Core Viewpoint - Canggang Railway is at risk of being removed from the Hong Kong Stock Connect due to its average market capitalization of HKD 49.60 billion, which is below the threshold of HKD 60.07 billion, and its declining stock liquidity [1][3] Financial Performance - In the first half of 2025, Canggang Railway reported revenue of HKD 13.17 million, a slight decrease of 0.3% compared to HKD 13.21 million in the same period of 2024, primarily due to a 0.5% decline in core railway freight business revenue [4] - The company's net profit for the same period was HKD 30.88 million, reflecting a year-on-year increase of 17.2%, attributed to cost control and improved operational efficiency [4] - For the full year of 2024, the company experienced a significant revenue drop of 25.82% to HKD 25.9 million, mainly due to reduced demand in the coal market [5] Business Structure and Risks - Canggang Railway's core business is heavily reliant on coal transportation, which accounts for over 85% of its revenue, making it vulnerable to fluctuations in coal demand and regulatory changes related to energy transition [3][5] - The company has been facing liquidity issues, with its stock liquidity often falling below the required threshold, as evidenced by liquidity measurements from May to November 2025 [2] Management Actions - Recent actions by the company's executives, including significant share sell-offs by the chairman, have raised concerns about internal confidence in the company's future performance [6] - In contrast, the Hebei Cangzhou Transportation Control Group has increased its stake in Canggang Railway, indicating a commitment to support the company and stabilize market confidence [7] Future Outlook - Canggang Railway plans to expand its operations through new branch line construction, infrastructure upgrades, and market diversification strategies to mitigate reliance on coal [8] - The success of these initiatives will be crucial for the company to achieve sustainable growth and reduce its dependency on coal transportation [8]
业绩波动+股价疲软之下，沧港铁路或面临剔除港股通风险?