Huayu Expressway Group (SEHK:1823) EPS Loss Deepening Tests Bullish Narratives

Huayu Expressway Group (SEHK:1823) has posted its FY 2025 first half results, reporting revenue of C¥75.8 million and a basic EPS loss of C¥0.056518, while the share price sits at C¥1.72. Over recent periods the company has seen revenue move from C¥128.8 million in 1H 2024 to C¥69.3 million in 2H 2024 and C¥75.8 million in 1H 2025. EPS has shifted from a profit of C¥0.028884 in 1H 2024 to losses of C¥0.049519 in 2H 2024 and C¥0.056518 in 1H 2025, which keeps the focus squarely on how margins and cash generation might evolve from here.

See our full analysis for Huayu Expressway Group.

With the latest figures on the table, the next step is to see how these results line up against the most widely held stories about Huayu Expressway Group, highlighting where the numbers support the narrative and where they start to challenge it.

Curious how numbers become stories that shape markets? Explore Community Narratives

Losses Deepen, With C¥36.1m Trailing Net Loss

• On a trailing twelve month basis to 2H 2025, Huayu Expressway Group recorded total revenue of C¥140.4 million and a net loss of C¥36.1 million, compared with a net loss of C¥8.5 million on C¥198.1 million of revenue in the earlier trailing period to 2H 2024.
• Critics highlight a bearish concern that widening losses signal weak earnings quality, and the trailing figures add weight to that view:
  • Net losses have expanded over recent trailing periods, with Basic EPS moving from a loss of C¥0.020634 to a loss of C¥0.0876, which aligns with the longer term pattern of losses growing at about 71.3% per year.
  • The shift from a profit of C¥11.9 million in 1H 2024 to losses of C¥20.4 million in 2H 2024 and C¥23.3 million in 1H 2025 means recent half year results do not provide evidence of stabilising profitability.

P/S Of 5.1x Sits Between Industry And Peers

• The current P/S of 5.1x is materially higher than the Hong Kong construction industry average of 0.5x, yet slightly below the listed peer group average of 5.9x. This places Huayu Expressway Group in a middle ground between the wider sector and closer comparables.
• What stands out for the bearish narrative is the tension between loss making financials and this elevated sector multiple:
  • With the company unprofitable over the trailing twelve months and recording a C¥36.1 million net loss, some bears argue a 5.1x P/S looks demanding when the broader industry trades at 0.5x.
  • At the same time, the stock sitting below the 5.9x peer average gives bears less support for the argument that valuation is stretched when measured strictly against direct peers.

EPS Swing From C¥0.0289 Profit To C¥0.0565 Loss

• Basic EPS moved from a profit of C¥0.028884 in 1H 2024 to losses of C¥0.049519 in 2H 2024 and C¥0.056518 in 1H 2025, while trailing EPS for the twelve months to 1H 2025 stands at a loss of C¥0.106037.
• The general market opinion around execution risk across the expressway and liquor businesses is tested by these EPS shifts:
  • Bears argue that running two very different segments can dilute focus, and the move from a profit of C¥11.9 million in 1H 2024 to a trailing loss of C¥36.1 million gives them figures to point to when they question operational effectiveness.
  • Supporters of the story often point to the expressway as a core asset and liquor as an additional driver, yet the step from C¥198.1 million to C¥140.4 million in trailing revenue suggests that both segments together have not translated into consistent earnings over the last reported periods.

For a broader view on how these numbers fit into different storylines around the stock, including both cautious and more constructive takes, it helps to see what other investors are focusing on in recent discussions. 📊 Read the what the Community is saying about Huayu Expressway Group.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Huayu Expressway Group's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

The tone here is cautious, so it makes sense to look at the figures yourself and decide how comfortable you are with the risk profile. Before you settle on a view, take a moment to weigh the company specific concerns highlighted in the 2 important warning signs.

See What Else Is Out There

Huayu Expressway Group currently faces widening losses, weaker EPS and revenue, and a relatively high P/S multiple despite ongoing questions around earnings quality.

If that mix of deepening losses and valuation risk feels uncomfortable, use the 280 resilient stocks with low risk scores to quickly zero in on companies with more resilient profiles today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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