SEHK:357

Stock Analysis Report

Regal International Airport Group

Executive Summary

Regal International Airport Group Company Limited, together with its subsidiaries, engages in the aeronautical and non-aeronautical businesses at the Haikou Meilan International Airport in Haikou, the People's Republic of China.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.

Share Price & News

How has Regal International Airport Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 357 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

357

-3.2%

HK Infrastructure

-4.6%

HK Market


1 Year Return

-27.9%

357

-3.8%

HK Infrastructure

-2.2%

HK Market

Return vs Industry: 357 underperformed the Hong Kong Infrastructure industry which returned -3.8% over the past year.

Return vs Market: 357 underperformed the Hong Kong Market which returned -2.2% over the past year.


Shareholder returns

357IndustryMarket
7 Day-1.4%-3.2%-4.6%
30 Day-3.2%0.4%-0.6%
90 Day6.1%5.2%3.7%
1 Year-27.9%-27.9%1.7%-3.8%1.3%-2.2%
3 Year-38.7%-42.8%2.6%-10.8%20.0%8.0%
5 Year-6.9%-18.2%7.5%-14.6%19.6%-0.2%

Price Volatility Vs. Market

How volatile is Regal International Airport Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Regal International Airport Group 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: 357 (HK$5.08) is trading below our estimate of fair value (HK$22.84)

Significantly Below Fair Value: 357 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 357 is good value based on its PE Ratio (4.1x) compared to the Infrastructure industry average (8.4x).

PE vs Market: 357 is good value based on its PE Ratio (4.1x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 357's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 357 is good value based on its PB Ratio (0.4x) compared to the HK Infrastructure industry average (0.7x).


Next Steps

Future Growth

How is Regal International Airport Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 357's forecast earnings growth (4.3% per year) is above the savings rate (2%).

Earnings vs Market: 357's earnings (4.3% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 357's earnings are forecast to grow, but not significantly.

Revenue vs Market: 357's revenue (15.1% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 357's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 357's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Regal International Airport Group performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 357 has high quality earnings.

Growing Profit Margin: 357's current net profit margins (33%) are higher than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: 357's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: 357's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 357 had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Infrastructure industry average (0.5%).


Return on Equity

High ROE: 357's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Regal International Airport Group's financial position?


Financial Position Analysis

Short Term Liabilities: 357's short term assets (CN¥696.2M) do not cover its short term liabilities (CN¥2.5B)

Long Term Liabilities: 357's short term assets (696.2M) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: 357's debt to equity ratio (33.3%) is considered satisfactory

Reducing Debt: 357's debt to equity ratio has reduced from 89.7% to 33.3% over the past 5 years.

Debt Coverage: 357's debt is well covered by operating cash flow (47.5%).

Interest Coverage: 357's interest payments on its debt are well covered by EBIT (18x coverage).


Balance Sheet

Inventory Level: 357 has a high level of physical assets or inventory.

Debt Coverage by Assets: 357's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Regal International Airport Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage5.4%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 357's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 357's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 357's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 357's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 357 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 357's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Regal International Airport Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Hong Wang (51yo)

0.7yrs

Tenure

0

Mr. Hong Wang has been President of Regal International Airport Group Company Limited since March 25, 2019 and also has been its Executive Director since June 3, 2019. From August 1985 to January 2003, he  ...


Management Age and Tenure

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 357's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

51yo

Average Age

Experienced Board: 357's board of directors are not considered experienced ( 1.7 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

BuyCN¥359,284,65523 Oct 19
Soaring Eagle Industrial Limited
EntityCompany
Shares51,695,650
Max PriceCN¥6.95
SellCN¥359,284,65523 Oct 19
Oriental Patron Financial Group, Investment Arm
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Shares51,695,650
Max PriceCN¥6.95
SellCN¥7,915,41206 Mar 19
Karst Peak Capital Limited
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Shares1,181,000
Max PriceCN¥6.70
SellCN¥2,241,30127 Feb 19
Karst Peak Capital Limited
EntityCompany
Shares331,000
Max PriceCN¥6.77
SellCN¥5,687,49820 Feb 19
Karst Peak Capital Limited
EntityCompany
Shares837,000
Max PriceCN¥6.80
SellCN¥1,948,56401 Feb 19
Karst Peak Capital Limited
EntityCompany
Shares291,000
Max PriceCN¥6.70

Ownership Breakdown

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


Management Team

  • Zhen Wang (56yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥172.72k
  • Zhoujin Xing (53yo)

    Company Secretary & Director

    • Tenure: 1.7yrs
    • Compensation: CN¥651.66k
  • Peihua Zhang (48yo)

    Vice President

    • Tenure: 6.7yrs
    • Compensation: CN¥221.29k
  • Ke Yu (46yo)

    Executive Vice President

    • Tenure: 1.8yrs
  • Guiling Liu (51yo)

    GM of Freight Department & Supervisor

    • Tenure: 1.9yrs
  • Mingzhe Hu (37yo)

    Chief Operation Officer

    • Tenure: 1.3yrs
  • Yan Yu (37yo)

    Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥2.00m
  • Hong Wang (51yo)

    President & Executive Director

    • Tenure: 0.7yrs
  • Wang Hexin (46yo)

    Executive Director

    • Tenure: 0.4yrs

Board Members

  • Zhen Wang (56yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥172.72k
  • Simon Fung (50yo)

    Independent Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: CN¥136.77k
  • Zhoujin Xing (53yo)

    Company Secretary & Director

    • Tenure: 1.7yrs
    • Compensation: CN¥651.66k
  • Tianlin Deng (70yo)

    Independent Non Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥136.77k
  • Linji He (62yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: CN¥136.77k
  • Hongyu Liao (40yo)

    Chairman of the Supervisory Committee

    • Tenure: 0.4yrs
    • Compensation: CN¥717.09k
  • Guiling Liu (51yo)

    GM of Freight Department & Supervisor

    • Tenure: 1.9yrs
  • Yan Yu (37yo)

    Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥2.00m
  • Hong Wang (51yo)

    President & Executive Director

    • Tenure: 0.7yrs
  • Wang Hexin (46yo)

    Executive Director

    • Tenure: 0.4yrs

Company Information

Regal International Airport Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Regal International Airport Group Company Limited
  • Ticker: 357
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Airport Services
  • Sector: Transportation
  • Market Cap: HK$2.361b
  • Shares outstanding: 473.21m
  • Website: https://www.mlairport.com

Number of Employees


Location

  • Regal International Airport Group Company Limited
  • Office Building of Meilan Airport
  • Office of the Board
  • Haikou
  • Hainan Province
  • 571126
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
357SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2002
HAODB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURNov 2002
HMCT.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDNov 2002

Biography

Regal International Airport Group Company Limited, together with its subsidiaries, engages in the aeronautical and non-aeronautical businesses at the Haikou Meilan International Airport in Haikou, the Peop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 12:39
End of Day Share Price2019/11/15 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.