Declared Dividend • Jun 05
Dividend of CN¥0.24 announced Shareholders will receive a dividend of CN¥0.24. Ex-date: 3rd July 2026 Payment date: 28th August 2026 Dividend yield will be 3.6%, which is lower than the industry average of 6.5%. Sustainability & Growth Dividend is covered by both earnings (57% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 13% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 04
Shenzhen Expressway Corporation Limited, Annual General Meeting, Jun 26, 2026 Shenzhen Expressway Corporation Limited, Annual General Meeting, Jun 26, 2026, at 10:00 China Standard Time. Location: conference room of the company on 46th floor, hanking center tower, no. 9968 shennan avenue, nanshan district, shenzhen China Reported Earnings • Apr 30
First quarter 2026 earnings released: EPS: CN¥0.19 (vs CN¥0.20 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.19. Revenue: CN¥1.76b (flat on 1Q 2025). Net income: CN¥509.3m (up 6.5% from 1Q 2025). Profit margin: 29% (up from 27% in 1Q 2025). Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Infrastructure industry in Hong Kong. Major Estimate Revision • Apr 01
Consensus revenue estimates fall by 15% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from CN¥13.2b to CN¥11.2b. EPS estimate fell from CN¥0.68 to CN¥0.65 per share. Net income forecast to grow 55% next year vs 6.3% growth forecast for Infrastructure industry in Hong Kong. Consensus price target down from HK$9.44 to HK$8.50. Share price fell 3.6% to HK$7.73 over the past week. Announcement • Mar 30
Shenzhen Expressway Corporation Limited to Report Q1, 2026 Results on Apr 29, 2026 Shenzhen Expressway Corporation Limited announced that they will report Q1, 2026 results on Apr 29, 2026 Reported Earnings • Mar 26
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.43. Revenue: CN¥9.26b (flat on FY 2024). Net income: CN¥1.15b (flat on FY 2024). Profit margin: 12% (in line with FY 2024). Revenue missed analyst estimates by 24%. Earnings per share (EPS) also missed analyst estimates by 33%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 4.5% growth forecast for the Infrastructure industry in Hong Kong. New Risk • Mar 26
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Shareholders have been diluted in the past year (16% increase in shares outstanding). Announcement • Dec 26
Shenzhen Expressway Corporation Limited to Report Fiscal Year 2025 Results on Mar 26, 2026 Shenzhen Expressway Corporation Limited announced that they will report fiscal year 2025 results on Mar 26, 2026 Announcement • Dec 18
Shenzhen Expressway Corporation Limited Announces Board and Committee Changes, Effective 17 December 2025 The Board of Shenzhen Expressway Corporation Limited at the EGM held on 17 December 2025, Ms. Jin Zhen Yuan was appointed as an executive Director of the ninth session of the Board, and Mr. Hou Sheng Hai was appointed as a non-executive Director of the ninth session of the Board, the term of each of the above Directors commenced on 17 December 2025 until the expiry date of the ninth session of the Board of the Company. Ms. Jin Zhen Yuan, born in 1971, is a senior accountant, a PRC certified public accountant (non-practicing), and holder of master's degree in accounting. Ms. Jin possesses extensive experience in financial and audit management. She had served as director and financial controller of Shenzhen Tongchan Group Co. Ltd., director and financial controller of Shenzhen Textile (Holdings) Co. Ltd. From 2016 to 2021, Ms. Jin had served as director and financial controller of Shenzhen Cereals Holdings Co. Ltd. From 2021 to 2025, she had served as chief financial officer of Shenzhen Technology Institute of Urban Public Safety Co. Ltd. Ms. Jin has been the financial controller of the Company since November 2025. She had also concurrently held positions such as director of Shenzhen Leaguer Science & Technology Co. Ltd.; director and financial controller of Shenzhen Wuzhou International Hotel Management Group Co., Ltd; and supervisor of Shenzhen State-owned Duty-Free Commodity (Group) Co. Ltd. etc. Mr. Hou Sheng Hai, born in 1973, holds a master's degree in architecture and civil engineering. He has extensive experience in engineering construction management, corporate management, and administrative management. Mr. Hou had served as director and vice chairman of Shenzhen Airlines Co. Ltd., as well as held various managerial positions at various levels in the State-owned Assets Supervision and Administration Commission of the Shenzhen Municipal People's Government. Mr. Hou joined Shenzhen International Holdings Limited in February 2016 and had successively served as general manager of the administration department and the chief administrative officer. He has served as the vice president of Shenzhen International Holdings Limited since March 2021. Change in Composition of Specialised Committee of the Board: The Board has also approved the following changes to the specialised committee of the Board with effect on 17 December 2025: (1) The Strategy Committee be renamed as "Strategy and Investment Committee" to better reflect the function of this committee, and Mr. Hou Sheng Hai and Mr. Chen Yun Jiang be appointed as members of this committee, while Mr. Li Fei Long shall cease to be a member of this committee; (2) Ms. Wu Yan Ling be appointed as a member of this committee; (3) Mr. Yan Yan be appointed as the chairman of this committee while Ms. Jin Zhen Yuan be appointed as a member of this committee, and Mr. Li Fei Long shall cease to be the chairman or a member of the Remuneration and Appraisal Committee; (4) Ms. Jin Zhen Yuan be appointed as a member of the Nomination Committee while Mr. Yao Hai shall cease to be a member of this committee; and (5) Mr. Yao Hai and Ms. Jin Zhen Yuan be appointed as members of the Risk Management Committee. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.19 (vs CN¥0.26 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.19 (down from CN¥0.26 in 3Q 2024). Revenue: CN¥2.13b (up 1.3% from 3Q 2024). Net income: CN¥510.4m (down 15% from 3Q 2024). Profit margin: 24% (down from 28% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. New Risk • Oct 31
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 8.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Earnings are forecast to decline by an average of 8.7% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (14% net profit margin). Shareholders have been diluted in the past year (16% increase in shares outstanding). Announcement • Sep 30
Shenzhen Expressway Corporation Limited to Report Q3, 2025 Results on Oct 31, 2025 Shenzhen Expressway Corporation Limited announced that they will report Q3, 2025 results on Oct 31, 2025 Major Estimate Revision • Aug 29
Consensus revenue estimates increase by 14% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from CN¥10.7b to CN¥12.2b. EPS estimate unchanged from CN¥0.64 at last update. Infrastructure industry in Hong Kong expected to see average net income growth of 7.9% next year. Consensus price target broadly unchanged at HK$9.12. Share price rose 2.9% to HK$7.15 over the past week. Reported Earnings • Aug 23
Second quarter 2025 earnings released: EPS: CN¥0.18 (vs CN¥0.12 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.18 (up from CN¥0.12 in 2Q 2024). Revenue: CN¥2.15b (up 25% from 2Q 2024). Net income: CN¥481.9m (up 59% from 2Q 2024). Profit margin: 22% (up from 18% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Aug 22
Shenzhen Expressway Corporation Limited Announces Resignation of Lam Yuen Ling Eva as Joint Company Secretary The board (the "Board") of directors of Shenzhen Expressway Corporation Limited announced that on 22 August 2025, it has received a letter of resignation from Ms. Lam Yuen Ling Eva ("Ms. Lam"), a joint company secretary of the Company. Ms. Lam ceased to act as the joint company secretary due to her personal work commitment. The resignation of Ms. Lam has become effective immediately after the Board received her resignation letter. Ms. Lam confirmed that there is no disagreement with the Board and there are no matters in relation to her cessation as the joint company secretary of the Company need to be brought to the attention of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the shareholders of the Company. Ms. Zhao Gui Ping ("Ms. Zhao"), the other joint company secretary of the Company, will remain as the company secretary of the Company. The Stock Exchange has agreed that Ms. Zhao is qualified to act as the company secretary of the Company under Rule 3.28 of the Rules Governing the Listing of Securities on the Stock Exchange. Upcoming Dividend • Jun 27
Upcoming dividend of CN¥0.24 per share Eligible shareholders must have bought the stock before 04 July 2025. Payment date: 25 August 2025. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 3.9%. Lower than top quartile of Hong Kong dividend payers (7.3%). Lower than average of industry peers (5.5%). Declared Dividend • Jun 11
Dividend of CN¥0.24 announced Shareholders will receive a dividend of CN¥0.24. Ex-date: 4th July 2025 Payment date: 25th August 2025 Dividend yield will be 3.6%, which is lower than the industry average of 6.5%. Sustainability & Growth Dividend is covered by both earnings (55% earnings payout ratio) and cash flows (54% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 31% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 06
Shenzhen Expressway Corporation Limited, Annual General Meeting, Jun 30, 2025 Shenzhen Expressway Corporation Limited, Annual General Meeting, Jun 30, 2025, at 10:00 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China Reported Earnings • May 01
First quarter 2025 earnings released: EPS: CN¥0.20 (vs CN¥0.20 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.20 (up from CN¥0.20 in 1Q 2024). Revenue: CN¥1.77b (down 13% from 1Q 2024). Net income: CN¥478.0m (up 1.5% from 1Q 2024). Profit margin: 27% (up from 23% in 1Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, while revenues in the Infrastructure industry in Hong Kong are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. New Risk • Apr 11
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (11% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (12% net profit margin). Shareholders have been diluted in the past year (16% increase in shares outstanding). Announcement • Mar 28
Shenzhen Expressway Corporation Limited to Report Q1, 2025 Results on Apr 30, 2025 Shenzhen Expressway Corporation Limited announced that they will report Q1, 2025 results on Apr 30, 2025 New Risk • Mar 22
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 12% Last year net profit margin: 25% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (12% net profit margin). Announcement • Mar 22
Shenzhen Expressway Corporation Limited Proposes Ordinary Final Cash Dividend for the Year Ended 31 December 2024, Payable on 25 August 2025 Shenzhen Expressway Corporation Limited proposed ordinary final cash dividend of RMB 0.244 per share for the year ended 31 December 2024, payable on 25 August 2025. Announcement • Jan 25
Shenzhen Expressway Corporation Limited Provides Earnings Guidance for the Year Ended 31 December 2024 Shenzhen Expressway Corporation Limited provided earnings guidance for the year ended 31 December 2024. Based on Shenzhen Expressway's preliminary assessment of the unaudited consolidated management accounts for the Year and the information currently available to it, Shenzhen Expressway expects that its unaudited net profit attributable to shareholders for the Year will be ranging from approximately RMB 1,164 million to RMB 1,396 million, representing a decrease of approximately RMB 931 million to RMB 1,164 million (or approximately 40% to 50%) as compared to the corresponding period of last year. The reasons for the decline in net profit attributable to shareholders of Shenzhen Expressway for the Year include a substantial decrease in the profit from its associate, Shenzhen International United Land Co. Ltd. (‘United Land Company’), as compared to 2023, as well as factors such as an increase in asset impairment losses and a decrease in operating profit. However, as the wholly-owned subsidiary of the Company has disposed of its equity interest in United Land Company and the Group has recognized the disposal gain in 2021, the profit contributed by United Land Company to Shenzhen Expressway in 2023 was not reflected on the consolidated basis of the Group. Therefore, the impact to Shenzhen Expressway as a result of decrease in profit from United Land Company for the Year has no impact on the Group's overall results. Announcement • Jan 23
Shenzhen Expressway Corporation Limited Announces Retirement of Dai Jing Ming as Non-Executive Director and Member of the Strategy Committee The board of directors of Shenzhen Expressway Corporation Limited announced that on 23 January 2025, the Board received a letter of resignation from Mr. Dai Jing Ming, a non-executive Director. Due to retirement, Mr. Dai resigned from the position as the non-executive Director, and ceased to act as a member of the strategy committee of the Board. The resignation of Mr. Dai has become effective immediately after the Board received his resignation letter. Upon resignation of Mr. Dai, the strategic committee is composed of Mr. Xu En Li (executive director) (chairman of the committee), Mr. Liao Xiang Wen (executive director), Mr. Li Fei Long (independent non-executive director) and Mr. Miao Jun (independent non-executive director). Board Change • Jan 12
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Non-Executive Director Yan Yan was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Jan 09
Shenzhen Expressway Corporation Limited Announces Executive Changes The board of directors of Shenzhen Expressway Corporation Limited received a written resignation submitted by Ms. Li Xiao Yan, a non- executive Director, on 9 January 2025. Ms. Li Xiao Yan resigned as a non-executive Director, a member of the Audit Committee and a member of the Remuneration Committee of the Board due to change of personal career. Ms. Li Xiao Yan's resignation took effect immediately upon her written resignation was delivered to the Board of the Company. Ms. Li Xiao Yan has confirmed that she has no disagreement with the Board or the supervisory committee of the Company and there is no other matter relating to her resignation that needs to be brought to the attention of the Shareholders of the Company or The Stock Exchange of Hong Kong Limited. The Board hereby announces that at the EGM held on 9 January 2025, Mr. Xu En Li was appointed as an executive Director of the ninth session of the Board, Ms. Wu Yan Ling and Ms. Zhang Jian were appointed as non-executive Directors of the ninth session of the Board, the term of each of the above Directors commenced on 9 January 2025 until the expiry date of the ninth session of the Board of the Company. At the fiftieth meeting of the ninth session of the Board held on 9 January 2025, Mr. Xu En Li has been elected as the Chairman of the Company. On 9 January 2025, the Board appointed Mr. Xu En Li as the chairman of the Strategy Committee and a member of the Nomination Committee; appointed Mr. Wen Liang as a member of the Remuneration Committee; and appointed Mr. Xu Hua Xiang as a member of the Nomination Committee. As at the date of this announcement, the changes in the composition of each Specialised Committee of the Board are as follows: the members of the Strategy Committee of the Company have been changed to Mr. Xu En Li (chairman of the committee) (executive Director), Mr. Liao Xiang Wen (executive Director), Mr. Dai Jing Ming (non-executive Director), Mr. Li Fei Long (independent non-executive Director) and Mr. Miao Jun (independent non-executive Director); the members of the Audit Committee of the Company have been changed to Mr. Li Fei Long (chairman of the committee) (independent non-executive Director), Mr. Miao Jun (independent non-executive Director) and Mr. Yan Yan (independent non-executive Director); the members of the Remuneration Committee of the Company have been changed to Mr. Li Fei Long (chairman of the committee) (independent non-executive Director), Mr. Xu Hua Xiang (independent non-executive Director) and Mr. Wen Liang (executive Director); the members of the Nomination Committee of the Company have been changed to Mr. Miao Jun (chairman of the committee) (independent non-executive Director), Mr. Li Fei Long (independent non-executive Director), Mr. Xu Hua Xiang (independent non-executive Director), Mr. Xu En Li (executive Director) and Mr. Yao Hai (executive Director). The biographies and the proposed remunerations of each of Mr. Xu En Li, Ms. Wu Yan Ling and Ms. Zhang Jian were set out in the Circular. As at the date of this announcement, there has been no change of such information. The Board of the Company would like to take this opportunity to warmly welcome the appointment and joining of Mr. Xu En Li, Ms. Wu Yan Ling and Ms. Zhang Jian, and express its sincere gratitude to Ms. Li Xiao Yan for her valuable contributions to the Company during her tenure on the Board. Announcement • Dec 27
Shenzhen Expressway Corporation Limited to Report Fiscal Year 2024 Results on Mar 22, 2025 Shenzhen Expressway Corporation Limited announced that they will report fiscal year 2024 results on Mar 22, 2025 Announcement • Dec 19
Shenzhen Expressway Corporation Limited Announces the Resignation of Lü Da Wei as Non-Executive Director and Change in Composition of Specialised Committee of the Board The board of directors of Shenzhen Expressway Corporation Limited announced that on 19 December 2024, Mr. LÜ Da Wei, a non-executive Director, tendered his written resignation letter to the Company. Due to personal career reason, Mr. LÜ intends to resign as a non-executive Director and a member of the strategic committee of the Board. The resignation of Mr. LÜ has become effective immediately after the Company received his resignation letter. As such, the strategic committee of the Board is composed of Mr. Liao Xiang Wen (temporary chairman) (executive director), Mr. Dai Jing Ming (non-executive director), Mr. Li Fei Long (independent non-executive director) and Mr. Miao Jun (independent non-executive director). Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.26 (vs CN¥0.26 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.26 (down from CN¥0.26 in 3Q 2023). Revenue: CN¥2.10b (down 6.4% from 3Q 2023). Net income: CN¥600.2m (down 1.6% from 3Q 2023). Profit margin: 28% (up from 27% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Shenzhen Expressway Corporation Limited to Report Q3, 2024 Results on Oct 31, 2024 Shenzhen Expressway Corporation Limited announced that they will report Q3, 2024 results on Oct 31, 2024 Major Estimate Revision • Aug 30
Consensus EPS estimates fall by 19% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from CN¥1.04 to CN¥0.838 per share. Revenue forecast steady at CN¥9.63b. Net income forecast to grow 13% next year vs 7.4% growth forecast for Infrastructure industry in Hong Kong. Consensus price target down from HK$8.76 to HK$8.26. Share price fell 14% to HK$6.72 over the past week. Reported Earnings • Aug 28
Second quarter 2024 earnings released: EPS: CN¥0.12 (vs CN¥0.20 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.12 (down from CN¥0.20 in 2Q 2023). Revenue: CN¥1.72b (down 23% from 2Q 2023). Net income: CN¥302.9m (down 38% from 2Q 2023). Profit margin: 18% (down from 22% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Aug 05
Now 21% undervalued Over the last 90 days, the stock has risen 5.0% to HK$7.62. The fair value is estimated to be HK$9.67, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.0% over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 22% in the next 2 years. Announcement • Jun 28
Shenzhen Expressway Corporation Limited to Report First Half, 2024 Results on Aug 24, 2024 Shenzhen Expressway Corporation Limited announced that they will report first half, 2024 results on Aug 24, 2024 Upcoming Dividend • Jun 21
Upcoming dividend of CN¥0.55 per share Eligible shareholders must have bought the stock before 28 June 2024. Payment date: 19 July 2024. Payout ratio is a comfortable 55% but the company is paying out more than the cash it is generating. Trailing yield: 7.5%. Lower than top quartile of Hong Kong dividend payers (7.8%). Higher than average of industry peers (5.9%). Announcement • Jun 05
Shenzhen Expressway Corporation Limited, Annual General Meeting, Jun 25, 2024 Shenzhen Expressway Corporation Limited, Annual General Meeting, Jun 25, 2024, at 10:00 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.18 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.20 (up from CN¥0.18 in 1Q 2023). Revenue: CN¥2.04b (up 7.1% from 1Q 2023). Net income: CN¥471.0m (up 6.4% from 1Q 2023). Profit margin: 23% (in line with 1Q 2023). Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Mar 29
Shenzhen Expressway Corporation Limited to Report Q1, 2024 Results on Apr 27, 2024 Shenzhen Expressway Corporation Limited announced that they will report Q1, 2024 results on Apr 27, 2024 Major Estimate Revision • Mar 29
Consensus revenue estimates fall by 16% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥11.4b to CN¥9.61b. EPS estimate fell from CN¥1.20 to CN¥1.06 per share. Net income forecast to grow 4.9% next year vs 8.3% growth forecast for Infrastructure industry in Hong Kong. Consensus price target down from HK$8.78 to HK$8.54. Share price rose 2.1% to HK$6.84 over the past week. Reported Earnings • Mar 24
Full year 2023 earnings released: EPS: CN¥0.98 (vs CN¥0.84 in FY 2022) Full year 2023 results: EPS: CN¥0.98 (up from CN¥0.84 in FY 2022). Revenue: CN¥9.30b (flat on FY 2022). Net income: CN¥2.33b (up 16% from FY 2022). Profit margin: 25% (up from 22% in FY 2022). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Feb 20
Shenzhen Expressway Corporation Limited Announces Management Changes Shenzhen Expressway Corporation Limited announced The Board of the Company received a written resignation submitted by Mr. Wang Zeng Jin, an executive Director, on 20 February 2024. Mr. Wang Zeng Jin resigned as an executive Director of the Company and a member of the Risk Management Committee of the Board due to his change of career. Mr. Wang Zeng Jin's resignation took effect immediately upon delivery to the Board of the Company. The Board announced that at the EGM held on 20 February 2024, Mr. Yao Hai was appointed as an executive Director of the ninth session of the Board, Mr. Yan Yan was appointed as an independent non-executive Director of the ninth session of the Board, the term of both of the Directors commenced on 20 February 2024 until the expiry date of the ninth session of the Board of the Company. Mr. Bai Hua's resignation took effect from 20 February 2024, and he has resigned as an independent non-executive Director, the chairman of the Audit Committee, a member of the Remuneration Committee and a member of the Nomination Committee of the Board of the Company. On 20 February 2024, the Board appointed Mr. Yao Hai as a member of the Nomination Committee, Mr. Lü Da Wei as a member of the Strategy Committee, Mr. Li Fei Long as the chairman of the Audit Committee and a member of the Nomination Committee (redesignated from his position as the chairman of the Nomination Committee), Mr. Miao Jun as the chairman of the Nomination Committee, and Mr. Yan Yan as a member of the Audit Committee and the Risk Management Committee. As at the date of this announcement, the Strategy Committee of the Company is composed of Mr. Liao Xiang Wen (temporarily chaired) (executive Director), Mr. Dai Jing Ming (non-executive Director), Mr. Lü Da Wei (non-executive Director), Mr. Li Fei Long (independent non-executive Director) and Mr. Miao Jun (independent non-executive Director); the Audit Committee of the Company is composed of Mr. Li Fei Long (chairman of committee) (independent non-executive Director), Mr. Miao Jun (independent non-executive Director), Mr. Yan Yan (independent non- executive Director) and Ms. Li Xiao Yan (non-executive Director); the Remuneration Committee of the Company is composed of Mr. Li Fei Long (chairman of committee) (independent non- executive Director), Mr. Xu Hua Xiang (independent non-executive Director) and Ms. Li Xiao Yan (non-executive Director); the Nomination Committee of the Company is composed of Mr. Miao Jun (chairman of committee) (independent non-executive Director), Mr. Li Fei Long (independent non-executive Director) and Mr. Yao Hai (executive Director); the Risk Management Committee of the Company is composed of Mr. Xu Hua Xiang (chairman of committee) (Independent non-executive Director), Mr. Liao Xiang Wen (executive Director), Mr. Wen Liang (executive Director) and Mr. Yan Yan (independent non-executive Director). Announcement • Dec 30
Shenzhen Expressway Corporation Limited to Report Fiscal Year 2023 Results on Mar 23, 2024 Shenzhen Expressway Corporation Limited announced that they will report fiscal year 2023 results on Mar 23, 2024 Announcement • Dec 22
Shenzhen Expressway Corporation Limited Announces Resignation of Bai Hua as Independent Non-Executive Director Shenzhen Expressway Corporation Limited announced that on 22 December 2023, Mr. Bai Hua ("Mr. Bai"), an independent non-executive Director (the "Independent Director") tendered his written resignation letter to the Company. Due to personal career reason, Mr. Bai intends to resign as an Independent Director, as well as his positions as chairman of the audit committee, a member of the remuneration committee and a member of the nomination committee of the Board. Since the resignation of Mr. Bai will result in the number of Independent Directors of the Company no longer comply with the requirements under the articles of association of the Company, the resignation of Mr. Bai will take effect after a new Independent Director has been elected at the general meeting of the Company. During the period, Mr. Bai will continue to perform his duties as the Independent Director and his relevant duties in committees of the Board in accordance with relevant laws, regulations and the articles of association of the Company until the election of a new Independent Director at the general meeting of the Company. New Risk • Oct 29
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 17% Last year net profit margin: 25% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (17% net profit margin). Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: CN¥0.26 (vs CN¥0.55 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.26 (down from CN¥0.55 in 3Q 2022). Revenue: CN¥2.25b (down 12% from 3Q 2022). Net income: CN¥609.6m (down 48% from 3Q 2022). Profit margin: 27% (down from 46% in 3Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Shenzhen Expressway Corporation Limited to Report Q3, 2023 Results on Oct 28, 2023 Shenzhen Expressway Corporation Limited announced that they will report Q3, 2023 results at 4:00 PM, China Standard Time on Oct 28, 2023 Reported Earnings • Aug 26
Second quarter 2023 earnings released: EPS: CN¥0.20 (vs CN¥0.18 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.20 (up from CN¥0.18 in 2Q 2022). Revenue: CN¥2.22b (down 4.3% from 2Q 2022). Net income: CN¥486.7m (up 12% from 2Q 2022). Profit margin: 22% (up from 19% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jul 16
Shenzhen Expressway Corporation Limited announced that it expects to receive CNY 6.5 billion in funding from Xin Tong Chan Development (Shenzhen) Co., Ltd. Shenzhen Expressway Corporation Limited announced that it has entered into a private placement agreement to issue not more than 654,231,097 A shares pre-plan for the gross proceeds of not more than CNY 6,500,000,000 on July 14, 2023. The issue price shall not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction included participation from not more than 35 investors including new investor, Xin Tong Chan Development (Shenzhen) Co., Ltd. by investing not more than CNY 1,510,000,000. The shares Xin Tong Chan Development (Shenzhen) Co., Ltd. subscribes to cannot be transferred within 18 months from the issuance closing date. The shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date.
The transaction has been approved in the 32nd meeting of the company’s 9th directorate and is subject to the approvals of the company’s shareholders, the main body of the state-owned assets supervision and management, the Shanghai Stock Exchange, and the China Securities Regulatory Commission. Announcement • Jun 28
Shenzhen Expressway Corporation Limited to Report First Half, 2023 Results on Aug 26, 2023 Shenzhen Expressway Corporation Limited announced that they will report first half, 2023 results on Aug 26, 2023 Buying Opportunity • Jun 09
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 5.6%. The fair value is estimated to be HK$8.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 7.9%. Revenue is forecast to grow by 28% in 2 years. Earnings is forecast to grow by 38% in the next 2 years. Buying Opportunity • May 19
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.3%. The fair value is estimated to be HK$8.43, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 7.9%. Revenue is forecast to grow by 28% in 2 years. Earnings is forecast to grow by 38% in the next 2 years. Announcement • May 18
Shenzhen Expressway Corporation Limited Approves Final Dividend, Payable on 14 July 2023 The Board of Shenzhen Expressway Corporation Limited approved the payment of a final dividend of RMB 0.462 per share for the financial year ended December 31, 2022. It is expected that the dividend will be distributed on 14 July 2023. Record date on May 30, 2023. Ex-dividend date on May 19, 2023. Upcoming Dividend • May 12
Upcoming dividend of CN¥0.46 per share at 7.1% yield Eligible shareholders must have bought the stock before 19 May 2023. Payment date: 14 July 2023. Payout ratio is a comfortable 54% but the company is paying out more than the cash it is generating. Trailing yield: 7.1%. Lower than top quartile of Hong Kong dividend payers (7.5%). Higher than average of industry peers (5.7%). Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: CN¥0.84 (vs CN¥1.11 in FY 2021) Full year 2022 results: EPS: CN¥0.84 (down from CN¥1.11 in FY 2021). Revenue: CN¥9.37b (down 14% from FY 2021). Net income: CN¥2.01b (down 23% from FY 2021). Profit margin: 22% (down from 24% in FY 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Major Estimate Revision • Mar 11
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2022 has been updated. 2022 EPS estimate fell from CN¥1.36 to CN¥1.19 per share. Revenue forecast steady at CN¥10.8b. Net income forecast to shrink 2.5% next year vs 4.3% growth forecast for Infrastructure industry in Hong Kong . Consensus price target broadly unchanged at HK$10.01. Share price fell 3.0% to HK$7.20 over the past week. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director Jun Miao was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Oct 29
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: CN¥2.55b (up 5.7% from 3Q 2021). Net income: CN¥1.16b (up 64% from 3Q 2021). Profit margin: 46% (up from 29% in 3Q 2021). The increase in margin was primarily driven by lower expenses. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Infrastructure industry in Hong Kong. Major Estimate Revision • Sep 02
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from CN¥10.7b to CN¥11.1b. EPS estimate increased from CN¥1.19 to CN¥1.31 per share. Net income forecast to grow 26% next year vs 12% growth forecast for Infrastructure industry in Hong Kong. Consensus price target down from HK$10.73 to HK$10.39. Share price fell 5.7% to HK$6.80 over the past week. Reported Earnings • Aug 29
Second quarter 2022 earnings released: EPS: CN¥0.18 (vs CN¥0.29 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.18 (down from CN¥0.29 in 2Q 2021). Revenue: CN¥2.32b (up 3.2% from 2Q 2021). Net income: CN¥435.8m (down 36% from 2Q 2021). Profit margin: 19% (down from 30% in 2Q 2021). Over the next year, revenue is forecast to grow 5.4%, compared to a 10% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 10% per year. Upcoming Dividend • Jun 30
Upcoming dividend of CN¥0.62 per share Eligible shareholders must have bought the stock before 07 July 2022. Payment date: 25 July 2022. Payout ratio is a comfortable 59% and the cash payout ratio is 92%. Trailing yield: 8.9%. Within top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (7.2%). Reported Earnings • Apr 29
First quarter 2022 earnings: Revenues exceed analyst expectations First quarter 2022 results: Revenue: CN¥1.77b (down 9.6% from 1Q 2021). Net income: CN¥412.7m (down 24% from 1Q 2021). Profit margin: 23% (down from 28% in 1Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 9.3%. Over the next year, revenue is forecast to grow 11%, compared to a 7.7% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. 
