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Canggang Railway Limited (HK:2169)
:2169
Hong Kong Market

Canggang Railway Limited (2169) AI Stock Analysis

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HK

Canggang Railway Limited

(2169)

Rating:48Neutral
Price Target:
Canggang Railway Limited faces significant challenges with declining revenue and cash flow issues. The high P/E ratio suggests overvaluation, and technical indicators point to lackluster momentum. These factors overshadow the stable balance sheet and operational efficiency, resulting in a lower overall score.

Canggang Railway Limited (2169) vs. iShares MSCI Hong Kong ETF (EWH)

Canggang Railway Limited Business Overview & Revenue Model

Company DescriptionCanggang 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 MoneyCanggang 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
Canggang Railway Limited shows strong operational margins but faces challenges with declining revenue and profitability. The balance sheet is stable with prudent financial leverage, yet cash flow difficulties highlight liquidity risks.
Income Statement
70
Positive
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
65
Positive
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
258.93M349.05M333.43M355.99M361.47M
Gross Profit
121.27M172.53M114.21M137.37M150.87M
EBIT
106.25M109.55M116.38M128.08M116.81M
EBITDA
118.59M147.78M153.60M164.76M152.52M
Net Income Common Stockholders
56.46M58.98M68.08M77.39M63.65M
Balance SheetCash, Cash Equivalents and Short-Term Investments
155.99M112.39M193.80M160.79M227.14M
Total Assets
1.37B1.33B1.32B1.28B1.32B
Total Debt
521.77M492.76M457.41M373.61M455.24M
Net Debt
365.77M380.36M263.61M212.82M228.09M
Total Liabilities
567.55M550.90M530.35M477.48M549.34M
Stockholders Equity
779.24M745.95M759.08M774.74M740.26M
Cash FlowFree Cash Flow
0.00-2.54M43.14M74.89M141.82M
Operating Cash Flow
0.0053.48M107.66M116.89M161.12M
Investing Cash Flow
0.00-72.45M-56.40M-35.28M-20.59M
Financing Cash Flow
0.00-62.52M-18.60M-147.75M56.92M

Canggang Railway Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.52
Price Trends
50DMA
1.37
Positive
100DMA
1.39
Positive
200DMA
1.18
Positive
Market Momentum
MACD
0.05
Positive
RSI
59.72
Neutral
STOCH
21.75
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 1.52 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.37, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 21.75 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
£153.84B10.3010.86%5.83%-3.40%-7.51%
66
Neutral
$4.48B12.245.32%248.54%4.09%-12.10%
48
Neutral
HK$6.04B94.977.42%0.43%-27.29%-5.99%
$16.95B6.875.84%2.95%
$63.77B35.1027.96%2.35%
$3.24B11.328.95%3.65%
73
Outperform
HK$618.66M3.696.11%8.47%1.20%-3.85%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2169
Canggang Railway Limited
1.52
0.51
50.50%
GB:HSBA
HSBC Holdings
872.60
241.81
38.33%
CNICF
China International Capital
1.28
0.09
7.56%
HKXCF
Hong Kong Exchanges & Clearing
49.92
16.73
50.41%
SHWGF
Shandong Weigao Group Medical Polymer Co
0.73
0.18
32.73%
HK:1522
BII Railway Transportation Technology Holdings Co., Ltd.
0.30
0.01
3.45%

Canggang Railway Limited Corporate Events

Canggang Railway Limited Announces AGM and Key Resolutions
Apr 28, 2025

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.

Canggang Railway Announces Revised Final Dividend for 2024
Mar 27, 2025

Canggang Railway Limited has announced a revised final cash dividend for the year ending December 31, 2024. The dividend, set at RMB 0.006 per share, will be paid on July 9, 2025, following shareholder approval on June 18, 2025. This announcement includes a correction to the ex-dividend date, now set for June 20, 2025. The update may impact the company’s financial planning and shareholder returns, reflecting its ongoing commitment to providing value to its investors.

Canggang Railway Limited Reports 2024 Financial Results with Stable Profits Amid Revenue Decline
Mar 26, 2025

Canggang Railway Limited announced its audited financial results for the year ended December 31, 2024, showing a decline in revenue from RMB 349,048,000 in 2023 to RMB 258,934,000 in 2024. Despite the decrease in revenue, the company maintained a stable operating profit and recommended a final dividend of RMB 0.6 cent per share, indicating a commitment to shareholder returns.

Canggang Railway Limited Announces Final Dividend for 2024
Mar 26, 2025

Canggang Railway Limited has announced a final cash dividend of RMB 0.006 per share for the financial year ending December 31, 2024. The dividend is subject to shareholder approval on June 18, 2025, with the ex-dividend date set for June 22, 2025, and payment expected on July 9, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Canggang Railway to Review 2024 Financial Results and Dividend
Mar 12, 2025

Canggang Railway Limited has announced that its board of directors will meet on March 26, 2025, to approve the audited financial results for the year ending December 31, 2024, and to consider a final dividend payment. This meeting is significant as it will provide insights into the company’s financial health and potential returns for shareholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.