Road King Infrastructure (1098) AI Stock Analysis

• Market Cap: $606.96M
• Dividend Yield: N/A
• Average Volume (3M): 140.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: -57.65%
• EPS Growth: -4.05%
• Country: HK
• Employees: 3,516
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Residential Construction
• EPS (TTM): -5.50
• Shares Outstanding: 749,336,550
• 10 Day Avg. Volume: 157,600
• 30 Day Avg. Volume: 140,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Road King Infrastructure's overall stock score reflects significant financial challenges, with declining revenues and high leverage impacting its financial health. Technical analysis indicates bearish momentum, with stock prices below key moving averages. The valuation appears unfavorable, with a negative P/E ratio and no dividend yield. The company needs to address its operational inefficiencies and financial stability to improve its outlook in the competitive residential construction industry.

Road King Infrastructure Business Overview & Revenue Model

Company Description

Road King Infrastructure Limited, an investment holding company, invests in, develops, operates, and manages property projects and toll roads in the People's Republic of China. It operates through Property Development and Investment, Toll Road, and Investment and Asset Management segments. The company engages in the development, rental, and sale of residential and commercial properties. It also engages in the property funds, cultural, tourist, and commercial businesses. In addition, it provides financial and management services. Further, the company invests in and operates a toll road portfolio of five expressways in Mainland China and three expressways in Indonesia spanning approximately 600 kilometers. As of December 31, 2021, it had a land reserve of approximately 6,520,000 square meters primarily located in Mainland China and Hong Kong. The company was founded in 1994 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Road King Infrastructure generates revenue through two main segments: infrastructure and property development. In the infrastructure segment, the company earns income from toll fees collected on the roads and expressways it operates, which are crucial for facilitating regional transportation. The company also benefits from government concessions and partnerships that support its infrastructure projects. In the property development segment, Road King makes money by developing and selling residential and commercial properties, leasing properties, and through property management services. The diversification between these sectors allows the company to capitalize on both steady, long-term infrastructure income and cyclical real estate gains.

Road King Infrastructure Financial Statement Overview

Summary

Road King Infrastructure is facing financial challenges with declining revenue and profitability, high leverage, and inconsistent cash flow. The company needs to focus on improving operational efficiencies, reducing debt, and stabilizing cash flows to enhance its financial health. The residential construction industry is competitive, and the company must adapt to market conditions to improve its financial performance.

Income Statement

The company has experienced a significant decline in revenue and profitability. Total revenue has been decreasing annually, and the net income has been negative for the past three years. The gross profit margin and EBIT margin are also negative, indicating operational inefficiencies and high costs relative to revenue. There is a lack of revenue growth, and the company has not been able to maintain profitability.

Balance Sheet

The balance sheet indicates high leverage, with a debt-to-equity ratio that has been increasing over the years. Stockholders' equity has decreased, reflecting potential challenges in maintaining financial stability. The equity ratio is moderate, suggesting some level of financial risk. The company needs to manage its liabilities to improve its financial position.

Cash Flow

The cash flow statement shows mixed results. While operating cash flow is positive, reflecting some ability to generate cash from operations, the free cash flow has been inconsistent. The free cash flow to net income ratio is not favorable due to negative net income. The company has managed to maintain some level of cash flow stability, but there is room for improvement in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.54B	13.08B	17.16B	24.68B	24.20B
	Gross Profit
-1.73B	-647.99M	2.94B	5.40B	6.51B
	EBIT
-2.66B	-2.01B	1.02B	3.41B	4.66B
	EBITDA
-2.58B	-2.50B	1.18B	3.46B	4.72B
	Net Income Common Stockholders
-3.58B	-3.43B	-495.38M	1.03B	1.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.27B	5.48B	8.38B	12.71B	14.17B
	Total Assets
57.51B	73.15B	90.00B	108.24B	103.28B
	Total Debt
16.24B	22.65B	40.06B	46.89B	45.39B
	Net Debt
11.97B	17.17B	31.68B	34.17B	31.22B
	Total Liabilities
36.61B	45.95B	64.20B	79.39B	77.19B
	Stockholders Equity
17.94B	22.66B	20.25B	22.34B	20.93B
Cash Flow		Free Cash Flow
2.03B	2.54B	725.03M	4.84B	-3.12B
	Operating Cash Flow
2.05B	2.56B	738.37M	4.88B	-3.10B
	Investing Cash Flow
4.66B	2.94B	-38.79M	-6.43B	-4.58B
	Financing Cash Flow
-7.99B	-8.16B	-4.38B	-286.20M	6.00B

Road King Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1098, the sentiment is Negative. The current price of 0.81 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.96, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 33.42 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1098.

Road King Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$6.69B	11.69	3.01%	3.94%	2.60%	-21.51%
1098	40 Neutral	$606.96M	―	-31.08%	―	-57.65%	-4.05%

Road King Infrastructure Corporate Events

Road King Infrastructure Defers Distribution on 7.75% Securities

Road King Infrastructure Limited, through its subsidiary RKPF Overseas 2019 (E) Limited, announced a deferral of distribution payments on its 7.75% Senior Guaranteed Perpetual Capital Securities. This decision, affecting payments originally scheduled for May 18, 2025, reflects the company’s current financial strategy and may impact stakeholders, urging caution among security holders.

Road King Infrastructure Announces Annual General Meeting and Share Issuance Plans

Road King Infrastructure Limited has announced its upcoming annual general meeting scheduled for May 21, 2025, in Hong Kong. The meeting will address ordinary business matters such as reviewing financial statements, re-electing directors, and re-appointing auditors. Additionally, the meeting will consider special business resolutions, including authorizing the directors to issue additional shares and make related financial arrangements, potentially impacting the company’s capital structure and shareholder value.

Road King Infrastructure Reports Decline in 2024 Financial Results

Road King Infrastructure Limited reported a significant decline in property sales for the year ended December 31, 2024, with revenue dropping to RMB12,462 million from RMB27,650 million in 2023. Despite stable property delivery and a slight increase in toll revenue from expressway projects in Indonesia, the company experienced a loss attributable to owners of HK$4,122 million, highlighting financial challenges and a decrease in total assets and equity.

Road King Infrastructure Reports Significant Decline in 2024 Operating Statistics

Road King Infrastructure Limited reported unaudited operating statistics for the year ending December 31, 2024, showing a significant decline in total property sales to RMB12,462 million, a 55% drop from the previous year. This decline is attributed to the disposal of four expressways in Mainland China, which also impacted toll revenue, although Indonesian toll revenue saw a 6% increase. The figures are preliminary and may differ in the future, highlighting the need for cautious consideration by investors.