DB:EXF1

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sichuan Expressway Company Limited, together with its subsidiaries, invests in, constructs, operates, and manages expressway infrastructure projects in Sichuan Province, the People’s Republic of China.


Snowflake Analysis

Average dividend payer and slightly overvalued.

Share Price & News

How has Sichuan Expressway's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EXF1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

EXF1

-5.7%

DE Infrastructure

0.7%

DE Market


1 Year Return

-21.0%

EXF1

-44.8%

DE Infrastructure

3.9%

DE Market

Return vs Industry: EXF1 exceeded the German Infrastructure industry which returned -44.8% over the past year.

Return vs Market: EXF1 underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

EXF1IndustryMarket
7 Day3.1%-5.7%0.7%
30 Day7.0%-10.6%5.3%
90 Day-5.2%-5.7%17.3%
1 Year-15.3%-21.0%-44.6%-44.8%6.2%3.9%
3 Year-30.6%-41.5%-44.6%-47.6%1.8%-6.2%
5 Year-24.3%-40.9%3.6%-10.1%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Sichuan Expressway's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sichuan Expressway undervalued compared to its fair value and its price relative to the market?

13.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EXF1 (€0.2) is trading above our estimate of fair value (€0.09)

Significantly Below Fair Value: EXF1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EXF1 is poor value based on its PE Ratio (13.8x) compared to the XE Infrastructure industry average (13.3x).

PE vs Market: EXF1 is good value based on its PE Ratio (13.8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EXF1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EXF1 is good value based on its PB Ratio (0.4x) compared to the DE Infrastructure industry average (0.8x).


Next Steps

Future Growth

How is Sichuan Expressway forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EXF1's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if EXF1's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EXF1's revenue (10.2% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: EXF1's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXF1's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Sichuan Expressway performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXF1 has high quality earnings.

Growing Profit Margin: EXF1's current net profit margins (6.9%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: EXF1's earnings have declined by -4.4% per year over the past 5 years.

Accelerating Growth: EXF1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EXF1 had negative earnings growth (-56.4%) over the past year, making it difficult to compare to the Infrastructure industry average (-6.5%).


Return on Equity

High ROE: EXF1's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Sichuan Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: EXF1's short term assets (CN¥9.0B) do not cover its short term liabilities (CN¥9.2B).

Long Term Liabilities: EXF1's short term assets (CN¥9.0B) do not cover its long term liabilities (CN¥13.5B).


Debt to Equity History and Analysis

Debt Level: EXF1's debt to equity ratio (115.1%) is considered high.

Reducing Debt: EXF1's debt to equity ratio has increased from 108.1% to 115.1% over the past 5 years.

Debt Coverage: EXF1's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: EXF1's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Sichuan Expressway current dividend yield, its reliability and sustainability?

6.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EXF1's dividend (6.34%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: EXF1's dividend (6.34%) is in the top 25% of dividend payers in the German market (3.82%)


Stability and Growth of Payments

Stable Dividend: EXF1's dividend payments have been volatile in the past 10 years.

Growing Dividend: EXF1's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.5%), EXF1's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXF1's dividends in 3 years are forecast to be well covered by earnings (37.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Yongyi Gan (57yo)

7.67yrs

Tenure

CN¥701,000

Compensation

Mr. Yongyi Gan has been General Manager of Sichuan Expressway Company Limited since November 16, 2012 and serves as its Chairman of the Board since January 17, 2020. Mr. Gan served as a Deputy General Mana ...


CEO Compensation Analysis

Compensation vs Market: Yongyi's total compensation ($USD100.14K) is below average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Yongyi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yongyi Gan
Chairman & GM7.67yrsCN¥701.00k0.0016% CN¥19.8k
Maoquan Luo
Deputy GM & Chairman of Supervisory Committee0.083yrCN¥527.00k0.00033% CN¥4.0k
Zhuqing He
Executive Director1.08yrsCN¥188.00kno data
Guo Renrong
CFO & Financial Controller2.75yrsno datano data
Junjie Liu
Deputy General Manager11.42yrsno datano data
Layi Heibi
Deputy General Manager0.83yrno datano data
Zhiming You
Deputy GM & Executive Director0.67yrno datano data
Yonghan Ma
Executive Director0.083yrno datano data
Yongnian Zhang
Company Secretary22.92yrsno datano data
Yi Tian
Secretary of Discipline Inspection Commission5.25yrsCN¥348.00kno data

5.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: EXF1's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yongyi Gan
Chairman & GM7.67yrsCN¥701.00k0.0016% CN¥19.8k
Maoquan Luo
Deputy GM & Chairman of Supervisory Committee0.083yrCN¥527.00k0.00033% CN¥4.0k
Zhuqing He
Executive Director1.08yrsCN¥188.00kno data
Zhiming You
Deputy GM & Executive Director0.67yrno datano data
Yonghan Ma
Executive Director0.083yrno datano data
Wenhu Li
Non-Executive Director0.67yrCN¥348.00kno data
Lina Liu
Independent Non-Executive Director4yrsCN¥80.00kno data
Chengyong Li
Non-Executive Director0.67yrno datano data
Jinkang Gao
Independent Non-Executive Director0.67yrno datano data
Qixiang Yan
Independent Non-Executive Director0.67yrno datano data
Danlu Bu
Independent Non-Executive Director0.67yrno datano data
Guofeng Yang
Non Executive Vice Chairman0.083yrno datano data

0.7yrs

Average Tenure

47.5yo

Average Age

Experienced Board: EXF1's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sichuan Expressway Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sichuan Expressway Company Limited
  • Ticker: EXF1
  • Exchange: DB
  • Founded: 1997
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$10.584b
  • Listing Market Cap: HK$1.207b
  • Shares outstanding: 3.06b
  • Website: https://www.cygs.com

Number of Employees


Location

  • Sichuan Expressway Company Limited
  • 252 Wuhouci Da Jie
  • Chengdu
  • Sichuan Province
  • 610041
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEXH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 1997
107SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 1997
EXF1DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 1997
107SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 1997
107SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 1997
601107SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJul 2009
601107XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJul 2009

Biography

Sichuan Expressway Company Limited, together with its subsidiaries, invests in, constructs, operates, and manages expressway infrastructure projects in Sichuan Province, the People’s Republic of China. It operates through five segments: Toll Roads and Bridges; City Operation; Financial Investment; Energy Investment; and Transportation, Tourism, Culture, and Education. The Toll Roads and Bridges segment engages in the operation of expressways and a high-grade toll bridges. The City Operation segment provides construction and upgrade services under the service concession arrangements and construction contracts, and advertising services, as well as engages in the investment, development, and rental of properties along expressways. The Financial Investment segment is involved in finance lease operation, financial investment, and factoring businesses. The Energy Investment segment operates gas stations along expressways; and sells petrochemicals and other oil products. The Transportation, Tourism, Culture, and Education segment engages in the education operations. It also offers logistics and property development services. Sichuan Expressway Company Limited was incorporated in 1997 and is based in Chengdu, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 21:27
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.