Breaking Down Jiangsu Expressway Company Limited Financial Health: Key Insights for Investors

If you want a data-first snapshot before deciding whether Jiangsu Expressway Company Limited merits a closer look, consider that the company reported operating revenue for the TTM ending September 2025 of 21.06 billion CNY and a TTM revenue figure cited as 22.12 billion CNY, with revenue surging 52.70% in 2024 from 15.19 billion CNY in 2023 and Q1 2025 operating income up 37.66% year‑over‑year to ~4.78 billion CNY; profitability shows a TTM net income of 4.66 billion CNY (EPS 1.01 CNY) with a net margin ~22.1%, ROE 9.80% and ROA 4.09%, while liquidity and solvency read mixed-current ratio 0.76, quick ratio 0.56, cash and equivalents 733.82 million CNY, operating cash flow TTM 7.2 billion CNY and free cash flow 2.5 billion CNY-and leverage sits at a debt‑to‑equity of 0.70 with total assets 26.9 billion CNY and liabilities 19.8 billion CNY; valuation metrics show a P/E of 9.87, EV/EBITDA 12.31 and an EV/FCF of -22.48, market cap was 65.93 billion HKD as of December 3, 2025, interest coverage is 6.48, debt/EBITDA 4.42, and planned growth catalysts-including the Ningyang Yangtze River North Connection opening in late 2025, Xitaidanjin due by 2028, multiple expressway renovations and a 2024 capex of 11.2 billion CNY (estimated 9.4 billion CNY in 2025)-frame the company's near‑term outlook; read on for a detailed breakdown of what these figures mean for investors.

Jiangsu Expressway Company Limited (0177.HK) - Revenue Analysis

• Operating revenue (TTM ending Sep 2025): 21.06 billion CNY (operating revenue measure).
• Total TTM revenue as of Sep 2025: 22.12 billion CNY (company-reported TTM revenue).
• 2024 full-year revenue: 23.20 billion CNY, up 52.70% from 15.19 billion CNY in 2023.
• 2023 full-year revenue: 15.19 billion CNY (base year for strong 2024 growth).
• Q1 2025 operating income: ~4.78 billion CNY, up 37.66% YoY.
• Revenue growth rates: 2024 - 52.70%; 2023 - 14.61%.

• Drivers of the 2024-2025 revenue surge include traffic recovery post-pandemic, toll rate adjustments, and expanded non-toll services (rest areas, advertising, logistics-related services).
• Q1 2025 strength (37.66% YoY operating income rise) suggests improving margin leverage from fixed-cost absorption and higher average revenue per vehicle.
• Investors should note the divergence between operating revenue TTM (21.06 bn CNY) and total TTM revenue (22.12 bn CNY) when modeling margins and cash flow conversion.

Jiangsu Expressway Company Limited (0177.HK) - Profitability Metrics

• TTM net income (ending Sep 2025): 4.66 billion CNY (up 5.5% YoY)
• TTM EPS (ending Sep 2025): 1.01 CNY per share
• TTM net profit margin (ending Sep 2025): ~22.1%
• TTM ROE (ending Sep 2025): 9.80%
• TTM ROA (ending Sep 2025): 4.09%
• Q1 2025 net profit attributable to shareholders: decreased 2.88% YoY despite operating income rising 37.66% YoY

• High operating-income growth in Q1 2025 (+37.66%) contrasted with a small decline in attributable net profit (-2.88%), indicating margin pressure or non-operating impacts (finance costs, taxes, minority interests, or one-off items) in the quarter.
• The TTM net profit margin (~22.1%) and EPS (1.01 CNY) reflect solid profitability on recent revenues; ROE (9.80%) and ROA (4.09%) show moderate capital and asset efficiency for the sector.

Jiangsu Expressway Company Limited (0177.HK) - Debt vs. Equity Structure

• Total assets (Sep 2025): 26.9 billion CNY
• Total liabilities (Sep 2025): 19.8 billion CNY
• Total equity (Sep 2025): 7.1 billion CNY

• The balance sheet shows a moderate leverage profile: reported liabilities (19.8 bn CNY) exceed equity (7.1 bn CNY), but the debt-to-equity ratio of 0.70 indicates interest-bearing debt is under total equity (implied ≈ 4.97 bn CNY).
• An interest coverage ratio of 6.48 suggests operating earnings cover interest expense by a healthy margin, reducing near-term default risk on debt service.
• A debt-to-EBITDA of 4.42 points to leverage that may be above conservative thresholds for infrastructure peers - useful for assessing refinancing risk and covenant headroom.
• Asset base (26.9 bn CNY) provides collateral/backing for liabilities, but the composition between fixed assets, receivables and cash will affect liquidity and flexibility.

Jiangsu Expressway Company Limited (0177.HK) - Liquidity and Solvency

• Current ratio (Sep 2025): 0.76 - indicates current liabilities exceed current assets, signaling tight short-term liquidity.
• Quick ratio (Sep 2025): 0.56 - confirms limited immediate liquid asset coverage after excluding inventories and non-liquid items.
• Cash and cash equivalents (Sep 2025): ¥733.82 million - available cash on hand for near-term obligations.

• Operating cash flow (TTM ¥7.2bn) demonstrates strong ability to convert operations into cash despite balance-sheet constraints.
• Free cash flow (TTM ¥2.5bn) provides capacity for debt servicing, maintenance capex, and selective investments.
• Operating cash flow ratio 0.27 suggests operating cash covers 27% of short-term obligations measured against revenues or relevant liabilities (as applied by the company).

Jiangsu Expressway Company Limited (0177.HK) - Valuation Analysis

Key valuation metrics for the trailing twelve months (TTM) ending September 2025 provide a snapshot of how the market prices Jiangsu Expressway Company Limited (0177.HK) relative to earnings, operating profitability and cash generation. These metrics, combined with market capitalization, highlight valuation strengths and risks for investors.

• Market capitalization (as of 3 Dec 2025): 65.93 billion HKD
• P/E (TTM ending Sep 2025): 9.87
• EV/EBITDA (TTM ending Sep 2025): 12.31
• EV/Sales (TTM ending Sep 2025): 4.64
• EV/EBIT (TTM ending Sep 2025): 17.72
• EV/FCF (TTM ending Sep 2025): -22.48

Investor considerations informed by these numbers:

• Low P/E (9.87) can indicate undervaluation if earnings are stable, but could reflect concerns about profitability sustainability or macro/sectoral headwinds.
• EV/EBITDA at 12.31 places the company in a mid-range valuation for capital-intensive infrastructure; compare to regional toll-road peers for context.
• EV/Sales of 4.64 suggests investors pay a premium per unit of revenue-justify this with margin and growth expectations.
• Relatively high EV/EBIT (17.72) versus EV/EBITDA implies depreciation/amortization or non-operating items materially affect operating profit.
• Negative EV/FCF (-22.48) is the most critical metric: it signals free cash flow was negative over the TTM period or extremely low relative to enterprise value, requiring review of capex, working capital swings, disposals, or extraordinary cash items.

For a fuller background that complements these valuation figures, see: Jiangsu Expressway Company Limited: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Expressway Company Limited (0177.HK) - Risk Factors

This section highlights the principal financial and operational risks facing Jiangsu Expressway Company Limited (0177.HK) using the latest available metrics and Q1 2025 performance indicators.

• Leverage: Debt-to-equity ratio at 0.70 - moderate financial leverage that amplifies both returns and downside in stress scenarios.
• Liquidity pressure: Current ratio 0.76 and quick ratio 0.56 - short-term assets are insufficient to cover near-term liabilities on a conservative basis.
• Cash flow weakness: Enterprise value-to-free cash flow (EV/FCF) = -22.48 - negative free cash flow signaling potential constraints on reinvestment, dividends, or deleveraging.
• Profitability erosion: Net profit declined in Q1 2025 despite higher revenue - suggests margin compression or rising operating/finance costs.
• Interest servicing: Interest coverage ratio 6.48 - adequate ability to meet interest payments but sensitive to profit declines or rate increases.
• Operational sensitivity: Toll revenue exposure, traffic volume variability, and maintenance/capex timing may exacerbate liquidity and cash flow strain.

Key tactical considerations for stakeholders:

• Monitor operating cash flows and management commentary on capex and toll rate adjustments.
• Watch debt maturities and refinancing plans given the 0.70 D/E and negative FCF signal.
• Assess sensitivity of interest coverage to lower profits or higher interest rates despite current 6.48x coverage.
• Track liquidity improvements (current and quick ratios) and any working-capital measures announced.

Further context on corporate direction and non-financial priorities can be found here: Mission Statement, Vision, & Core Values (2026) of Jiangsu Expressway Company Limited.

Jiangsu Expressway Company Limited (0177.HK) - Growth Opportunities

Jiangsu Expressway Company Limited (0177.HK) is executing a multi-year infrastructure push that should support medium-term traffic capacity, toll revenue potential and asset value. Key greenfield and upgrade projects scheduled from 2025-2028, plus sustained capital spending, underline the company's expansion focus.

• Ningyang Yangtze River North Connection - planned opening by end-2025; strategic river-crossing that shortens regional trips and diverts traffic from alternative routes.
• Xitaidanjin project - major new corridor expected completion by 2028, delivering incremental long-haul traffic capacity.
• Renovation & expansion of southern section of Xiyi Expressway - capacity upgrade to relieve bottlenecks and improve average speeds.
• Guangjing North section - entering main construction period in H2 2025, advancing toward scheduled commissioning dates.
• Preparations for expansion of Jiangsu section of Shanghai-Nanjing Expressway - capacity uplift on one of the province's highest-traffic corridors.

• Capital expenditure profile: 2024 CapEx = 11.2 billion CNY; management guidance / consensus estimate for 2025 ≈ 9.4 billion CNY - indicating sustained high investment to complete ongoing projects and start new phases.
• Implications for traffic and revenue:
  • New and expanded links (Ningyang, Xitaidanjin, Xiyi) are likely to increase traffic volumes on the company's toll network and reduce congestion-driven revenue volatility.
  • Expected uplift in average daily traffic (ADT) on newly opened sections typically materialises over 12-24 months post-opening as routing patterns adjust.
• Financial considerations:
  • High near-term CapEx supports medium-term growth but may pressure free cash flow and require disciplined cash management or project financing.
  • Project completion timing (notably Ningyang by end‑2025 and Xitaidanjin by 2028) will be key catalysts for incremental toll revenue and potential re-rating as utilization ramps up.

For broader context on the company's history, ownership and business model, see: Jiangsu Expressway Company Limited: History, Ownership, Mission, How It Works & Makes Money