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

Fundamentals

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


Market Performance


7 Day Return

0%

1459

0.6%

HK Construction

0.3%

HK Market


1 Year Return

0%

1459

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 1459 exceeded the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 1459 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1459IndustryMarket
7 Day0%0.6%0.3%
30 Day-2.9%-4.7%0.5%
90 Day2.0%-10.5%-4.6%
1 Year4.0%0%-11.1%-14.9%4.9%1.3%
3 Year-31.1%-33.8%-25.3%-33.6%15.3%3.7%
5 Yearn/a0.004%-15.1%20.0%-0.006%

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$1.02) is trading below our estimate of fair value (HK$5.61)

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 (3.1x) compared to the Construction industry average (10.3x).

PE vs Market: 1459 is good value based on its PE Ratio (3.1x) compared to the Hong Kong market (10.3x).


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 (1.1x).


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?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1459's forecast earnings growth (5.9% per year) is above the savings rate (2%).

Earnings vs Market: 1459's earnings (5.9% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1459's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1459's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1459's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1459's Return on Equity is forecast to be high in 3 years time


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


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 -12.4%.


Return on Equity

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


Return on Assets

ROA vs Industry: 1459's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 1459 has improved its Return on Capital Employed over the past 3 years.


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) exceeds its short term liabilities (CN¥3.8B)

Long Term Liabilities: 1459's short term assets (5.1B) exceeds its long term liabilities (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 9.034330x debt).


Next Steps

Dividend

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

3.80%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%2.3%markettop25%6.2%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1459's dividend (3.8%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1459's dividend (3.8%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

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

What is the CEO of Jujiang Construction Group's salary, the management and board of directors tenure and is there insider trading?

9.2yrs

Average management tenure


CEO

Yaoneng Lyu (58yo)

10.8yrs

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 ($USD61.89K) is about average for companies of similar size in the Hong Kong market ($USD215.97K).

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


Management Age and Tenure

9.2yrs

Average Tenure

47yo

Average Age

Experienced Management: 1459's management team is seasoned and experienced (9.2 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

46yo

Average Age

Experienced Board: 1459's board of directors are considered experienced (8.1 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.


Ownership Breakdown


Management Team

  • Kam Le Hong (40yo)

    Joint Company Secretary

    • Tenure: 4.1yrs
  • Yaoneng Lyu (58yo)

    GM, President & Chairman

    • Tenure: 10.8yrs
    • Compensation: CN¥438.00k
  • Dazhong Lyu (55yo)

    VP & Executive Director

    • Tenure: 23.3yrs
    • Compensation: CN¥119.00k
  • Jinyan Li (42yo)

    VP & Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥362.00k
  • Zhicheng Lu (49yo)

    Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥66.00k
  • Haiquan Shen (45yo)

    Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥66.00k
  • Gang Zheng (50yo)

    VP & Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥363.00k
  • Xingwu Gao (57yo)

    Chief Engineer

    • Tenure: 18.1yrs
  • Zhihua Zhong (41yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Shuigen Jin (39yo)

    Joint Company Secretary

    • Tenure: 3.2yrs

Board Members

  • Yaoneng Lyu (58yo)

    GM, President & Chairman

    • Tenure: 10.8yrs
    • Compensation: CN¥438.00k
  • Dazhong Lyu (55yo)

    VP & Executive Director

    • Tenure: 23.3yrs
    • Compensation: CN¥119.00k
  • Jinyan Li (42yo)

    VP & Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥362.00k
  • Zhicheng Lu (49yo)

    Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥66.00k
  • Haiquan Shen (45yo)

    Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥66.00k
  • Gang Zheng (50yo)

    VP & Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥363.00k
  • Tao Lin (44yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥81.00k
  • Ka Wai Wong (39yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥101.00k
  • Jiangtao Zou (41yo)

    Supervisor

    • Tenure: 4.8yrs
    • Compensation: CN¥193.00k
  • Jingxuan Yu (47yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥81.00k

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$544.027m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:53
End of Day Share Price2019/10/22 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.