SEHK:525

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

525

0.9%

HK Transportation

0.3%

HK Market


1 Year Return

-18.4%

525

10.8%

HK Transportation

1.3%

HK Market

Return vs Industry: 525 underperformed the Hong Kong Transportation industry which returned 10.8% over the past year.

Return vs Market: 525 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

525IndustryMarket
7 Day1.2%0.9%0.3%
30 Day0%-3.2%0.5%
90 Day-6.1%-16.1%-4.6%
1 Year-16.3%-18.4%13.6%10.8%4.9%1.3%
3 Year-37.4%-41.6%4.5%-6.1%15.3%3.7%
5 Year-11.7%-20.8%52.6%25.5%20.0%-0.006%

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?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 525 (HK$2.48) is trading below our estimate of fair value (HK$2.69)

Significantly Below Fair Value: 525 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 525 is poor value based on its PE Ratio (17.8x) compared to the Transportation industry average (17.8x).

PE vs Market: 525 is poor value based on its PE Ratio (17.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 525 is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: 525 is good value based on its PB Ratio (0.5x) compared to the HK Transportation industry average (0.9x).


Next Steps

Future Growth

How is Guangshen Railway forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 525's forecast earnings growth (4.1% per year) is above the savings rate (2%).

Earnings vs Market: 525's earnings (4.1% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 525's earnings are forecast to grow, but not significantly.

Revenue vs Market: 525's revenue (4.5% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 525's revenue (4.5% 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 (4.2%).


Next Steps

Past Performance

How has Guangshen Railway performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 525's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: 525's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 525 had negative earnings growth (-23.1%) over the past year, making it difficult to compare to the Transportation industry average (-12.2%).


Return on Equity

High ROE: 525's Return on Equity (3%) is considered low.


Return on Assets

ROA vs Industry: 525's Return on Assets is below or equal to the Transportation industry average last year.


Return on Capital Employed

ROCE Improving: 525's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Guangshen Railway's financial position?


Financial Position Analysis

Short Term Liabilities: 525's short term assets (CN¥6.6B) exceeds its short term liabilities (CN¥5.9B)

Long Term Liabilities: 525's short term assets (6.6B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: 525 is debt free.

Reducing Debt: 525 has no debt compared to 5 years ago when its debt to equity ratio was 13.2%.

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

Inventory Level: 525 has a high level of physical assets or inventory.

Debt Coverage by Assets: 525's debt is not covered by short term assets (assets are -2.8878862019537E+16x debt).


Next Steps

Dividend

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

2.68%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.3%markettop25%6.2%industryaverage2.8%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 525's dividend (2.68%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 525's dividend (2.68%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 525's dividend payments have been volatile in the past 10 years.

Growing Dividend: 525's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.6%), 525's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 525's dividends in 3 years are forecast to be covered by earnings (53.6% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Lingling Hu (56yo)

3.8yrs

Tenure

CN¥471,000

Compensation

Mr. Lingling Hu has been General Manager at Guangshen Railway Co, Ltd. since December 9, 2015 and has served as an Executive Director Since May 26, 2016. Mr. Hu has been the Director of the transportation  ...


CEO Compensation Analysis

Compensation vs. Market: Lingling's total compensation ($USD66.55K) is about average for companies of similar size in the Hong Kong market ($USD496.48K).

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


Management Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: 525's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 525's board of directors are considered experienced (5.4 years average tenure).


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¥1,324,84906 Jul 19
Kopernik Global Investors, LLC
EntityCompany
Shares500,000
Max PriceCN¥2.65
SellCN¥1,928,09815 May 19
BlackRock, Inc.
EntityCompany
Shares708,000
Max PriceCN¥2.72
SellCN¥1,947,64805 Apr 19
BlackRock, Inc.
EntityCompany
Shares634,000
Max PriceCN¥3.07
BuyCN¥8,456,13921 Mar 19
FIL Limited
EntityCompany
Shares2,618,000
Max PriceCN¥3.23
SellCN¥327,386,36117 Jan 19
BlackRock, Inc.
EntityCompany
Shares111,974,098
Max PriceCN¥2.95
SellCN¥97,251,16517 Jan 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares32,274,000
Max PriceCN¥3.01
SellCN¥4,644,18616 Jan 19
BlackRock, Inc.
EntityCompany
Shares1,546,000
Max PriceCN¥3.00
BuyCN¥167,183,51815 Jan 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares57,576,000
Max PriceCN¥2.90
SellCN¥10,331,15329 Dec 18
BlackRock, Inc.
EntityCompany
Shares3,514,000
Max PriceCN¥2.94
SellCN¥33,465,82915 Dec 18
BlackRock, Inc.
EntityCompany
Shares11,102,000
Max PriceCN¥3.01
BuyCN¥31,528,26415 Dec 18
BlackRock, Inc.
EntityCompany
Shares10,534,000
Max PriceCN¥2.99
BuyCN¥30,737,17012 Dec 18
Kopernik Global Investors, LLC
EntityCompany
Shares10,280,000
Max PriceCN¥2.99
SellCN¥763,72027 Oct 18
BlackRock, Inc.
EntityCompany
Shares244,000
Max PriceCN¥3.13
BuyCN¥19,136,14026 Oct 18
Kopernik Global Investors, LLC
EntityCompany
Shares6,326,000
Max PriceCN¥3.02

Ownership Breakdown


Management Team

  • Lingling Hu (56yo)

    GM & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥471.00k
  • Xiangdong Guo (54yo)

    Deputy GM & Company Secretary

    • Tenure: 15.8yrs
    • Compensation: CN¥381.00k
  • Jiancheng Luo (46yo)

    Deputy General Manager

    • Tenure: 2.8yrs
    • Compensation: CN¥377.00k
  • Xiangdong Tang (51yo)

    Chief Accountant

    • Tenure: 10.8yrs
    • Compensation: CN¥379.00k
  • Qing Luo (55yo)

    Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥379.00k
  • Wensheng Lin

    Chief of Finance Department

    • Tenure: 0yrs
  • Yong Wu (56yo)

    Chairman of the Board

    • Tenure: 4.8yrs
  • Yuwen Gong (53yo)

    Senior Executive Officer

    • Tenure: 1.5yrs
    • Compensation: CN¥291.00k

Board Members

  • Lingling Hu (56yo)

    GM & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥471.00k
  • Zhiming Yu (60yo)

    Non-Executive Director

    • Tenure: 11.3yrs
  • Qing Luo (55yo)

    Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥379.00k
  • Song Chen (46yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥112.00k
  • Jianmin Jia (62yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥142.00k
  • Yunting Wang (61yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥112.00k
  • Mengshu Liu (56yo)

    Chairman of the Supervisory Committee

    • Tenure: 0yrs
  • Yong Wu (56yo)

    Chairman of the Board

    • Tenure: 4.8yrs
  • Xiaomei Chen (47yo)

    Non-Executive Director

    • Tenure: 1.3yrs
  • Ji’an Guo (47yo)

    Non-Executive Director

    • Tenure: 1.3yrs

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$23.280b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSHNYSE (New York Stock Exchange)ADR EACH REPR 50 ORD'H'SHS CNY1USUSDMay 1996
GRCDB (Deutsche Boerse AG)ADR EACH REPR 50 ORD'H'SHS CNY1DEEURMay 1996
GNGY.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDMay 1996
525SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMay 1996
GRCHDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMay 1996
525SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMay 1996
525SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMay 1996
601333SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 2006
601333XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYDec 2006

Biography

Guangshen Railway Company Limited engages in the railroad passenger and freight transportation business in the People’s Republic of China. The company’s passenger transportation services include the operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:40
End of Day Share Price2019/10/23 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.