facebook(Stocks Discussion) HKEX: Qilu Expressway? - Seedly

Gabriel Tham

Tag Team Member at Kenichi Tag Team

12 Dec 2019

Stocks

(Stocks Discussion) HKEX: Qilu Expressway?

Discuss anything about HKEX: Qilu Expressway share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell this stock on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment in HKEX: Qilu Expressway.

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To those who are not familiar with overseas expressway company model. Here is a short lowdown, the company gets awarded a route, they build an expressway and then collect revenue from the tolls. There are in fact many listed expressway global companies; Singapore used to have one called China Merchant Pacific which does the same business model as Qilu Expressway.

Such business models are extremely good such as Gross and Operating margins at over 60%! and net margin of over 40%! Its pretty normal. They have very good cashflow because prior to the commencement of the expressay operation, they have spent a huge amount of money to build the expressway with no cash inflow during the construction phase

Qilu Expressway Company Limited, together with its subsidiaries, operates as an expressway operator in the People’s Republic of China.

Interesting company. Usually this type of company would have high capex, low margins. But it doesn't seem to in this company. With Gross and Operating margins at over 60%! and net margin of over 40%! This is too good to be true! Having healthy cash balance sheet as well. Cash growing and debt reduced.

Usually they have to maintain the expressway now and then. Not to sure why the capex is low. Maybe after major maintenance, it only needs some minor maintenace for years before another major ones. Company just got ipo less than 5 years. Didnt manage to get much information.

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