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Qilu Expressway Co., Ltd. Class H (HK:1576)
:1576
Hong Kong Market
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Qilu Expressway Co., Ltd. Class H (1576) AI Stock Analysis

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HK:1576

Qilu Expressway Co., Ltd. Class H

(1576)

Rating:70Outperform
Price Target:
HK$2.50
â–²(18.48%Upside)
The overall score is driven by strong financial performance despite challenges in cash flow and leverage. The technical analysis supports a neutral to slightly bullish outlook, complemented by attractive valuation metrics. The absence of earnings call and corporate events data did not affect the scoring.

Qilu Expressway Co., Ltd. Class H (1576) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionQilu Expressway Co., Ltd. Class H (1576) is a company that operates in the transportation infrastructure sector, primarily engaged in the investment, construction, operation, and management of expressway projects in China. The company focuses on providing efficient and reliable expressway services, enhancing connectivity and facilitating regional economic development through its well-maintained transportation networks.
How the Company Makes MoneyQilu Expressway Co., Ltd. generates revenue mainly through toll fees collected from vehicles using its expressway networks. The company benefits from high traffic volumes and strategic locations of its expressways, which connect key economic regions. Additionally, Qilu Expressway may earn income from auxiliary services provided along its routes, such as service area operations, advertising, and partnerships with local businesses. The company's financial performance is influenced by factors such as traffic flow, toll rates, and government policies related to infrastructure and transportation.

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

Summary
Qilu Expressway shows strong revenue growth and profitability with a solid net profit margin. However, high leverage and cash flow challenges pose significant risks. Improving cash flow management and addressing leverage will be crucial.
Income Statement
78
Positive
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
65
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.02B5.61B2.93B2.00B1.69B
Gross Profit740.59M811.98M1.16B1.32B983.13M
EBITDA900.36M1.07B1.38B1.59B1.30B
Net Income484.59M525.26M781.69M853.43M620.78M
Balance Sheet
Total Assets21.08B14.51B10.41B6.63B6.71B
Cash, Cash Equivalents and Short-Term Investments1.33B599.75M1.71B590.47M542.09M
Total Debt10.68B7.17B3.84B2.65B3.34B
Total Liabilities14.85B8.46B4.68B3.24B3.81B
Stockholders Equity6.08B5.92B5.61B3.39B2.90B
Cash Flow
Free Cash Flow-3.81B-3.47B-761.91M1.21B1.03B
Operating Cash Flow853.80M964.30M730.48M1.35B1.14B
Investing Cash Flow-4.14B-4.30B-3.14B336.47M-2.73B
Financing Cash Flow3.10B3.06B2.51B-1.17B271.42M

Qilu Expressway Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.11
Price Trends
50DMA
2.00
Positive
100DMA
2.04
Positive
200DMA
2.13
Negative
Market Momentum
MACD
0.02
Negative
RSI
66.01
Neutral
STOCH
84.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1576, the sentiment is Positive. The current price of 2.11 is above the 20-day moving average (MA) of 2.06, above the 50-day MA of 2.00, and below the 200-day MA of 2.13, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.01 is Neutral, neither overbought nor oversold. The STOCH value of 84.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1576.

Qilu Expressway Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$76.65B9.6513.04%0.50%61.18%9.48%
75
Outperform
HK$3.61B6.2811.55%2.39%-2.20%-12.73%
75
Outperform
$28.90B11.2614.00%0.41%49.94%-3.27%
73
Outperform
$18.54B9.618.46%1.29%-13.19%18.52%
71
Outperform
$25.73B12.865.52%0.57%-5.91%-54.35%
70
Outperform
HK$4.22B7.9612.09%2.53%23.94%-9.82%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1576
Qilu Expressway Co., Ltd. Class H
2.11
0.13
6.57%
HK:1785
Chengdu Expressway Co., Ltd. Class H
2.18
0.19
9.55%
HK:0177
Jiangsu Expressway Co
10.24
3.11
43.56%
HK:0548
Shenzhen Expressway Co
6.90
-0.34
-4.70%
HK:0995
Anhui Expressway Company
12.68
3.89
44.19%
HK:0107
Sichuan Expressway Co
4.82
1.78
58.66%

Qilu Expressway Co., Ltd. Class H Corporate Events

Qilu Expressway Issues Profit Warning Amid Revenue Decline
Jul 25, 2025

Qilu Expressway Co., Ltd. has issued a profit warning for the first half of 2025, reporting a significant 61.98% decrease in revenue compared to the same period in 2024, primarily due to reduced construction business revenue. However, toll income increased by 70.03% following the completion of the Jihe Expressway reconstruction, which resumed two-way traffic. Despite the increase in toll income, the company’s net profit decreased by 21.62%, attributed to higher depreciation, amortization, and financial costs after the project completion. The financial information is preliminary and subject to change, urging stakeholders to exercise caution.

Qilu Expressway Proposes Revision of Annual Caps for 2024-2026 Agreements
Jul 24, 2025

Qilu Expressway Co., Ltd. has announced a proposed revision of the annual caps for its 2024-2026 Continuing Connected Transactions Framework Agreements due to increased business activities and project requirements. The company has entered into Supplemental Agreements with Shandong Hi-Speed Group to accommodate these changes, which will require compliance with the Hong Kong Listing Rules, including obtaining Independent Shareholders’ approval for certain agreements.

Qilu Expressway Announces Revisions to Framework Agreements with Shandong Hi-Speed
Jul 11, 2025

Qilu Expressway Co., Ltd. has announced its intention to enter into Supplemental Agreements with Shandong Hi-Speed Group to revise the annual caps under the 2024-2026 Continuing Connected Transactions Framework Agreements. These revisions are aimed at supporting the company’s expansion in expressway operations, construction projects, and industrial product sales, reflecting its growing operational scale and enhanced qualifications. The proposed adjustments to annual caps are intended to accommodate increased demand and improve market competitiveness, subject to approval by the company’s general meeting.

Qilu Expressway Announces Director Changes
Jul 4, 2025

Qilu Expressway Co., Ltd. announced the resignation of Mr. Kang Jian as a non-executive director due to work adjustments, effective July 4, 2025. The company expressed gratitude for his contributions. Concurrently, the company proposed the appointment of Mr. Wang Hongyi as a new non-executive director, pending approval at the general meeting. Mr. Wang brings extensive experience in financial and investment management, having held significant roles in various companies, including Shandong Hi-Speed Group and Weihai Bank.

Qilu Expressway Announces Board Composition and Committee Roles
Jul 4, 2025

Qilu Expressway Co., Ltd. has announced the composition of its board of directors and the roles within its four special committees. This organizational update highlights the leadership structure and governance framework, which could influence the company’s strategic direction and operational efficiency.

Qilu Expressway Updates Final Dividend for 2024
Jun 26, 2025

Qilu Expressway Co., Ltd. has announced an update to its final cash dividend for the year ended December 31, 2024. The dividend, declared at RMB 0.1 per share, will be paid in Hong Kong dollars at HKD 0.109495 per share, following an exchange rate of RMB 1 to HKD 1.094945. The payment is scheduled for August 29, 2025, with the record date set for July 8, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively.

Qilu Expressway Co., Ltd. Passes All Resolutions at 2024 AGM with Unanimous Support
Jun 26, 2025

Qilu Expressway Co., Ltd. successfully held its 2024 Annual General Meeting on June 26, 2025, where all proposed resolutions were passed with unanimous support. The resolutions included the approval of the company’s work reports, annual report, profit distribution plan, and the appointment of audit firms for 2025. The meeting was attended by a significant majority of shareholders, demonstrating strong shareholder engagement and support for the company’s strategic decisions.

Qilu Expressway Appoints New Executive Director and Supervisor
May 9, 2025

Qilu Expressway Co., Ltd. held an Extraordinary General Meeting (EGM) on May 9, 2025, where shareholders approved the appointment of Mr. Chen Xiulin as an executive director and Mr. Liu Qiang as a shareholder representative supervisor. The meeting saw a high participation rate, with 91.79% of voting shares represented, and all resolutions were passed unanimously. This development is expected to strengthen the company’s leadership and governance, potentially impacting its strategic direction and operational efficiency.

Qilu Expressway Announces Board of Directors and Committee Roles
May 9, 2025

Qilu Expressway Co., Ltd. has announced the list of its board of directors, detailing the roles and functions of each member. This announcement highlights the company’s governance structure, which includes executive, non-executive, and independent non-executive directors, as well as the composition of four special committees, indicating a robust framework for strategic decision-making and oversight.

Qilu Expressway Reports Q1 2025 Financial Results with Increased Toll Income
Apr 30, 2025

Qilu Expressway Co., Ltd. reported a 13.74% decline in revenue for the first quarter of 2025 compared to the same period in 2024, primarily due to decreased construction business revenue. However, toll income increased significantly by approximately 70.60%, attributed to the completion of the Jihe Expressway reconstruction, which enabled the resumption of two-way traffic. Despite the revenue drop, the company’s net profit only slightly decreased by 1.16%, impacted by higher depreciation, amortization, and financial expenses related to the expressway project. The financial information provided has not been audited, and stakeholders are advised to exercise caution.

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: Jul 22, 2025