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Market Cap

HK$17.4b

Last Updated

2021/05/13 10:28 UTC

Data Sources

Company Financials +

Executive Summary

Guangshen Railway Company Limited engages in the railway passenger and freight transportation business in the People’s Republic of China. More Details

Rewards

Earnings are forecast to grow 83.87% per year

Risk Analysis

No risks detected for 525 from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

Share Price & News

How has Guangshen Railway's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 525 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 525's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

525

1.0%

HK Transportation

-1.1%

HK Market


1 Year Return

2.6%

525

5.9%

HK Transportation

24.0%

HK Market

Return vs Industry: 525 underperformed the Hong Kong Transportation industry which returned 5.9% over the past year.

Return vs Market: 525 underperformed the Hong Kong Market which returned 24% over the past year.


Shareholder returns

525IndustryMarket
7 Day1.3%1.0%-1.1%
30 Day-1.2%0.5%-0.4%
90 Day13.5%-0.8%-6.8%
1 Year7.3%2.6%9.2%5.9%28.8%24.0%
3 Year-61.3%-64.7%-9.3%-16.3%1.7%-9.1%
5 Year-50.5%-57.0%22.6%-0.4%59.5%32.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Guangshen Railway undervalued compared to its fair value and its price relative to the market?

0.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 525 (HK$1.6) is trading above our estimate of fair value (HK$1.06)

Significantly Below Fair Value: 525 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 525 is unprofitable, so we can't compare its PE Ratio to the Asian Transportation industry average.

PE vs Market: 525 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 525's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 525 is good value based on its PB Ratio (0.3x) compared to the HK Transportation industry average (1.4x).


Future Growth

How is Guangshen Railway forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

83.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 525 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 525 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 525's is expected to become profitable in the next 3 years.

Revenue vs Market: 525's revenue (9.3% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 525's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 525's Return on Equity is forecast to be low in 3 years time (2%).


Past Performance

How has Guangshen Railway performed over the past 5 years?

-42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 525 is currently unprofitable.

Growing Profit Margin: 525 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 525 is unprofitable, and losses have increased over the past 5 years at a rate of 42.5% per year.

Accelerating Growth: Unable to compare 525's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 525 is unprofitable, making it difficult to compare its past year earnings growth to the Transportation industry (-1.3%).


Return on Equity

High ROE: 525 has a negative Return on Equity (-0.68%), as it is currently unprofitable.


Financial Health

How is Guangshen Railway's financial position?


Financial Position Analysis

Short Term Liabilities: 525's short term assets (CN¥6.7B) do not cover its short term liabilities (CN¥7.2B).

Long Term Liabilities: 525's short term assets (CN¥6.7B) exceed its long term liabilities (CN¥1.6B).


Debt to Equity History and Analysis

Debt Level: 525 is debt free.

Reducing Debt: 525 had no debt 5 years ago.

Debt Coverage: 525 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 525 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Guangshen Railway current dividend yield, its reliability and sustainability?

4.02%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 525's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 525's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 525's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 525's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 525 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 525's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Lingling Hu (57 yo)

5.42yrs

Tenure

CN¥512,000

Compensation

Mr. Lingling Hu has been General Manager at Guangshen Railway Company Limited since December 9, 2015 and has served as an Executive Director since May 26, 2016. He has been deputy general manager of GRGC. ...


CEO Compensation Analysis

Compensation vs Market: Lingling's total compensation ($USD79.30K) is below average for companies of similar size in the Hong Kong market ($USD622.73K).

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


Leadership Team

Experienced Management: 525's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: 525's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Guangshen Railway Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guangshen Railway Company Limited
  • Ticker: 525
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Railroads
  • Sector: Transportation
  • Market Cap: HK$17.428b
  • Shares outstanding: 7.08b
  • Website: https://www.gsrc.com

Number of Employees


Location

  • Guangshen Railway Company Limited
  • No. 1052, Heping Road
  • Shenzhen
  • Guangdong Province
  • 518010
  • China

Listings


Biography

Guangshen Railway Company Limited engages in the railway passenger and freight transportation business in the People’s Republic of China. Its passenger transportation services include the operation of Guan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/13 10:28
End of Day Share Price2021/05/13 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.