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

• Market Cap: HK$3.60B
• Dividend Yield: 6.02%
• Average Volume (3M): 75.70K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.27
• 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: 65,500
• 30 Day Avg. Volume: 75,700
• 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 ▲(14.29% 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.

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: Neutral
• Last Price: 1.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1576, the sentiment is Neutral. The current price of 1.75 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 1.82, and below the 200-day MA of 2.01, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$69.55B	9.67	11.86%	5.47%	25.01%	3.40%
0995	75 Outperform	HK$27.45B	10.94	14.89%	5.07%	5.50%	11.50%
0107	73 Outperform	$19.29B	9.64	8.89%	5.75%	-20.02%	42.97%
1785	72 Outperform	HK$3.35B	6.27	10.26%	5.33%	3.43%	-17.34%
0548	71 Outperform	HK$25.74B	14.40	5.84%	3.55%	7.13%	-52.33%
1576	64 Neutral	HK$3.60B	7.64	10.92%	6.02%	-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 Releases 2025 Interim Results

Qilu Expressway Company Limited announced its unaudited interim results for the six months ending June 30, 2025. The interim report, which complies with the Hong Kong Stock Exchange’s listing requirements, will be available on the company’s website and distributed to shareholders who have requested a printed copy. This announcement reflects the company’s ongoing commitment to transparency and regulatory compliance, potentially impacting investor confidence and stakeholder engagement.

The most recent analyst rating on (HK:1576) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Qilu Expressway Co., Ltd. Class H stock, see the HK:1576 Stock Forecast page.

Qilu Expressway EGM Approves Key Resolutions and Director Appointments

Qilu Expressway Co., Ltd. held an Extraordinary General Meeting (EGM) on August 28, 2025, where several key resolutions were passed. These included the approval of transactions under the 2024-2026 General Services and Sales Framework Agreements, as well as the appointment of Mr. Wei Yong as an executive director and Mr. Wang Hongyi as a non-executive director. The successful passing of these resolutions, with unanimous support, indicates a strategic alignment and potential growth for the company, reinforcing its governance and operational frameworks.

The most recent analyst rating on (HK:1576) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Qilu Expressway Co., Ltd. Class H stock, see the HK:1576 Stock Forecast page.

Qilu Expressway Announces Board Composition and Committee Roles

Qilu Expressway Co., Ltd. has announced the composition of its board of directors and the roles they will undertake. The board includes executive, non-executive, and independent non-executive directors, with specific members serving on four special committees: Audit, Remuneration and Appraisal, Nomination, and Strategy. This announcement highlights the company’s governance structure, which is crucial for its strategic decision-making and operational oversight.

The most recent analyst rating on (HK:1576) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Qilu Expressway Co., Ltd. Class H stock, see the HK:1576 Stock Forecast page.

Qilu Expressway Schedules Board Meeting for Interim Results Review

Qilu Expressway Co., Ltd. has announced that its board of directors will meet on August 28, 2025, to review and approve the unaudited interim results for the first half of the year. The board will also consider the recommendation for an interim dividend, which could impact shareholders and reflect the company’s financial health.

Qilu Expressway Announces EGM to Approve Key Resolutions

Qilu Expressway Co., Ltd. has announced an Extraordinary General Meeting (EGM) scheduled for August 28, 2025, to discuss and approve special and ordinary resolutions. The special resolutions include transactions under the Supplemental Agreements of the 2024-2026 General Services and Sales Framework Agreements, with proposed revised annual caps. Additionally, the company plans to appoint Mr. Wei Yong as an executive director and Mr. Wang Hongyi as a non-executive director. This meeting and the proposed resolutions are significant for the company’s strategic direction and governance structure, potentially impacting its operational efficiency and stakeholder relations.

Leadership Changes at Qilu Expressway Co., Ltd.

Qilu Expressway Co., Ltd. announced the resignation of Mr. Wang Zhenjiang from multiple key positions, including Chairman of the Board, due to work reassignment, effective July 31, 2025. The company expressed gratitude for Mr. Wang’s contributions and is in the process of appointing Mr. Wei Yong as an executive director, pending approval at the general meeting. Mr. Wei brings extensive experience from various roles in the Shandong Provincial government and related enterprises, which may influence the company’s strategic direction and governance.