Anhui Expressway Company (0995) AI Stock Analysis

• Market Cap: $27.44B
• Dividend Yield: 6.66%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.10
• Revenue Growth: 49.94%
• EPS Growth: -3.27%
• Country: HK
• Employees: 1,936
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.35
• Shares Outstanding: 493,009,980
• 10 Day Avg. Volume: 1,140,384
• 30 Day Avg. Volume: 1,356,249
• PEG Ratio: 3.36
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -46.97
• 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: $16.49
• Price Target Upside: 41.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Anhui Expressway demonstrates strong financial performance with notable revenue and profit growth. The technical analysis shows upward momentum, but caution is advised due to potential overbought conditions. The valuation is attractive with a low P/E ratio and high dividend yield. Overall, the stock is sound, offering growth potential, but investors should be mindful of leverage and market volatility.

Anhui Expressway Company Business Overview & Revenue Model

Company Description

Anhui Expressway Company Limited constructs, operates, manages, and develops toll roads and associated service sections in Anhui province, the People's Republic of China. The company owns interests in the Hening Expressway, New Tianchang Section of National Trunk 205, Gaojie Expressway, Xuanguang Expressway, Lianhuo Expressway Anhui Section, Ningxuanhang Expressway Tianchang Section, Guangci Expressway, Ningxuanhang Expressway, Anquing Yangtze River Expressway Bridge, and Yuewu Expressway Anhui section. It also provides pawn loan services. Anhui Expressway Company Limited was incorporated in 1996 and is headquartered in Hefei, the People's Republic of China.

How the Company Makes Money

Anhui Expressway Company generates revenue primarily through the collection of toll fees from vehicles using its expressways and bridges. This forms the core revenue stream as the company manages several key routes that are integral to the province's transportation network. The company benefits from stable and recurring income due to the essential nature of road transportation and the consistent demand for its infrastructure services. Additionally, any partnerships with the government or private entities for road maintenance and development projects can also contribute to its earnings. The company's strategic location and the economic growth of Anhui Province further bolster its financial performance through increased traffic and toll collection.

Anhui Expressway Company Financial Statement Overview

Summary

Anhui Expressway Company shows strong revenue and profit growth, supported by robust profitability margins. The balance sheet reflects a solid equity base, although rising leverage needs monitoring. While operating cash flow has decreased recently, the company has managed free cash flow effectively. Overall, the company appears financially sound with growth potential, but cautious attention to leverage is advised.

Income Statement

Anhui Expressway has demonstrated solid revenue growth, with a notable increase in total revenue over the past years. The TTM (Trailing-Twelve-Months) gross profit margin stands at approximately 30.05%, indicating strong profitability. The net profit margin is also robust at 20.41%. However, the EBIT and EBITDA margins, though healthy, show slight compression over time, suggesting potential pressure on operating efficiency.

Balance Sheet

The company maintains a reasonable equity ratio of 41.72% in the TTM period, reflecting a solid capital base. However, the debt-to-equity ratio has increased to 1.06, indicating rising leverage, which could pose risks if interest rates increase or market conditions deteriorate. The ROE is strong at 14.55%, showcasing effective utilization of equity.

Cash Flow

Operating cash flow in the TTM period has decreased compared to previous years, which might affect liquidity management. Despite this, the free cash flow growth rate is substantial, thanks to reduced capital expenditures. The operating cash flow to net income ratio is relatively low at 0.43, suggesting that earnings are not fully translated into cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.63B	7.09B	6.63B	5.21B	3.92B	2.63B
	Gross Profit
2.59B	2.45B	2.62B	2.25B	2.34B	1.33B
	EBIT
2.34B	2.22B	2.27B	1.98B	2.12B	1.25B
	EBITDA
2.56B	3.28B	3.40B	3.15B	3.26B	2.24B
	Net Income Common Stockholders
1.76B	1.67B	1.66B	1.45B	1.51B	869.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.97B	4.78B	3.95B	4.73B	4.32B	3.40B
	Total Assets
29.00B	24.41B	21.74B	21.30B	19.92B	16.24B
	Total Debt
12.82B	7.88B	5.96B	6.70B	5.17B	2.31B
	Net Debt
7.85B	3.10B	2.01B	1.97B	848.98M	22.41M
	Total Liabilities
15.37B	9.55B	7.62B	7.80B	7.98B	4.33B
	Stockholders Equity
12.10B	13.34B	12.66B	11.92B	11.39B	11.28B
Cash Flow		Free Cash Flow
953.83M	280.46M	536.98M	621.72M	1.67B	1.20B
	Operating Cash Flow
762.42M	2.63B	2.65B	1.94B	2.10B	1.70B
	Investing Cash Flow
335.15M	―	―	―	200.18M	―
	Financing Cash Flow
2.04B	484.45M	-1.48B	83.27M	―	―

Anhui Expressway Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0995, the sentiment is Positive. The current price of 11.64 is above the 20-day moving average (MA) of 11.52, above the 50-day MA of 10.88, and above the 200-day MA of 9.92, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 82.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0995.

Anhui Expressway Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0995	75 Outperform	$27.44B	10.66	14.00%	6.66%	49.94%	-3.27%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%

Anhui Expressway Company Corporate Events

Anhui Expressway Forms Joint Venture for Expressway Project

Anhui Expressway Company Limited has entered into a joint venture agreement with a consortium led by Anhui Transportation Holding Group to implement a PPP project for the construction of the S62 Bozhou to Dancheng Expressway Bozhou Section. The joint venture company will have a registered capital of up to RMB616.052 million, with Anhui Expressway contributing RMB215.6182 million for a 35% stake. This strategic move enhances the company’s infrastructure portfolio and strengthens its position in the transportation sector, potentially benefiting stakeholders through improved regional connectivity.

Anhui Expressway Announces EGM to Approve Strategic Resolutions

Anhui Expressway Company Limited has announced an Extraordinary General Meeting (EGM) to be held on May 23, 2025, to discuss and approve key resolutions. The meeting will address the approval of a subscription agreement with Anhui Transportation Holding Group (H.K.) Limited and a Shareholder Return Plan for 2025-2027, indicating strategic moves to enhance shareholder value and operational growth.

Anhui Expressway Reports Strong Q1 2025 Financial Performance

Anhui Expressway Company Limited has released its first quarterly report for 2025, highlighting a significant increase in operating income by 95.33% compared to the previous year. The company also reported a 5.19% rise in net profit attributable to shareholders, showcasing strong financial performance and positive cash flow from operating activities, indicating robust operational efficiency and financial health.

Anhui Expressway Schedules Board Meeting for Q1 Results Review

Anhui Expressway Company Limited has announced a board meeting scheduled for April 28, 2025, to review and approve the unaudited quarterly results for the first quarter ending March 31, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming quarters.

Anhui Expressway to Issue New H Shares in Connected Transaction

Anhui Expressway Company Limited has announced the issuance of new H shares under a general mandate, entering into a subscription agreement with Anhui Transportation Holding Hong Kong. This transaction involves the issuance of approximately 49.98 million new H shares, representing significant percentages of the company’s share capital, and is classified as a connected transaction under Hong Kong Listing Rules, requiring independent shareholders’ approval.

Anhui Expressway Unveils Shareholder Return Plan for 2025-2027

Anhui Expressway Company Limited has announced a proposed Shareholder Return Plan for 2025-2027, which was approved by the board. The plan outlines that the company will distribute profits annually in cash, shares, or a combination of both, provided there are positive retained profits and sufficient cash flow. The cash distribution will be at least 60% of the consolidated net profit attributable to the parent company’s owners each year. The plan is subject to shareholder approval and may be adjusted if significant changes occur in the external operating environment.

Anhui Expressway Signs Maintenance Contracts with Consortium

Anhui Expressway Company Limited announced the signing of multiple General Contracting Contracts for Integrated Maintenance Design and Construction with a consortium formed by Design Institute, ATEGC, and ATRMC. These contracts involve providing integrated maintenance services for various road sections managed by different subsidiaries of the company. As these transactions are considered continuing connected transactions, they are subject to certain regulatory requirements under the Listing Rules, but are exempt from independent shareholder approval due to their commercial terms and percentage ratios.

Anhui Expressway Reports Stable 2024 Financial Results

Anhui Expressway Company Limited announced its audited financial results for the year ending December 31, 2024, reporting a revenue increase to RMB 7,091,833 thousand from the previous year’s RMB 6,631,337 thousand. Despite a slight decrease in gross profit, the company maintained a stable profit for the year, with a net profit attributable to owners amounting to RMB 1,670,667 thousand, reflecting its steady performance and resilience in the infrastructure sector.

Anhui Expressway Declares Final Dividend for 2024

Anhui Expressway Company Limited announced a final cash dividend of RMB 0.604 per share for the financial year ending December 31, 2024. The announcement outlines the withholding tax rates applicable to non-resident enterprise shareholders and domestic investors through stock connect programs, which may impact the net dividend received by these stakeholders.

Anhui Expressway Company to Form Joint Venture for Expressway Project

Anhui Expressway Company Limited has announced its participation in a consortium led by Anhui Transportation Holding Group, which has successfully bid for a Public-Private Partnership (PPP) project to construct the S62 Bozhou to Dancheng Expressway Bozhou Section. The company plans to form a joint venture with consortium members to implement the project, marking a connected transaction under the Listing Rules. This strategic move is expected to strengthen the company’s position in the transportation infrastructure sector, although it will require compliance with certain reporting and announcement obligations.

Anhui Expressway Invests in Shenzhen Expressway A Shares

Anhui Expressway Company Limited has announced its voluntary subscription for A shares in Shenzhen Expressway Corporation Limited. The transaction involves Anhui Expressway acquiring 38,179,196 A shares at a total consideration of RMB502,820,011.32, which will result in the company holding approximately 1.50% of Shenzhen Expressway’s enlarged share capital. This strategic investment aligns with Anhui Expressway’s focus on expanding its portfolio in the toll highway sector, potentially enhancing its market position and offering growth opportunities.

Anhui Expressway Schedules Board Meeting for Annual Results

Anhui Expressway Company Limited has announced that its board of directors will meet on March 28, 2025, to review and approve the audited annual results for the financial year ending December 31, 2024. This meeting will also discuss the profit distribution plan and other related matters, potentially impacting the company’s financial strategy and stakeholder interests.

Anhui Expressway Expands with New Agreements and Acquisitions

Anhui Expressway Company Limited announced supplemental information regarding its Services Framework Agreement and Goods Procurement Framework Agreement. These agreements estimate potential connected transactions for 2025, influenced by the company’s expansion projects and acquisitions, including the Guangde to Xuancheng section of the G50 Huyu Expressway and the acquisition of Fuzhou and Sixu companies. These developments are expected to increase transaction volumes and annual caps, reflecting the company’s growth and strategic positioning in the infrastructure sector.

Anhui Expressway Completes RMB2 Billion Bond Issuance

Anhui Expressway Company Limited announced the successful completion of its 2025 Phase 1 Corporate Bonds issuance, raising RMB2 billion. The bonds, issued to professional investors, are divided into two types with terms of three and five years, and coupon rates of 1.99% and 2.15% respectively. This strategic financial move is expected to support the company’s rural revitalization projects, potentially enhancing its market position and operational capabilities.

Anhui Expressway Secures Shareholder Approval for Strategic Acquisition

Anhui Expressway Company Limited announced the successful passing of resolutions at its extraordinary general meeting held on February 27, 2025. The key resolution involved the company’s acquisition of 100% equity interests in target companies held by Anhui Transportation Holding Group, which was approved by a significant majority of shareholders. This acquisition is expected to enhance the company’s operational capabilities and strengthen its market position in the infrastructure sector.

Anhui Expressway to Issue RMB2 Billion in Corporate Bonds for Rural Revitalization

Anhui Expressway Company Limited announced its plan to issue 2025 rural revitalization corporate bonds to professional investors in China, with a total principal amount not exceeding RMB2 billion. The bonds, which will be available in two types with terms of three and five years, are part of a larger RMB5 billion bond issuance approved by the China Securities Regulatory Committee, aimed at enhancing the company’s financial strategy and market presence.

Anhui Expressway Announces Major Infrastructure Upgrade Contracts

Anhui Expressway Company Limited announced that Ningxuanhang Company and Anqing Bridge Company have entered into general contracts with a consortium for upgrading tunnels automation and retrofitting electromechanical equipment. These transactions, involving subsidiaries of Anhui Transportation Holding Group, are considered continuing connected transactions under the Hong Kong Listing Rules. Aggregated with prior related contracts, they bypass the need for independent shareholder approval but must comply with reporting and review requirements due to their commercial terms.

Anhui Expressway to Expand Through Strategic Acquisition and Infrastructure Projects

Anhui Expressway Company Limited has announced an extraordinary general meeting scheduled for February 27, 2025, where it will address significant resolutions including the acquisition of 100% equity interests in target companies from Anhui Transportation Holding Group and the approval of the Reconstruction and Expansion Project of Gaojie Expressway. These strategic moves are expected to strengthen Anhui Expressway’s operational capacity and market position within the transportation infrastructure sector, potentially influencing shareholders and stakeholders positively by expanding its expressway services.