Sichuan Expressway (SEHK:107) Net Profit Margin Surges, Reinforcing Stable-Infrastructure Narrative

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Sichuan Expressway (SEHK:107) posted a net profit margin of 18%, up from last year’s 10.8%, while earnings grew 37.4% year-over-year, well ahead of its five-year average growth of 6.3% per year. The ...

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The ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/transportation/hkg-107/sichuan-expressway-shares/news/sichuan-expressway-sehk107-net-profit-margin-surges-reinforc\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sichuan Expressway (SEHK:107) Net Profit Margin Surges, Reinforcing Stable-Infrastructure Narrative</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSichuan Expressway (SEHK:107) Net Profit Margin Surges, Reinforcing Stable-Infrastructure Narrative\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-01 01:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/transportation/hkg-107/sichuan-expressway-shares/news/sichuan-expressway-sehk107-net-profit-margin-surges-reinforc><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Sichuan Expressway (SEHK:107) posted a net profit margin of 18%, up from last year’s 10.8%, while earnings grew 37.4% year-over-year, well ahead of its five-year average growth of 6.3% per year. The ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/transportation/hkg-107/sichuan-expressway-shares/news/sichuan-expressway-sehk107-net-profit-margin-surges-reinforc\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1185","symbol_name":"公路与铁路","start_time":0,"source_url":"https://simplywall.st/stocks/hk/transportation/hkg-107/sichuan-expressway-shares/news/sichuan-expressway-sehk107-net-profit-margin-surges-reinforc","article_id":"2580541662","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3252000-choice2-main-header/1585187464700"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/transportation/hkg-107/sichuan-expressway-shares/news/sichuan-expressway-sehk107-net-profit-margin-surges-reinforc","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2580541662","pubTimestamp":1761931671,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Sichuan Expressway (SEHK:107) posted a net profit margin of 18%, up from last year’s 10.8%, while earnings grew 37.4% year-over-year, well ahead of its five-year average growth of 6.3% per year. The stock currently trades at a Price-To-Earnings Ratio of 8.7x, lower than both the peer average of 9.4x and the Hong Kong Infrastructure industry’s 9x benchmark. Its share price of HK$5.11 is notably above the estimated fair value of HK$2.15. With revenue forecast to outpace the broader Hong Kong...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1185":"公路与铁路","00107":"四川成渝高速公路","BK1567":"公路及铁路股"},"translate_title":"四川高速（SEHK：107）净利润率飙升，强化稳定基建叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00107":0.9},"content_text":"Sichuan Expressway (SEHK:107) posted a net profit margin of 18%, up from last year’s 10.8%, while earnings grew 37.4% year-over-year, well ahead of its five-year average growth of 6.3% per year. The stock currently trades at a Price-To-Earnings Ratio of 8.7x, lower than both the peer average of 9.4x and the Hong Kong Infrastructure industry’s 9x benchmark. Its share price of HK$5.11 is notably above the estimated fair value of HK$2.15. With revenue forecast to outpace the broader Hong Kong market at 9.5% per year and strong recent earnings momentum, investors are balancing the bright profitability signals against ongoing concerns related to financial position and dividend sustainability. See our full analysis for Sichuan Expressway. The next section dives into how these latest results compare with the market narratives that shape investor expectations. Sometimes the results confirm the consensus, while at other times they reveal surprises. Curious how numbers become stories that shape markets? Explore Community Narratives SEHK:107 Earnings & Revenue History as at Oct 2025 AdvertisementNet Profit Margin Jumps to 18%  Sichuan Expressway’s net profit margin reached 18%, up sharply from 10.8% a year ago, highlighting a significant expansion in profitability relative to the previous period. What stands out is how strongly this margin upswing supports the narrative of infrastructure operators as stable, cash-generating assets, often favored by investors looking for resilience. \n     Rising margins come alongside the company’s reputation as a defensive play, attracting those seeking steady income during market swings. Bulls point to the much-improved profit margin as reinforcement of the case for long-term holding, especially since the margin growth outpaces broader industry averages.    Earnings Growth Far Outpaces the Five-Year Average  Earnings grew 37.4% year-over-year, a pace almost six times faster than Sichuan Expressway’s five-year average annual earnings growth rate of 6.3%. The narrative that infrastructure stocks are merely slow and steady growers gets challenged by this spike. This suggests the company may be capturing more sector upside than expected.\n     Momentum like this, well above historic norms, raises questions about whether growth will revert back to the average or signals a new, stronger baseline. Stronger-than-usual earnings suggest management is delivering operational improvements beyond incremental market growth, but it remains to be seen if this is sustainable.    Discounted P/E Versus Peers, But Price Above DCF Fair Value  The stock trades at a Price-To-Earnings Ratio of 8.7x, lower than both the peer average of 9.4x and the Hong Kong Infrastructure industry’s 9x. However, its share price of HK$5.11 is much higher than the DCF fair value of HK$2.15. This valuation split highlights the tension between attractive relative pricing and concerns about intrinsic worth, especially as financial position and dividend sustainability are flagged as risks.\n     On one hand, the discounted P/E may attract value-seekers looking for stocks that are cheaper than their sector peers. On the other, the share price premium over DCF fair value makes it difficult to ignore that risk factors could be underappreciated by the market.     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 Sichuan Expressway'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. See What Else Is Out There Despite rapid earnings growth, Sichuan Expressway trades well above fair value estimates and faces investor concerns around its financial position and dividend sustainability. If you want companies where value and intrinsic worth are better aligned, discover these 838 undervalued stocks based on cash flows for stronger ideas that may offer a margin of safety right now.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}