SEHK:1719

Stock Analysis Report

China Infrastructure & Logistics Group

Executive Summary

China Infrastructure & Logistics Group Ltd., an investment holding company, develops, constructs, operates, and manages container and other ports in the People’s Republic of China and Hong Kong.


Snowflake Analysis

Poor track record with worrying balance sheet.

Share Price & News

How has China Infrastructure & Logistics Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1719 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

1719

4.0%

HK Infrastructure

3.5%

HK Market


1 Year Return

-10.7%

1719

-1.1%

HK Infrastructure

2.3%

HK Market

Return vs Industry: 1719 underperformed the Hong Kong Infrastructure industry which returned -1.1% over the past year.

Return vs Market: 1719 underperformed the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

1719IndustryMarket
7 Day-2.6%4.0%3.5%
30 Day-6.3%3.0%3.1%
90 Day-16.7%3.8%1.1%
1 Year-10.7%-10.7%4.6%-1.1%6.0%2.3%
3 Year-25.0%-25.0%10.2%-4.2%25.4%12.7%
5 Year138.1%138.1%10.6%-12.2%23.0%2.4%

Price Volatility Vs. Market

How volatile is China Infrastructure & Logistics Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Infrastructure & Logistics Group undervalued compared to its fair value and its price relative to the market?

20.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1719 (HK$0.75) is trading above our estimate of fair value (HK$0.24)

Significantly Below Fair Value: 1719 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1719 is poor value based on its PE Ratio (20.7x) compared to the Infrastructure industry average (8.5x).

PE vs Market: 1719 is poor value based on its PE Ratio (20.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1719's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1719 is overvalued based on its PB Ratio (2x) compared to the HK Infrastructure industry average (0.7x).


Next Steps

Future Growth

How is China Infrastructure & Logistics Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.3%

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 China Infrastructure & Logistics Group 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 China Infrastructure & Logistics Group performed over the past 5 years?

21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1719 has a large one-off gain of HK$47.8M impacting its June 30 2019 financial results.

Growing Profit Margin: 1719's current net profit margins (25.1%) are lower than last year (28.2%).


Past Earnings Growth Analysis

Earnings Trend: 1719's earnings have grown significantly by 21% per year over the past 5 years.

Accelerating Growth: 1719's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1719 had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Infrastructure industry average (1.1%).


Return on Equity

High ROE: 1719's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Infrastructure & Logistics Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1719's short term assets (HK$186.8M) do not cover its short term liabilities (HK$486.7M).

Long Term Liabilities: 1719's short term assets (HK$186.8M) do not cover its long term liabilities (HK$300.4M).


Debt to Equity History and Analysis

Debt Level: 1719's debt to equity ratio (62%) is considered high.

Reducing Debt: 1719's debt to equity ratio has reduced from 189.3% to 62% over the past 5 years.

Debt Coverage: 1719's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: 1719's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: 1719 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1719's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is China Infrastructure & Logistics Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage5.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1719's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1719's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1719's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1719's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1719's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of China Infrastructure & Logistics Group's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Bingmu Xie (56yo)

5.8yrs

Tenure

HK$1,510,000

Compensation

Mr. Bingmu Xie has been the Chief Executive Officer of CIG Yangtze Ports PLC since March 7, 2014 and serves as its Compliance Officer. Mr. Xie is responsible for the daily operation of the business and the ...


CEO Compensation Analysis

Compensation vs Market: Bingmu's total compensation ($USD193.73K) is below average for companies of similar size in the Hong Kong market ($USD294.15K).

Compensation vs Earnings: Bingmu's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

4.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 1719's board of directors are considered experienced (4.8 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

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


Management Team

  • Bingmu Xie (56yo)

    CEO, Compliance Officer & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$1.51m
  • Xi Ming Cai

    Chief Accountant of WIT

    • Tenure: 0yrs
  • Shirley Hui (51yo)

    Company Secretary

    • Tenure: 2.9yrs
  • Jiwei Zhang (57yo)

    Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$319.00k
  • Zhentao Zhang (35yo)

    Vice President

    • Tenure: 0yrs
  • Gang Zhong (48yo)

    Vice President

    • Tenure: 0yrs

Board Members

  • Thomas Lee (65yo)

    Independent Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: HK$440.00k
  • Zhenhua Mao (55yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$420.00k
  • Frederick Wong (63yo)

    Independent Non Executive Director

    • Tenure: 5.7yrs
    • Compensation: HK$430.00k
  • Zhi Yan (46yo)

    Chairman

    • Tenure: 8.1yrs
    • Compensation: HK$411.00k
  • Chi Peng (56yo)

    Co-Chairman of the Board

    • Tenure: 0.3yrs
  • Dechao Lei (53yo)

    Vice Chairman

    • Tenure: 1yrs
  • Bingmu Xie (56yo)

    CEO, Compliance Officer & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$1.51m
  • Jiwei Zhang (57yo)

    Executive Director

    • Tenure: 3.2yrs
    • Compensation: HK$319.00k

Company Information

China Infrastructure & Logistics Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Infrastructure & Logistics Group Ltd.
  • Ticker: 1719
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Marine Ports and Services
  • Sector: Transportation
  • Market Cap: HK$1.294b
  • Shares outstanding: 1.73b
  • Website: https://www.cilgl.com

Number of Employees


Location

  • China Infrastructure & Logistics Group Ltd.
  • Two Exchange Square
  • Suite 2101
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1719SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2005

Biography

China Infrastructure & Logistics Group Ltd., an investment holding company, develops, constructs, operates, and manages container and other ports in the People’s Republic of China and Hong Kong. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 12:42
End of Day Share Price2019/12/13 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.