SEHK:177

Stock Analysis Report

Executive Summary

Jiangsu Expressway Company Limited invests in, constructs, operates, and manages toll roads and bridges in the People’s Republic of China.


Snowflake Analysis

Established dividend payer and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 177's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.7%

177

-3.0%

HK Infrastructure

0.2%

HK Market


1 Year Return

-28.8%

177

-34.5%

HK Infrastructure

-22.0%

HK Market

Return vs Industry: 177 exceeded the Hong Kong Infrastructure industry which returned -32.1% over the past year.

Return vs Market: 177 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

177IndustryMarket
7 Day-6.7%-3.0%0.2%
30 Day-14.7%-18.2%-10.8%
90 Day-27.1%-28.8%-16.5%
1 Year-25.4%-28.8%-30.7%-34.5%-19.1%-22.0%
3 Year-17.8%-28.9%-29.5%-38.6%-3.7%-13.4%
5 Year-6.8%-26.5%-37.5%-50.0%-15.2%-28.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Jiangsu 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: 177 (HK$8.13) is trading below our estimate of fair value (HK$66.21)

Significantly Below Fair Value: 177 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 177 is poor value based on its PE Ratio (8.7x) compared to the Infrastructure industry average (6.4x).

PE vs Market: 177 is good value based on its PE Ratio (8.7x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 177 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 177 is overvalued based on its PB Ratio (1.4x) compared to the HK Infrastructure industry average (0.6x).


Next Steps

Future Growth

How is Jiangsu Expressway forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 177's forecast earnings growth (5.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 177's earnings (5.1% per year) are forecast to grow slower than the Hong Kong market (11.8% per year).

High Growth Earnings: 177's earnings are forecast to grow, but not significantly.

Revenue vs Market: 177's revenue (5.8% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 177's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 177's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Jiangsu Expressway performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 177 has high quality earnings.

Growing Profit Margin: 177's current net profit margins (43.6%) are higher than last year (43%).


Past Earnings Growth Analysis

Earnings Trend: 177's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: 177's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 177 had negative earnings growth (-1.4%) over the past year, making it difficult to compare to the Infrastructure industry average (6.6%).


Return on Equity

High ROE: 177's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is Jiangsu Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: 177's short term assets (CN¥6.8B) do not cover its short term liabilities (CN¥8.6B).

Long Term Liabilities: 177's short term assets (CN¥6.8B) do not cover its long term liabilities (CN¥12.4B).


Debt to Equity History and Analysis

Debt Level: 177's debt to equity ratio (55.4%) is considered high.

Reducing Debt: 177's debt to equity ratio has increased from 28.6% to 55.4% over the past 5 years.

Debt Coverage: 177's debt is well covered by operating cash flow (33.3%).

Interest Coverage: 177 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 177 has a high level of physical assets or inventory.

Debt Coverage by Assets: 177's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

6.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 177's dividend (6.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 177's dividend (6.19%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 177's dividends per share have been stable in the past 10 years.

Growing Dividend: 177's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.1%), 177's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 177's dividends in 3 years are forecast to be covered by earnings (57.2% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Xiaoguang Cheng (41yo)

0.083

Tenure

Mr. Xiaoguang Cheng served as the head of investment development department of Jiangsu Communications Holding Limited, secretary to the party branch, chairman and general manager of Jiangsu Communications  ...


Leadership Team

NamePositionTenureCompensationOwnership
Xibin Sun
Executive Chairman & Accounting Chief0.083yrCN¥273.19kno data
Zhou Hua Ren
CFO & Head of the Accounting Department1yrCN¥353.20kno data
Yong Jia Yao
Deputy GM2.83yrsCN¥776.04kno data
Xiaoguang Cheng
General Manager0.083yrno datano data
Wei Chen
Manager of the Investment & Development Department and Supervisor1.67yrsno datano data
Li Shao
Manager of the Human Resources Department & Supervisor12.08yrsCN¥313.36kno data
Yun Yan
Deputy General Manager1yrno datano data

1.0yrs

Average Tenure

45yo

Average Age

Experienced Management: 177's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xibin Sun
Executive Chairman & Accounting Chief0.083yrCN¥273.19kno data
Yong Jia Yao
Deputy GM2.83yrsCN¥776.04kno data
Wei Chen
Manager of the Investment & Development Department and Supervisor1.67yrsno datano data
Li Shao
Manager of the Human Resources Department & Supervisor12.08yrsCN¥313.36kno data
Chung Lai Ma
Non-Executive Director4.83yrsCN¥339.20kno data
Yu Hu
Non-Executive Director4.83yrsno datano data
Qing Chang
Chairman of the Supervisory Committee1.08yrsno datano data
Liang Chen
Independent Non-Executive Director4.83yrsCN¥107.90kno data
Hui Lin
Independent Non-Executive Director4.83yrsCN¥107.90kno data
Shudong Zhou
Independent Non-Executive Director1.83yrsCN¥53.95kno data

3.8yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 177's board of directors are considered experienced (3.8 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

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


Key Information

  • Name: Jiangsu Expressway Company Limited
  • Ticker: 177
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$49.903b
  • Shares outstanding: 5.04b
  • Website: https://www.jsexpressway.com

Number of Employees


Location

  • Jiangsu Expressway Company Limited
  • 6 Xianlin Avenue
  • Nanjing
  • Jiangsu Province
  • 210049
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JEXY.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJun 1997
177SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 1997
JE2DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 1997
177SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 1997
177SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 1997
600377SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJan 2001
600377XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJan 2001
JEXY.YOTCPK (Pink Sheets LLC)SP ADR REP HUSUSDApr 2003

Biography

Jiangsu Expressway Company Limited invests in, constructs, operates, and manages toll roads and bridges in the People’s Republic of China. The company operates the Jiangsu section of Shanghai-Nanjing Expressway, Ningchang Expressway, Zhenli Expressway, Guangjing Expressway, Xicheng Expressway, Xiyi Expressway, Zhendan Expressway, Jiangyin Bridge, Sujiahang Expressway, and other toll roads in Jiangsu Province. As of December 31, 2018, it operated 16 road and bridge projects; and owned approximately 840 kilometers of roads and bridges. The company also develops passenger transportation and ancillary services along the toll roads and bridges, including refueling, catering, retailing, advertising, and accommodation. In addition, it engages in real estate development activities. The company was founded in 1992 and is headquartered in Nanjing, the People's Republic of China. Jiangsu Expressway Company Limited is a subsidiary of Jiangsu Communications Holding Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 12:35
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
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.