Huayu Expressway Group Limited (1823) AI Stock Analysis

• Market Cap: HK$474.50M
• Dividend Yield: N/A
• Average Volume (3M): 180.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -44.12%
• EPS Growth: -3110.53%
• Country: HK
• Employees: 387
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): -0.06
• Shares Outstanding: 412,608,000
• 10 Day Avg. Volume: 379,000
• 30 Day Avg. Volume: 180,400
• PEG Ratio: 0.08
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -0.48
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$1.50 ▲(28.21% Upside)

The overall stock score of 54 reflects significant financial challenges faced by Huayu Expressway Group Limited, with declining revenues and negative cash flows. Despite these issues, the stock shows strong technical momentum, which partially offsets the poor financial and valuation metrics.

Positive Factors

Strategic Partnerships

Strategic partnerships with government entities can lead to new project opportunities and funding support, enhancing long-term growth prospects.

Equity Position

A strong equity position provides a buffer against financial instability and supports the company's ability to invest in growth opportunities.

Market Demand

The company's focus on improving transportation infrastructure aligns with rising demand for efficient transportation solutions, supporting long-term revenue potential.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in maintaining market position and could impact the company's ability to fund operations and growth.

Negative Cash Flows

Negative cash flows suggest cash management issues, limiting the company's ability to invest in new projects and meet financial obligations.

Increased Debt Levels

Rising debt levels increase financial risk and may constrain the company's financial flexibility, impacting long-term sustainability.

Huayu Expressway Group Limited Business Overview & Revenue Model

Company Description

Huayu Expressway Group Limited, an investment holding company, invests in, builds, operates, and manages infrastructure projects in the People's Republic of China. It operates through three segments: Sui-Yue Expressway, Qing Ping Expressway, and Liquor and Spirits. The company constructs, operates, and manages the Sui-Yue Expressway, a dual three-lane expressway; and Qing Ping Expressway, a six-lane expressway. It also distributes liquor and spirits under the Huamaojiu and Xijiushaofang brand names; and offers administration services. The company was incorporated in 2009 and is headquartered in Yueyang, the People's Republic of China. Huayu Expressway Group Limited is a subsidiary of Velocity International Limited.

How the Company Makes Money

Huayu Expressway Group generates revenue primarily through toll collection from the expressways it operates. This includes income from vehicles using the highways, which is calculated based on vehicle type and distance traveled. In addition to toll revenues, the company also earns money from construction contracts related to expressway development and maintenance services. Significant partnerships with government entities and local authorities further bolster its earnings, as these relationships can lead to new project opportunities and funding support. Additionally, the company may benefit from ancillary services associated with expressway operations, which can include advertising and commercial activities along the highway corridors.

Huayu Expressway Group Limited Financial Statement Overview

Summary

Huayu Expressway Group Limited is facing financial difficulties, with declining revenues, profitability, and negative cash flows. The balance sheet reflects 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.15M	198.15M	407.10M	409.89M	688.45M	488.90M
Gross Profit	23.58M	39.50M	115.01M	119.69M	208.43M	172.01M
EBITDA	3.74M	19.84M	79.93M	134.09M	194.75M	196.20M
Net Income	-43.75M	-8.51M	329.43M	49.03M	86.43M	62.29M
Balance Sheet
Total Assets	1.39B	1.41B	1.25B	1.96B	1.90B	1.57B
Cash, Cash Equivalents and Short-Term Investments	119.24M	185.76M	327.96M	216.67M	271.38M	194.16M
Total Debt	258.11M	247.52M	1.46M	51.65M	988.98M	919.05M
Total Liabilities	341.40M	334.38M	125.21M	1.15B	1.19B	1.04B
Stockholders Equity	727.18M	751.14M	803.83M	518.17M	470.67M	416.98M
Cash Flow
Free Cash Flow	-187.59M	-428.07M	8.18M	170.34M	171.82M	75.55M
Operating Cash Flow	-68.50M	-250.52M	63.08M	198.70M	202.53M	89.04M
Investing Cash Flow	-80.08M	-93.54M	153.32M	-116.62M	-141.88M	-19.44M
Financing Cash Flow	38.44M	217.46M	-157.96M	-94.42M	12.28M	-83.15M

Huayu Expressway Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.17 is below the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.11, and above the 200-day MA of 0.75, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 26.26 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
0995	75 Outperform	HK$27.61B	11.86	14.89%	4.71%	5.50%	11.50%
0107	73 Outperform	$19.29B	9.64	8.89%	5.66%	-20.02%	42.97%
1785	72 Outperform	HK$3.51B	6.58	10.26%	5.13%	3.43%	-17.34%
0548	71 Outperform	$25.27B	14.63	5.84%	3.60%	7.13%	-52.33%
1576	64 Neutral	HK$3.62B	7.68	10.92%	6.02%	-21.80%	-8.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1823	54 Neutral	HK$474.50M	-10.05	-5.81%	―	-44.12%	-3110.53%

Huayu Expressway Group Limited Corporate Events

Huayu Expressway Group Limited Announces Executive Appointment and Board Changes

Huayu Expressway Group Limited has appointed Mr. Zhang Tinghui as an executive director, responsible for managing the liquor and spirits business segment. This appointment is expected to enhance the company’s marketing efforts and operational efficiency. Additionally, the company has made changes to its Nomination Committee to improve board diversity and align with updated corporate governance codes, potentially strengthening its governance practices.

Huayu Expressway Group Limited Announces Board Composition and Roles

Huayu Expressway Group Limited has announced the composition of its board of directors and their respective roles within the company. This includes both executive and independent non-executive directors, as well as the members of the audit, nomination, and remuneration committees. This announcement is significant as it provides clarity on the governance structure of the company, which is crucial for stakeholders and can impact the company’s strategic direction and operational efficiency.

Huayu Expressway Group Enhances Governance with New Nomination Committee

Huayu Expressway Group Limited has established a Nomination Committee to assist its Board in overseeing the nomination of directors, ensuring adherence to principles of fairness, transparency, and diversity. This move is expected to enhance the company’s governance structure, aligning it with regulatory requirements and potentially improving stakeholder confidence.