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

3.3%

SEHK:525

5.8%

HK Transportation

3.3%

HK Market


1 Year Return

-30.6%

SEHK:525

14.1%

HK Transportation

-10.5%

HK Market

525 underperformed the Transportation industry which returned 14.1% over the past year.

525 underperformed the Market in Hong Kong which returned -9.5% over the past year.


Share holder returns

525IndustryMarket
7 Day3.3%5.8%3.3%
30 Day-2.3%-9.1%-8.0%
90 Day-7.0%-0.8%-5.9%
1 Year-28.8%-30.6%17.0%14.1%-7.2%-10.5%
3 Year-29.8%-34.5%19.5%7.6%15.1%3.7%
5 Year-11.4%-20.5%80.3%44.7%9.0%-9.0%

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 based on future cash flows and its price relative to the stock market?

22.04x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Guangshen Railway's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Guangshen Railway's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Guangshen Railway earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Guangshen Railway is good value based on assets compared to the HK Transportation industry average.


Next Steps

Future Growth

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

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Guangshen Railway's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Guangshen Railway's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Guangshen Railway's revenue growth is positive but not above the Hong Kong market average.

Guangshen Railway's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Guangshen Railway's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Guangshen Railway is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Guangshen Railway performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Guangshen Railway has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Guangshen Railway used its assets less efficiently than the HK Transportation industry average last year based on Return on Assets.


Return on Capital Employed

Guangshen Railway's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Guangshen Railway's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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.


Balance Sheet

High level of physical assets or inventory.

Guangshen Railway has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

4.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Guangshen Railway's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Guangshen Railway's dividend is below the markets top 25% of dividend payers in Hong Kong (6.19%).

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

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Lingling Hu (56yo)

3.7yrs

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

Lingling's remuneration is lower than average for companies of similar size in Hong Kong.

Lingling's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

54yo

Average Age

The tenure for the Guangshen Railway management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

56yo

Average Age

The tenure for the Guangshen Railway board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCN¥1,324,84906 Jul 19
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Ownership Breakdown


Management Team

  • Lingling Hu (56yo)

    GM & Executive Director

    • Tenure: 3.7yrs
    • Compensation: CN¥471.00k
  • Xiangdong Guo (54yo)

    Deputy GM & Company Secretary

    • Tenure: 8.7yrs
    • Compensation: CN¥381.00k
  • Jiancheng Luo (46yo)

    Deputy General Manager

    • Tenure: 2.7yrs
    • Compensation: CN¥377.00k
  • Xiangdong Tang (51yo)

    Chief Accountant

    • Tenure: 10.7yrs
    • Compensation: CN¥379.00k
  • Qing Luo (55yo)

    Executive Director

    • Tenure: 10.2yrs
    • Compensation: CN¥379.00k
  • Wensheng Lin

    Chief of Finance Department

    • Tenure: 0.0yrs
  • Yong Wu (56yo)

    Chairman of the Board

    • Tenure: 4.7yrs
  • Yuwen Gong (53yo)

    Senior Executive Officer

    • Tenure: 1.3yrs
    • Compensation: CN¥291.00k

Board Members

  • Lingling Hu (56yo)

    GM & Executive Director

    • Tenure: 3.7yrs
    • Compensation: CN¥471.00k
  • Zhiming Yu (60yo)

    Non-Executive Director

    • Tenure: 11.2yrs
  • Qing Luo (55yo)

    Executive Director

    • Tenure: 10.2yrs
    • Compensation: CN¥379.00k
  • Song Chen (46yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥112.00k
  • Jianmin Jia (62yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥142.00k
  • Yunting Wang (61yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥112.00k
  • Mengshu Liu (56yo)

    Chairman of the Supervisory Committee

    • Tenure: 0.0yrs
  • Yong Wu (56yo)

    Chairman of the Board

    • Tenure: 4.7yrs
  • Xiaomei Chen (47yo)

    Non-Executive Director

    • Tenure: 1.2yrs
  • Ji’an Guo (47yo)

    Non-Executive Director

    • Tenure: 1.2yrs

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$23.589b
  • 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 Analysis2019/08/20 12:39
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
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.