Canggang Railway Limited (2169) AI Stock Analysis

• Market Cap: HK$6.80B
• Dividend Yield: 0.38%
• Average Volume (3M): 4.66M
• Price to Earnings (P/E): 106.9
• Beta (1Y): 0.49
• Revenue Growth: -27.29%
• EPS Growth: -5.99%
• Country: HK
• Employees: 648
• Sector: Industrials
• Sector Strength: 87
• Industry: Railroads
• EPS (TTM): 0.01
• Shares Outstanding: 4,000,000,000
• 10 Day Avg. Volume: 7,767,600
• 30 Day Avg. Volume: 4,661,200
• PEG Ratio: 26.60
• Price to Book (P/B): 8.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 91.76
• 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: 62 Neutral
• Price Target: HK$2.00 ▲(17.65%Upside)

Canggang Railway Limited's stock score is driven by its strong technical momentum, despite being overvalued and facing financial challenges. The significant overvaluation and negative cash flow are major risks, while the stock's bullish technical indicators provide a short-term positive outlook.

Canggang Railway Limited Business Overview & Revenue Model

Company Description

Canggang Railway Limited operates freight railway and railway yards in Hebei Province. The company provides rail freight transportation services through the Canggang Railway Line, which transports a range of cargo, primarily coal, as well as petroleum, ore, and other cargo, including PVC, asphalt, gravel, bauxite, and chemicals between Cangzhou and Port Huanghua. It also offers ancillary services comprising loading and unloading, as well as road freight transportation services. In addition, the company provides construction, maintenance, and repair services, primarily include the operation, repair, and maintenance of special service lines and railway roadbed and other railway facility construction. Further, it offers additional ancillary services, principally covering car arrival, freight agency, antifreeze treatment, and scattering prevention of coal services; and coal filtering services, as well as logistics agency services. Canggang Railway Limited was founded in 2009 and is headquartered in Cangzhou, China.

How the Company Makes Money

Canggang Railway Limited generates revenue primarily through the operation of its railway services. The key revenue streams for the company include ticket sales from passenger services, freight charges for the transportation of goods, and ancillary services related to railway operations. The company may also engage in partnerships with local governments or other transportation entities to expand its network and improve service offerings. Additionally, Canggang Railway Limited could benefit from subsidies or financial support intended to promote infrastructure development and public transportation efficiency.

Canggang Railway Limited Financial Statement Overview

Summary

The company exhibits strong operational margins, but a declining revenue trend and net profitability, coupled with negative cash flow and liquidity issues, present significant financial challenges. The balance sheet shows prudent leverage but declining ROE, reflecting profitability concerns.

Income Statement

The company shows a consistent gross profit margin around 47% over the years. However, net profit margins have declined slightly from 19.5% in 2020 to 21.8% in 2023, reflecting a decrease in overall profitability. Revenue has fluctuated, with a recent decline from 2020 to 2024, which could indicate market challenges or operational inefficiencies. EBIT and EBITDA margins remain strong, supporting operational efficiency.

Balance Sheet

Canggang Railway Limited has a manageable debt-to-equity ratio of 0.67 in 2023, demonstrating prudent financial leverage. Return on Equity (ROE) decreased from 8.6% in 2021 to 7.6% in 2023, suggesting declining profitability for shareholders. The equity ratio is stable, indicating a healthy proportion of assets financed by equity, which enhances financial stability.

Cash Flow

The cash flow statement reveals a concerning trend with a negative free cash flow in 2023, following a decline from positive figures in previous years. Operating cash flow to net income ratio is unstable, reflecting potential challenges in converting revenue into cash. The absence of free cash flow growth and the volatility in cash flows raise concerns about liquidity and cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	258.93M	349.05M	333.43M	355.99M	361.47M
Gross Profit	121.27M	172.53M	114.21M	137.37M	150.87M
EBITDA	118.59M	147.78M	153.60M	164.76M	152.52M
Net Income	56.46M	58.98M	68.08M	77.39M	63.65M
Balance Sheet
Total Assets	1.37B	1.33B	1.32B	1.28B	1.32B
Cash, Cash Equivalents and Short-Term Investments	155.99M	112.39M	193.80M	160.79M	227.14M
Total Debt	521.77M	492.76M	457.41M	373.61M	455.24M
Total Liabilities	567.55M	550.90M	530.35M	477.48M	549.34M
Stockholders Equity	779.24M	745.95M	759.08M	774.74M	740.26M
Cash Flow
Free Cash Flow	48.19M	-2.54M	43.14M	74.89M	141.82M
Operating Cash Flow	125.90M	53.48M	107.66M	116.89M	161.12M
Investing Cash Flow	-58.76M	-72.45M	-56.40M	-35.28M	-20.59M
Financing Cash Flow	-22.58M	-62.52M	-18.60M	-147.75M	56.92M

Canggang Railway Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.70
• 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:2169, the sentiment is Positive. The current price of 1.7 is above the 20-day moving average (MA) of 1.70, above the 50-day MA of 1.51, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 20.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2169.

Canggang Railway Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1786	69 Neutral	HK$1.32B	9.51	2.16%	3.79%	-1.50%	-12.52%
Sector *	65 Neutral	$10.56B	15.49	5.57%	1.96%	2.71%	-26.28%
2169	62 Neutral	HK$6.80B	106.92	7.42%	0.38%	-27.29%	-5.99%
CRYYF		$6.98B	9.13	7.63%	5.74%	―	―
GNGYF		$2.65B	11.86	3.59%	4.30%	―	―
MTRJF		$22.30B	10.85	8.65%	6.49%	―	―
ZHUZF		$6.03B	10.98	9.62%	2.68%	―	―

Canggang Railway Limited Corporate Events

Canggang Railway Limited Passes All AGM Resolutions with Strong Shareholder Support

Canggang Railway Limited announced the successful passing of all resolutions at its Annual General Meeting held on June 18, 2025. Key resolutions included the approval of the audited financial statements for 2024, declaration of a final dividend, re-election of independent non-executive directors, re-appointment of auditors, and granting of mandates to the directors for share allotment and buy-back. The resolutions were passed with overwhelming support, indicating strong shareholder confidence in the company’s governance and strategic direction.

Canggang Railway Limited Announces Key Governance Changes

Canggang Railway Limited has announced changes in its corporate governance structure, appointing Ms. Lyu Qinghua as a new member of its Nomination Committee to enhance board diversity and governance practices. Additionally, Ms. Wong Pui Kiu Ingrid has been appointed as the new Joint Company Secretary, Process Agent, and Authorised Representative following the resignation of Ms. Lam Wing Chi, effective June 18, 2025.

Canggang Railway Limited Announces Board Composition and Roles

Canggang Railway Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of executive, non-executive, and independent non-executive directors, with specific members serving on the audit, nomination, and remuneration committees. This announcement provides clarity on the governance structure of the company, which could influence its strategic direction and operational oversight.

Canggang Railway Limited Forms Nomination Committee to Enhance Governance

Canggang Railway Limited has established a nomination committee as part of its corporate governance practices. This committee, composed mainly of independent non-executive directors, is tasked with ensuring compliance with the Listing Rules of The Stock Exchange of Hong Kong. The committee is empowered to make decisions on behalf of the board and is provided with resources to seek independent professional advice when necessary.

Canggang Railway Limited Announces AGM and Key Resolutions

Canggang Railway Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 18, 2025, in Beijing, China. Key agenda items include the approval of the 2024 financial statements, a final dividend declaration, re-election of directors, and the re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize the board to issue new shares, not exceeding 20% of the current issued shares, which could impact the company’s capital structure and market positioning.