Huayu Expressway Group Limited (1823) AI Stock Analysis

• Market Cap: HK$179.48M
• Dividend Yield: N/A
• Average Volume (3M): 67.93K
• Price to Earnings (P/E): 128.9
• Beta (1Y): 0.53
• Revenue Growth: -52.67%
• EPS Growth: -102.48%
• Country: HK
• Employees: 387
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): -0.02
• Shares Outstanding: 412,608,000
• 10 Day Avg. Volume: 105,800
• 30 Day Avg. Volume: 67,933
• PEG Ratio: -0.32
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.98
• 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: 44 Neutral
• 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 Business Overview & Revenue Model

Company Description

Huayu 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 Money

Huayu 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

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

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

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
198.15M	407.10M	409.89M	412.87M	425.69M	402.51M
	Gross Profit
39.50M	115.01M	119.69M	152.43M	157.17M	193.06M
	EBIT
-16.64M	40.73M	65.83M	124.06M	127.91M	132.73M
	EBITDA
17.34M	79.93M	134.09M	194.75M	196.20M	166.66M
	Net Income Common Stockholders
-8.51M	329.43M	49.03M	86.43M	62.29M	50.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
185.76M	327.96M	205.66M	271.38M	194.16M	206.87M
	Total Assets
1.41B	1.25B	1.96B	1.90B	1.57B	1.55B
	Total Debt
247.52M	1.46M	51.65M	988.98M	878.78M	904.51M
	Net Debt
61.77M	-312.26M	-154.01M	717.60M	684.61M	697.64M
	Total Liabilities
334.38M	125.21M	1.15B	1.19B	1.04B	1.10B
	Stockholders Equity
751.14M	803.83M	518.17M	470.67M	416.98M	360.07M
Cash Flow		Free Cash Flow
-165.01M	13.88M	170.34M	171.82M	75.55M	84.28M
	Operating Cash Flow
-90.30M	63.57M	198.70M	202.53M	89.04M	126.85M
	Investing Cash Flow
-66.67M	146.48M	-116.62M	-141.88M	-19.44M	-43.29M
	Financing Cash Flow
119.36M	-157.16M	-94.42M	―	-83.15M	84.28M

Huayu Expressway Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0598	77 Outperform	$36.12B	6.70	9.59%	8.47%	0.33%	-8.73%
0107	73 Outperform	$19.54B	9.30	8.46%	6.60%	-13.19%	18.52%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
0152	65 Neutral	$17.71B	6.15	8.96%	1.04%	-24.13%	50.09%
1823	44 Neutral	HK$179.48M	128.95	-1.10%	―	-52.67%	-102.48%
0339	17 Underperform	HK$33.41M	―	-245.26%	―	64.26%	6.67%

Huayu Expressway Group Limited Corporate Events

Huayu Expressway Group Announces 2025 Annual General Meeting

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

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

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

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

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.