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Sinotrans Ltd Class H (HK:0598)
:0598

Sinotrans (0598) AI Stock Analysis

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HK:0598

Sinotrans

(0598)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
HK$5.00
â–˛(2.04% Upside)
Sinotrans' overall stock score reflects a stable financial performance and attractive valuation, offset by bearish technical indicators. The company's strong cash flow and solid balance sheet are significant strengths, while the current market momentum suggests caution. The low P/E ratio and high dividend yield enhance its appeal for value investors.
Positive Factors
Cash Flow Management
Effective cash flow management indicates Sinotrans's ability to generate and manage cash efficiently, supporting long-term operational stability and investment capacity.
Balance Sheet Strength
A strong balance sheet with prudent leverage enhances financial resilience, enabling Sinotrans to withstand economic fluctuations and invest in growth opportunities.
Operational Efficiency
Sustained operational efficiency, as evidenced by a healthy EBITDA margin, supports profitability and competitive positioning in the logistics sector.
Negative Factors
Revenue Decline
Declining revenue growth suggests challenges in market expansion or competitive pressures, potentially impacting long-term growth prospects.
Earnings Pressure
While stable, the net profit margin indicates limited earnings growth, which could constrain reinvestment and shareholder returns over time.
Return on Equity
A declining return on equity may reflect challenges in generating returns from equity investments, potentially impacting investor confidence and capital allocation efficiency.

Sinotrans (0598) vs. iShares MSCI Hong Kong ETF (EWH)

Sinotrans Business Overview & Revenue Model

Company DescriptionSinotrans Limited (0598) is a leading logistics and freight forwarding service provider in China, specializing in integrated logistics solutions. The company operates across various sectors, including ocean freight, air freight, warehousing, and supply chain management. Sinotrans offers a comprehensive range of services, including customs clearance, transportation, and logistics consulting, catering to a diverse clientele that spans multiple industries such as retail, manufacturing, and e-commerce.
How the Company Makes MoneySinotrans generates revenue primarily through its logistics and freight forwarding services. Key revenue streams include ocean freight and air freight operations, where the company earns income by transporting goods for clients across international borders. Additionally, Sinotrans derives significant revenue from warehousing and distribution services, providing storage solutions and inventory management for businesses. The company also benefits from customs brokerage services, which facilitate the smooth clearance of goods through customs, and supply chain management solutions that optimize logistics processes for clients. Strategic partnerships with shipping lines, airlines, and local transportation providers enhance its service offerings and operational efficiency, contributing positively to its earnings.

Sinotrans Financial Statement Overview

Summary
Sinotrans presents a stable financial position with strengths in cash flow generation and a solid balance sheet. While revenue growth is a concern, the company maintains profitability and operational efficiency. The balance sheet reflects prudent leverage, and cash flow metrics indicate effective cash management.
Income Statement
65
Positive
Sinotrans shows a mixed performance in its income statement. The company has a declining revenue growth rate of -2.72% in TTM, indicating challenges in maintaining sales momentum. However, the gross profit margin has improved to 5.95% in TTM from 5.25% in the previous year, suggesting better cost management. The net profit margin is relatively stable at 3.98% in TTM, reflecting consistent profitability. Despite a decrease in EBIT margin to 2.23% in TTM, the EBITDA margin remains healthy at 3.45%, indicating strong operational efficiency.
Balance Sheet
70
Positive
The balance sheet of Sinotrans is stable with a manageable debt-to-equity ratio of 0.31 in TTM, showing prudent leverage management. The return on equity is slightly lower at 9.46% in TTM compared to the previous year, but still indicates effective use of equity. The equity ratio is robust, suggesting a strong capital structure with a significant portion of assets financed by equity.
Cash Flow
72
Positive
Sinotrans demonstrates solid cash flow management with a positive free cash flow growth rate of 4.36% in TTM. The operating cash flow to net income ratio is 0.19, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is strong at 0.74, highlighting the company's ability to generate cash relative to its net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue94.78B105.62B101.70B108.82B124.35B84.54B
Gross Profit5.15B5.54B2.13B6.10B3.08B4.94B
EBITDA5.10B4.58B8.49B3.85B7.25B6.01B
Net Income3.77B3.92B4.22B4.08B3.71B2.75B
Balance Sheet
Total Assets81.76B77.20B75.89B78.50B74.30B65.82B
Cash, Cash Equivalents and Short-Term Investments12.93B13.47B13.96B16.54B14.50B11.67B
Total Debt12.19B11.61B12.66B15.55B14.96B14.81B
Total Liabilities39.26B35.15B35.77B41.57B39.25B33.57B
Stockholders Equity39.78B39.57B37.80B34.87B33.10B30.45B
Cash Flow
Free Cash Flow4.28B2.56B2.23B3.56B2.72B2.14B
Operating Cash Flow5.75B4.11B3.84B5.12B4.16B3.96B
Investing Cash Flow-910.03M207.39M210.02M1.02B472.79M―
Financing Cash Flow-4.06B-4.74B-6.70B-4.60B-1.61B-1.55B

Sinotrans Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.90
Price Trends
50DMA
5.10
Positive
100DMA
5.03
Positive
200DMA
4.38
Positive
Market Momentum
MACD
<0.01
Negative
RSI
59.10
Neutral
STOCH
86.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0598, the sentiment is Positive. The current price of 4.9 is below the 20-day moving average (MA) of 4.96, below the 50-day MA of 5.10, and above the 200-day MA of 4.38, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 86.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0598.

Sinotrans Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$76.62B10.5912.40%―11.05%81.01%
72
Outperform
HK$135.51B14.9713.87%3.05%12.64%2.90%
66
Neutral
HK$2.99B5.5637.50%8.25%56.58%1963.38%
64
Neutral
HK$44.44B9.199.44%6.39%-17.69%-3.38%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
HK$102.34B80.745.53%―12.14%―
54
Neutral
HK$12.85B9.438.51%3.55%26.36%-18.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0598
Sinotrans
5.15
1.65
46.93%
HK:0636
KLN Logistics Group Limited
7.11
0.44
6.63%
HK:2057
ZTO Express (Cayman), Inc. Class A
174.10
28.40
19.49%
HK:2618
JD Logistics, Inc.
11.51
-1.17
-9.23%
HK:2490
LC Logistics, Inc
5.23
-5.81
-52.63%
HK:1519
J&T Global Express Limited
11.40
5.02
78.68%

Sinotrans Corporate Events

Sinotrans Cancels Unused Repurchased A Shares, Reduces Registered Capital
Dec 30, 2025

Sinotrans Limited has completed an A-share repurchase program initially launched in April 2022 to support an equity incentive scheme, buying back 49.28 million A shares, or about 0.67% of its then total share capital, at an average price of RMB3.94 per share using roughly RMB194 million of its own funds. The board and shareholders have now approved changing the use of 5,882,578 repurchased but unused A shares from equity incentives to cancellation and a corresponding reduction of registered capital, cutting total share capital to 7,173,751,227 shares; the company stated that the move will not materially affect its financial condition, operating performance, control structure, or listing status, and is not expected to harm the interests of shareholders, including minority investors.

The most recent analyst rating on (HK:0598) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Shareholders Approve Capital Reduction, Share Cancellation and New Director Appointment
Dec 29, 2025

Sinotrans Limited announced that all resolutions proposed at its 2025 fourth extraordinary general meeting and corresponding A and H shareholders’ class meetings were approved by poll, including changes to the usage and cancellation of repurchased shares, a reduction of registered capital, and amendments to its Articles of Association and board procedural rules to increase the number of board seats. Shareholders also backed the appointment of Mr. Gong Weiguo as a director for the remainder of the fourth board term, underscoring strong investor support for the company’s capital structure optimisation and governance adjustments, which may enhance board capacity and flexibility in future corporate actions.

The most recent analyst rating on (HK:0598) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Updates Board Composition and Committee Roles
Dec 29, 2025

Sinotrans Limited has announced the current composition of its board of directors, listing eight directors and four independent non-executive directors, reflecting a governance structure that combines executive oversight with independent supervision. The company has also detailed the membership and leadership of its four key board committees—Audit, Remuneration, Nomination, and Strategy and Sustainable Development—indicating the allocation of responsibilities among directors and independent non-executive directors, which underscores its focus on compliance, executive pay, board succession, and long-term strategic and sustainability initiatives.

The most recent analyst rating on (HK:0598) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans to Cancel Repurchased A Shares and Cut Registered Capital, Issues Creditor Notice
Dec 29, 2025

Sinotrans Limited has decided to cancel 5,882,578 repurchased A shares that were originally earmarked for an equity incentive scheme and instead use them to reduce its registered capital. Following the cancellation through the Shanghai Branch of China Securities Depository and Clearing Corporation Limited, the company’s total share capital will fall from 7,179,633,805 to 7,173,751,227 shares, with a corresponding decrease in registered capital. In line with Chinese company law and its articles of association, Sinotrans has issued a formal notice to creditors, giving them a defined period to file claims or request guarantees, while stressing that any debts will continue to be repaid according to existing terms even if claims are not submitted within the specified timeframe.

The most recent analyst rating on (HK:0598) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Limited Proposes Board Expansion to Enhance Governance
Dec 11, 2025

Sinotrans Limited has proposed amendments to its Articles of Association and Procedural Rules for Meetings of the Board to increase the number of board members from eleven to twelve. This change aims to enhance the company’s governance structure by adding one more independent non-executive director, which could potentially improve decision-making processes and strengthen oversight. The proposed amendments are pending approval from the company’s shareholders and relevant regulatory authorities.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Announces Amendments and New Director Appointment at Upcoming EGM
Dec 11, 2025

Sinotrans Limited has announced a supplemental notice for its 2025 fourth extraordinary general meeting, scheduled for December 29, 2025, in Beijing. The meeting will address proposed amendments to the Articles of Association to increase the number of Board seats and the appointment of Mr. Gong Weiguo as a Director. These changes are aimed at enhancing the company’s governance structure and leadership capabilities.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Announces Partial Cancellation of Share Options
Dec 5, 2025

Sinotrans Limited announced the proposed cancellation of part of its share options as per the Share Option Incentive Scheme (Phase I). This decision was made during the 19th meeting of the fourth session of the Board held on December 5, 2025. The move reflects the company’s ongoing efforts to manage its share option plans effectively, ensuring alignment with its strategic goals and market conditions. This cancellation could impact stakeholders by potentially altering the distribution of share options among participants, reflecting a strategic adjustment in the company’s incentive structures.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Adjusts Repurchased Shares Strategy Amid Regulatory Timeline
Dec 5, 2025

Sinotrans Limited announced a change in the usage of its repurchased A Shares, initially intended for an equity incentive scheme, to cancellation and reduction of registered capital. This decision comes as the three-year holding limit for the repurchased shares approaches, and the company plans to cancel 5,882,578 A Shares, subject to approval at the general meeting, which will slightly reduce the total number of shares and potentially impact shareholder value.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Proposes Capital Reduction and Amendments to Articles of Association
Dec 5, 2025

Sinotrans Limited has announced a proposed reduction of its registered capital and amendments to its articles of association. This decision follows the cancellation of over 98 million A shares repurchased between 2022 and 2025, leading to a decrease in total share capital. The proposed changes are subject to shareholder approval at upcoming meetings and final regulatory approval. This move is expected to streamline the company’s capital structure and potentially enhance shareholder value.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans to Hold 2025 Fourth Extraordinary General Meeting
Dec 5, 2025

Sinotrans Limited has announced the convening of its 2025 fourth extraordinary general meeting (EGM) to be held on December 29, 2025, in Beijing, China. The meeting will address special resolutions concerning the proposed change of usage and cancellation of repurchased shares, as well as the reduction of registered capital and amendments to the Articles of Association. These resolutions, if approved, could impact the company’s capital structure and operational flexibility, potentially influencing its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans to Hold 2025 H Shareholders’ Meeting for Key Resolutions
Dec 5, 2025

Sinotrans Limited has announced the convening of its 2025 second H shareholders’ class meeting to discuss and approve significant resolutions, including the change of usage and cancellation of repurchased shares, and the reduction of registered capital with amendments to the Articles of Association. These resolutions, if approved, could impact the company’s capital structure and governance, potentially influencing its market positioning and shareholder value.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Fails to Meet Share Option Exercise Conditions
Dec 5, 2025

Sinotrans Limited announced that the exercise conditions for the third exercise period under its Share Option Incentive Scheme (Phase I) have not been fulfilled. This decision was made during the 19th meeting of the fourth session of the Board held on December 5, 2025. The unfulfillment of these conditions may impact the company’s incentive structure and could have implications for stakeholders involved in the scheme.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Announces Share Option Exercise Results
Nov 26, 2025

Sinotrans Limited has announced the results of the second exercise period under its Share Option Incentive Scheme, with a total of 577,067 shares exercised as of November 25, 2025. This development is part of the company’s efforts to align the interests of its employees with its operational goals, potentially enhancing employee motivation and retention, which could positively impact its market positioning and stakeholder value.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Completes A Shares Repurchase Plan; Controlling Shareholder to Increase Stake
Nov 17, 2025

Sinotrans Limited has successfully completed its A Shares repurchase plan, initially approved in October 2024, using self-owned or self-financed funds. The company repurchased 92,564,070 A Shares, amounting to approximately 1.27% of its total issued shares, with a total expenditure of RMB474.5 million. This strategic move, which aligns with the company’s repurchase plan, is not expected to adversely impact its operations, financial health, or listing status. Additionally, Sinotrans & CSC Holdings Co., Ltd., the controlling shareholder, has proposed increasing its shareholding in the company, further indicating confidence in Sinotrans’s market position.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Limited Releases Q3 2025 Financial Results
Oct 27, 2025

Sinotrans Limited has announced its unaudited consolidated results for the third quarter ending September 30, 2025. The report, prepared in accordance with China Accounting Standards, highlights the company’s commitment to transparency and accuracy in financial reporting, although it remains unaudited. This disclosure is part of the company’s obligations under Hong Kong’s securities regulations and reflects its ongoing operational performance.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Adjusts Share Option Exercise Price Following Dividend Distribution
Oct 27, 2025

Sinotrans Limited has announced an adjustment to the exercise price of its Share Option Scheme, setting it at RMB 3.185 per share following the distribution of annual and interim dividends for 2024 and 2025. This adjustment, approved by the company’s board and audit committee, is not expected to significantly impact Sinotrans’ financial position or operational results, and complies with relevant equity incentive plan regulations.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Announces New Agreements for Logistics Services and Purchases
Oct 27, 2025

Sinotrans Limited has entered into several agreements to ensure compliance with the Listing Rules, involving logistics services with Sinotrans Changjiang and Jiangsu Shipping Agency, and the purchase of office supplies from Zhejiang Daojiahui. These transactions, which are considered continuing connected transactions due to the involvement of connected subsidiaries, are subject to reporting and annual review requirements but do not require independent shareholders’ approval.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Announces Online Briefing for Q3 2025 Results
Oct 22, 2025

Sinotrans Limited has announced an upcoming online briefing to discuss its unaudited consolidated results for the third quarter of 2025, scheduled for October 29, 2025. This briefing aims to provide investors with a comprehensive understanding of the company’s financial performance and business operations, allowing for interactive communication and addressing investor concerns, which may impact stakeholder perceptions and market positioning.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Completes Disposal of Stake in Loscam International
Oct 22, 2025

Sinotrans Limited has completed the disposal of a 25% equity interest in Loscam International, resulting in an expected gain of approximately RMB1.65 billion. This transaction reduces Sinotrans’ stake in Loscam to 20%, which remains an associate of the company, potentially impacting its financial statements and strategic positioning in the logistics sector.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Completes Strategic Shareholding Increase in Antong
Oct 14, 2025

Sinotrans Limited has completed its proposed shareholding increase in Antong, acquiring approximately 168.608 million shares through block trading and centralized bidding transactions. This acquisition, representing about 3.98% of Antong’s total share capital, was achieved with an investment of approximately RMB 600 million, reaching the upper limit of the proposed increase. As a result, Sinotrans now holds a total of 168.7742 million shares, accounting for approximately 3.99% of Antong’s total share capital. This strategic move is expected to strengthen Sinotrans’s influence and stake in Antong, potentially impacting its operational capabilities and market positioning.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

Sinotrans Board Meeting to Review Q3 2025 Financial Results
Oct 14, 2025

Sinotrans Limited has announced that its board of directors will hold a meeting on October 27, 2025, to review and approve the unaudited financial results for the third quarter ended September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:0598) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Sinotrans stock, see the HK:0598 Stock Forecast page.

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: Dec 18, 2025