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Huayu Expressway Group Limited (HK:1823)
:1823
Hong Kong Market

Huayu Expressway Group Limited (1823) AI Stock Analysis

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HK

Huayu Expressway Group Limited

(1823)

Rating:44Neutral
Price Target:
Huayu Expressway Group Limited is facing significant challenges, primarily due to poor financial performance characterized by declining revenue, profitability, and negative cash flows. The technical analysis indicates weak market momentum, further exacerbating the stock's outlook. Valuation metrics are also unfavorable, with a negative P/E ratio highlighting ongoing losses. Overall, the stock score reflects these substantial risks, with limited positive factors to offset them.

Huayu Expressway Group Limited (1823) vs. iShares MSCI Hong Kong ETF (EWH)

Huayu Expressway Group Limited Business Overview & Revenue Model

Company DescriptionHuayu Expressway Group Limited (1823) is a company primarily engaged in the investment, development, operation, and management of toll expressways and roads in China. The company focuses on providing efficient and reliable road infrastructure that supports regional economic development and enhances transportation efficiency.
How the Company Makes MoneyHuayu Expressway Group Limited generates its revenue mainly through toll collection from vehicles using its expressway and road infrastructure. The company operates under a concession model, where it builds or maintains these roads and recoups its investment through toll fees over an agreed period. Key revenue streams include toll fees from passenger vehicles, commercial trucks, and other road users. The company's earnings are influenced by factors such as traffic volume, toll rates, and the duration of the concession agreements. Additionally, partnerships with local governments and adherence to regulatory frameworks play a significant role in the company's operational success and financial performance.

Huayu Expressway Group Limited Financial Statement Overview

Summary
Huayu Expressway Group Limited is experiencing financial difficulties, with declining revenues, profitability, and negative cash flows. The balance sheet shows some stability with a solid equity base, but increased debt levels pose potential risks. The company needs to address operational inefficiencies and improve cash flow to enhance financial health.
Income Statement
45
Neutral
Huayu Expressway Group Limited has experienced a significant decline in revenue and profitability. The TTM data shows a negative net income and EBIT, indicating operational challenges. Gross profit margin has decreased compared to previous years, and revenue has contracted. These factors contribute to a lower score in the income statement.
Balance Sheet
60
Neutral
The balance sheet indicates a relatively strong equity position with an equity ratio of over 50% in the TTM period. However, there is an increase in total debt compared to previous periods, which slightly increases financial risk. The debt-to-equity ratio remains moderate, suggesting manageable leverage.
Cash Flow
40
Negative
The company has faced cash flow challenges, with negative free cash flow and operating cash flow in the TTM period. This marks a significant deterioration from previous years, where operating cash flow and free cash flow were positive. The operating cash flow to net income ratio is negative due to the loss, highlighting cash management issues.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
198.15M407.10M409.89M412.87M425.69M402.51M
Gross Profit
39.50M115.01M119.69M152.43M157.17M193.06M
EBIT
-16.64M40.73M65.83M124.06M127.91M132.73M
EBITDA
17.34M79.93M134.09M194.75M196.20M166.66M
Net Income Common Stockholders
-8.51M329.43M49.03M86.43M62.29M50.42M
Balance SheetCash, Cash Equivalents and Short-Term Investments
185.76M327.96M205.66M271.38M194.16M206.87M
Total Assets
1.41B1.25B1.96B1.90B1.57B1.55B
Total Debt
247.52M1.46M51.65M988.98M878.78M904.51M
Net Debt
61.77M-312.26M-154.01M717.60M684.61M697.64M
Total Liabilities
334.38M125.21M1.15B1.19B1.04B1.10B
Stockholders Equity
751.14M803.83M518.17M470.67M416.98M360.07M
Cash FlowFree Cash Flow
-165.01M13.88M170.34M171.82M75.55M84.28M
Operating Cash Flow
-90.30M63.57M198.70M202.53M89.04M126.85M
Investing Cash Flow
-66.67M146.48M-116.62M-141.88M-19.44M-43.29M
Financing Cash Flow
119.36M-157.16M-94.42M-83.15M84.28M

Huayu Expressway Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.42
Price Trends
50DMA
0.42
Negative
100DMA
0.46
Negative
200DMA
0.46
Negative
Market Momentum
MACD
<0.01
Negative
RSI
50.83
Neutral
STOCH
73.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1823, the sentiment is Neutral. The current price of 0.42 is above the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.42, and below the 200-day MA of 0.46, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1823.

Huayu Expressway Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$36.12B6.709.59%8.47%0.33%-8.73%
73
Outperform
$19.54B9.308.46%6.60%-13.19%18.52%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
65
Neutral
$17.71B6.158.96%1.04%-24.13%50.09%
44
Neutral
HK$179.48M128.95-1.10%-52.67%-102.48%
17
Underperform
HK$33.41M-245.26%64.26%6.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1823
Huayu Expressway Group Limited
0.42
-0.28
-40.00%
HK:0339
Core Economy Investment Group Limited
0.12
-0.21
-63.64%
HK:0598
Sinotrans
3.83
0.31
8.68%
HK:0107
Sichuan Expressway Co
4.85
1.63
50.81%
HK:0152
Shenzhen International Holdings
7.45
1.06
16.66%

Huayu Expressway Group Limited Corporate Events

Huayu Expressway Group Announces 2025 Annual General Meeting
Apr 29, 2025

Huayu Expressway Group Limited has announced its upcoming annual general meeting scheduled for June 4, 2025, in Shenzhen, China. Key agenda items include the consideration of audited financial statements, re-election of directors, and authorization of share repurchase and issuance powers, reflecting the company’s strategic focus on governance and shareholder value enhancement.

Huayu Expressway Group Reports Decline in 2024 Financial Results
Mar 27, 2025

Huayu Expressway Group Limited reported its annual financial results for the year ended December 31, 2024, showing a significant decline in revenue and profit compared to the previous year. The company experienced a loss from continuing operations, with revenue dropping from RMB 407,104,000 in 2023 to RMB 198,145,000 in 2024, and a net loss of RMB 13,285,000 for the year. This downturn is attributed to the absence of profits from the discontinued Sui-Yue Expressway operation, which had contributed significantly to the previous year’s earnings.

Huayu Expressway Group Schedules Board Meeting for Annual Results Approval
Mar 17, 2025

Huayu Expressway Group Limited has announced that its board of directors will hold a meeting on March 27, 2025, in Hong Kong. The meeting will focus on approving the audited annual results for the year ending December 31, 2024, and considering the payment of a final dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its financial disclosures and dividend policy.

Huayu Expressway Group Issues Profit Warning Amid Revenue Decline
Mar 14, 2025

Huayu Expressway Group Limited has issued a profit warning, indicating a significant decline in revenue and a shift from profit to loss for the year ending December 2024. The company’s revenue is expected to decrease to approximately RMB188.2 million to RMB208.0 million, compared to RMB407.1 million in 2023, primarily due to a substantial decrease in wine and liquor sales amid a contracting consumer market in the PRC. This downturn highlights challenges in the consumer goods sector and may impact stakeholders’ confidence.

Huayu Expressway Secures RMB300 Million Facility for Project Expansion
Feb 13, 2025

Huayu Expressway Group Limited announced that its subsidiary, Guizhou Renhuai Huayu Liquor Co., Ltd., has secured a RMB300 million banking facility from China Construction Bank Corporation for the construction of the Chanshu Village Project in Guizhou Province. This agreement, which includes a corporate guarantee from Huayu Expressway, aims to enhance the company’s financing resources and strengthen its cash flow without constituting a notifiable or connected transaction under Hong Kong’s listing rules.

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.