shenzhen Expressway Co announced the successful registration for issuing super short-term commercial paper worth RMB3 billion under a general mandate approved at their 2023 annual meeting. This move, accepted by the National Association of Financial Market Institutional Investors, allows the company to strengthen its liquidity and operational flexibility over the next two years, potentially enhancing its financial stability and market position.

Shenzhen Expressway Receives Approval for RMB4 Billion Bond Issue

Shenzhen Expressway Corporation Limited has received approval from the China Securities and Regulatory Committee to issue renewable corporate bonds worth up to RMB4 billion to professional investors. This move allows the company to enhance its financial flexibility by issuing the bonds in tranches over the next 24 months, potentially strengthening its market position and supporting future infrastructure projects.