SEHK:1052

Stock Analysis Report

Yuexiu Transport Infrastructure

Executive Summary

Yuexiu Transport Infrastructure Limited, together with its subsidiaries, invests in, develops, operates, and manages toll expressways and bridges in the People’s Republic of China.


Snowflake Analysis

Undervalued established dividend payer.

Share Price & News

How has Yuexiu Transport Infrastructure's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1052's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

1052

-3.0%

HK Infrastructure

0.2%

HK Market


1 Year Return

-29.5%

1052

-34.5%

HK Infrastructure

-22.0%

HK Market

Return vs Industry: 1052 exceeded the Hong Kong Infrastructure industry which returned -34.5% over the past year.

Return vs Market: 1052 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

1052IndustryMarket
7 Day-5.6%-3.0%0.2%
30 Day-24.8%-18.2%-10.8%
90 Day-34.3%-28.8%-16.5%
1 Year-24.8%-29.5%-30.7%-34.5%-19.1%-22.0%
3 Year-7.3%-22.9%-29.5%-38.6%-3.7%-13.4%
5 Year15.0%-14.3%-37.5%-50.0%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is Yuexiu Transport Infrastructure's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yuexiu Transport Infrastructure 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: 1052 (HK$4.57) is trading below our estimate of fair value (HK$13.3)

Significantly Below Fair Value: 1052 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1052 is good value based on its PE Ratio (6.1x) compared to the Infrastructure industry average (6.3x).

PE vs Market: 1052 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1052 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 1052 is overvalued based on its PB Ratio (0.7x) compared to the HK Infrastructure industry average (0.6x).


Next Steps

Future Growth

How is Yuexiu Transport Infrastructure forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1052's forecast earnings growth (14.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 1052's earnings (14.5% per year) are forecast to grow faster than the Hong Kong market (11.6% per year).

High Growth Earnings: 1052's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1052's revenue (15.9% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 1052's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1052's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Yuexiu Transport Infrastructure performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1052 has high quality earnings.

Growing Profit Margin: 1052's current net profit margins (34.2%) are lower than last year (35.4%).


Past Earnings Growth Analysis

Earnings Trend: 1052's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: 1052's earnings growth over the past year (7.9%) is below its 5-year average (16.2% per year).

Earnings vs Industry: 1052 earnings growth over the past year (7.9%) exceeded the Infrastructure industry 6.6%.


Return on Equity

High ROE: 1052's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Yuexiu Transport Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: 1052's short term assets (CN¥1.8B) do not cover its short term liabilities (CN¥2.5B).

Long Term Liabilities: 1052's short term assets (CN¥1.8B) do not cover its long term liabilities (CN¥20.6B).


Debt to Equity History and Analysis

Debt Level: 1052's debt to equity ratio (134.6%) is considered high.

Reducing Debt: 1052's debt to equity ratio has increased from 48.9% to 134.6% over the past 5 years.

Debt Coverage: 1052's debt is not well covered by operating cash flow (11.7%).

Interest Coverage: 1052's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

Inventory Level: 1052 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1052's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Yuexiu Transport Infrastructure's current dividend yield, its reliability and sustainability?

8.37%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1052's dividend (8.37%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 1052's dividend (8.37%) is in the top 25% of dividend payers in the Hong Kong market (7.27%)


Stability and Growth of Payments

Stable Dividend: 1052's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1052's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.5%), 1052's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1052's dividends in 3 years are forecast to be covered by earnings (54.2% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Baiqing He (54yo)

no data

Tenure

CN¥2,722,000

Compensation

Mr. Baiqing He has been a General Manager at Yuexiu Transport Infrastructure Limited since January 1, 2013. Mr. He served as Deputy head, Head and senior engineer of Guangzhou Highway Inspection and Design ...


CEO Compensation Analysis

Compensation vs Market: Baiqing's total compensation ($USD383.89K) is about average for companies of similar size in the Hong Kong market ($USD492.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Feng Li
Chairman0.75yrCN¥1.45mno data
Baiqing He
Deputy Chairman & GMno dataCN¥2.72m0.0031% CN¥237.8k
Jing Chen
Executive Director2yrsCN¥1.45mno data
Yanhui Xie
Executive Director0.17yrno datano data
Tat Fung Yu
Company Secretary16.25yrsno datano data

1.4yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 1052's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Feng Li
Chairman0.75yrCN¥1.45mno data
Baiqing He
Deputy Chairman & GMno dataCN¥2.72m0.0031% CN¥237.8k
Jing Chen
Executive Director2yrsCN¥1.45mno data
Yanhui Xie
Executive Director0.17yrno datano data
Ka Pun Fung
Independent Non-Executive Director23.42yrsCN¥180.00kno data
Doi Shu Cheung
Independent Non-Executive Director22.75yrsCN¥180.00kno data
Hon Chuen Lau
Independent Non-Executive Director23.42yrsCN¥245.00k0.012% CN¥894.6k

5.8yrs

Average Tenure

54yo

Average Age

Experienced Board: 1052's board of directors are considered experienced (5.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Yuexiu Transport Infrastructure Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yuexiu Transport Infrastructure Limited
  • Ticker: 1052
  • Exchange: SEHK
  • Founded:
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$7.646b
  • Shares outstanding: 1.67b
  • Website: https://www.yuexiutransportinfrastructure.com

Number of Employees


Location

  • Yuexiu Transport Infrastructure Limited
  • 17A, Yue Xiu Building
  • 160 Lockhart Road
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1052SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1997
GZ3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1997
GZIT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1997
1052SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1997
1052SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1997

Biography

Yuexiu Transport Infrastructure Limited, together with its subsidiaries, invests in, develops, operates, and manages toll expressways and bridges in the People’s Republic of China. As of December 31, 2019, the company had a total of 15 investments in operating expressways and bridge projects comprising Guangzhou Northern Second Ring Expressway, Guangzhou Western Second Ring Expressway, Guangzhou Northern Ring Road, Guangdong Humen Bridge, Shantou Bay Bridge, and Qinglian Expressway located in the Guangdong Province; Cangyu Expressway in Guangxi Zhuang Autonomous Region; Jinbao Expressway in Tianjin Municipality; Han-Xiao Expressway, Suiyuenan Expressway, Hancai Expressway, Han’e Expressway, and Daguangnan Expressway in Hubei Province; Changzhu Expressway in Hunan Province; Jinxiong Expressway in Tianjin municipality; and Weixiu Expressway in Henan Province with a total attributable toll length of approximately 534.9 kilometers. It also leases various properties. The company was formerly known as GZI Transport Limited and changed its name to Yuexiu Transport Infrastructure Limited in May 2011. Yuexiu Transport Infrastructure Limited is headquartered 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 Analysis2020/04/04 12:46
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.