Huayu Expressway Group
1823.HK
HKD1.170 -0.85%
Exchange: HKSE | Sector: Industrials | Industry: Industrial Infrastructure Operations
Q2 2025
Published: Jun 30, 2025

Earnings Highlights

  • Revenue of $37.92M up 118.8% year-over-year
  • EPS of $-0.03 decreased by 128.2% from previous year
  • Gross margin of 17.5%
  • Net income of -11.66M
  • "N/A" - N/A
1823.HK
Company 1823.HK

Executive Summary

Huayu Expressway Group Limited reported QQ2 2025 revenue of 37.92 million CNY, up 118.8% year over year (YoY) and 100% quarter over quarter (QoQ), driven by stronger toll road activity across its SuiYue Expressway and Qing Ping Expressway segments. Gross profit reached 6.62 million CNY, yielding a gross margin of 17.47%. EBITDA stood at 3.60 million CNY, while operating income remained negative at -4.32 million CNY, and net income registered a loss of 11.66 million CNY (EPS -0.0283). The bottom line deterioration despite EBITDA improvement reflects higher depreciation and amortization (8.59 million CNY) and sizable other expenses (-8.41 million CNY), as well as a modest tax recovery (51 thousand CNY). The quarter shows revenue momentum but profitability remains challenged, underscored by an operating margin of -11.39% and a net margin of -30.75%. Liquidity remains robust on a working capital basis (current ratio 3.45; quick ratio 1.48; cash ratio 0.59), yet capitalization is modestly leveraged (debt ratio 0.19; debt to equity 0.36; debt to capitalization 0.26). Operating cash flow per share is positive at 0.0281 CNY, but free cash flow per share is negative (-0.136 CNY) indicating ongoing capital expenditure and working capital needs. Management commentary is not available in the provided transcript data, limiting qualitative insights from the earnings call. The company trades with a negative P/E, a price-to-book of 0.23, and a price-to-sales of 2.23, suggesting a valuation discount relative to some peers despite improving top-line momentum. Investors should monitor toll revenue trajectories, capex pacing, working capital dynamics, and any regulatory or macro headwinds affecting expressway traffic volumes.

Key Performance Indicators

Revenue
Increasing
37.92M
QoQ: 100.00% | YoY: 118.79%
Gross Profit
Increasing
6.62M
17.47% margin
QoQ: 100.00% | YoY: 156.38%
Operating Income
Increasing
-4.32M
QoQ: -100.00% | YoY: 20.15%
Net Income
Decreasing
-11.66M
QoQ: -100.00% | YoY: -128.27%
EPS
Decreasing
-0.03
QoQ: -100.00% | YoY: -128.23%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 37.92 -0.03 +118.8% View
Q1 2025 37.92 -0.03 -41.1% View
Q4 2024 34.66 -0.02 -46.8% View
Q3 2024 34.66 -0.02 -46.8% View