Qilu Expressway Co., Ltd. Class H (1576) AI Stock Analysis

• Market Cap: HK$3.62B
• Dividend Yield: 6.05%
• Average Volume (3M): 65.57K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.28
• Revenue Growth: -21.80%
• EPS Growth: -8.00%
• Country: HK
• Employees: 672
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.11
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 70,800
• 30 Day Avg. Volume: 65,566
• PEG Ratio: -1.17
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -1.20
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$2.00 ▲(10.50% Upside)

The overall stock score of 64 reflects a mix of strong valuation and financial performance, offset by technical weaknesses. The company's attractive valuation with a low P/E ratio and high dividend yield is a significant strength. However, technical indicators suggest bearish momentum, and financial performance is hindered by high leverage and cash flow issues.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business operations and market demand, enhancing the company's ability to invest in further expansion and innovation.

Profitability

Sustained profitability with solid margins suggests efficient cost management and pricing strategies, supporting long-term financial health and shareholder returns.

Market Position

The company's strategic role in infrastructure positions it well for stable demand and potential growth, benefiting from ongoing urbanization and economic development in China.

Negative Factors

High Leverage

Excessive leverage can increase financial risk, potentially affecting the company's ability to finance operations and growth, especially in adverse economic conditions.

Cash Flow Challenges

Lack of cash flow generation can hinder operational flexibility and investment capacity, posing risks to the company's ability to sustain growth and meet financial obligations.

Revenue Decline

A decline in revenue growth may indicate weakening demand or competitive pressures, potentially impacting the company's market share and long-term profitability.

Qilu Expressway Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Qilu Expressway Co., Ltd. Class H (1576) is a prominent infrastructure company based in China, primarily engaged in the development, operation, and management of expressways and related transportation facilities. The company plays a critical role in the country's transportation network, focusing on enhancing connectivity and mobility. Its core services include toll road operations, maintenance, and expansion of expressway systems, catering to both passenger and freight traffic.

How the Company Makes Money

Qilu Expressway Co., Ltd. generates revenue primarily through toll collection from vehicles using its expressways. The company operates a number of toll roads, where users pay toll fees that vary based on vehicle type, distance traveled, and time of day. Additionally, the company may earn revenue through ancillary services, such as advertising on its properties and leasing land for commercial developments near its expressways. Key partnerships with governmental and local authorities facilitate infrastructure projects and expansions, which can lead to increased traffic volumes and, consequently, higher toll revenues. The company's financial performance is also influenced by traffic trends, economic conditions, and regulatory policies regarding toll rates and road usage.

Qilu Expressway Co., Ltd. Class H Financial Statement Overview

Summary

Qilu Expressway exhibits strong revenue growth and profitability, yet faces challenges with leverage and cash flow management. The income statement reflects positive growth trends, but the balance sheet's high leverage and the cash flow statement's lack of liquidity highlight areas for improvement.

Income Statement

The company shows a strong revenue growth rate of 25.2% from 2023 to 2024, bolstered by a solid net profit margin of 6.9%. While the gross profit margin has decreased, the EBIT and EBITDA margins remain healthy at 8.9% and 12.8%, respectively. Despite the slight decline in profitability metrics, the overall income statement reflects robust growth and profitability.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 1.75, indicating significant leverage. However, the equity ratio stands at 28.9%, showcasing adequate equity support. Although the return on equity is moderate at 8.0%, the increased debt levels could pose future risks if not managed prudently.

Cash Flow

The company exhibits a concerning cash flow position with zero operating and free cash flow in 2024. The free cash flow growth rate is negative, reflecting cash flow challenges. Moreover, the absence of operating cash flow to net income and free cash flow to net income ratios indicates potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.28B	7.02B	5.61B	2.93B	2.00B	1.69B
Gross Profit	799.94M	740.59M	811.98M	1.16B	1.32B	983.13M
EBITDA	1.16B	900.36M	1.07B	1.37B	1.59B	1.30B
Net Income	436.41M	484.59M	525.26M	781.69M	853.43M	620.78M
Balance Sheet
Total Assets	20.97B	21.08B	14.51B	10.41B	6.63B	6.71B
Cash, Cash Equivalents and Short-Term Investments	363.73M	1.33B	599.75M	1.68B	590.47M	542.09M
Total Debt	11.43B	10.68B	7.17B	3.84B	2.65B	3.34B
Total Liabilities	14.74B	14.85B	8.46B	4.68B	3.24B	3.81B
Stockholders Equity	6.06B	6.08B	5.92B	5.61B	3.39B	2.90B
Cash Flow
Free Cash Flow	-2.49B	-3.81B	-3.47B	-761.91M	1.21B	1.03B
Operating Cash Flow	233.16M	853.80M	964.30M	730.48M	1.35B	1.14B
Investing Cash Flow	-2.67B	-4.14B	-4.30B	-3.14B	336.47M	-2.73B
Financing Cash Flow	1.78B	3.10B	3.06B	2.51B	-1.17B	271.42M

Qilu Expressway Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1576, the sentiment is Negative. The current price of 1.81 is below the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.81, and below the 200-day MA of 1.94, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1576.

Qilu Expressway Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0177	81 Outperform	HK$63.52B	10.00	11.86%	5.47%	25.01%	3.40%
0995	75 Outperform	HK$26.32B	10.81	14.89%	5.16%	5.50%	11.50%
0107	73 Outperform	HK$19.64B	9.55	8.89%	5.88%	-20.02%	42.97%
1785	72 Outperform	HK$3.49B	6.55	10.26%	5.15%	3.78%	-17.34%
0548	71 Outperform	HK$22.92B	13.97	5.84%	3.71%	7.13%	-52.33%
1576	64 Neutral	HK$3.62B	7.68	10.92%	6.05%	-21.80%	-8.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Qilu Expressway Co., Ltd. Class H Corporate Events

Qilu Expressway Provides Financial Guarantee for Subsidiary

Qilu Expressway Co., Ltd. has announced a voluntary update regarding the provision of a joint and several liability guarantee for bank credit of its subsidiary, Shandong Shunguang Industrial, by China Merchants Bank. This guarantee, with a maximum amount of RMB50 million, is intended to cover various financial obligations and is valid for two years. The transaction is considered a financial assistance to the subsidiary and does not constitute a notifiable or connected transaction under the Listing Rules. Shareholders and potential investors are advised to exercise caution as the financial information provided has not been audited.

Qilu Expressway Co., Ltd. Announces Extraordinary General Meeting for Governance Amendments

Qilu Expressway Co., Ltd., a joint stock company incorporated in the People’s Republic of China, has announced an Extraordinary General Meeting (EGM) scheduled for December 12, 2025. The meeting will focus on considering and approving proposed amendments to the company’s Articles of Association and the Rules of Procedures for General Meetings and the Board of Directors. This meeting reflects the company’s ongoing efforts to update its governance structures, which may impact its operational efficiency and stakeholder engagement.

Qilu Expressway Enhances Governance with New Nomination Committee

Qilu Expressway Co., Ltd. has established a nomination committee to enhance the selection criteria and procedures for directors and senior management, aiming to improve corporate governance. The committee, composed mainly of independent non-executive directors, is responsible for examining and recommending candidates for key positions, ensuring the strategic development of the company. This move is expected to strengthen the company’s governance structure and align its leadership with strategic goals, potentially impacting its operational efficiency and stakeholder confidence.

Qilu Expressway Co., Ltd. Enhances Governance with New Remuneration Committee

Qilu Expressway Co., Ltd. has established a remuneration and appraisal committee to enhance its corporate governance by creating a comprehensive appraisal and remuneration system for its directors and senior management. This committee is tasked with setting appraisal criteria, formulating remuneration policies, and ensuring the implementation of these systems aligns with the company’s mission and targets, thereby strengthening its governance framework.

Qilu Expressway Proposes Governance Amendments and Supervisory Committee Cancellation

Qilu Expressway Co., Ltd. has announced proposed amendments to its Articles of Association and related procedural rules, including the cancellation of its supervisory committee. These changes are aimed at optimizing corporate governance in line with new regulatory requirements. The amendments are pending approval at the company’s general meeting, and their implementation is expected to enhance operational efficiency and align with updated legal frameworks.

Leadership Changes Announced at Qilu Expressway Co., Ltd.

Qilu Expressway Co., Ltd. announced the resignation of Mr. Liu Qiang as chairman of the supervisory committee and a supervisor due to a change of work, effective November 14, 2025. Additionally, Mr. Liu Liangrong retired and resigned as deputy general manager upon reaching the statutory retirement age. Both individuals confirmed no disagreements with the board, and the company expressed gratitude for their contributions.

Qilu Expressway Reports Revenue Decline Amid Toll Income Surge

Qilu Expressway Co., Ltd. reported a significant decrease in revenue for the nine months ended September 30, 2025, with a 61.58% drop compared to the same period in 2024, primarily due to reduced construction business revenue. However, the toll income increased by 73% following the completion of the Jihe Expressway reconstruction, which resumed two-way traffic. Despite the rise in toll income, the company’s net profit declined by 11.71% due to increased depreciation, amortization, and financial expenses related to the expressway project.