Why is Henan Zhongyuan Expressway Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.91%
- Poor long term growth as Net Sales has grown by an annual rate of 2.96% and Operating profit at -11.81% over the last 5 years
- The company is Net-Debt Free
2
Flat results in Jun 26
- NET PROFIT(9M) At CNY 344.72 MM has Grown at -52.15%
- NET SALES(Q) At CNY 1,484.66 MM has Fallen at -17.79%
- CASH AND EQV(HY) Lowest at CNY 910.93 MM
3
With ROE of 5.29%, it has a very expensive valuation with a 0.71 Price to Book Value
- Over the past year, while the stock has generated a return of -10.96%, its profits have fallen by -33.8%
- At the current price, the company has a high dividend yield of 4.5
4
Underperformed the market in the last 1 year
- Even though the market (China Shanghai Composite) has generated returns of 3.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.96% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Henan Zhongyuan Expressway Co., Ltd. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Henan Zhongyuan Expressway Co., Ltd.
-10.88%
0.35
20.67%
China Shanghai Composite
0.9%
0.22
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
2.96%
EBIT Growth (5y)
-11.81%
EBIT to Interest (avg)
1.62
Debt to EBITDA (avg)
13.14
Net Debt to Equity (avg)
3.14
Sales to Capital Employed (avg)
0.14
Tax Ratio
96.95%
Dividend Payout Ratio
42.92%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.30%
ROE (avg)
6.61%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.71
EV to EBIT
41.79
EV to EBITDA
23.04
EV to Capital Employed
0.93
EV to Sales
6.80
PEG Ratio
NA
Dividend Yield
4.50%
ROCE (Latest)
2.23%
ROE (Latest)
5.29%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
Bearish
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 2,609.07 MM
NET PROFIT(HY)
Higher at CNY 686.65 MM
RAW MATERIAL COST(Y)
Fallen by -35.28% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 317.3 %
-11What is not working for the Company
NET PROFIT(9M)
At CNY 344.72 MM has Grown at -52.15%
NET SALES(Q)
At CNY 1,484.66 MM has Fallen at -17.79%
CASH AND EQV(HY)
Lowest at CNY 910.93 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.36 times
Here's what is working for Henan Zhongyuan Expressway Co., Ltd.
Operating Cash Flow
Highest at CNY 2,609.07 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Profit
Higher at CNY 686.65 MM
than preceding 12 month period ended Jun 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (CNY MM)
Debt-Equity Ratio
Lowest at 317.3 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -35.28% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Henan Zhongyuan Expressway Co., Ltd.
Net Sales
At CNY 1,484.66 MM has Fallen at -17.79%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (CNY MM)
Cash and Eqv
Lowest at CNY 910.93 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 3.36 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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