DB:SXYA

Stock Analysis Report

Shenzhen International Holdings

Executive Summary

Shenzhen International Holdings Limited, an investment holding company, invests in, constructs, and operates logistic infrastructure facilities primarily in the People’s Republic of China.

Rewards

Trading at 71.3% below its fair value

Earnings are forecast to grow 0.98% per year

Earnings grew by 25.8% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with proven track record and pays a dividend.

Share Price & News

How has Shenzhen International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.7%

SXYA

-2.3%

DE Infrastructure

1.0%

DE Market


1 Year Return

12.2%

SXYA

20.6%

DE Infrastructure

15.7%

DE Market

Return vs Industry: SXYA underperformed the German Infrastructure industry which returned 20.6% over the past year.

Return vs Market: SXYA underperformed the German Market which returned 15.7% over the past year.


Shareholder returns

SXYAIndustryMarket
7 Day2.7%-2.3%1.0%
30 Day-2.5%0.7%1.4%
90 Day17.6%1.2%6.7%
1 Year20.4%12.2%24.2%20.6%19.3%15.7%
3 Year68.9%43.1%38.4%28.3%19.5%8.9%
5 Year109.5%64.4%75.0%45.9%36.9%18.3%

Price Volatility Vs. Market

How volatile is Shenzhen International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shenzhen International Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SXYA (€1.93) is trading below our estimate of fair value (€6.73)

Significantly Below Fair Value: SXYA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SXYA is good value based on its PE Ratio (8x) compared to the Infrastructure industry average (17.5x).

PE vs Market: SXYA is good value based on its PE Ratio (8x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: SXYA is poor value based on its PEG Ratio (8.2x)


Price to Book Ratio

PB vs Industry: SXYA is good value based on its PB Ratio (1.3x) compared to the DE Infrastructure industry average (1.6x).


Next Steps

Future Growth

How is Shenzhen International Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXYA's forecast earnings growth (1% per year) is above the savings rate (-0.4%).

Earnings vs Market: SXYA's earnings (1% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: SXYA's earnings are forecast to grow, but not significantly.

Revenue vs Market: SXYA's revenue (9.9% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: SXYA's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SXYA's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Shenzhen International Holdings performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXYA has a large one-off gain of HK$5.3B impacting its June 30 2019 financial results.

Growing Profit Margin: SXYA's current net profit margins (38.2%) are higher than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: SXYA's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: SXYA's earnings growth over the past year (25.8%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: SXYA earnings growth over the past year (25.8%) exceeded the Infrastructure industry 13.4%.


Return on Equity

High ROE: SXYA's Return on Equity (16.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shenzhen International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SXYA's short term assets (HK$29.4B) exceed its short term liabilities (HK$14.9B).

Long Term Liabilities: SXYA's short term assets (HK$29.4B) exceed its long term liabilities (HK$27.8B).


Debt to Equity History and Analysis

Debt Level: SXYA's debt to equity ratio (61.4%) is considered high.

Reducing Debt: SXYA's debt to equity ratio has reduced from 76.8% to 61.4% over the past 5 years.

Debt Coverage: SXYA's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: SXYA's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: SXYA has a high level of physical assets or inventory.

Debt Coverage by Assets: SXYA's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Shenzhen International Holdings's current dividend yield, its reliability and sustainability?

2.08%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.3%markettop25%3.6%industryaverage4.0%forecastin3Years6.4%

Current dividend yield vs market & industry

Notable Dividend: SXYA's dividend (2.08%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: SXYA's dividend (2.08%) is low compared to the top 25% of dividend payers in the German market (3.55%).


Stability and Growth of Payments

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

Growing Dividend: SXYA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.7%), SXYA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SXYA's dividends in 3 years are forecast to be covered by earnings (81.6% payout ratio).


Next Steps

Management

What is the CEO of Shenzhen International Holdings's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Hai Li (52yo)

3.5yrs

Tenure

HK$1,641,000

Compensation

Mr. Hai Tao Li has been Chief Executive Officer and Executive Director of Shenzhen International Holdings Limited since June 08, 2016. Mr. Li held positions with the Bureau of the Administration for Indust ...


CEO Compensation Analysis

Compensation vs Market: Hai's total compensation ($USD210.54K) is below average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Hai's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.5yrs

Average Tenure

55yo

Average Age

Experienced Management: SXYA's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: SXYA's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell€1,772,47008 Jul 19
Horoy Enterprise Holdings Limited
EntityCompany
Shares1,008,500
Max Price€1.76
Buy€4,13327 Jun 19
Hai Li
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares2,760
Max Price€1.50
Buy€82,58227 Jun 19
Lei Gao
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares55,147
Max Price€1.50
Buy€14,37427 Jun 19
Wei Hu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares9,599
Max Price€1.50
Buy€46,67627 Jun 19
Shan Zhong
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares31,170
Max Price€1.50
Sell€4,422,41725 Apr 19
Horoy Enterprise Holdings Limited
EntityCompany
Shares2,194,000
Max Price€2.02
Sell€242,92923 Apr 19
Jun Liu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares120,000
Max Price€2.02
Buy€1,638,75915 Apr 19
UBS Asset Management
EntityCompany
Shares828,000
Max Price€1.98
Sell€158,23012 Apr 19
Jun Liu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares80,000
Max Price€1.98
Sell€5,116,35429 Mar 19
Horoy Enterprise Holdings Limited
EntityCompany
Shares2,741,500
Max Price€1.87
Sell€2,445,87920 Feb 19
Horoy International Holdings Limited
EntityCompany
Shares1,388,500
Max Price€1.76
Sell€2,308,81228 Jan 19
Horoy Enterprise Holdings Limited
EntityCompany
Shares1,349,000
Max Price€1.71

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Management Team

  • Shan Zhong (55yo)

    Executive Director

    • Tenure: 4.9yrs
    • Compensation: HK$1.54m
  • Lei Gao (59yo)

    Chairman of the Board

    • Tenure: 7.3yrs
    • Compensation: HK$1.64m
  • Jun Liu (55yo)

    Executive Director

    • Tenure: 15.6yrs
    • Compensation: HK$1.51m
  • Mei Mei Tam

    Company Secretary

    • Tenure: 11.8yrs
  • Wei Hu (57yo)

    Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$2.17m
  • Jing Ming Dai (54yo)

    Financial Controller

    • Tenure: 2.3yrs
  • Zhi Jian (56yo)

    Chief Compliance Officer

    • Tenure: 0yrs
  • Hai Li (52yo)

    CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$1.64m

Board Members

  • Shan Zhong (55yo)

    Executive Director

    • Tenure: 4.9yrs
    • Compensation: HK$1.54m
  • Lei Gao (59yo)

    Chairman of the Board

    • Tenure: 7.3yrs
    • Compensation: HK$1.64m
  • Yun Wing Nip (65yo)

    Independent Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: HK$350.00k
  • Jun Liu (55yo)

    Executive Director

    • Tenure: 15.6yrs
    • Compensation: HK$1.51m
  • Xun Ding (59yo)

    Independent Non-Executive Director

    • Tenure: 18.2yrs
    • Compensation: HK$350.00k
  • Fung Yim (56yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$350.00k
  • Wei Hu (57yo)

    Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$2.17m
  • Hai Li (52yo)

    CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$1.64m
  • Chu Xie (49yo)

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$200.00k
  • Xiao Liu (48yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$177.00k

Company Information

Shenzhen International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shenzhen International Holdings Limited
  • Ticker: SXYA
  • Exchange: DB
  • Founded:
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$37.376b
  • Listing Market Cap: HK$4.311b
  • Shares outstanding: 2.16b
  • Website: https://www.szihl.com

Number of Employees


Location

  • Shenzhen International Holdings Limited
  • Greenfield Tower
  • Rooms 2206-2208, 22nd Floor
  • Tsimshatsui East
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SXYADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
152SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
SZIH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
152SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
152SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992

Biography

Shenzhen International Holdings Limited, an investment holding company, invests in, constructs, and operates logistic infrastructure facilities primarily in the People’s Republic of China. It operates thro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 20:33
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.