Henan Zhongyuan Expressway Faces Financial Challenges Amid Mixed Performance Indicators

Henan Zhongyuan Expressway Co., Ltd., a midcap player in the transport services industry, has recently undergone an evaluation adjustment reflecting changes in its underlying financial metrics. The company's technical indicators have shown a shift, with the technical trend moving from a mildly bullish stance to a mildly bearish outlook. Key performance indicators reveal a mixed picture. The average Return on Capital Employed (ROCE) stands at 3.91%, indicating challenges in long-term fundamental strength. Over the past five years, net sales have experienced an annual growth rate of 8.06%, while operating profit has remained nearly flat at -0.02%. The company's debt situation is notable, with a high Debt to Equity ratio, which raises concerns about financial stability. In the most recent quarter ending June 2025, the company reported flat financial performance, with raw material costs increasing by 19.55% year-over-year. Additionally, the debtors turnover ratio reached a low of 5.16%. Despite a return on equity (ROE) of 7.98%, the valuation appears expensive with a Price to Book Value ratio of 0.83. Overall, Henan Zhongyuan Expressway Co., Ltd. has underperformed the market, generating negative returns of -2.68% over the past year, contrasting sharply with the 23.54% return of the China Shanghai Composite index. Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.