SEHK:1785

Stock Analysis Report

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Executive Summary

Chengdu Expressway Co., Ltd. engages in the operation, management, and development of expressways located in Chengdu, Sichuan province, China. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1785 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.1%

1785

-1.6%

HK Infrastructure

-0.7%

HK Market


1 Year Return

-9.9%

1785

-20.5%

HK Infrastructure

0.4%

HK Market

Return vs Industry: 1785 exceeded the Hong Kong Infrastructure industry which returned -20.7% over the past year.

Return vs Market: 1785 underperformed the Hong Kong Market which returned 0.3% over the past year.


Shareholder returns

1785IndustryMarket
7 Day-9.1%-1.6%-0.7%
30 Day-9.1%0.2%4.9%
90 Day0%-5.0%1.2%
1 Year-3.8%-9.9%-15.6%-20.5%4.6%0.4%
3 Yearn/a-31.2%-41.3%-7.1%-17.2%
5 Yearn/a-19.1%-36.7%15.0%-4.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Chengdu 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: 1785 (HK$2) is trading below our estimate of fair value (HK$11.19)

Significantly Below Fair Value: 1785 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1785 is poor value based on its PE Ratio (10.6x) compared to the HK Infrastructure industry average (9.7x).

PE vs Market: 1785 is good value based on its PE Ratio (10.6x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1785's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1785 is overvalued based on its PB Ratio (0.9x) compared to the HK Infrastructure industry average (0.6x).


Next Steps

Future Growth

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

22.0%

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 Chengdu 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 Chengdu Expressway performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1785 has high quality earnings.

Growing Profit Margin: 1785's current net profit margins (27%) are lower than last year (41.1%).


Past Earnings Growth Analysis

Earnings Trend: 1785's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: 1785's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1785 had negative earnings growth (-40.6%) over the past year, making it difficult to compare to the Infrastructure industry average (-7.2%).


Return on Equity

High ROE: 1785's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Chengdu Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: 1785's short term assets (CN¥2.0B) exceed its short term liabilities (CN¥1.6B).

Long Term Liabilities: 1785's short term assets (CN¥2.0B) do not cover its long term liabilities (CN¥3.0B).


Debt to Equity History and Analysis

Debt Level: 1785's debt to equity ratio (80%) is considered high.

Reducing Debt: Insufficient data to determine if 1785's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1785's debt is well covered by operating cash flow (32.3%).

Interest Coverage: 1785's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Chengdu Expressway current dividend yield, its reliability and sustainability?

6.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1785's dividend (6.93%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1785's dividend (6.93%) is in the top 25% of dividend payers in the Hong Kong market (6.9%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1785 has been paying a dividend for less than 10 years.

Growing Dividend: 1785 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.2%), 1785'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?

3.8yrs

Average management tenure


CEO

Tan Yang (54 yo)

0.50

Tenure

CN¥214,000

Compensation

Mr. Tan Yang serves as executive director at Chengdu Expressway Co., Ltd. since June 11, 2020. Mr. Yang has been General Manger at Chengdu Expressway Co., Ltd. since April 16, 2020. Mr. Yang was General Ma ...


Leadership Team

NamePositionTenureCompensationOwnership
Dan Luo
Chief Accountant & Executive Director3.92yrsCN¥510.00kno data
Dongmin Zhang
Executive Director2.33yrsCN¥489.00kno data
Xiao Wang
Deputy GM & Executive Director3.92yrsCN¥537.00kno data
Tan Yang
GM & Executive Director0.50yrCN¥214.00kno data
Zhiquan Zou
Chief Engineer3.83yrsno datano data
Guangwen Zhang
Secretary to the Board & Joint Company Secretary3.83yrsno datano data
Yin Ping Kwong
Joint Company Secretary2.92yrsno datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: 1785's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dan Luo
Chief Accountant & Executive Director3.92yrsCN¥510.00kno data
Dongmin Zhang
Executive Director2.33yrsCN¥489.00kno data
Xiao Wang
Deputy GM & Executive Director3.92yrsCN¥537.00kno data
Tan Yang
GM & Executive Director0.50yrCN¥214.00kno data
Jun Xiao
Non-Executive Chairman3.83yrsno datano data
Bin Yang
Non-Executive Director2.42yrsCN¥527.00kno data
Yong Ye
Independent Non-Executive Director3.92yrsCN¥60.00kno data
Yuanfu Li
Independent Non-Executive Director3.92yrsCN¥60.00kno data
Yan Jiang
Chairman of the Supervisory Committee2.42yrsno datano data
Haiyan Wu
Supervisor3.92yrsno datano data
Xin Pan
Supervisor3.92yrsno datano data
Shu Huadong
Independent Non Executive Director3.92yrsno datano data

3.9yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 1785's board of directors are considered experienced (3.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Chengdu Expressway Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chengdu Expressway Co., Ltd.
  • Ticker: 1785
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$3.478b
  • Shares outstanding: 1.66b
  • Website: https://www.chengdugs.com

Number of Employees


Location

  • Chengdu Expressway Co., Ltd.
  • Chengnan Tianfu Building
  • 9th Floor
  • Chengdu
  • Sichuan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1785SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJan 2019

Biography

Chengdu Expressway Co., Ltd. engages in the operation, management, and development of expressways located in Chengdu, Sichuan province, China. It operates five expressways, which include the Chengguan Expr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 12:43
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.