Road King Infrastructure (1098) AI Stock Analysis

• Market Cap: $509.55M
• Dividend Yield: N/A
• Average Volume (3M): 118.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -62.46%
• EPS Growth: -36.12%
• Country: HK
• Employees: 3,516
• Sector: Real Estate
• Sector Strength: 53
• Industry: Residential Construction
• EPS (TTM): -2.71
• Shares Outstanding: 749,336,550
• 10 Day Avg. Volume: 117,100
• 30 Day Avg. Volume: 118,283
• PEG Ratio: -0.06
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 0.42
• Enterprise Value/Market Cap: 44.57
• Enterprise Value/Revenue: 5.89
• Enterprise Value/Gross Profit: -11.05
• Enterprise Value/Ebitda: -7.99
• 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: 42 Neutral
• Price Target: HK$0.50 ▼(-25.37% Downside)

The overall stock score is primarily driven by poor financial performance, with declining revenue and profitability, high leverage, and inconsistent cash flow. Technical analysis indicates a bearish trend, and valuation metrics are weak due to negative earnings. The absence of earnings call data and corporate events does not affect the score.

Positive Factors

Diverse Revenue Streams

Road King Infrastructure's diverse revenue streams, including tolls, construction, and smart technology, provide stability and potential growth, reducing reliance on any single income source and enhancing resilience against sector-specific downturns.

Public-Private Partnerships

Public-private partnerships allow Road King to share financial benefits and reduce upfront costs, enhancing its ability to undertake large infrastructure projects and maintain a competitive edge in the industry.

Smart Transportation Investment

Investment in smart transportation technologies positions Road King Infrastructure to capitalize on future trends in data analytics and system upgrades, potentially leading to new revenue streams and improved operational efficiencies.

Negative Factors

Declining Revenue

A significant decline in revenue growth indicates challenges in maintaining market position and could impact long-term financial stability if not addressed through strategic initiatives.

High Leverage

High leverage increases financial risk and limits flexibility in capital allocation, potentially affecting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Profitability

Sustained negative profitability reflects operational inefficiencies and high costs, which could hinder the company's ability to reinvest in its business and compete effectively in the long term.

Road King Infrastructure Business Overview & Revenue Model

Company Description

Road King Infrastructure Limited, an investment holding company, invests in, develops, operates, and manages property projects and toll roads in the People's Republic of China. It operates through Property Development and Investment, Toll Road, and Investment and Asset Management segments. The company engages in the development, rental, and sale of residential and commercial properties. It also engages in the property funds, cultural, tourist, and commercial businesses. In addition, it provides financial and management services. Further, the company invests in and operates a toll road portfolio of five expressways in Mainland China and three expressways in Indonesia spanning approximately 600 kilometers. As of December 31, 2021, it had a land reserve of approximately 6,520,000 square meters primarily located in Mainland China and Hong Kong. The company was founded in 1994 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Road King Infrastructure generates revenue through multiple streams, including toll collection from its managed highways and roads, construction contracts for new infrastructure projects, and maintenance services for existing transportation networks. The company also engages in public-private partnerships (PPPs) with government entities, allowing it to share in the financial benefits of toll revenues while reducing upfront costs for public infrastructure development. Additionally, Road King Infrastructure invests in smart transportation technologies, which can provide further income through data analytics services and system upgrades. Overall, the combination of stable toll revenues, strategic construction contracts, and innovative technology solutions forms the backbone of the company's revenue model.

Road King Infrastructure Financial Statement Overview

Summary

Road King Infrastructure is facing financial challenges with declining revenue and profitability, high leverage, and inconsistent cash flow. The company needs to focus on improving operational efficiencies, reducing debt, and stabilizing cash flows to enhance its financial health.

Income Statement

The company has experienced a significant decline in revenue and profitability. Total revenue has been decreasing annually, and the net income has been negative for the past three years. The gross profit margin and EBIT margin are also negative, indicating operational inefficiencies and high costs relative to revenue. There is a lack of revenue growth, and the company has not been able to maintain profitability.

Balance Sheet

The balance sheet indicates high leverage, with a debt-to-equity ratio that has been increasing over the years. Stockholders' equity has decreased, reflecting potential challenges in maintaining financial stability. The equity ratio is moderate, suggesting some level of financial risk. The company needs to manage its liabilities to improve its financial position.

Cash Flow

The cash flow statement shows mixed results. While operating cash flow is positive, reflecting some ability to generate cash from operations, the free cash flow has been inconsistent. The free cash flow to net income ratio is not favorable due to negative net income. The company has managed to maintain some level of cash flow stability, but there is room for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.85B	5.54B	13.08B	17.16B	24.68B	24.20B
Gross Profit	-2.06B	-1.73B	-647.99M	2.94B	5.40B	6.51B
EBITDA	-2.84B	-2.58B	-2.50B	1.18B	4.17B	5.43B
Net Income	-4.58B	-3.58B	-3.43B	41.53M	1.56B	2.25B
Balance Sheet
Total Assets	53.33B	57.51B	73.15B	90.00B	108.24B	103.28B
Cash, Cash Equivalents and Short-Term Investments	3.08B	4.27B	5.48B	8.26B	12.60B	14.06B
Total Debt	15.22B	16.24B	23.65B	40.06B	46.89B	45.39B
Total Liabilities	34.16B	36.61B	45.95B	64.20B	79.39B	77.19B
Stockholders Equity	16.58B	17.94B	22.66B	27.21B	22.34B	27.88B
Cash Flow
Free Cash Flow	896.14M	2.03B	2.54B	725.03M	4.84B	-3.12B
Operating Cash Flow	910.52M	2.05B	2.56B	738.37M	4.88B	-3.10B
Investing Cash Flow	527.93M	4.66B	2.94B	1.50B	-6.43B	-4.58B
Financing Cash Flow	-4.67B	-7.99B	-8.16B	-7.08B	-286.20M	4.57B

Road King Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1098, the sentiment is Negative. The current price of 0.67 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.70, and below the 200-day MA of 0.82, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.12 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1098.

Road King Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2030	63 Neutral	HK$1.03B	32.15	2.21%	1.28%	-14.05%	20.05%
1569	53 Neutral	HK$843.54M	―	-2.11%	5.30%	-20.92%	-121.60%
3778	46 Neutral	HK$375.71M	-18.52	-2.76%	4.95%	-1.24%	5.98%
1906	46 Neutral	HK$809.12M	-30.90	-6.24%	―	5.88%	16.82%
1098	42 Neutral	$509.55M	―	-44.01%	―	-62.46%	-36.12%

Road King Infrastructure Corporate Events

Road King Infrastructure Faces Liquidation Application Against Subsidiary

Road King Infrastructure Limited announced that a liquidation application was filed against its wholly-owned subsidiary, New Select Global Limited, in the Virgin Islands court concerning notes with an alleged outstanding principal amount of over $441 million. The company is seeking legal advice and engaging with the petitioner to resolve the issue, asserting that the application does not materially affect its operations or financial position. Road King is committed to maintaining stakeholder confidence and ensuring the continuation of its business operations and value preservation efforts.

Road King Infrastructure Announces Further Deferral of Distribution Payments

Road King Infrastructure Limited, through its subsidiary RKPF Overseas 2019 (E) Limited, has announced a deferral of distribution payments on its 7.75% Senior Guaranteed Perpetual Capital Securities. This decision, which affects payments scheduled for November 18, 2025, follows previous deferrals and highlights ongoing financial strategies that may impact stakeholders and market perceptions.

Road King Infrastructure Reports Nine-Month Operating Statistics

Road King Infrastructure Limited reported unaudited operating statistics for the nine months ending September 30, 2025, with contracted property sales reaching RMB6,054 million and total property sales, including outstanding subscriptions, amounting to RMB6,449 million. Additionally, the company’s expressway projects generated toll revenue of HKD1,282 million with an average daily traffic volume of 88,000 vehicles, indicating stable performance in its infrastructure operations.

Road King Infrastructure Announces Board Changes

Road King Infrastructure Limited announced changes in its board of directors, effective September 23, 2025. Ms. Cai Xun and Mr. Yuan Yang have resigned due to personal work arrangements, while Mr. Yan Zhongyu and Ms. Deng Hongyu have been appointed as new non-executive directors. The new appointees bring extensive experience in project investment, financing, corporate management, and asset management, which could enhance the company’s strategic direction and operational capabilities.

Road King Infrastructure Announces Board Composition and Roles

Road King Infrastructure Limited has announced the composition of its board of directors and their respective roles and functions. The board includes executive directors such as Zen Wei Peu, Derek as Chairman, and Fong Shiu Leung, Keter as CEO, along with non-executive and independent non-executive directors. The announcement also details the members of the audit, nomination, and remuneration committees, highlighting the company’s structured governance approach.

Road King Infrastructure Enhances Governance with New Nomination Committee

Road King Infrastructure Limited has established a Nomination Committee to ensure a transparent process for appointing Directors to its Board. The committee, composed mainly of Independent Non-executive Directors, is tasked with reviewing the Board’s structure and diversity, identifying qualified director candidates, and making recommendations for appointments and succession planning, thereby enhancing the company’s governance framework.