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

Fundamentals

Established dividend payer and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

177

2.5%

HK Infrastructure

3.1%

HK Market


1 Year Return

9.7%

177

0.2%

HK Infrastructure

0.5%

HK Market

Return vs Industry: 177 exceeded the Hong Kong Infrastructure industry which returned 0.2% over the past year.

Return vs Market: 177 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

177IndustryMarket
7 Day3.2%2.5%3.1%
30 Day-2.4%-1.1%-1.8%
90 Day-3.9%-5.2%-4.8%
1 Year15.0%9.7%6.2%0.2%4.1%0.5%
3 Year14.3%-1.1%-2.0%-15.0%15.8%4.2%
5 Year56.1%23.0%8.7%-13.5%18.9%-0.9%

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

Undervalued: 177 (HK$10.42) is trading below our estimate of fair value (HK$24.92)

Significantly Undervalued: 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 (11.4x) compared to the Infrastructure industry average (8.4x).

PE vs Market: 177 is poor value based on its PE Ratio (11.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 177 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 177 is overvalued based on its PB Ratio (1.8x) compared to the HK Infrastructure industry average (0.8x).


Next Steps

Future Growth

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

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 177's forecast earnings growth (6.3% per year) is above the savings rate (2%).

Earnings vs Market: 177's earnings (6.3% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 177's revenue (5.9% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 177's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 177's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Jiangsu Expressway performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 177's earnings have grown by 14.7% 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 (-0.2%) over the past year, making it difficult to compare to the Infrastructure industry average (1.1%).


Return on Equity

High ROE: 177's Return on Equity (14.1%) is considered low.


Return on Assets

ROA vs Industry: 177 has a higher Return on Assets than the Infrastructure industry average last year.


Return on Capital Employed

ROCE Improving: 177's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Jiangsu Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: 177's short term assets (CN¥7.0B) do not cover its short term liabilities (CN¥9.1B)

Long Term Liabilities: 177's short term assets (7.0B) do not cover its long term liabilities (12.5B)


Debt to Equity History and Analysis

Debt Level: 177's debt to equity ratio (52.2%) is considered high

Reducing Debt: 177's debt to equity ratio has increased from 30.8% to 52.2% over the past 5 years.

Debt Coverage: 177's debt is well covered by operating cash flow (37.7%).

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?

4.88%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.3%markettop25%6.3%industryaverage5.3%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 177's dividend (4.88%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 177's dividend (4.88%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 (55.6%), 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 (57.1% payout ratio).


Next Steps

Management

What is the CEO of Jiangsu Expressway's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Xibin Sun (49yo)

1.2yrs

Tenure

CN¥273,186

Compensation

Mr. Xibin Sun has been General Manager and Director of Jiangsu Expressway Company Limited since August 24, 2018 and serves as its Accounting Chief. Mr. Sun has successively acted as the deputy general mana ...


CEO Compensation Analysis

Compensation vs. Market: Xibin's total compensation ($USD38.51K) is too low to compare against companies of similar size in the Hong Kong market ($USD607.90K).

Compensation vs Earnings: Insufficient data to compare Xibin's compensation with company performance.


Management Age and Tenure

1.2yrs

Average Tenure

47yo

Average Age

Experienced Management: 177's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 177's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥44,792,81715 Jul 19
JPMorgan Chase & Co, Brokerage and Securities Investments
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Max PriceCN¥10.89
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JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Max PriceCN¥11.32
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Max PriceCN¥11.32
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Max PriceCN¥11.32
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JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Shares344,000
Max PriceCN¥10.98
SellCN¥20,562,00025 Jan 19
Colonial First State Asset Management (Australia) Limited
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Shares1,788,000
Max PriceCN¥11.50
SellCN¥13,009,19007 Dec 18
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Shares1,227,989
Max PriceCN¥10.59
SellCN¥49,298,18827 Nov 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Max PriceCN¥10.53
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Colonial First State Asset Management (Australia) Limited
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Max PriceCN¥10.72
SellCN¥13,175,07616 Nov 18
BlackRock, Inc.
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Shares1,244,000
Max PriceCN¥10.59
BuyCN¥23,955,73914 Nov 18
JPMorgan Chase & Co, Brokerage and Securities Investments
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Shares2,284,000
Max PriceCN¥10.49
SellCN¥1,478,87914 Nov 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Shares141,000
Max PriceCN¥10.49
BuyCN¥1,478,87914 Nov 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Max PriceCN¥10.49
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Highbridge Capital Management, LLC
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J.P. Morgan Asset Management, Inc.
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Max PriceCN¥10.51
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JPMorgan Chase & Co, Brokerage and Securities Investments
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Max PriceCN¥10.51
SellCN¥420,38013 Nov 18
Highbridge Capital Management, LLC
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Shares40,000
Max PriceCN¥10.51
BuyCN¥325,79513 Nov 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Shares31,000
Max PriceCN¥10.51
BuyCN¥28,403,67612 Nov 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Shares2,731,989
Max PriceCN¥10.40

Ownership Breakdown


Management Team

  • Yong Jia Yao (55yo)

    Deputy GM

    • Tenure: 2.3yrs
    • Compensation: CN¥776.04k
  • Li Shao (41yo)

    Manager of the Human Resources Department & Supervisor

    • Tenure: 11.6yrs
    • Compensation: CN¥313.36k
  • Jie Li (49yo)

    Deputy General Manager

    • Tenure: 2.2yrs
  • Zhou Hua Ren (47yo)

    CFO & Head of the Accounting Department

    • Tenure: 0.5yrs
  • De Jun Gu (56yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CN¥346.30k
  • Xibin Sun (49yo)

    GM, Accounting Chief & Director

    • Tenure: 1.2yrs
    • Compensation: CN¥273.19k
  • Yun Yan (45yo)

    Deputy General Manager

    • Tenure: 0.5yrs
  • Keqiang Xu (41yo)

    Assistant to the General Manager

    • Tenure: 0.5yrs
  • Wei Chen (43yo)

    Manager of the Investment & Development Department and Supervisor

    • Tenure: 1.2yrs

Board Members

  • Yong Jia Yao (55yo)

    Deputy GM

    • Tenure: 2.3yrs
    • Compensation: CN¥776.04k
  • Li Shao (41yo)

    Manager of the Human Resources Department & Supervisor

    • Tenure: 11.6yrs
    • Compensation: CN¥313.36k
  • Yu Hu (44yo)

    Non-Executive Director

    • Tenure: 4.3yrs
  • Qing Chang (56yo)

    Chairman of the Supervisory Committee

    • Tenure: 0.6yrs
  • Liang Chen (54yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥107.90k
  • Hui Lin (47yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥107.90k
  • De Jun Gu (56yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: CN¥346.30k
  • Shudong Zhou (58yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥53.95k
  • Xibin Sun (49yo)

    GM, Accounting Chief & Director

    • Tenure: 1.2yrs
    • Compensation: CN¥273.19k
  • Wei Chen (43yo)

    Manager of the Investment & Development Department and Supervisor

    • Tenure: 1.2yrs

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$56.416b
  • 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 Expre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:33
End of Day Share Price2019/10/17 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.