Canggang Railway Limited (2169) AI Stock Analysis

• Market Cap: HK$2.96B
• Dividend Yield: 0.87%
• Average Volume (3M): 94.80M
• Price to Earnings (P/E): 43.8
• Beta (1Y): 0.77
• Revenue Growth: -14.80%
• EPS Growth: 11.92%
• Country: HK
• Employees: 648
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): <0.01
• Shares Outstanding: 4,000,000,000
• 10 Day Avg. Volume: 25,215,200
• 30 Day Avg. Volume: 94,803,853
• PEG Ratio: -37.75
• Price to Book (P/B): 9.00
• Price to Sales (P/S): 27.08
• P/FCF Ratio: 145.48
• 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: 51 Neutral
• Price Target: HK$0.72 ▼(-8.35% Downside)

Canggang Railway Limited's overall stock score reflects a mixed financial performance with strong operational margins but declining revenue and cash flow challenges. The technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Positive Factors

Operational Margins

Strong operational margins indicate efficient cost management and pricing strategies, providing a cushion against revenue fluctuations.

Financial Leverage

Prudent financial leverage enhances financial stability, allowing the company to invest in growth opportunities without excessive risk.

EBIT and EBITDA Margins

Strong EBIT and EBITDA margins reflect robust operational efficiency, enabling the company to maintain profitability despite revenue challenges.

Negative Factors

Revenue Decline

Declining revenue suggests potential market challenges or operational inefficiencies, which could impact long-term growth prospects.

Cash Flow Challenges

Negative cash flow indicates liquidity risks and challenges in converting revenue into cash, potentially limiting investment and growth capabilities.

Declining Profitability

Decreasing ROE reflects declining profitability for shareholders, which may affect investor confidence and long-term financial health.

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 through multiple streams, primarily by providing freight and passenger transport services. Their freight operations involve moving goods across extensive rail networks, which is a critical component of supply chain logistics. Additionally, the company may earn income through infrastructure development projects, securing government contracts for railway construction and maintenance. Strategic partnerships with logistics companies and local governments enhance their operational capacity and revenue potential. Other revenue opportunities might include leasing rail infrastructure and offering ancillary services related to rail transport.

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	258.59M	258.93M	349.05M	333.43M	355.99M	361.47M
Gross Profit	124.22M	121.27M	172.53M	114.21M	137.37M	150.87M
EBITDA	120.24M	118.59M	147.78M	153.60M	164.76M	152.52M
Net Income	60.99M	56.46M	58.98M	68.08M	77.39M	63.65M
Balance Sheet
Total Assets	1.45B	1.37B	1.33B	1.32B	1.28B	1.32B
Cash, Cash Equivalents and Short-Term Investments	85.48M	155.99M	112.39M	193.80M	160.79M	227.14M
Total Debt	561.07M	521.77M	492.76M	457.41M	373.61M	455.24M
Total Liabilities	607.20M	567.55M	550.90M	530.35M	477.48M	549.34M
Stockholders Equity	810.81M	779.24M	745.95M	759.08M	774.74M	740.26M
Cash Flow
Free Cash Flow	-23.61M	48.19M	-2.54M	43.14M	74.89M	141.82M
Operating Cash Flow	33.04M	125.90M	53.48M	107.66M	116.89M	161.12M
Investing Cash Flow	-26.22M	-58.76M	-72.45M	-56.40M	-35.28M	-20.59M
Financing Cash Flow	-62.53M	-22.58M	-62.52M	-18.60M	-147.75M	56.92M

Canggang Railway Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2169, the sentiment is Negative. The current price of 0.79 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.76, and below the 200-day MA of 1.18, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2169.

Canggang Railway Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0066	76 Outperform	HK$187.44B	10.74	9.59%	4.35%	-0.99%	80.58%
3898	76 Outperform	HK$68.83B	12.18	9.42%	4.07%	14.48%	12.74%
1786	68 Neutral	HK$1.40B	9.69	2.21%	3.48%	-3.37%	-17.55%
3969	65 Neutral	HK$60.25B	9.80	7.39%	5.51%	0.19%	4.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0525	63 Neutral	HK$22.33B	15.87	4.61%	3.48%	―	―
2169	51 Neutral	HK$2.96B	43.79	7.66%	0.87%	-14.80%	11.92%