Huayu Expressway Group Limited (1823) AI Stock Analysis

• Market Cap: HK$453.87M
• Dividend Yield: N/A
• Average Volume (3M): 180.40K
• Price to Earnings (P/E): 128.9
• Beta (1Y): 0.65
• Revenue Growth: -44.12%
• EPS Growth: -3110.53%
• Country: HK
• Employees: 387
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): -0.06
• Shares Outstanding: 412,608,000
• 10 Day Avg. Volume: 379,000
• 30 Day Avg. Volume: 180,400
• PEG Ratio: 0.08
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -0.48
• 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: HK$1.00
• Price Target Upside: -9.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: HK$1.00 ▼(-9.09% Downside)

The overall stock score is primarily impacted by financial performance challenges, including declining revenues and negative cash flows. Technical analysis provides some positive momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the score.

Huayu Expressway Group Limited Business Overview & Revenue Model

Company Description

Huayu Expressway Group Limited (1823) is a prominent infrastructure and investment company based in Hong Kong, primarily engaged in the development, operation, and management of expressways and related infrastructure projects in China. The company focuses on enhancing transportation networks to facilitate economic growth and connectivity, offering services that include highway construction, maintenance, and toll collection. With a strategic emphasis on public-private partnerships and government collaborations, Huayu Expressway aims to meet the rising demand for efficient transportation solutions in the region.

How the Company Makes Money

Huayu Expressway Group generates revenue primarily through toll collection from the expressways it operates. This includes income from vehicles using the highways, which is calculated based on vehicle type and distance traveled. In addition to toll revenues, the company also earns money from construction contracts related to expressway development and maintenance services. Significant partnerships with government entities and local authorities further bolster its earnings, as these relationships can lead to new project opportunities and funding support. Additionally, the company may benefit from ancillary services associated with expressway operations, which can include advertising and commercial activities along the highway corridors.

Huayu Expressway Group Limited Financial Statement Overview

Summary

Huayu Expressway Group Limited is facing financial difficulties, with declining revenues, profitability, and negative cash flows. The balance sheet reflects some stability with a solid equity base, but increased debt levels pose potential risks. The company needs to address operational inefficiencies and improve cash flow to enhance financial health.

Income Statement

Huayu Expressway Group Limited has experienced a significant decline in revenue and profitability. The TTM data shows a negative net income and EBIT, indicating operational challenges. Gross profit margin has decreased compared to previous years, and revenue has contracted. These factors contribute to a lower score in the income statement.

Balance Sheet

The balance sheet indicates a relatively strong equity position with an equity ratio of over 50% in the TTM period. However, there is an increase in total debt compared to previous periods, which slightly increases financial risk. The debt-to-equity ratio remains moderate, suggesting manageable leverage.

Cash Flow

The company has faced cash flow challenges, with negative free cash flow and operating cash flow in the TTM period. This marks a significant deterioration from previous years, where operating cash flow and free cash flow were positive. The operating cash flow to net income ratio is negative due to the loss, highlighting cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.15M	198.15M	407.10M	409.89M	688.45M	488.90M
Gross Profit	23.58M	39.50M	115.01M	119.69M	208.43M	172.01M
EBITDA	3.74M	19.84M	79.93M	134.09M	194.75M	196.20M
Net Income	-43.75M	-8.51M	329.43M	49.03M	86.43M	62.29M
Balance Sheet
Total Assets	1.39B	1.41B	1.25B	1.96B	1.90B	1.57B
Cash, Cash Equivalents and Short-Term Investments	119.24M	185.76M	327.96M	216.67M	271.38M	194.16M
Total Debt	258.11M	247.52M	1.46M	51.65M	988.98M	919.05M
Total Liabilities	341.40M	334.38M	125.21M	1.15B	1.19B	1.04B
Stockholders Equity	727.18M	751.14M	803.83M	518.17M	470.67M	416.98M
Cash Flow
Free Cash Flow	-187.59M	-428.07M	8.18M	170.34M	171.82M	75.55M
Operating Cash Flow	-68.50M	-250.52M	63.08M	198.70M	202.53M	89.04M
Investing Cash Flow	-80.08M	-93.54M	153.32M	-116.62M	-141.88M	-19.44M
Financing Cash Flow	38.44M	217.46M	-157.96M	-94.42M	12.28M	-83.15M

Huayu Expressway Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1823, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 0.99, above the 50-day MA of 1.02, and above the 200-day MA of 0.64, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.54 is Neutral, neither overbought nor oversold. The STOCH value of 64.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1823.

Huayu Expressway Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0995	75 Outperform	$25.91B	10.28	14.90%	5.24%	5.50%	11.50%
0107	73 Outperform	HK$18.23B	8.98	9.06%	6.31%	-20.02%	42.97%
1785	72 Outperform	HK$3.36B	6.35	10.79%	5.31%	0.20%	-17.12%
0548	71 Outperform	$25.49B	12.50	6.54%	3.65%	5.19%	-45.04%
1576	70 Neutral	HK$3.50B	7.43	10.92%	6.26%	-21.80%	-8.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1823	51 Neutral	HK$453.87M	128.95	-5.81%	―	-44.12%	-3110.53%

Huayu Expressway Group Limited Corporate Events

Huayu Expressway Group Announces 2025 Annual General Meeting

Huayu Expressway Group Limited has announced its upcoming annual general meeting scheduled for June 4, 2025, in Shenzhen, China. Key agenda items include the consideration of audited financial statements, re-election of directors, and authorization of share repurchase and issuance powers, reflecting the company’s strategic focus on governance and shareholder value enhancement.

Huayu Expressway Group Reports Decline in 2024 Financial Results

Huayu Expressway Group Limited reported its annual financial results for the year ended December 31, 2024, showing a significant decline in revenue and profit compared to the previous year. The company experienced a loss from continuing operations, with revenue dropping from RMB 407,104,000 in 2023 to RMB 198,145,000 in 2024, and a net loss of RMB 13,285,000 for the year. This downturn is attributed to the absence of profits from the discontinued Sui-Yue Expressway operation, which had contributed significantly to the previous year’s earnings.

Huayu Expressway Group Schedules Board Meeting for Annual Results Approval

Huayu Expressway Group Limited has announced that its board of directors will hold a meeting on March 27, 2025, in Hong Kong. The meeting will focus on approving the audited annual results for the year ending December 31, 2024, and considering the payment of a final dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its financial disclosures and dividend policy.

Huayu Expressway Group Issues Profit Warning Amid Revenue Decline

Huayu Expressway Group Limited has issued a profit warning, indicating a significant decline in revenue and a shift from profit to loss for the year ending December 2024. The company’s revenue is expected to decrease to approximately RMB188.2 million to RMB208.0 million, compared to RMB407.1 million in 2023, primarily due to a substantial decrease in wine and liquor sales amid a contracting consumer market in the PRC. This downturn highlights challenges in the consumer goods sector and may impact stakeholders’ confidence.

Huayu Expressway Secures RMB300 Million Facility for Project Expansion

Huayu Expressway Group Limited announced that its subsidiary, Guizhou Renhuai Huayu Liquor Co., Ltd., has secured a RMB300 million banking facility from China Construction Bank Corporation for the construction of the Chanshu Village Project in Guizhou Province. This agreement, which includes a corporate guarantee from Huayu Expressway, aims to enhance the company’s financing resources and strengthen its cash flow without constituting a notifiable or connected transaction under Hong Kong’s listing rules.