Operating Margin

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Price: 7.22 HKD 0.98% Market Closed

Market Cap: HK$43.6B

33.4%

Declining

by 8%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

33.4%

Operating Income

¥7.2B

Revenue

¥19.2B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

33.4%

Operating Income

HK$7.2B

Revenue

¥19.2B

Peer Comparison

Country		Company	Market Cap	Operating Margin
CN	Z	Zhejiang Expressway Co Ltd HKEX:576	43.3B HKD	Loading...
AU		Transurban Group ASX:TCL	43.2B AUD	Loading...
IT	A	Atlantia SpA F:AU9	18.7B EUR	Loading...
FR		Getlink SE PAR:GET	9.1B EUR	Loading...
CN		China Merchants Expressway Network Technology Holdings Co Ltd SZSE:001965	64.5B CNY	Loading...
CN		Jiangsu Expressway Co Ltd SSE:600377	61.3B CNY	Loading...
MX		Aleatica SAB de CV BMV:ALEATIC	142B MXN	Loading...
CN		Shandong Hi-speed Co Ltd SSE:600350	49.5B CNY	Loading...
MX		Promotora y Operadora de Infraestructura SAB de CV BMV:PINFRA	122.1B MXN	Loading...
BR		CCR SA BOVESPA:CCRO3	27.3B BRL	Loading...
AU		Atlas Arteria Group ASX:ALX	7.1B AUD	Loading...

Market Distribution

Min	-409 046.1%
30th Percentile	-1.4%
Median	4.2%
70th Percentile	10.3%
Max	876.4%

Other Profitability Ratios

Zhejiang Expressway Co Ltd
Glance View

Market Cap

43.6B HKD

Industry

Transportation Infrastructure

Founded in the mid-1990s, Zhejiang Expressway Co Ltd. emerges as a significant participant in the infrastructure artery of China. Nestled within the economically vibrant region of Zhejiang Province, the company has built an expansive network of expressways, strategically channeling seamless connectivity across the bustling cities and rural landscapes. Its core operations revolve around the design, maintenance, and management of these roadways, transforming it into a vital logistical framework that fuels commerce and mobility. By operating toll roads, the firm capitalizes on China's burgeoning vehicular movement, collecting toll fees which form the backbone of its revenue stream. In a rapidly urbanizing nation, Zhejiang Expressway has effectively aligned its business model with the governmental push towards infrastructural development, ensuring heavy traffic flow and consistent revenue. Beyond the stretches of asphalt, the company diversifies its income through an array of strategic ventures. It has expanded into related businesses like toll plaza service areas, where it provides ancillary services such as fuel stations, hotels, and retail outlets. This venture not only supplements its primary toll income but also enables it to tap into the consumer market, catering to the needs of travelers and corporates alike. Zhejiang Expressway’s financial portfolio also includes investments in securities and banking sectors, cushioning its operational earnings with the potential for financial gains. This blend of infrastructural reliability and financial agility positions Zhejiang Expressway Co Ltd. as a sturdy player in China's transportation network, weaving together the threads of profitability and development amidst the region’s relentless economic surge.

View Zhejiang Expressway Co Ltd Analysis

Intrinsic Value

Undervaluation 17%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Zhejiang Expressway Co Ltd
HKEX:576

Peer Comparison

Market Distribution

Other Profitability Ratios

Zhejiang Expressway Co Ltd
Glance View

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Zhejiang Expressway Co Ltd HKEX:576