SEHK:1576

Stock Analysis Report

Executive Summary

Qilu Expressway Company Limited, together with its subsidiaries, operates as an expressway operator in the People’s Republic of China.

Rewards

Trading at 79.3% below its fair value

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Qilu Expressway's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1576 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

1576

-1.6%

HK Infrastructure

2.9%

HK Market


1 Year Return

-5.0%

1576

-11.3%

HK Infrastructure

-3.8%

HK Market

Return vs Industry: 1576 exceeded the Hong Kong Infrastructure industry which returned -11.3% over the past year.

Return vs Market: 1576 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

1576IndustryMarket
7 Day-3.9%-1.6%2.9%
30 Day-7.1%-8.3%-4.1%
90 Day-9.0%-5.0%2.9%
1 Year2.9%-5.0%-6.1%-11.3%-0.2%-3.8%
3 Yearn/a-4.3%-16.8%15.3%3.7%
5 Yearn/a0.2%-20.6%16.8%-2.7%

Price Volatility Vs. Market

How volatile is Qilu Expressway's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Qilu Expressway 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: 1576 (HK$1.71) is trading below our estimate of fair value (HK$8.27)

Significantly Below Fair Value: 1576 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1576 is good value based on its PE Ratio (7x) compared to the Infrastructure industry average (8.1x).

PE vs Market: 1576 is good value based on its PE Ratio (7x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1576's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1576 is overvalued based on its PB Ratio (0.9x) compared to the HK Infrastructure industry average (0.7x).


Next Steps

Future Growth

How is Qilu Expressway forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.2%

Forecasted Transportation 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 Qilu Expressway 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 Qilu Expressway performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1576 has high quality earnings.

Growing Profit Margin: 1576's current net profit margins (45.4%) are higher than last year (45.1%).


Past Earnings Growth Analysis

Earnings Trend: 1576's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: 1576's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1576 had negative earnings growth (-0.7%) over the past year, making it difficult to compare to the Infrastructure industry average (1.1%).


Return on Equity

High ROE: 1576's Return on Equity (12.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Qilu Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: 1576's short term assets (CN¥1.7B) exceed its short term liabilities (CN¥716.4M).

Long Term Liabilities: 1576's short term assets (CN¥1.7B) exceed its long term liabilities (CN¥293.8M).


Debt to Equity History and Analysis

Debt Level: 1576's debt to equity ratio (13.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1576's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1576's debt is well covered by operating cash flow (197%).

Interest Coverage: 1576's interest payments on its debt are well covered by EBIT (33.9x coverage).


Balance Sheet

Inventory Level: 1576 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1576's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

What is Qilu Expressway's current dividend yield, its reliability and sustainability?

8.37%

Current Dividend Yield


Dividend Yield vs Market

company8.4%marketbottom25%2.2%markettop25%6.3%industryaverage5.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1576's dividend (8.37%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1576's dividend (8.37%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1576's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1576's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.5%), 1576's dividend payments are 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?

6.1yrs

Average management tenure


CEO

Hui Peng (54yo)

5.8yrs

Tenure

0

Mr. Peng Hui has been General Manager and Deputy Secretary of The Party Committee at Qilu Expressway Company Limited since May 2014 and has been its Executive Director since October 2011. Mr. Peng has over ...


Leadership Team

NamePositionTenureCompensationOwnership
Gang Li
Executive Chairman5.3yrsno datano data
Hui Peng
GM & Executive Director5.8yrsno datano data
Andong Li
Chief Financial Officer10.1yrsno datano data
Xiulin Chen
Deputy GM & Secretary to the Board5.3yrsno datano data
Liangrong Liu
Deputy General Manager4.8yrsno datano data
Qiang Liu
Deputy GM & Executive Director0.3yrsno datano data
Qinghong Hou
Head of the Party Operation Department & Employee Representative Supervisor8.8yrsno datano data
Dehong Hao
Head of Enterprise Management Department & Employee Representative Supervisor8.8yrsno datano data
Shun Wang
General Office Director & Employee Representative Supervisor0.3yrsno datano data
Shuk Yi So
Joint Company Secretary0yrsno datano data

6.1yrs

Average Tenure

49yo

Average Age

Experienced Management: 1576's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gang Li
Executive Chairman5.3yrsno datano data
Hui Peng
GM & Executive Director5.8yrsno datano data
Qiang Liu
Deputy GM & Executive Director0.3yrsno datano data
Qinghong Hou
Head of the Party Operation Department & Employee Representative Supervisor8.8yrsno datano data
Dehong Hao
Head of Enterprise Management Department & Employee Representative Supervisor8.8yrsno datano data
Shun Wang
General Office Director & Employee Representative Supervisor0.3yrsno datano data
Jiale He
Independent Non-Executive Director1.2yrsno datano data
Dalong Chen
Vice Chairman of the Board2.2yrsno datano data
Hua Li
Independent Non Executive Director1.7yrsno datano data
Xin Meng
Chairman of the Supervisory Committee2.2yrsno datano data

2.2yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 1576's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 31.7%.


Top Shareholders

Company Information

Qilu Expressway Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Qilu Expressway Company Limited
  • Ticker: 1576
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$3.440b
  • Shares outstanding: 2.00b
  • Website: https://www.qlecl.com

Number of Employees


Location

  • Qilu Expressway Company Limited
  • Zone 3, Hanyu Financial & Business Centre
  • Room 2301, Block 4
  • Jinan
  • Shandong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1576SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 2018

Biography

Qilu Expressway Company Limited, together with its subsidiaries, operates as an expressway operator in the People’s Republic of China. The company constructs, maintains, operates, and manages the Jihe Expressway that has a total length of approximately 153.6 kilometers, which runs from Jinan City to Heze City in Shandong Province. It also produces and distributes outdoor advertising. The company was formerly known as Shandong Jihe Expressway Company Limited. The company was founded in 2004 and is headquartered in Jinan, the People’s Republic of China. Qilu Expressway Company Limited is a subsidiary of Qilu Transportation Development Group Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:19
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.