Company DescriptionShenzhen Expressway Corporation Limited, together with its subsidiaries, primarily invests in, constructs, operates, and manages toll highways and roads, as well as other urban and transport infrastructure in the People's Republic of China. The company provides construction management and highways operation management services for government and other enterprises, as well as project development and management, advertising, construction consulting, inter-network toll collection, and financial services; and billboard leasing, advertising agency, and design production and related services. It also invests in industries and project construction; and offers property management, real estate development, and engineering consulting services. In addition, the company provides infrastructure construction, environment protection construction, equipment manufacturing, capital market, apartment rental and management, environmental technology development consultation, land development, architecture and engineering, and environmental projects and advisory services. It operated and invested in 17 toll highway projects. The company was incorporated in 1996 and is based in Shenzhen, the People's Republic of China. Shenzhen Expressway Corporation Limited is a subsidiary of Shenzhen International Holdings Limited.

How the Company Makes Money

Shenzhen Expressway Co Financial Statement Overview

Summary

Shenzhen Expressway Co demonstrates stable operational margins and a solid capital structure, although profitability and revenue growth have faced challenges. Despite the decline in net income and revenue, the company maintains good liquidity and cash flow generation capabilities.

Income Statement

Positive

The income statement reflects a mixed performance with a declining revenue trend over the recent periods. The gross profit margin for the latest year is approximately 31.6%, indicating efficiency in managing production costs. However, the net profit margin dropped from 25.0% to 12.4%, signaling a decline in profitability. EBIT and EBITDA margins are solid at 19.4% and 43.8%, respectively, but the revenue growth rate is negative, showing a revenue decline of 0.5% compared to the previous year.

Balance Sheet

Positive

The balance sheet shows a moderately leveraged position with a debt-to-equity ratio of 1.22. Return on equity decreased to 5.2%, reflecting lower profitability relative to equity. The equity ratio stands at 32.4%, indicating a stable capital structure with a considerable portion of assets financed by equity. The company maintains a significant cash position, which helps in managing liquidity.

Cash Flow

Positive

Cash flow analysis reveals a decline in free cash flow from the previous year, reflecting reduced cash generation from operations. The operating cash flow to net income ratio is strong at 3.25, indicating that earnings are well-supported by cash flows. However, the free cash flow to net income ratio is lower at 1.45, suggesting reliance on non-operating activities for cash generation.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
8.98B	9.25B	9.30B	9.37B	10.87B	8.03B
	Gross Profit
2.87B	2.92B	3.35B	3.02B	3.79B	2.81B
	EBIT
1.88B	1.80B	3.01B	3.91B	3.13B	2.71B
	EBITDA
2.78B	4.05B	5.55B	4.75B	5.22B	3.97B
	Net Income Common Stockholders
1.38B	1.15B	2.33B	2.02B	2.61B	2.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.31B	3.04B	2.62B	4.75B	4.41B	5.55B
	Total Assets
73.15B	67.56B	67.51B	69.20B	60.61B	55.14B
	Total Debt
29.41B	26.70B	27.88B	31.17B	20.71B	15.42B
	Net Debt
21.23B	23.79B	25.73B	27.53B	16.52B	9.87B
	Total Liabilities
40.76B	40.36B	39.51B	41.84B	32.84B	28.87B
	Stockholders Equity
27.06B	21.90B	22.36B	21.35B	24.64B	23.04B
Cash Flow		Free Cash Flow
413.32M	1.66B	2.00B	1.28B	143.13M	―
	Operating Cash Flow
0.00	3.72B	4.09B	3.37B	3.94B	1.10B
	Investing Cash Flow
―	―	-923.61M	―	―	―
	Financing Cash Flow
5.50B	―	―	―	1.67B	3.59B

Shenzhen Expressway Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHZNF		$3.44B	12.53	5.52%	8.94%	―	―
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
AUHEF		$3.66B	8.64	14.00%	6.66%	―	―
GZITF		$782.85M	8.56	5.60%	7.40%	―	―
JEXYF		$10.19B	9.81	13.04%	5.28%	―	―
SEXHF		$2.46B	8.31	8.46%	5.88%	―	―
1576	59 Neutral	HK$4.08B	7.77	12.09%	8.10%	23.94%	-9.82%

* Industrials Sector Average

Performance Comparison

SHZNF

Shenzhen Expressway Co

0.86

-0.16

-15.69%

AUHEF

Anhui Expressway Company

1.27

0.05

4.10%

GZITF

Yuexiu Transport Infrastructure

0.47

-0.04

-7.84%

JEXYF

Jiangsu Expressway Co

1.32

0.22

20.00%

SEXHF

Sichuan Expressway Co

0.57

0.14

32.56%

HK:1576

Qilu Expressway Co., Ltd. Class H

2.03

<0.01

0.50%

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.