Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H (1635) AI Stock Analysis

• Market Cap: HK$11.65B
• Dividend Yield: 1.79%
• Average Volume (3M): 10.18M
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.74
• Revenue Growth: -3.03%
• EPS Growth: -0.47%
• Country: HK
• Employees: 2,803
• Sector: Utilities
• Sector Strength: 66
• Industry: Regulated Gas
• EPS (TTM): N/A
• Shares Outstanding: 533,643,000
• 10 Day Avg. Volume: 11,969,200
• 30 Day Avg. Volume: 10,177,633
• PEG Ratio: 0.06
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.89
• 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

• Rating: 60 Neutral
• Price Target: ―

Shanghai Dazhong Public Utilities' stock score reflects a stable financial performance with consistent operational margins and manageable debt levels. However, moderate profitability and a high P/E ratio suggest limited upside in valuation. The technical indicators show neutral to weak momentum, and a modest dividend yield provides some attractiveness. Overall, the stock portrays operational stability but faces challenges in profitability and valuation metrics.

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H (1635) is a diversified public utilities company based in China, primarily engaged in the sectors of public transportation and natural gas supply. The company provides comprehensive services that include the operation of taxi services, bus services, and the distribution of natural gas. Their core services are designed to cater to the essential needs of urban residents, ensuring efficient and reliable transportation and energy solutions.

How the Company Makes Money

Shanghai Dazhong Public Utilities (Group) Co., Ltd. generates revenue through multiple streams. A significant portion of its income comes from the operation of public transportation services, such as taxis and buses, where they earn money from passenger fares. Additionally, the company is a major player in the distribution of natural gas, supplying this essential energy source to both residential and commercial customers. Revenue in this segment is derived from the sale of natural gas based on consumption. The company may also engage in strategic partnerships and investments that enhance operational efficiency and expand their service offerings, contributing to overall earnings.

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Financial Statement Overview

Summary

Shanghai Dazhong Public Utilities maintains a stable financial profile characterized by consistent revenue and operational margins. While debt levels are manageable, profitability metrics suggest moderate returns on equity. Cash flow generation is robust, but a lack of free cash flow data poses challenges in fully assessing financial flexibility. Overall, the company demonstrates operational stability with potential for improved profitability and financial efficiency.

Income Statement

Shanghai Dazhong Public Utilities shows stable gross and EBIT margins with gross profit margin at 15.21% and EBIT margin at 6.77% for 2024. Net profit margin is relatively low at 3.68%, indicating potential cost pressures. Revenue has seen minimal fluctuation, with a slight contraction of 1.08% from 2023, reflecting a stable demand in the regulated utilities sector. However, the EBITDA margin maintains robustness at 16.93%, suggesting effective cost management at the operational level.

Balance Sheet

The company exhibits a moderate debt-to-equity ratio of 0.69 in 2024, indicating a balanced approach to leverage. Return on equity is modest at 2.73%, reflecting limited profitability on shareholder equity. Equity ratio stands at 37.19%, suggesting a stable financial foundation, though there is room for improvement in equity utilization.

Cash Flow

Operating cash flow to net income ratio is strong at 1.74 in 2024, showing efficient cash conversion from income. However, free cash flow growth is not calculable due to missing data, and this limits the assessment of cash flow health. The cash flow profile indicates stable operational cash generation but lacks visibility in cash reinvestment and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.24B	6.34B	6.40B	5.85B	5.54B	4.91B
Gross Profit	936.08M	963.91M	1.01B	838.79M	935.95M	894.65M
EBITDA	824.05M	1.07B	1.05B	378.08M	1.18B	1.47B
Net Income	399.59M	233.15M	212.54M	―	303.36M	515.23M
Balance Sheet
Total Assets	23.26B	22.99B	22.83B	23.58B	24.07B	23.62B
Cash, Cash Equivalents and Short-Term Investments	3.70B	3.52B	3.33B	3.21B	2.53B	2.77B
Total Debt	5.09B	5.93B	8.19B	9.00B	8.72B	7.02B
Total Liabilities	13.01B	12.95B	13.10B	14.01B	14.06B	13.75B
Stockholders Equity	8.70B	8.55B	8.32B	8.24B	8.72B	8.64B
Cash Flow
Free Cash Flow	273.84M	―	336.44M	132.13M	27.99M	―
Operating Cash Flow	0.00	405.52M	689.83M	417.43M	674.26M	229.07M
Investing Cash Flow	655.71M	113.09M	397.22M	311.03M	―	―
Financing Cash Flow	291.16M	―	-866.52M	136.41M	―	215.14M

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1635, the sentiment is Positive. The current price of 2.2 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 2.00, and above the 200-day MA of 1.92, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 68.68 is Neutral, neither overbought nor oversold. The STOCH value of 45.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1635.

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1065	74 Outperform	$9.53B	7.36	8.42%	35.49%	0.22%	-11.86%
0257	68 Neutral	$24.39B	7.22	6.99%	4.53%	-5.71%	-23.74%
Sector *	63 Neutral	HK$30.55B	8.24	5.37%	5.32%	-3.09%	4.51%
1635	60 Neutral	HK$11.65B	25.70	2.75%	1.79%	-3.03%	-0.47%
1193	59 Neutral	$46.61B	11.40	9.94%	6.81%	1.39%	-21.74%
0812	31 Underperform	HK$109.85M	―		―	-79.70%	29.55%

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Corporate Events

Shanghai Dazhong Public Utilities Reports Strong Profit Growth in Q1 2025

Shanghai Dazhong Public Utilities (Group) Co., Ltd. announced its unaudited financial results for the first quarter of 2025, reporting a total revenue of approximately RMB 2.08 billion, a slight decrease from the previous year. However, the company saw a significant increase in net profit attributable to shareholders, which rose by 601.27% to RMB 194.12 million, indicating improved profitability despite a decline in total revenue.

Shanghai Dazhong Public Utilities Proposes Amendments to Governance Framework

Shanghai Dazhong Public Utilities (Group) Co., Ltd. has announced proposed amendments to its Articles of Association, Rules of Procedures for the General Meeting, and Rules of Procedures for the Board. These amendments are aimed at aligning with the latest guidelines issued by the China Securities Regulatory Commission and enhancing the company’s corporate governance system. The proposed changes are subject to shareholder approval at the upcoming annual general meeting.

Shanghai Dazhong Public Utilities Enters Framework Agreement with Dazhong Business Management

Shanghai Dazhong Public Utilities (Group) Co., Ltd. has entered into a Purchase Cooperation Framework Agreement with Dazhong Business Management to acquire motor vehicles, vehicle repair and maintenance services, and venue leasing. This agreement, effective April 29, 2025, involves transactions classified as continuing connected transactions under the Listing Rules, requiring reporting and annual review but exempt from independent shareholder approval due to the applicable percentage ratios.

Shanghai Dazhong Public Utilities Announces Board Meeting for Quarterly Results

Shanghai Dazhong Public Utilities (Group) Co., Ltd. has announced a board meeting scheduled for April 29, 2025, to discuss and approve the company’s first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perspectives and the company’s market positioning.

Shanghai Dazhong Public Utilities Releases 2024 Financial Results

Shanghai Dazhong Public Utilities (Group) Co., Ltd. announced its audited results for the year ending December 31, 2024. The results, which comply with the listing requirements of The Stock Exchange of Hong Kong Limited, will be available on both the stock exchange’s and the company’s websites. This announcement reflects the company’s adherence to regulatory standards and provides stakeholders with transparency regarding its financial performance.

Shanghai Dazhong Public Utilities Announces Final Dividend for 2024

Shanghai Dazhong Public Utilities (Group) Co., Ltd. announced a final ordinary cash dividend of RMB 0.36 per 10 shares for the financial year ending December 31, 2024. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, with further details regarding the payment and exchange rate to be announced.

Leadership Changes at Shanghai Dazhong Public Utilities

Shanghai Dazhong Public Utilities announced the resignation of Mr. Shi Pingyang as a non-executive director due to work adjustments, with no disagreements reported. The company has proposed Mr. Zhao Yeqing, an experienced executive in the gas industry, for the role, pending shareholder approval at the upcoming AGM.

Shanghai Dazhong Public Utilities Announces Asset Impairment and Write-Off for 2024

Shanghai Dazhong Public Utilities (Group) Co., Ltd. announced a provision for impairment and the write-off or scrapping of certain assets for the year 2024. This decision aims to accurately reflect the company’s financial condition and operating performance. The company has identified a need to make provisions for impairment amounting to RMB1.6133 million, write off accounts receivable totaling RMB8.2669 million, and scrap fixed assets worth RMB5.7296 million. These measures are taken in accordance with the Enterprise Accounting Standard and the company’s accounting policies, reflecting a prudent approach to financial management.

Shanghai Dazhong Public Utilities Announces Upcoming Board Meeting for Annual Results

Shanghai Dazhong Public Utilities (Group) Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend payment, which could impact shareholder returns and reflect the company’s financial health.

Shanghai Dazhong Obtains CSRC Approval for Bond Issuance

Shanghai Dazhong Public Utilities (Group) Co., Ltd. announced that it has received approval from the China Securities Regulatory Commission (CSRC) to issue corporate bonds with a total nominal value not exceeding RMB2.6 billion to professional investors. This approval is valid for 24 months, allowing the company to issue the bonds in tranches, potentially impacting its financial strategy and market positioning. The issuance must comply with the offering circulars submitted to the Shanghai Stock Exchange, and any significant events during the issuance process must be reported according to relevant regulations.