Huayu Expressway Group Limited (1823) AI Stock Analysis

• Market Cap: HK$767.91M
• 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: 471,108,000
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$1.00 ▼(-7.41% Downside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

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

Balance-sheet equity buffer

A TTM equity ratio above 50% provides a durable capital buffer that reduces insolvency risk and preserves strategic optionality. Over 2–6 months this supports the company's ability to absorb operating shocks, maintain essential capex, and negotiate with lenders without immediate distress.

Manageable leverage

Moderate debt-to-equity implies lower near-term refinancing and interest burden risks compared with highly leveraged peers. This structural feature gives management room to restructure operations or raise incremental capital if needed, improving solvency prospects over the medium term.

Industry durability

Operating in infrastructure operations exposes the company to structurally durable demand and long asset lives. This industry profile typically yields predictable baseline volumes and long planning horizons, supporting recovery potential and cash generation once operational issues are addressed.

Negative Factors

Sharp revenue contraction

A roughly 44% TTM revenue decline is a sustained structural concern that reduces scale economics and weakens pricing power. Over several months this undermines margin recovery, limits internal funding for maintenance or growth, and signals deeper demand or execution problems.

Negative operating and free cash flow

Persistent negative operating and free cash flow erodes liquidity and forces reliance on external financing or asset sales. This materially constrains the firm's ability to fund maintenance capex, meet covenant tests, or invest to reverse declines, raising medium-term solvency and serviceability risk.

Rising debt levels

An increase in total debt amid deteriorating profits and cash flow heightens refinancing and interest-service risk. Structurally, higher leverage limits strategic flexibility, raises fixed obligations, and increases the probability that adverse shocks over the next few quarters force dilutive financing or asset disposals.

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 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.

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: Positive
• Last Price: 1.08
• 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 Positive. The current price of 1.08 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.24, and above the 200-day MA of 0.99, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 34.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	66 Neutral	HK$27.87B	11.64	14.89%	5.08%	5.50%	11.50%
1576	64 Neutral	HK$3.60B	4.89	10.92%	6.05%	-21.80%	-8.00%
1785	64 Neutral	HK$3.38B	3.80	10.43%	5.25%	3.78%	-17.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0107	62 Neutral	HK$20.48B	13.25	8.39%	5.82%	-20.02%	42.97%
0548	56 Neutral	HK$24.11B	8.38	5.00%	3.72%	7.13%	-52.33%
1823	54 Neutral	HK$767.91M	-1.82	-5.81%	―	-44.12%	-3110.53%