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Henan Zhongyuan Expressway Co Ltd
SSE:600020

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Henan Zhongyuan Expressway Co Ltd
SSE:600020
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Price: 3.84 CNY -1.03% Market Closed
Market Cap: ¥8.6B

Gross Margin

31.5%
Current
Declining
by 2.3%
vs 3-y average of 33.8%

Gross Margin shows how much money a company keeps from each dollar of sales after paying for the products it sells. It tells how profitable the company`s core business is before other expenses.

Gross Margin
31.5%
=
Gross Profit
¥2.3B
/
Revenue
¥7.2B

Gross Margin shows how much money a company keeps from each dollar of sales after paying for the products it sells. It tells how profitable the company`s core business is before other expenses.

Gross Margin
31.5%
=
Gross Profit
¥2.3B
/
Revenue
¥7.2B

Market Distribution

In line with most companies in China
Percentile
66th
Based on 8 314 companies
66th percentile
31.5%
Low
-2 148% — 14.3%
Typical Range
14.3% — 34.6%
High
34.6% — 775.2%
Distribution Statistics
China
Min -2 148%
30th Percentile 14.3%
Median 23%
70th Percentile 34.6%
Max 775.2%

Henan Zhongyuan Expressway Co Ltd
Glance View

Henan Zhongyuan Expressway Co Ltd operates at the heart of China's rapidly expanding infrastructure landscape, playing a pivotal role in the province of Henan. This company, established to manage and maintain crucial expressway links, connects one of the most populous regions in China with the rest of the nation, facilitating significant economic and social mobility. Founded in the mid-1990s, the company has grown its footprint by operating several major expressway segments. These thoroughfares are essential arteries for transportation, supporting the movement of people and goods across the region's industrial and agricultural sectors. By investing in the upkeep and modernization of these expressways, the company ensures smooth and efficient traffic flow, a crucial aspect of Henan's developmental strategy. Revenue generation for Henan Zhongyuan Expressway Co Ltd primarily revolves around toll collections. As vehicles traverse its network of expressways, tolls serve as a consistent and reliable income stream, driving financial performance. Given the increasing demand for transport infrastructure driven by urbanization and economic activities, the company finds itself in a favorable position to capitalize on these trends. To enhance profitability, the company employs advanced technology for toll collection, streamlining operations and minimizing leakage. Their strategic focus isn't just on maintenance, but also on expanding their scope through the acquisition and construction of new expressway projects. This expansion effort forms a crucial part of their growth narrative, enhancing network density and opening new revenue streams in a country where road travel remains a critical component of both commerce and daily life.

Intrinsic Value
10.96 CNY
Undervaluation 65%
Intrinsic Value
Price ¥3.84
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What is Gross Margin?
Gross Margin shows how much money a company keeps from each dollar of sales after paying for the products it sells. It tells how profitable the company`s core business is before other expenses.
How is Gross Margin calculated?

Gross Margin is calculated by dividing the Gross Profit by the Revenue.

Gross Margin
31.5%
=
Gross Profit
¥2.3B
/
Revenue
¥7.2B
What is Henan Zhongyuan Expressway Co Ltd's current Gross Margin?

The current Gross Margin for Henan Zhongyuan Expressway Co Ltd is 31.5%, which is below its 3-year median of 33.8%.

How has Gross Margin changed over time?

Over the last 3 years, Henan Zhongyuan Expressway Co Ltd’s Gross Margin has increased from 21.4% to 31.5%. During this period, it reached a low of 19.7% on Dec 31, 2022 and a high of 41.8% on Sep 30, 2023.

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