Chengdu Expressway Co., Ltd. Class H (1785) AI Stock Analysis

• Market Cap: HK$3.51B
• Dividend Yield: 5.23%
• Average Volume (3M): 18.37K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.29
• Revenue Growth: 3.78%
• EPS Growth: -17.34%
• Country: HK
• Employees: 2,375
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.14
• Shares Outstanding: 456,102,020
• 10 Day Avg. Volume: 23,800
• 30 Day Avg. Volume: 18,368
• PEG Ratio: -0.44
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 12.24
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$2.50 ▲(20.19% Upside)

Chengdu Expressway Co., Ltd. has a strong financial performance and attractive valuation, which are the main strengths driving the stock score. However, weak technical indicators suggest bearish momentum, which offsets some of the positive aspects. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, enhancing long-term financial stability.

Balance Sheet Health

Improved debt-to-equity ratio strengthens financial position, providing greater flexibility for future investments and growth.

Cash Flow Generation

Strong operational cash generation supports sustainable operations and capital expenditures, ensuring long-term business viability.

Negative Factors

Net Profit Margin Decline

A declining net profit margin could indicate rising costs or pricing pressures, potentially impacting future profitability.

Free Cash Flow Fluctuations

Fluctuating free cash flow may limit the company's ability to invest in growth opportunities or manage unexpected expenses.

Earnings Growth Challenges

A significant decline in EPS growth suggests potential challenges in maintaining profitability, affecting investor confidence and valuation.

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

Company Description

Chengdu Expressway Co., Ltd. Class H (1785) is a leading infrastructure company based in China, primarily engaged in the development, operation, and management of expressways and toll roads. The company plays a vital role in enhancing regional connectivity and transportation efficiency in the Sichuan province and beyond. Its core services include the construction and maintenance of expressway networks, along with providing toll collection services and related traffic management solutions.

How the Company Makes Money

Chengdu Expressway Co., Ltd. generates revenue primarily through toll collections from vehicles using its expressways and roads. The company operates several major expressway segments, charging fees based on vehicle type and distance traveled. In addition to toll revenues, the company may also earn income through government subsidies for infrastructure projects, partnerships with local governments for public-private partnerships (PPP), and ancillary services related to road maintenance and traffic management. Strategic collaborations with other transportation and logistics companies further enhance its operational efficiency and revenue potential.

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

Summary

Chengdu Expressway Co., Ltd. demonstrates strong financial health with consistent revenue and profit growth, improved leverage ratios, and robust cash flow generation. Despite some fluctuations in free cash flow and a slight dip in net profit margin, the overall financial trajectory is positive.

Income Statement

Chengdu Expressway Co., Ltd. has demonstrated solid revenue growth, increasing from CNY 1.25 billion in 2019 to CNY 2.92 billion in 2024. The company has maintained a strong gross profit margin, averaging around 36% over recent years, with an impressive 37% in 2024. EBIT and EBITDA margins are stable, with a slight dip in net profit margin from 21% in 2023 to 18% in 2024 due to slightly lower net income. Overall, the income statement reflects robust financial health with consistent revenue and profit growth.

Balance Sheet

The company's balance sheet shows a solid equity base, with stockholders' equity increasing from CNY 3.30 billion in 2019 to CNY 4.59 billion in 2024. The debt-to-equity ratio has improved, decreasing from 0.92 in 2019 to 0.55 in 2024, indicating a stronger financial position. The equity ratio also indicates a healthy structure, with equity representing over 50% of total assets in recent years. Despite a slight decrease in total assets, the company has managed its liabilities effectively, suggesting good financial stability.

Cash Flow

The cash flow statement of Chengdu Expressway Co., Ltd. reflects strong operational cash generation, with operating cash flow consistently above CNY 800 million in recent years. Free cash flow has fluctuated, peaking in 2021, but remains positive, showing resilience and ability to cover capital expenditures. The operating cash flow to net income ratio is robust, though a decrease in free cash flow in 2024 due to higher capital expenditures should be monitored. Overall, cash flows indicate solid operational efficiency and prudent financial management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.92B	2.92B	2.89B	2.60B	2.70B	2.04B
Gross Profit	1.10B	1.08B	1.04B	871.07M	1.02B	686.56M
EBITDA	903.47M	1.21B	1.31B	1.12B	1.31B	888.78M
Net Income	490.67M	519.52M	618.77M	490.15M	614.65M	341.38M
Balance Sheet
Total Assets	9.53B	9.04B	9.25B	9.13B	9.16B	9.07B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.91B	2.26B	1.89B	1.89B	1.76B
Total Debt	2.80B	2.55B	2.75B	2.95B	3.10B	3.31B
Total Liabilities	3.85B	3.45B	3.95B	4.21B	4.56B	4.90B
Stockholders Equity	4.69B	4.59B	4.35B	4.02B	3.70B	3.28B
Cash Flow
Free Cash Flow	-105.69M	303.77M	987.66M	661.34M	746.94M	940.02M
Operating Cash Flow	618.21M	806.01M	1.11B	850.37M	814.38M	996.88M
Investing Cash Flow	-732.51M	-463.31M	-75.23M	-265.63M	-37.03M	191.16M
Financing Cash Flow	-296.19M	-699.98M	-592.50M	-570.78M	-608.88M	-843.68M

Chengdu Expressway Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.08
• 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:1785, the sentiment is Negative. The current price of 2.08 is below the 20-day moving average (MA) of 2.09, above the 50-day MA of 2.07, and below the 200-day MA of 2.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1785.

Chengdu Expressway Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0995	75 Outperform	HK$27.38B	11.56	14.89%	4.96%	5.50%	11.50%
1052	74 Outperform	$7.40B	9.74	5.94%	5.73%	7.04%	7.64%
0107	73 Outperform	$19.29B	9.64	8.89%	5.67%	-20.02%	42.97%
1785	72 Outperform	HK$3.51B	6.58	10.26%	5.23%	3.78%	-17.34%
0548	71 Outperform	$25.27B	14.63	5.84%	3.71%	7.13%	-52.33%
1576	64 Neutral	HK$3.62B	7.68	10.92%	5.98%	-21.80%	-8.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Chengdu Expressway Co., Ltd. Class H Corporate Events

Chengdu Expressway Co., Ltd. Proposes Governance Restructuring

Chengdu Expressway Co., Ltd. has announced plans to abolish its Supervisory Committee and amend its Articles of Association and relevant procedural rules. This move is in response to changes in regulatory requirements and aims to streamline governance by transferring supervisory functions to the audit and risk management committee. The proposed changes also include appointing an employee director, optimizing board functions, and lowering the shareholding threshold for shareholder proposals. These amendments are intended to enhance corporate governance and align with current legal standards, potentially impacting shareholder engagement and company operations.

Chengdu Expressway Reports Q3 2025 Financial Results

Chengdu Expressway Co., Ltd. has announced its unaudited financial results for the nine months ended September 30, 2025. The company reported a detailed financial statement, including consolidated balance sheets and income statements, prepared in accordance with the China Accounting Standards for Business Enterprises. This announcement follows the successful issuance of medium-term notes earlier in 2023, highlighting the company’s ongoing financial transparency and regulatory compliance.

Chengdu Expressway Schedules Board Meeting to Review Quarterly Results

Chengdu Expressway Co., Ltd. has announced a board meeting scheduled for October 28, 2025, to review and approve the unaudited quarterly results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its strategic decisions and stakeholder interests.