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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
▲(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 exhibits stable financial health with consistent revenue and profitability margins, albeit with fluctuating growth rates. The balance sheet and cash flow statements reflect the company's ability to manage its finances effectively, though caution is advised regarding leverage and capital expenditure management.
Income Statement
65
Positive
The company demonstrates a stable revenue stream with a slight drop in growth rate over the years. Gross Profit Margin and Net Profit Margin are moderate, indicating efficient cost management. The EBIT and EBITDA margins suggest reliable operational performance, though there's room for improvement in profitability ratios to enhance competitive advantage.
Balance Sheet
70
Positive
The balance sheet displays a solid equity base, with a favorable equity ratio. However, the debt-to-equity ratio is relatively high, which may pose risks if revenue growth stagnates. Return on Equity is stable, reflecting a consistent capacity to generate returns for shareholders.
Cash Flow
72
Positive
Cash flow analysis reveals positive free cash flow growth, with strong operating cash flow relative to net income. This indicates robust cash generation capabilities. However, capital expenditures need close monitoring to ensure sustained free cash flow growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue97.06B105.62B101.70B108.82B124.35B84.54B
Gross Profit5.26B5.54B2.13B6.10B3.08B4.94B
EBITDA5.16B4.58B8.49B3.85B7.25B6.01B
Net Income3.84B3.92B4.22B4.08B3.71B2.75B
Balance Sheet
Total Assets89.37B77.20B75.89B78.50B74.30B65.82B
Cash, Cash Equivalents and Short-Term Investments14.14B13.47B13.96B16.54B14.50B11.67B
Total Debt13.32B11.61B12.66B15.55B14.96B14.81B
Total Liabilities42.91B35.15B35.77B41.57B39.25B33.57B
Stockholders Equity43.48B39.57B37.80B34.87B33.10B30.45B
Cash Flow
Free Cash Flow4.44B2.56B2.23B3.56B2.72B2.14B
Operating Cash Flow5.92B4.11B3.84B5.12B4.16B3.96B
Investing Cash Flow-852.51M207.39M210.02M1.02B472.79M
Financing Cash Flow-4.18B-4.74B-6.70B-4.60B-1.61B-1.55B

Sinotrans Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.90
Price Trends
50DMA
5.20
Negative
100DMA
4.91
Negative
200DMA
4.24
Positive
Market Momentum
MACD
-0.05
Positive
RSI
36.96
Neutral
STOCH
16.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0598, the sentiment is Neutral. The current price of 4.9 is below the 20-day moving average (MA) of 5.15, below the 50-day MA of 5.20, and above the 200-day MA of 4.24, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.96 is Neutral, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$78.22B10.8212.40%11.05%81.01%
72
Outperform
HK$127.69B13.9513.87%3.11%12.64%2.90%
66
Neutral
HK$2.95B5.4737.50%7.43%56.58%1963.38%
64
Neutral
HK$46.17B8.909.44%6.45%-17.69%-3.38%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
HK$94.80B74.295.53%12.14%
54
Neutral
HK$12.71B9.328.51%3.65%26.36%-18.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0598
Sinotrans
4.90
1.66
51.00%
HK:0636
KLN Logistics Group Limited
7.04
0.39
5.90%
HK:2057
ZTO Express (Cayman), Inc. Class A
162.20
14.37
9.72%
HK:2618
JD Logistics, Inc.
11.76
-1.66
-12.37%
HK:2490
LC Logistics, Inc
4.93
-8.23
-62.54%
HK:1519
J&T Global Express Limited
10.43
4.32
70.70%

Sinotrans Corporate Events

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Sinotrans Approves Key Resolutions to Streamline Operations
Sep 29, 2025

Sinotrans Limited announced the successful passing of several key resolutions during its 2025 Third Extraordinary General Meeting. These resolutions include the reduction of the company’s registered capital, amendments to the Articles of Association, and the abolition of the supervisory committee. The approval of these resolutions by shareholders signifies a strategic move to streamline operations and potentially enhance corporate governance, impacting the company’s future operational efficiency and stakeholder engagement.

Sinotrans Announces Strategic Governance Changes at Upcoming EGM
Sep 9, 2025

Sinotrans Limited has announced the convening of its 2025 third extraordinary general meeting to discuss significant changes, including a proposed reduction in registered capital and amendments to its Articles of Association. These changes, along with the abolishment of the supervisory committee and updates to various procedural rules, signal a strategic shift in the company’s governance structure, potentially impacting its operational efficiency and stakeholder engagement.

Sinotrans Enhances Governance with Amended Remuneration Committee Rules
Sep 9, 2025

Sinotrans Limited has amended the rules of procedure for its Remuneration Committee to enhance its governance framework. The committee is tasked with evaluating directors and senior management, formulating remuneration policies, and making recommendations to the board. These changes aim to align the company’s remuneration practices with industry standards and improve accountability, potentially impacting stakeholder confidence and operational transparency.

Sinotrans Enhances Corporate Governance with Amended Nomination Committee Rules
Sep 9, 2025

Sinotrans Limited has amended the rules of procedure for its Nomination Committee to enhance its corporate governance structure. The Nomination Committee, accountable to the Board, is responsible for recommending candidates for senior management positions and assessing the independence of independent directors. The committee consists of five directors, with a majority being independent, and is led by a convener who is also an independent director. These changes aim to ensure effective oversight and selection of company leadership, potentially impacting the company’s strategic direction and stakeholder confidence.

Sinotrans Limited Proposes Amendments to Enhance Corporate Governance
Sep 9, 2025

Sinotrans Limited has announced proposed amendments to its Articles of Association, including the abolishment of its supervisory committee in favor of an audit committee, in compliance with recent changes in Chinese Company Law and Hong Kong Stock Exchange regulations. These amendments aim to enhance corporate governance, streamline operations, and align with the latest legal requirements, while maintaining shareholder rights and ensuring no adverse impact on business operations.

Sinotrans Enhances Audit Committee Procedures for Better Governance
Sep 9, 2025

Sinotrans Limited has amended the rules of procedure for its Audit Committee to enhance decision-making, internal supervision, and risk control. The changes aim to improve corporate governance and ensure accurate financial reporting, reflecting the company’s commitment to maintaining robust internal controls and transparency.

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