SEHK:152

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% below its fair value

Earnings grew by 25.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -0.3% per year for the next 3 years

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Good value 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: 152 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

152

-2.0%

HK Infrastructure

0.6%

HK Market


1 Year Return

0.4%

152

-11.8%

HK Infrastructure

-4.5%

HK Market

Return vs Industry: 152 exceeded the Hong Kong Infrastructure industry which returned -11.3% over the past year.

Return vs Market: 152 exceeded the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

152IndustryMarket
7 Day-3.2%-2.0%0.6%
30 Day-12.9%-8.4%-5.2%
90 Day-6.6%-5.1%2.3%
1 Year7.5%0.4%-6.7%-11.8%-1.0%-4.5%
3 Year65.9%41.4%-4.2%-16.7%14.4%2.9%
5 Year92.7%52.2%-1.0%-21.5%15.5%-3.8%

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

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: 152 (HK$15.86) is trading below our estimate of fair value (HK$54.63)

Significantly Below Fair Value: 152 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 152 is good value based on its PE Ratio (7.4x) compared to the Infrastructure industry average (8.1x).

PE vs Market: 152 is good value based on its PE Ratio (7.4x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 152's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 152 is overvalued based on its PB Ratio (1.2x) compared to the HK Infrastructure industry average (0.7x).


Next Steps

Future Growth

How is Shenzhen International Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 152's earnings are forecast to decline over the next 3 years (-0.3% per year).

Earnings vs Market: 152's earnings are forecast to decline over the next 3 years (-0.3% per year).

High Growth Earnings: 152's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 152's revenue (7.9% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).

High Growth Revenue: 152's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 152's Return on Equity is forecast to be low in 3 years time (13.3%).


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

Growing Profit Margin: 152's current net profit margins (38.2%) are higher than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: 152's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: 152's earnings growth over the past year (25.8%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: 152 earnings growth over the past year (25.8%) exceeded the Infrastructure industry 1.1%.


Return on Equity

High ROE: 152'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: 152's short term assets (HK$29.4B) exceed its short term liabilities (HK$14.9B).

Long Term Liabilities: 152's short term assets (HK$29.4B) exceed its long term liabilities (HK$27.8B).


Debt to Equity History and Analysis

Debt Level: 152's debt to equity ratio (61.4%) is considered high.

Reducing Debt: 152's debt to equity ratio has reduced from 76.8% to 61.4% over the past 5 years.

Debt Coverage: 152's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: 152's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: 152 has a high level of physical assets or inventory.

Debt Coverage by Assets: 152'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?

2.27%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.3%markettop25%6.4%industryaverage5.5%forecastin3Years6.5%

Current dividend yield vs market & industry

Notable Dividend: 152's dividend (2.27%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 152's dividend (2.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 152's dividend payments have been volatile in the past 10 years.

Growing Dividend: 152's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.7%), 152's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 152's dividends in 3 years are forecast to be covered by earnings (81.3% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Hai Li (52yo)

3.7yrs

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 ($USD211.25K) is below average for companies of similar size in the Hong Kong market ($USD553.49K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lei Gao
Chairman of the Board7.4yrsHK$1.64m0.029% HK$9.9m
Hai Li
CEO & Executive Director3.7yrsHK$1.64m0.0017% HK$588.0k
Jun Liu
Executive Director15.8yrsHK$1.51m0.042% HK$14.1m
Shan Zhong
Executive Director5.1yrsHK$1.54m0.017% HK$5.9m
Wei Hu
Executive Director2.8yrsHK$2.17m0.0060% HK$2.0m
Zhi Jian
Chief Compliance Officer0yrsno datano data
Mei Mei Tam
Company Secretary11.9yrsno datano data
Jing Ming Dai
Financial Controller2.5yrsno datano data

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 152's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lei Gao
Chairman of the Board7.4yrsHK$1.64m0.029% HK$9.9m
Hai Li
CEO & Executive Director3.7yrsHK$1.64m0.0017% HK$588.0k
Jun Liu
Executive Director15.8yrsHK$1.51m0.042% HK$14.1m
Shan Zhong
Executive Director5.1yrsHK$1.54m0.017% HK$5.9m
Wei Hu
Executive Director2.8yrsHK$2.17m0.0060% HK$2.0m
Yun Wing Nip
Independent Non-Executive Director15.5yrsHK$350.00kno data
Xun Ding
Independent Non-Executive Director18.3yrsHK$350.00kno data
Fung Yim
Independent Non-Executive Director5.8yrsHK$350.00kno data
Chu Xie
Non-Executive Director2.8yrsHK$200.00kno data
Xiao Liu
Non-Executive Director2.5yrsHK$177.00kno data

5.4yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 152's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 152 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Shenzhen International Holdings Limited
  • Ticker: 152
  • Exchange: SEHK
  • Founded:
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$33.989b
  • 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 through Toll Roads and Logistic Business segments. The Toll Roads segment develops, operates, and manages toll highways. This segment operates Longda and Shenzhen Expressway in Shenzhen. The Logistic Business segment constructs, operates, and manages logistics parks and centers, and integrated logistics hubs; and provides third-party logistics services, logistics information, and monetary and financial services. It also operates five general bulk cargo terminals and depots in Nanjing Xiba Port that provides various services, such as loading and unloading, lightering, train loading, and automobile loading. In addition, the company provides electronic information exchange, transmission, and value-added information sharing services; acquisition and demolition of Meilin checkpoint urban renewal project’s land; supply chain management services; project investment and enterprise management consulting services; and real estate development and investment management services. Further, it offers logistics and transportation ancillary services, and cargo transportation and warehousing services. Additionally, it provides technical development, sales, maintenance, and technology service of computer hardware, software, and network systems; financial leasing, property leasing and management, and freight forwarding services; and produces paper processing products. The company is headquartered in Tsimshatsui East, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:38
End of Day Share Price2020/02/18 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.