SEHK:525

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and fair value.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

525

-7.7%

HK Transportation

-0.8%

HK Market


1 Year Return

-36.2%

525

-29.8%

HK Transportation

-0.8%

HK Market

Return vs Industry: 525 underperformed the Hong Kong Transportation industry which returned -29% over the past year.

Return vs Market: 525 underperformed the Hong Kong Market which returned -1% over the past year.


Shareholder returns

525IndustryMarket
7 Day0%-7.7%-0.8%
30 Day9.9%-2.7%9.0%
90 Day1.2%-7.8%11.8%
1 Year-33.2%-36.2%-27.7%-29.8%3.2%-0.8%
3 Year-53.8%-57.9%-14.4%-21.0%7.4%-4.2%
5 Year-51.8%-58.2%8.2%-10.8%9.6%-8.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 525 (HK$1.66) is trading below our estimate of fair value (HK$8.17)

Significantly Below Fair Value: 525 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 525 is unprofitable, so we can't compare its PE Ratio to the XA 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 (0.4x) compared to the HK Transportation industry average (0.6x).


Next Steps

Future Growth

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

77.6%

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 (1.6%).

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 (10.1% per year) is forecast to grow slower than the Hong Kong market (10.9% per year).

High Growth Revenue: 525's revenue (10.1% 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 (3%).


Next Steps

Past Performance

How has Guangshen Railway performed over the past 5 years?

-9.9%

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 -9.9% 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 (-6.5%).


Return on Equity

High ROE: 525 has a negative Return on Equity (-0.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Guangshen Railway's financial position?


Financial Position Analysis

Short Term Liabilities: 525's short term assets (CN¥6.4B) exceed its short term liabilities (CN¥6.3B).

Long Term Liabilities: 525's short term assets (CN¥6.4B) exceed its long term liabilities (CN¥1.3B).


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


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 525's dividend (4%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.3%).

High Dividend: 525's dividend (4%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.79%).


Stability and Growth of Payments

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: 525 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 525's dividends in 3 years are forecast to be covered by earnings (51.4% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Lingling Hu (57yo)

4.58yrs

Tenure

CN¥553,000

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 ($USD79.00K) is below average for companies of similar size in the Hong Kong market ($USD493.49K).

Compensation vs Earnings: Lingling's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Yong Wu
Executive Chairman of the Board5.58yrsno datano data
Lingling Hu
GM & Executive Director4.58yrsCN¥553.00kno data
Xinpeng Luo
Chief Accountant0.75yrCN¥497.84kno data
Xiangdong Guo
Deputy GM & Executive Director0.58yrCN¥448.00k0.0011% CN¥201.9k
Jiancheng Luo
Deputy General Manager3.58yrsCN¥441.00kno data
Xiangdong Tang
Deputy GM0.58yrCN¥444.00kno data
Yuwen Gong
Senior Executive Officer2.25yrsCN¥446.00kno data
Qiyi Liu
Chief of Finance Departmentno datano datano data

2.9yrs

Average Tenure

55yo

Average Age

Experienced Management: 525's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yong Wu
Executive Chairman of the Board5.58yrsno datano data
Lingling Hu
GM & Executive Director4.58yrsCN¥553.00kno data
Xiangdong Guo
Deputy GM & Executive Director0.58yrCN¥448.00k0.0011% CN¥201.9k
Si-Hang Ma
Independent Non-Executive Director0.083yrno datano data
Shaohong Chen
Shareholder Representative Supervisor12.08yrsno datano data
Wensheng Lin
Employee Representative Supervisor0.083yrno datano data
Mengshu Liu
Chairman of the Supervisory Committeeno datano datano data
Jiming Guo
Non-Executive Director0.58yrno datano data
Zhe Zhang
Non-Executive Director0.58yrno datano data
Bin Wang
Non-Executive Director0.083yrno datano data
Xiaofan Tang
Independent Non-Executive Director0.083yrno datano data
Zilong Qiu
Independent Non-Executive Director0.083yrno datano data

0.6yrs

Average Tenure

54yo

Average Age

Experienced Board: 525's board of directors are not considered experienced ( 0.6 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$17.868b
  • 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 railway 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 goods, perishable goods, 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, 2019, it operated 246.5 pairs of passenger trains on a daily basis, including 105 pairs of Guangzhou-Shenzhen inter-city trains, 10 pairs of Hong Kong through Trains, and 131.5 pairs of long-distance trains. The company was founded in 1996 and is based in Shenzhen, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 12:39
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.