SEHK:1459

Stock Analysis Report

Jujiang Construction Group

Executive Summary

Jujiang Construction Group Co., Ltd. provides construction contracting services for residential, commercial, industrial, and public works in the People’s Republic of China.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Jujiang Construction Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1459 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

1459

-2.3%

HK Construction

-3.2%

HK Market


1 Year Return

-7.8%

1459

-28.6%

HK Construction

-10.2%

HK Market

Return vs Industry: 1459 exceeded the Hong Kong Construction industry which returned -27.4% over the past year.

Return vs Market: 1459 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1459IndustryMarket
7 Day1.9%-2.3%-3.2%
30 Day-0.9%-4.3%-3.3%
90 Day0%-5.9%0.2%
1 Year-4.0%-7.8%-25.1%-28.6%-6.9%-10.2%
3 Year-30.9%-33.5%-35.3%-42.3%11.7%0.4%
5 Yearn/a-27.7%-38.4%11.1%-7.3%

Price Volatility Vs. Market

How volatile is Jujiang Construction Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Jujiang Construction Group 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: 1459 (HK$1.05) is trading below our estimate of fair value (HK$5.75)

Significantly Below Fair Value: 1459 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1459 is good value based on its PE Ratio (3.2x) compared to the Construction industry average (8.9x).

PE vs Market: 1459 is good value based on its PE Ratio (3.2x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1459's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1459 is good value based on its PB Ratio (0.4x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Jujiang Construction Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Jujiang Construction Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Jujiang Construction Group performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1459 has high quality earnings.

Growing Profit Margin: 1459's current net profit margins (2.2%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: 1459's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: 1459's earnings growth over the past year (6.4%) is below its 5-year average (16.7% per year).

Earnings vs Industry: 1459 earnings growth over the past year (6.4%) exceeded the Construction industry -5.4%.


Return on Equity

High ROE: 1459's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jujiang Construction Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1459's short term assets (CN¥5.1B) exceed its short term liabilities (CN¥3.8B).

Long Term Liabilities: 1459's short term assets (CN¥5.1B) exceed its long term liabilities (CN¥102.4M).


Debt to Equity History and Analysis

Debt Level: 1459's debt to equity ratio (41.1%) is considered high.

Reducing Debt: 1459's debt to equity ratio has reduced from 95.9% to 41.1% over the past 5 years.

Debt Coverage: 1459's debt is well covered by operating cash flow (42.6%).

Interest Coverage: 1459's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: 1459 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1459's debt is covered by short term assets (assets are 9x debt).


Next Steps

Dividend

What is Jujiang Construction Group's current dividend yield, its reliability and sustainability?

3.63%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.3%markettop25%6.4%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1459's dividend (3.69%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1459's dividend (3.69%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1459's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1459's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.5%), 1459's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.5yrs

Average management tenure


CEO

Yaoneng Lyu (58yo)

11.2yrs

Tenure

CN¥438,000

Compensation

Mr. Yaoneng Lyu has been President of Jujiang Construction Group Co., Ltd. since December 18 2008 and has been its General Manager and Executive Director since July 17, 1996. Mr. Lyu is responsible for cor ...


CEO Compensation Analysis

Compensation vs Market: Yaoneng's total compensation ($USD62.32K) is below average for companies of similar size in the Hong Kong market ($USD226.90K).

Compensation vs Earnings: Yaoneng's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yaoneng Lyu
GM, President & Chairman11.2yrsCN¥438.00kno data
Dazhong Lyu
VP & Executive Director23.6yrsCN¥119.00kno data
Jinyan Li
VP & Executive Director8.4yrsCN¥362.00kno data
Zhicheng Lu
Executive Director8.4yrsCN¥66.00kno data
Haiquan Shen
Executive Director8.4yrsCN¥66.00kno data
Gang Zheng
VP & Executive Director8.4yrsCN¥363.00kno data
Zhihua Zhong
Chief Financial Officer3.1yrsno datano data
Xingwu Gao
Chief Engineer18.4yrsno datano data
Kam Le Hong
Joint Company Secretary4.4yrsno datano data
Shuigen Jin
Joint Company Secretary3.5yrsno datano data

9.5yrs

Average Tenure

47yo

Average Age

Experienced Management: 1459's management team is seasoned and experienced (9.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yaoneng Lyu
GM, President & Chairman11.2yrsCN¥438.00kno data
Dazhong Lyu
VP & Executive Director23.6yrsCN¥119.00kno data
Jinyan Li
VP & Executive Director8.4yrsCN¥362.00kno data
Zhicheng Lu
Executive Director8.4yrsCN¥66.00kno data
Haiquan Shen
Executive Director8.4yrsCN¥66.00kno data
Gang Zheng
VP & Executive Director8.4yrsCN¥363.00kno data
Tao Lin
Independent Non-Executive Director4.5yrsCN¥81.00kno data
Ka Wai Wong
Independent Non-Executive Director4.5yrsCN¥101.00kno data
Jiangtao Zou
Supervisor5.2yrsCN¥193.00kno data
Jingxuan Yu
Independent Non-Executive Director3.3yrsCN¥81.00kno data

8.4yrs

Average Tenure

46yo

Average Age

Experienced Board: 1459's board of directors are considered experienced (8.4 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Jujiang Construction Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jujiang Construction Group Co., Ltd.
  • Ticker: 1459
  • Exchange: SEHK
  • Founded: 1965
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$560.028m
  • Shares outstanding: 533.36m
  • Website: https://www.jujiang.cn

Number of Employees


Location

  • Jujiang Construction Group Co., Ltd.
  • No. 669 Qingfeng South Road (South)
  • Tongxiang
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1459SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJan 2016

Biography

Jujiang Construction Group Co., Ltd. provides construction contracting services for residential, commercial, industrial, and public works in the People’s Republic of China. It operates through two segments, Construction Contracting and Others. It offers architecture construction contracting services; and designing, surveying, mapping, monitoring, and consulting services in the engineering of municipal management and construction, as well as sells construction materials, building materials, machinery, and metal materials. The company is also involved in the provision of engineering exploration services; installation, disassembly, and rental of construction lifting equipment; municipal public, sports facilities construction, and landscaping activities; installation of architecture wall; and manufacture and sale of civil defense products. In addition, it engages in the building and operating of youth quality education practice base. The company was formerly known as Qitang Commune Construction Agency and changed its name to Zhejiang Jujiang Holdings Group Co., Ltd. in December 2014. Jujiang Construction Group Co., Ltd. was founded in 1965 and is headquartered in Tongxiang, the People’s Republic of China. Jujiang Construction Group Co., Ltd. is a subsidiary of Zhejiang Jujiang Holdings Group Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 13:24
End of Day Share Price2020/02/25 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.