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HK Equities · Finance research note

HKEX 0576 - Zhejiang Expressway Co. Ltd. - H Shares

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2. Company Fundamentals

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -10.95%
Risk / Std Dev (Ann.)* 24.08%
1-Year Price Return* -13.10%

Latest Market Data (as of 2026-08-14, Hong Kong time):

Metric Value
Last Price HK$6.225
52-Week Range HK$5.93 – HK$8.16
Observation Count 245 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year price series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in HK$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue HK$19.76B HK$18.06B
Net income Reported net income HK$5.32B HK$5.50B
Total assets Year-end reported balance HK$293.41B HK$217.18B
Shareholders’ equity Year-end reported balance HK$50.38B HK$46.04B
Net margin Net income ÷ revenue 26.95% 30.45%
Asset turnover Revenue ÷ total assets 0.0673x 0.0832x
Equity multiplier Total assets ÷ shareholders’ equity 5.8240x 4.7172x
ROE Net margin × asset turnover × equity multiplier 10.57% 11.95%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: WACC is outside the permitted 5.00%–30.00% model range. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price HK$6.31
Market capitalisation HK$38.10B
Revenue HK$19.76B
EBIT HK$11.34B
Reported free cash flow HK$2.50B
FCF yield 6.57%
Net debt / EBITDA 1.39x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 16:27:37.061619 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set Asia Pacific ex Japan
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-20 to 2026-06-30
Aligned daily observations 210
Minimum observation requirement 120
Currency conversion for HK listings HKD adjusted close divided by daily USD/HKD close before simple daily return calculation

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -23.79% -23.52%
Adjusted R² 0.06 0.06
Annualised residual volatility 22.50% 22.40%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.50 (3.87) 0.44 (3.21)
Size (SMB) 0.05 (0.24) -0.07 (-0.29)
Value (HML) 0.27 (1.52) 0.37 (1.89)
Profitability (RMW) NM 0.19 (0.77)
Investment (CMA) NM -0.29 (-1.04)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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