SEHK:1785

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

1785

3.7%

HK Infrastructure

2.9%

HK Market


1 Year Return

n/a

1785

0.4%

HK Infrastructure

0.7%

HK Market

Return vs Industry: Insufficient data to determine how 1785 performed against the Hong Kong Infrastructure industry.

Return vs Market: Insufficient data to determine how 1785 performed against the Hong Kong Market.


Shareholder returns

1785IndustryMarket
7 Day0%3.7%2.9%
30 Day4.4%-0.1%-2.5%
90 Day-0.5%-5.8%-5.4%
1 Yearn/a6.5%0.4%4.4%0.7%
3 Yearn/a-1.1%-14.3%17.0%5.2%
5 Yearn/a10.2%-12.2%20.2%0.2%

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

Undervalued: 1785 (HK$2.14) is trading below our estimate of fair value (HK$8.54)

Significantly Undervalued: 1785 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1785 is good value based on its PE Ratio (5.9x) compared to the Infrastructure industry average (8.5x).

PE vs Market: 1785 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1785 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 1785 is overvalued based on its PB Ratio (1x) compared to the HK Infrastructure industry average (0.8x).


Next Steps

Future Growth

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

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1785's forecast earnings growth (5.1% per year) is above the savings rate (2%).

Earnings vs Market: 1785's earnings (5.1% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1785's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1785's revenue (3.4% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 1785's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1785's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Chengdu Expressway performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1785's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: 1785's earnings growth over the past year (24.2%) exceeds its 5-year average (17% per year).

Earnings vs Industry: 1785 earnings growth over the past year (24.2%) exceeded the Infrastructure industry 1.1%.


Return on Equity

High ROE: 1785's Return on Equity (14.9%) is considered low.


Return on Assets

ROA vs Industry: 1785 has a higher Return on Assets than the Infrastructure industry average last year.


Return on Capital Employed

ROCE Improving: 1785 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Chengdu Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: 1785's short term assets (CN¥2.3B) exceeds its short term liabilities (CN¥1.4B)

Long Term Liabilities: 1785's short term assets (2.3B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: 1785's debt to equity ratio (42.4%) 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 (52.1%).

Interest Coverage: 1785's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet

Inventory Level: 1785 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1785's debt is covered by short term assets (assets are 1.674060x debt).


Next Steps

Dividend

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

6.74%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%2.2%markettop25%6.3%industryaverage5.3%forecastin3Years10.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1785's dividend (6.74%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1785's dividend (6.74%) is in the top 25% of dividend payers in the Hong Kong market (6.29%)

Stable Dividend: Too early to tell whether 1785's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1785's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.7%), 1785's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1785's dividends in 3 years are forecast to be covered by earnings (66.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Fawei Tang (49yo)

2.8yrs

Tenure

CN¥318,000

Compensation

Mr. Tang Fawei has been an Executive Director of Chengdu Expressway Co., Ltd. since November 2016. Since December 2016, he has served as the General Manager of Chengdu Expressway Co., Ltd., mainly responsi ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Fawei's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: Fawei's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

50yo

Average Age

Experienced Management: 1785's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

50yo

Average Age

Experienced Board: 1785's board of directors are not considered experienced ( 2.9 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.


Ownership Breakdown


Management Team

  • Yvonne Kwong (64yo)

    Joint Company Secretary

    • Tenure: 1.9yrs
  • Fawei Tang (49yo)

    GM & Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥318.00k
  • Dongmin Zhang (56yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥463.22k
  • Xiao Wang (46yo)

    Deputy GM & Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥398.00k
  • Dan Luo (51yo)

    Chief Accountant & Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥398.00k
  • Bing Su (50yo)

    Deputy General Manager

    • Tenure: 2.3yrs
  • Zhiquan Zou (50yo)

    Chief Engineer

    • Tenure: 2.8yrs
  • Jingdong Yang (50yo)

    Deputy General Manager

    • Tenure: 2.8yrs
  • Zhuanping Jiang (48yo)

    Deputy General Manager

    • Tenure: 8.6yrs
  • Guangwen Zhang (43yo)

    Joint Company Secretary

    • Tenure: 2.8yrs

Board Members

  • Laurence Shu (46yo)

    Independent Non-executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥300.00k
  • Jun Xiao (52yo)

    Chairman

    • Tenure: 3.5yrs
  • Fawei Tang (49yo)

    GM & Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥318.00k
  • Dongmin Zhang (56yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥463.22k
  • Xiao Wang (46yo)

    Deputy GM & Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥398.00k
  • Dan Luo (51yo)

    Chief Accountant & Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥398.00k
  • Bin Yang (52yo)

    Non-executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥250.00k
  • Yong Ye (44yo)

    Independent Non-executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥60.00k
  • Yuanfu Li (56yo)

    Independent Non-executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥120.00k
  • Yan Jiang (47yo)

    Chairman of the Supervisory Committee

    • Tenure: 1.4yrs

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.
  • Office Building, 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 Analysis2019/10/15 12:57
End of Day Share Price2019/10/15 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.