SEHK:1599

Stock Analysis Report

Beijing Urban Construction Design & Development Group

Executive Summary

Beijing Urban Construction Design & Development Group Co., Limited, together with its subsidiaries, provides various services for infrastructure construction.

Rewards

PE ratio (5x) is below the Hong Kong market (10.5x)

Earnings are forecast to grow 15.5% per year

Earnings grew by 12.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Good value with moderate growth potential.

Share Price & News

How has Beijing Urban Construction Design & Development Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1599 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

1599

0.4%

HK Construction

1.6%

HK Market


1 Year Return

-20.7%

1599

-15.9%

HK Construction

6.0%

HK Market

Return vs Industry: 1599 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 1599 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1599IndustryMarket
7 Day1.6%0.4%1.6%
30 Day10.5%0.6%4.5%
90 Day8.6%2.3%8.8%
1 Year-16.0%-20.7%-11.8%-15.9%9.9%6.0%
3 Year-42.4%-48.7%-26.8%-34.8%27.7%14.7%
5 Year-33.7%-43.1%-20.3%-32.1%21.7%1.4%

Price Volatility Vs. Market

How volatile is Beijing Urban Construction Design & Development Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Beijing Urban Construction Design & Development Group undervalued compared to its fair value and its price relative to the market?

4.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1599 (HK$2.54) is trading above our estimate of fair value (HK$2.29)

Significantly Below Fair Value: 1599 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1599 is good value based on its PE Ratio (5x) compared to the Construction industry average (9.9x).

PE vs Market: 1599 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1599 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 1599 is good value based on its PB Ratio (0.7x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Beijing Urban Construction Design & Development Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1599's forecast earnings growth (15.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 1599's earnings (15.5% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 1599's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1599's revenue (14.1% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1599's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1599's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Beijing Urban Construction Design & Development Group performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1599 has a high level of non-cash earnings.

Growing Profit Margin: 1599's current net profit margins (8.2%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: 1599's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: 1599's earnings growth over the past year (12.2%) is below its 5-year average (13% per year).

Earnings vs Industry: 1599 earnings growth over the past year (12.2%) exceeded the Construction industry -12.3%.


Return on Equity

High ROE: 1599's Return on Equity (12.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beijing Urban Construction Design & Development Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1599's short term assets (CN¥10.8B) exceed its short term liabilities (CN¥7.9B).

Long Term Liabilities: 1599's short term assets (CN¥10.8B) exceed its long term liabilities (CN¥4.8B).


Debt to Equity History and Analysis

Debt Level: 1599's debt to equity ratio (102.1%) is considered high.

Reducing Debt: Insufficient data to determine if 1599's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1599's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1599 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1599 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1599's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Beijing Urban Construction Design & Development Group's current dividend yield, its reliability and sustainability?

4.93%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.2%markettop25%6.0%industryaverage4.3%forecastin3Years7.2%

Current dividend yield vs market & industry

Notable Dividend: 1599's dividend (4.9%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 1599's dividend (4.9%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1599 has been paying a dividend for less than 10 years.

Growing Dividend: 1599's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), 1599's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1599's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).


Next Steps

Management

What is the CEO of Beijing Urban Construction Design & Development Group's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Hanjun Wang (55yo)

8.5yrs

Tenure

CN¥1,121,000

Compensation

Mr. Hanjun Wang has been President of Beijing Urban Construction Design & Development Group Co., Limited since May 2011 and has been its Chief executive since July 2011. Mr. Wang has been General Manager o ...


CEO Compensation Analysis

Compensation vs Market: Hanjun's total compensation ($USD162.71K) is below average for companies of similar size in the Hong Kong market ($USD340.45K).

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


Management Age and Tenure

7.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 1599's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

54yo

Average Age

Experienced Board: 1599's board of directors are considered experienced (5.2 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

SellHK$95,77324 Oct 19
Amundi Asset Management
EntityCompany
Shares42,000
Max PriceHK$2.28
SellHK$345,80227 May 19
Amundi Asset Management
EntityCompany
Shares144,000
Max PriceHK$2.40
SellHK$3,591,81410 Apr 19
Amundi Asset Management
EntityCompany
Shares1,255,000
Max PriceHK$2.86
SellHK$2,071,75608 Apr 19
Amundi Asset Management
EntityCompany
Shares706,000
Max PriceHK$2.93
SellHK$5,567,49629 Mar 19
Amundi Asset Management
EntityCompany
Shares1,700,000
Max PriceHK$3.27
SellHK$13,380,50226 Mar 19
Amundi Asset Management
EntityCompany
Shares4,016,000
Max PriceHK$3.33
SellHK$13,381,32126 Mar 19
Amundi Asset Management
EntityCompany
Shares4,016,000
Max PriceHK$3.33
SellHK$8,757,11925 Mar 19
Amundi Asset Management
EntityCompany
Shares2,582,000
Max PriceHK$3.39
SellHK$4,796,86318 Mar 19
Amundi Asset Management
EntityCompany
Shares1,451,000
Max PriceHK$3.31
SellHK$2,048,24427 Feb 19
Amundi Asset Management
EntityCompany
Shares649,000
Max PriceHK$3.16
SellHK$2,138,99825 Jan 19
Amundi Asset Management
EntityCompany
Shares690,000
Max PriceHK$3.10

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Management Team

  • Hanjun Wang (55yo)

    GM, Chief Executive

    • Tenure: 8.5yrs
    • Compensation: CN¥1.12m
  • Guoqing Li (52yo)

    Deputy GM & Executive Director

    • Compensation: CN¥1.16m
  • Jingang Wang (47yo)

    Chief Accountant of Construction General Contracting Department

    • Compensation: CN¥688.00k
  • Wenjiang Wang (45yo)

    Head of Operating & Mgmt Dept

    • Tenure: 21.8yrs
    • Compensation: CN¥628.00k
  • Yan Cheng (44yo)

    Deputy General Manager

    • Tenure: 6.1yrs
  • Huai Jin (54yo)

    Deputy General Manager

    • Tenure: 6.1yrs
  • Liang Wang (53yo)

    Deputy GM & GM of the Construction Contracting Department

    • Tenure: 6.1yrs
  • Xuehong Wan (59yo)

    Deputy General Manager

    • Tenure: 6.1yrs
  • Xiuren Yang (54yo)

    Chief Engineer

    • Tenure: 16.7yrs
  • Mujun Xiao (51yo)

    Chief Accountant


    Board Members

    • Shuchang Tang (58yo)

      Non-Executive Director

      • Tenure: 5.2yrs
    • Maozhu Sun (60yo)

      Independent Non-Executive Director

      • Tenure: 6.1yrs
      • Compensation: CN¥131.00k
    • Bin Su (53yo)

      Non-Executive Director

      • Tenure: 6.3yrs
    • Hanjun Wang (55yo)

      GM, Chief Executive

      • Tenure: 8.5yrs
      • Compensation: CN¥1.12m
    • Guoqing Li (52yo)

      Deputy GM & Executive Director

      • Compensation: CN¥1.16m
    • Qinghuai Liang (51yo)

      Independent Non-Executive Director

      • Tenure: 6.1yrs
      • Compensation: CN¥131.00k
    • Chong Ren (43yo)

      Non-Executive Director

      • Tenure: 1.4yrs
    • Dexing Wang (72yo)

      Independent Non-Executive Director

      • Tenure: 5.2yrs
      • Compensation: CN¥131.00k
    • Hongwei Pei

      Chairman of the Board

      • Tenure: 0.08yrs
    • Shengjie Hu

      Chairman of Supervisor

      • Tenure: 0.08yrs

    Company Information

    Beijing Urban Construction Design & Development Group Co., Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Beijing Urban Construction Design & Development Group Co., Limited
    • Ticker: 1599
    • Exchange: SEHK
    • Founded: 1958
    • Industry: Construction and Engineering
    • Sector: Capital Goods
    • Market Cap: HK$3.412b
    • Shares outstanding: 1.35b
    • Website: https://www.bjucd.com

    Number of Employees


    Location

    • Beijing Urban Construction Design & Development Group Co., Limited
    • Sunlight Tower
    • 40th Floor
    • Wanchai
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    1599SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares - Foreign listedHKHKDJul 2014
    BDGDB (Deutsche Boerse AG)YesForeign Shares - Foreign listedDEEURJul 2014

    Biography

    Beijing Urban Construction Design & Development Group Co., Limited, together with its subsidiaries, provides various services for infrastructure construction. It operates through two segments, Design, Survey, and Consultancy; and Construction Contracting. The company offers designing, surveying and mapping, monitoring, and consulting services in the engineering of urban rail transit, industrial and civil construction, and municipal engineering projects; and construction contracting services related to urban rail transit and the service concession arrangements under the build-operate-transfer arrangements. It also provides engineering consulting and testing, as well as development services; technical consulting and technical services; advisory services; and investment management services. In addition, the company is involved property management; and construction project investment, construction, and operation maintenance activities, as well as urban public transportation operation, maintenance, management, and services business. It has operations in Mainland China and internationally. The company was formerly known as Beijing Urban Construction Design & Research Institute Co., Ltd. and changed its name to Beijing Urban Construction Design & Development Group Co., Limited in October 2013. Beijing Urban Construction Design & Development Group Co., Limited was founded in 1958 and is based in Wanchai, Hong Kong. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 12:55
    End of Day Share Price2020/01/17 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.