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

• Market Cap: HK$3.36B
• Dividend Yield: 5.25%
• Average Volume (3M): 18.37K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.30
• Revenue Growth: 3.78%
• EPS Growth: -17.34%
• Country: HK
• Employees: 2,375
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.06
• Shares Outstanding: 456,102,020
• 10 Day Avg. Volume: 23,800
• 30 Day Avg. Volume: 18,368
• PEG Ratio: 1.76
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -7.95
• 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: 62 Neutral
• Price Target: HK$2.00 ▼(-1.96% Downside)
• Action: Reiterated Date: 03/28/26
• Date: Action: Reiterated 03/28/26

The score is driven primarily by mixed financial performance—strong margins but weaker 2025 cash generation (negative free cash flow) and higher leverage—which offsets an otherwise attractive valuation (low P/E and high dividend yield). Technical indicators remain weak, with negative MACD and price below moving averages, limiting near-term momentum.

Positive Factors

Margin Sustainability

Consistently strong gross (~36%) and net (~19%) margins indicate structural pricing power and low variable costs inherent in toll operations. Durable margins support resilient earnings through economic cycles and help sustain funding for maintenance, reinvestment and distributions over the medium term.

Negative Factors

Weakened cash generation

Operating cash flow covering only ~39% of net income and a swing to negative free cash flow in 2025 represents material cash-conversion deterioration. For an infrastructure operator with ongoing capex, this constrains dividend capacity, raises near-term funding needs and increases reliance on external financing if persistent.

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

Company Description

Chengdu Expressway Co., Ltd. engages in the development, operation, and management of expressways located in Chengdu, Sichuan province, China. It operates in two segments, Expressway and Energy. As of March 24, 2022, the company owned five express...

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Chengdu Expressway Co., Ltd. engages in the development, operation, and management of expressways located in Chengdu, Sichuan province, China. It operates in two segments, Expressway and Energy. As of March 24, 2022, the company owned five express...

How the Company Makes Money

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

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.84B	2.92B	2.89B	2.60B	2.70B
Gross Profit	1.02B	1.08B	1.04B	871.07M	1.02B
EBITDA	1.16B	1.21B	1.31B	1.12B	1.31B
Net Income	538.09M	519.52M	618.77M	490.15M	614.65M
Balance Sheet
Total Assets	10.46B	9.04B	9.25B	9.13B	9.16B
Cash, Cash Equivalents and Short-Term Investments	2.20B	1.91B	2.26B	1.89B	1.89B
Total Debt	3.56B	2.55B	2.75B	2.95B	3.10B
Total Liabilities	4.47B	3.45B	3.95B	4.21B	4.56B
Stockholders Equity	4.98B	4.59B	4.35B	4.02B	3.70B
Cash Flow
Free Cash Flow	-383.50M	303.77M	987.66M	661.34M	746.94M
Operating Cash Flow	732.59M	806.01M	1.11B	850.37M	814.38M
Investing Cash Flow	-1.60B	-463.31M	-75.23M	-265.63M	-37.03M
Financing Cash Flow	671.65M	-699.98M	-592.50M	-570.78M	-608.88M

Chengdu Expressway Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1785, the sentiment is Neutral. The current price of 2.04 is above the 20-day moving average (MA) of 2.04, below the 50-day MA of 2.06, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1052	74 Outperform	HK$6.73B	13.69	5.90%	5.26%	7.04%	7.64%
0995	69 Neutral	HK$28.56B	10.82	15.24%	5.08%	5.50%	11.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1785	62 Neutral	HK$3.36B	5.67	11.42%	5.25%	3.78%	-17.34%
0548	61 Neutral	HK$25.37B	-12.81	4.58%	3.72%	7.13%	-52.33%
0107	52 Neutral	HK$18.83B	14.25	7.59%	5.82%	-20.02%	42.97%
1576	52 Neutral	HK$3.48B	4.89	7.19%	6.05%	-21.80%	-8.00%

Chengdu Expressway Co., Ltd. Class H Corporate Events