Canggang Railway Limited (2169) AI Stock Analysis

• Market Cap: HK$5.48B
• Dividend Yield: 0.25%
• Average Volume (3M): 6.06M
• Price to Earnings (P/E): 86.2
• Beta (1Y): 0.56
• 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: 7,083,000
• 30 Day Avg. Volume: 6,059,666
• PEG Ratio: 20.17
• Price to Book (P/B): 6.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.59
• 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: 48 Neutral
• Price Target: HK$1.50 ▲(10.29%Upside)

The overall stock score for Canggang Railway Limited reflects a challenging financial situation, with declining revenue and cash flow issues being major concerns. Despite stable financial leverage, the stock's bearish technical indicators and high P/E ratio suggest caution. Improving financial performance and market sentiment are necessary for a positive outlook.

Canggang Railway Limited Business Overview & Revenue Model

Company Description

Canggang Railway Limited (2169) is a transportation company primarily engaged in the construction, operation, and management of railway infrastructure. The company operates within the railway transportation sector and offers services related to passenger and freight transportation across its rail network. Additionally, Canggang Railway is involved in providing ancillary services that support its core transportation operations.

How the Company Makes Money

Canggang Railway Limited generates revenue through multiple streams. The primary source of income is the ticket sales from passenger transportation services. Additionally, the company earns from freight services, where businesses pay to transport goods across the railway network. The company may also engage in leasing and renting its infrastructure, such as tracks and stations, to other railway operators. Furthermore, Canggang Railway might have partnerships with government bodies for infrastructure development projects, which can contribute to its revenue through construction contracts and operational management fees. These diverse revenue streams ensure a stable financial performance for the company.

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. Improving cash flow management and reversing revenue decline are crucial for long-term health.

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: Negative
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 1.36 is below the 20-day moving average (MA) of 1.53, below the 50-day MA of 1.56, and above the 200-day MA of 1.32, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 30.19 is Neutral, neither overbought nor oversold. The STOCH value of 13.64 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	79 Outperform	$170.71B	10.81	8.65%	4.69%	5.32%	102.27%
3898	75 Outperform	$48.11B	11.13	9.62%	0.11%	11.54%	16.09%
1786	69 Neutral	HK$1.52B	10.93	2.16%	3.44%	-1.50%	-12.52%
0525	65 Neutral	HK$21.25B	14.29	3.59%	2.04%	―	―
3969	64 Neutral	$57.09B	9.74	7.63%	1.64%	-10.19%	0.17%
Sector *	58 Neutral	HK$14.75B	4.74	-3.01%	5.52%	3.67%	-54.16%
2169	48 Neutral	HK$5.48B	86.16	7.42%	0.25%	-27.29%	-5.99%

Canggang Railway Limited Corporate Events

Canggang Railway Updates Final Dividend for 2024

Canggang Railway Limited has announced an update to its final cash dividend for the year ending December 31, 2024. The dividend, initially declared at RMB 0.006 per share, will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09714, resulting in a payment of HKD 0.0065828 per share. This update reflects a change in the dividend amount in HKD and the exchange rate, impacting shareholders’ returns.

Canggang Railway Limited Announces 2024 Final Dividend Payment Details

Canggang Railway Limited has announced the payment details for its 2024 final dividend. The dividend, originally declared in RMB, will be paid in Hong Kong dollars at an exchange rate of RMB1 = HK$1.09714, resulting in a payment of HK0.65828 cents per ordinary share. The dividend is expected to be payable on or around 9 July 2025 to shareholders listed on the register as of 27 June 2025.

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.