Jiangsu Expressway (SEHK:177): Evaluating Valuation After Nine-Month Profit and Revenue Drop

Jiangsu Expressway (SEHK:177) just released its earnings for the nine months ended September 30, 2025, highlighting a dip in both revenue and net income compared to last year. This update has caught the attention of investors.

See our latest analysis for Jiangsu Expressway.

Jiangsu Expressway’s 1-year total shareholder return of 25.25% stands out, especially with the share price up 11.43% so far this year. While the latest nine-month results gave investors pause, solid multi-year total return figures suggest the long-term momentum is still in play.

If this update has you thinking about the bigger picture, now is a great time to see what else is out there by exploring fast growing stocks with high insider ownership.

With shares trading at a slight discount to analyst price targets, the question for investors is straightforward: is Jiangsu Expressway undervalued right now, or is the market already factoring in its future potential?

Price-to-Earnings of 9.4x: Is it justified?

Jiangsu Expressway is currently trading at a price-to-earnings (P/E) ratio of 9.4x, just above the peer average of 9.3x. This places its valuation at a slight premium relative to its direct competitors, despite recent mixed financial performance.

The P/E ratio provides insight into how much investors are willing to pay for each unit of the company’s earnings. In sectors like infrastructure, where steady earnings are expected, a lower P/E can signal undervaluation if growth is anticipated, or overvaluation if growth is likely to stagnate.

With the company's P/E marginally above both its peer group (9.3x) and the Hong Kong Infrastructure industry average (8.8x), the market appears to be pricing in a degree of stability or resilience. However, compared to the estimated Fair P/E Ratio of 12.2x, there is still potential for the multiple to expand if the company strengthens earnings growth or margins.

Explore the SWS fair ratio for Jiangsu Expressway

Result: Price-to-Earnings of 9.4x (ABOUT RIGHT)

However, slowing revenue growth and recent net income declines could challenge the current valuation if these trends continue in future reporting periods.

Find out about the key risks to this Jiangsu Expressway narrative.

Another View: What Does the DCF Model Say?

While the current price-to-earnings ratio analysis paints Jiangsu Expressway as fairly priced, our DCF model (discounted cash flow) provides a more conservative outlook. According to this method, the shares are trading above our estimated fair value of HK$7.95. This points to possible overvaluation at current prices. Does this signal caution, or might the market be pricing in factors the model cannot capture?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Jiangsu Expressway for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 831 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Jiangsu Expressway Narrative

If you would rather dig into the numbers directly or draw your own conclusions, you can piece together your own narrative in just a few minutes with Do it your way.

A great starting point for your Jiangsu Expressway research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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