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Guangshen Railway

SEHK:525
Snowflake Description

Flawless balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
525
SEHK
HK$24B
Market Cap
  1. Home
  2. HK
  3. Transportation
Company description

Guangshen Railway Company Limited engages in the railroad passenger and freight transportation business in the People’s Republic of China. The last earnings update was 88 days ago. More info.


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525 Share Price and Events
7 Day Returns
-0.8%
SEHK:525
-0.5%
HK Transportation
0.6%
HK Market
1 Year Returns
-37.1%
SEHK:525
17.5%
HK Transportation
-4.5%
HK Market
525 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Guangshen Railway (525) -0.8% -5.8% -11% -37.1% -30.3% -16.2%
HK Transportation -0.5% 4.3% 10.7% 17.5% 17.5% 67.1%
HK Market 0.6% 0.4% -7% -4.5% 17.8% 1.1%
1 Year Return vs Industry and Market
  • 525 underperformed the Transportation industry which returned 17.5% over the past year.
  • 525 underperformed the Market in Hong Kong which returned -4.5% over the past year.
Price Volatility
525
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Guangshen Railway's competitors could be found in our database.

525 Value

 Is Guangshen Railway undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Guangshen Railway to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Guangshen Railway.

SEHK:525 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:525
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Transportation Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.961 (1 + (1- 25%) (5.27%))
0.999
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.999 * 5.96%)
7.96%

Discounted Cash Flow Calculation for SEHK:525 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Guangshen Railway is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:525 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.96%)
2020 1,267.00 Analyst x1 1,173.58
2021 1,117.00 Analyst x1 958.36
2022 1,025.25 Est @ -8.21% 814.79
2023 972.47 Est @ -5.15% 715.85
2024 943.26 Est @ -3% 643.16
2025 929.10 Est @ -1.5% 586.80
2026 924.92 Est @ -0.45% 541.09
2027 927.56 Est @ 0.29% 502.62
2028 934.99 Est @ 0.8% 469.29
2029 945.85 Est @ 1.16% 439.74
Present value of next 10 years cash flows CN¥6,845.29
SEHK:525 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥945.85 × (1 + 2%) ÷ (7.96% – 2%)
CN¥16,196.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥16,196.29 ÷ (1 + 7.96%)10
CN¥7,529.92
SEHK:525 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥6,845.29 + CN¥7,529.92
CN¥14,375.20
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥14,375.20 / 7,083.54
CN¥2.03
SEHK:525 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:525)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥2.03 x 1.135
HK$2.3
Value per share (HKD) From above. HK$2.30
Current discount Discount to share price of HK$2.58
= -1 x (HK$2.58 - HK$2.30) / HK$2.30
-12%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Guangshen Railway is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Guangshen Railway's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Guangshen Railway's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:525 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.10
SEHK:525 Share Price ** SEHK (2019-07-22) in HKD HK$2.58
SEHK:525 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥2.27
Hong Kong Transportation Industry PE Ratio Median Figure of 6 Publicly-Listed Transportation Companies 21.32x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Guangshen Railway.

SEHK:525 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:525 Share Price ÷ EPS (both in CNY)

= 2.27 ÷ 0.10

22.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guangshen Railway is overvalued based on earnings compared to the HK Transportation industry average.
  • Guangshen Railway is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Guangshen Railway's expected growth come at a high price?
Raw Data
SEHK:525 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
2.6%per year
Asia Transportation Industry PEG Ratio Median Figure of 5 Publicly-Listed Transportation Companies 2.09x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:525 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.13x ÷ 2.6%

8.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guangshen Railway is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Guangshen Railway's assets?
Raw Data
SEHK:525 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥4.13
SEHK:525 Share Price * SEHK (2019-07-22) in HKD HK$2.58
SEHK:525 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥2.27
Hong Kong Transportation Industry PB Ratio Median Figure of 7 Publicly-Listed Transportation Companies 0.98x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:525 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:525 Share Price ÷ Book Value per Share (both in CNY)

= 2.27 ÷ 4.13

0.55x

* Primary Listing of Guangshen Railway.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guangshen Railway is good value based on assets compared to the HK Transportation industry average.
X
Value checks
We assess Guangshen Railway's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Transportation industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Transportation industry average (and greater than 0)? (1 check)
  5. Guangshen Railway has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

525 Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Guangshen Railway expected to grow at an attractive rate?
  • Guangshen Railway's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Guangshen Railway's earnings growth is positive but not above the Hong Kong market average.
  • Guangshen Railway's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:525 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:525 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 2.6%
SEHK:525 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 4.4%
Hong Kong Transportation Industry Earnings Growth Rate Market Cap Weighted Average 0.1%
Asia Transportation Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:525 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:525 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 22,743 2,167 1,301 5
2020-12-31 22,255 3,286 1,308 7
2019-12-31 20,906 3,108 1,485 3
SEHK:525 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 20,068 2,728 728
2018-12-31 19,828 3,261 784
2018-09-30 19,746 3,033 1,091
2018-06-30 19,447 2,847 1,161
2018-03-31 18,899 2,405 1,179
2017-12-31 18,331 2,635 1,015
2017-09-30 17,782 2,601 957
2017-06-30 17,614 2,209 985
2017-03-31 17,578 2,517 1,114
2016-12-31 17,281 1,641 1,158
2016-09-30 17,072 1,639 1,277
2016-06-30 16,429 1,821 1,288

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Guangshen Railway's earnings are expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
  • Guangshen Railway's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:525 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Guangshen Railway Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:525 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.19 0.25 0.16 5.00
2020-12-31 0.18 0.28 0.11 8.00
2019-12-31 0.22 0.29 0.17 5.00
SEHK:525 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.10
2018-12-31 0.11
2018-09-30 0.15
2018-06-30 0.16
2018-03-31 0.17
2017-12-31 0.14
2017-09-30 0.13
2017-06-30 0.14
2017-03-31 0.16
2016-12-31 0.16
2016-09-30 0.18
2016-06-30 0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Guangshen Railway is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Guangshen Railway's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Guangshen Railway has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

525 Past Performance

  How has Guangshen Railway performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Guangshen Railway's growth in the last year to its industry (Transportation).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Guangshen Railway's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Guangshen Railway's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Guangshen Railway's 1-year earnings growth is negative, it can't be compared to the HK Transportation industry average.
Earnings and Revenue History
Guangshen Railway's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Guangshen Railway Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:525 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 20,067.53 728.34 327.13
2018-12-31 19,828.02 784.06 296.78
2018-09-30 19,745.68 1,090.65 307.27
2018-06-30 19,447.21 1,160.73 296.43
2018-03-31 18,898.63 1,178.91 263.70
2017-12-31 18,331.42 1,015.36 272.02
2017-09-30 17,781.95 957.30 271.19
2017-06-30 17,613.88 985.15 274.30
2017-03-31 17,578.08 1,114.16 280.80
2016-12-31 17,280.50 1,158.25 271.50
2016-09-30 17,071.79 1,277.44 257.50
2016-06-30 16,428.68 1,287.91 255.85
2016-03-31 16,058.27 1,135.14 256.86
2015-12-31 15,725.31 1,070.82 263.86
2015-09-30 15,080.68 895.06 292.85
2015-06-30 15,007.88 798.04 306.50
2015-03-31 14,965.99 827.12 78.01
2014-12-31 14,800.78 662.02 311.70
2014-09-30 15,201.08 943.04 527.91
2014-06-30 15,342.62 953.48 757.30
2014-03-31 15,604.04 1,102.41 1,174.38
2013-12-31 15,800.68 1,273.84 1,140.50
2013-09-30 15,571.48 1,219.29 1,127.61
2013-06-30 15,706.88 1,289.56 1,111.88
2013-03-31 15,340.20 1,285.31 1,113.51
2012-12-31 15,091.89 1,318.94 1,096.59
2012-09-30 14,983.59 1,392.74 1,083.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Guangshen Railway has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Guangshen Railway used its assets less efficiently than the HK Transportation industry average last year based on Return on Assets.
  • Guangshen Railway's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Guangshen Railway's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Transportation industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Guangshen Railway has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

525 Health

 How is Guangshen Railway's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Guangshen Railway's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Guangshen Railway is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Guangshen Railway's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Guangshen Railway's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Guangshen Railway has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Guangshen Railway Company Filings, last reported 3 months ago.

SEHK:525 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 29,204.82 0.00 1,548.44
2018-12-31 28,816.33 0.00 1,847.75
2018-09-30 28,997.40 0.00 1,861.60
2018-06-30 28,692.31 0.00 2,081.34
2018-03-31 29,052.05 0.00 1,394.05
2017-12-31 28,657.08 0.00 1,268.51
2017-09-30 28,349.60 0.00 1,553.84
2017-06-30 27,969.59 0.00 1,556.06
2017-03-31 28,311.49 0.00 1,910.73
2016-12-31 28,030.05 0.00 1,512.71
2016-09-30 27,962.56 0.00 1,588.05
2016-06-30 27,557.25 0.00 1,980.01
2016-03-31 27,769.57 0.00 1,797.45
2015-12-31 27,444.26 0.00 2,368.75
2015-09-30 27,257.96 0.00 2,145.55
2015-06-30 26,843.83 0.00 2,140.38
2015-03-31 27,048.70 0.00 2,010.83
2014-12-31 26,786.46 0.00 1,802.92
2014-09-30 26,776.61 3,498.18 5,304.32
2014-06-30 26,456.34 3,496.36 5,053.57
2014-03-31 26,791.47 3,494.54 5,113.00
2013-12-31 26,694.36 3,492.72 4,923.81
2013-09-30 26,407.61 3,490.91 5,162.03
2013-06-30 26,076.98 3,489.10 5,126.10
2013-03-31 26,264.15 3,487.28 5,085.76
2012-12-31 25,996.04 3,485.47 4,868.65
2012-09-30 25,757.78 3,483.75 5,460.26
  • Guangshen Railway has no debt.
  • Guangshen Railway has no debt compared to 5 years ago when it was 13%.
  • Guangshen Railway has no debt, it does not need to be covered by operating cash flow.
  • Guangshen Railway has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Guangshen Railway's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Guangshen Railway has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

525 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.64%
Current annual income from Guangshen Railway dividends. Estimated to be 4.22% next year.
If you bought HK$2,000 of Guangshen Railway shares you are expected to receive HK$53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Guangshen Railway's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Guangshen Railway's dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:525 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Hong Kong Transportation Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:525 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.10 6.00
2020-12-31 0.09 8.00
2019-12-31 0.11 3.00
SEHK:525 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-05-06 0.060 2.530
2018-06-06 0.080 2.779
2017-04-26 0.080 2.120
2016-07-18 0.080 2.078
2015-05-28 0.050 1.640
2014-05-29 0.080 2.870
2013-05-23 0.080 2.905
2012-05-22 0.100 4.351
2011-06-16 0.090 3.899
2010-08-25 0.080 3.067
2010-04-22 0.080 3.322
2009-06-26 0.080 2.772
2008-08-28 0.080 3.105

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Guangshen Railway's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Guangshen Railway's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Guangshen Railway afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Guangshen Railway has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

525 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lingling Hu
COMPENSATION CN¥471,000
AGE 56
TENURE AS CEO 3.6 years
CEO Bio

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 department of Guangshen Railway Company Ltd.'s Parent Company. Mr. Hu is an engineer and graduated from Changsha Railway Institute. Mr. Hu has served as the deputy chief engineer and the deputy stationmaster of Shaoguan Railway station of Yangcheng Railway Company and the deputy chief engineer and the deputy general manager of Yangcheng Railway Company.

CEO Compensation
  • Lingling's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Lingling's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Guangshen Railway management team in years:

4.1
Average Tenure
54
Average Age
  • The tenure for the Guangshen Railway management team is about average.
Management Team

Yong Wu

TITLE
Chairman of the Board
AGE
56
TENURE
4.6 yrs

Lingling Hu

TITLE
GM & Executive Director
COMPENSATION
CN¥471K
AGE
56
TENURE
3.6 yrs

Xiangdong Tang

TITLE
Chief Accountant
COMPENSATION
CN¥379K
AGE
51
TENURE
10.6 yrs

Xiangdong Guo

TITLE
Deputy GM & Company Secretary
COMPENSATION
CN¥381K
AGE
54
TENURE
8.6 yrs

Jiancheng Luo

TITLE
Deputy General Manager
COMPENSATION
CN¥377K
AGE
46
TENURE
2.6 yrs

Qing Luo

TITLE
Executive Director
COMPENSATION
CN¥379K
AGE
55

Yuwen Gong

TITLE
Senior Executive Officer
COMPENSATION
CN¥291K
AGE
53
TENURE
1.3 yrs

Wensheng Lin

TITLE
Chief of Finance Department
Board of Directors Tenure

Average tenure and age of the Guangshen Railway board of directors in years:

5.2
Average Tenure
56
Average Age
  • The tenure for the Guangshen Railway board of directors is about average.
Board of Directors

Yong Wu

TITLE
Chairman of the Board
AGE
56
TENURE
4.6 yrs

Lingling Hu

TITLE
GM & Executive Director
COMPENSATION
CN¥471K
AGE
56
TENURE
3.2 yrs

Qing Luo

TITLE
Executive Director
COMPENSATION
CN¥379K
AGE
55
TENURE
10.1 yrs

Song Chen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥112K
AGE
46
TENURE
5.2 yrs

Mengshu Liu

TITLE
Chairman of the Supervisory Committee
AGE
56

Zhiming Yu

TITLE
Non-Executive Director
AGE
60
TENURE
11.1 yrs

Jianmin Jia

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥142K
AGE
62
TENURE
5.2 yrs

Yunting Wang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥112K
AGE
61
TENURE
5.2 yrs

Xiaomei Chen

TITLE
Non-Executive Director
AGE
47
TENURE
1.1 yrs

Ji’an Guo

TITLE
Non-Executive Director
AGE
47
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
06. Jul 19 Buy Kopernik Global Investors, LLC Company 04. Jul 19 04. Jul 19 500,000 HK$2.65 HK$1,324,849
15. May 19 Sell BlackRock, Inc. Company 10. May 19 10. May 19 -708,000 HK$2.72 HK$-1,928,098
05. Apr 19 Sell BlackRock, Inc. Company 02. Apr 19 02. Apr 19 -634,000 HK$3.07 HK$-1,947,648
21. Mar 19 Buy FIL Limited Company 18. Mar 19 18. Mar 19 2,618,000 HK$3.23 HK$8,456,139
17. Jan 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 14. Jan 19 14. Jan 19 -32,274,000 HK$3.01 HK$-97,251,165
17. Jan 19 Sell BlackRock, Inc. Company 14. Jan 19 14. Jan 19 -111,974,098 HK$2.95 HK$-327,386,361
16. Jan 19 Sell BlackRock, Inc. Company 11. Jan 19 11. Jan 19 -1,546,000 HK$3.00 HK$-4,644,186
15. Jan 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 10. Jan 19 10. Jan 19 57,576,000 HK$2.90 HK$167,183,518
29. Dec 18 Sell BlackRock, Inc. Company 27. Dec 18 27. Dec 18 -3,514,000 HK$2.94 HK$-10,331,153
15. Dec 18 Sell BlackRock, Inc. Company 12. Dec 18 12. Dec 18 -11,102,000 HK$3.01 HK$-33,465,829
15. Dec 18 Buy BlackRock, Inc. Company 12. Dec 18 12. Dec 18 10,534,000 HK$2.99 HK$31,528,264
12. Dec 18 Buy Kopernik Global Investors, LLC Company 10. Dec 18 10. Dec 18 10,280,000 HK$2.99 HK$30,737,170
27. Oct 18 Sell BlackRock, Inc. Company 24. Oct 18 24. Oct 18 -244,000 HK$3.13 HK$-763,720
26. Oct 18 Buy Kopernik Global Investors, LLC Company 24. Oct 18 24. Oct 18 6,326,000 HK$3.02 HK$19,136,140
03. Oct 18 Buy Kopernik Global Investors, LLC Company 24. Sep 18 24. Sep 18 8,366,000 HK$3.43 HK$28,665,265
26. Sep 18 Sell BlackRock, Inc. Company 21. Sep 18 21. Sep 18 -3,156,000 HK$3.36 HK$-10,608,252
X
Management checks
We assess Guangshen Railway's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Guangshen Railway has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

525 News

Simply Wall St News

Why You Should Care About Guangshen Railway Company Limited’s (HKG:525) Low Return On Capital

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Guangshen Railway: 0.036 = CN¥1.1b ÷ (CN¥36b - CN¥5.9b) (Based on the trailing twelve months to March 2019.) So, Guangshen Railway has an ROCE of 3.6%. … What Are Current Liabilities, And How Do They Affect Guangshen Railway's ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Here's What Guangshen Railway Company Limited's (HKG:525) P/E Is Telling Us

The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Guangshen Railway: P/E of 23.57 = CN¥2.42 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.10 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … Guangshen Railway saw earnings per share decrease by 38% last year. … SEHK:525 Price Estimation Relative to Market, June 3rd 2019 Its relatively high P/E ratio indicates that Guangshen Railway shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

What Type Of Shareholder Owns Guangshen Railway Company Limited's (HKG:525)?

Insider Ownership Of Guangshen Railway While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … Shareholders would probably be interested to learn that insiders own shares in Guangshen Railway Company Limited. … Private Company Ownership We can see that Private Companies own 38%, of the shares on issue.

Simply Wall St -

How Much Of Guangshen Railway Company Limited (HKG:525) Do Institutions Own?

The big shareholder groups in Guangshen Railway Company Limited (HKG:525) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St -

Guangshen Railway Company Limited (HKG:525): What We Can Expect From This Growth Stock

Looking at Guangshen Railway Company Limited's (HKG:525) earnings update on 31 December 2018, … with earnings expected to grow by a high double-digit of 86% in the upcoming year,

Simply Wall St -

How Guangshen Railway Company Limited (HKG:525) Can Impact Your Portfolio Volatility

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Did Changing Sentiment Drive Guangshen Railway's (HKG:525) Share Price Down By 35%?

Investors in Guangshen Railway Company Limited (HKG:525) have tasted that bitter downside in the last year, as the share price dropped 35%. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During the unfortunate twelve months during which the Guangshen Railway share price fell, it actually saw its earnings per share (EPS) improve by 15%.

Simply Wall St -

Is Guangshen Railway Company Limited (HKG:525) Potentially Undervalued?

Guangshen Railway Company Limited (HKG:525), which is in the transportation business, and is based in China,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Guangshen Railway’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Is Guangshen Railway Company Limited (HKG:525) Better Than Average At Deploying Capital?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Guangshen Railway Company Limited's (HKG:525) High P/E Ratio A Problem For Investors?

We'll look at Guangshen Railway Company Limited's (HKG:525) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 18.97 = CN¥2.93 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.15

Simply Wall St -

525 Company Info

Description

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 operation of Guangzhou-Shenzhen inter-city express trains, long-distance trains, and Guangzhou-Hong Kong city through trains. Its freight transportation services comprise the transportation of full load and single load cargo, containers, bulky and heavy cargo, dangerous cargo, fresh and live cargo, and oversized cargo. The company also provides railway network usage services; and other transportation-related services, such as railway operation, locomotive and passenger car leasing, passenger service, and luggage transportation services, as well as sells food, beverages, and merchandise on board the trains and in railway stations. In addition, it is involved in train repair, on-board catering, materials and supplies sale, goods sale, cargo loading and unloading, and other businesses related to railway transportation. Further, the company offers warehousing, hotel management, and real estate construction services. As of December 31, 2018, it operated 252 pairs of passenger trains on a daily basis, including 109 pairs of intercity high-speed passenger trains between Guangzhou and Shenzhen, 13 pairs of Hong Kong Through Trains, and 130 pairs of long-distance trains. The company was founded in 1996 and is based in Shenzhen, the People’s Republic of China.

Details
Name: Guangshen Railway Company Limited
525
Exchange: SEHK
Founded: 1996
HK$24,087,585,339
7,083,537,000
Website: http://www.gsrc.com
Address: Guangshen Railway Company Limited
No. 1052, Heping Road,
Shenzhen,
Guangdong Province, 518010,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 525 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 16. May 1996
OTCPK GNGY.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 16. May 1996
DB GRCH Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 16. May 1996
SHSC 525 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 16. May 1996
SZSC 525 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 16. May 1996
NYSE GSH ADR EACH REPR 50 ORD'H'SHS CNY1 New York Stock Exchange US USD 13. May 1996
SHSE 601333 Domestic Shares Shanghai Stock Exchange CN CNY 22. Dec 2006
DB GRC ADR EACH REPR 50 ORD'H'SHS CNY1 Deutsche Boerse AG DE EUR 13. May 1996
XSSC 601333 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 22. Dec 2006
Number of employees
Current staff
Staff numbers
42,738
Guangshen Railway employees.
Industry
Railroads
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 12:38
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/04
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.