Shandong Hi Speed Road&Bridge Co Ltd

Shandong Hi Speed Road&Bridge Co Ltd operates with a highly leveraged capital structure, characterized by a debt-to-equity ratio of 1.58 and a current ratio of 1.12. The company holds total assets of 182.36 billion CNY against total liabilities of 156.06 billion CNY, resulting in total equity of 26.31 billion CNY. Long-term debt stands at 41.48 billion CNY. Despite generating positive free cash flow of 888.69 million CNY, operating cash flow is relatively thin at 257.05 million CNY, indicating tight liquidity conditions. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, highlighting the company's reliance on external financing to sustain operations.

Profitability metrics reveal a company trading at significant discounts to its book value, with a price-to-book ratio of 0.29 and a price-to-tangible book ratio of 0.29. The price-to-earnings ratio is 3.26, suggesting the market prices the equity at a deep discount relative to earnings. Return on equity is 8.85%, while return on assets is 1.28%. These returns are modest, reflecting the capital-intensive nature of the construction and engineering industry. The enterprise value-to-EBITDA ratio is 13.37, and the EV-to-revenue ratio is 0.69, indicating that the market values the company's operating assets conservatively.

The company reports total revenue of 68.57 billion CNY, with gross profit of 9.84 billion CNY and operating income of 3.83 billion CNY. Net income stands at 2.23 billion CNY. Without specific segment or geographic breakdowns in the available data, the revenue concentration cannot be explicitly quantified, but the scale of operations suggests a diversified portfolio of large-scale infrastructure projects typical for a state-linked or major regional contractor in China. The gross margin is approximately 14.35%, which is consistent with industry norms for heavy construction and engineering firms.

Growth trajectory analysis is limited by the absence of historical period data in the current input. However, the current revenue base of 68.57 billion CNY indicates a substantial operational scale. The company’s ability to maintain this revenue level while managing high leverage and thin operating cash flow suggests a mature business model focused on volume and market share rather than rapid expansion. The lack of historical trend data prevents a definitive assessment of revenue momentum, but the current financial snapshot reflects a stable, albeit leveraged, operational footing.

Risk factors are primarily centered on liquidity and leverage. The medium liquidity risk is underscored by the negative net cash position and the high debt-to-equity ratio. Dilution risk is assessed as low, with basic and diluted shares outstanding both at 1.55 billion, indicating no immediate options or convertible securities impacting share count. The key flag of negative net cash after debt subtraction serves as a critical monitor for refinancing risk, especially in a rising interest rate environment or during periods of tightened credit conditions for the construction sector.

Recent events and analyst sentiment present a stark contrast to the company’s valuation metrics. Analysts have issued a mean recommendation of 1.00 (strong buy), with a mean price target of 7.98 CNY, which represents a significant upside from the current market price of 4.89 CNY. This strong buy consensus, driven by two strong-buy ratings, suggests that analysts perceive the current valuation as deeply undervalued relative to intrinsic value or future cash flow potential. However, the absence of recent filing, news, or transcript observations limits the ability to contextualize this sentiment with specific corporate developments or strategic shifts.

Analysts project 52.3% upside to a consensus target price of 7.98 CNY, rating the stock a strong buy.

Gross profit reached 9.84 billion CNY in FY2026, demonstrating strong top-line profitability despite revenue fluctuations.

Operating income grew 4.7% year-over-year to 3.83 billion CNY, showing resilience in core operational earnings.

Revenue CAGR of 4.5% over four years indicates moderate long-term growth stability for the infrastructure business.

Debt-to-equity ratio of 1.58 sits in the bottom quartile, signaling significantly higher leverage risk than peers.

The company faces a high credit risk flag, suggesting potential difficulties in meeting financial obligations or refinancing.

Revenue declined 3.9% year-over-year to 68.6 billion CNY, indicating a contraction in business scale.

Revenue ¥68.57B, −3,9% YoY; Operating income +4,7% YoY.

• ▍Revenue ¥68.57B, −3,9% YoY
• ▍Operating income +4,7% YoY
• ▍Net income −4,1% YoY
• ▍Free cash flow −75,3% YoY
• ▍Net margin 3.2%

Revenue ¥71.35B, −2,3% YoY; Operating income −1,8% YoY.

• ▍Revenue ¥71.35B, −2,3% YoY
• ▍Operating income −1,8% YoY
• ▍Net income +1,5% YoY
• ▍Free cash flow +460,0% YoY
• ▍Net margin 3.3%

Revenue ¥73.02B, +3,3% YoY; Operating income −11,7% YoY.

• ▍Revenue ¥73.02B, +3,3% YoY
• ▍Operating income −11,7% YoY
• ▍Net income −15,2% YoY
• ▍Free cash flow −73,3% YoY
• ▍Net margin 3.1%

Revenue ¥70.70B, +22,9% YoY; Operating income +24,4% YoY.

• ▍Revenue ¥70.70B, +22,9% YoY
• ▍Operating income +24,4% YoY
• ▍Net income +26,3% YoY
• ▍Free cash flow +26,5% YoY
• ▍Net margin 3.8%

Revenue ¥57.52B; Operating income ¥3.39B.

• ▍Revenue ¥57.52B
• ▍Operating income ¥3.39B
• ▍Net margin 3.7%