SEHK:548

Stock Analysis Report

Executive Summary

Shenzhen Expressway Company Limited, together with its subsidiaries, primarily invests in, constructs, operates, and manages toll highways and roads, as well as other urban and transport infrastructure in the People’s Republic of China.


Snowflake Analysis

Average dividend payer and fair value.

Share Price & News

How has Shenzhen Expressway's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 548's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.1%

548

-3.0%

HK Infrastructure

0.2%

HK Market


1 Year Return

-18.0%

548

-34.5%

HK Infrastructure

-22.0%

HK Market

Return vs Industry: 548 exceeded the Hong Kong Infrastructure industry which returned -34.5% over the past year.

Return vs Market: 548 exceeded the Hong Kong Market which returned -22% over the past year.


Shareholder returns

548IndustryMarket
7 Day-0.1%-3.0%0.2%
30 Day-18.5%-18.2%-10.8%
90 Day-33.0%-28.8%-16.5%
1 Year-10.3%-18.0%-30.7%-34.5%-19.1%-22.0%
3 Year29.4%9.5%-29.5%-38.6%-3.7%-13.4%
5 Year32.9%2.5%-37.5%-50.0%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is Shenzhen Expressway's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shenzhen Expressway 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: 548 (HK$7.86) is trading below our estimate of fair value (HK$22.34)

Significantly Below Fair Value: 548 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 548 is poor value based on its PE Ratio (6.3x) compared to the Infrastructure industry average (6.3x).

PE vs Market: 548 is good value based on its PE Ratio (6.3x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 548 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 548 is overvalued based on its PB Ratio (0.9x) compared to the HK Infrastructure industry average (0.6x).


Next Steps

Future Growth

How is Shenzhen Expressway forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 548's forecast earnings growth (6% per year) is above the savings rate (1.6%).

Earnings vs Market: 548's earnings (6% per year) are forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Earnings: 548's earnings are forecast to grow, but not significantly.

Revenue vs Market: 548's revenue (8.7% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 548's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 548's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Shenzhen Expressway performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 548 has high quality earnings.

Growing Profit Margin: 548's current net profit margins (40.4%) are lower than last year (59.2%).


Past Earnings Growth Analysis

Earnings Trend: 548's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: 548's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 548 had negative earnings growth (-27.3%) over the past year, making it difficult to compare to the Infrastructure industry average (6.6%).


Return on Equity

High ROE: 548's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is Shenzhen Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: 548's short term assets (CN¥7.7B) exceed its short term liabilities (CN¥6.5B).

Long Term Liabilities: 548's short term assets (CN¥7.7B) do not cover its long term liabilities (CN¥17.7B).


Debt to Equity History and Analysis

Debt Level: 548's debt to equity ratio (80.2%) is considered high.

Reducing Debt: 548's debt to equity ratio has increased from 61.3% to 80.2% over the past 5 years.

Debt Coverage: 548's debt is not well covered by operating cash flow (4.9%).

Interest Coverage: 548 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 548 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 548's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Shenzhen Expressway's current dividend yield, its reliability and sustainability?

5.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 548's dividend (5.01%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 548's dividend (5.01%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.27%).


Stability and Growth of Payments

Stable Dividend: 548's dividend payments have been volatile in the past 10 years.

Growing Dividend: 548's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), 548's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 548's dividends in 3 years are forecast to be well covered by earnings (46.4% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Xiang Wen Liao (51yo)

1.58s

Tenure

CN¥1,665,100

Compensation

Mr. Xiang Wen Liao has been President of Shenzhen Expressway Co., Ltd. since September 10, 2018. Mr. Liao served as Vice President of Shenzhen Expressway Co., Ltd. since September 2009 until September 10,  ...


CEO Compensation Analysis

Compensation vs Market: Xiang Wen's total compensation ($USD234.83K) is below average for companies of similar size in the Hong Kong market ($USD508.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wei Hu
Executive Chairman5.25yrsCN¥1.73mno data
Xiang Wen Liao
President & Executive Director1.58yrsCN¥1.67mno data
Zhao Gui ping
Chief Financial Officerno dataCN¥1.47mno data
Bi Huang
Deputy Administrative Officer & Vice President11.83yrsCN¥1.45mno data
Shou Chen
Chief Engineer1.58yrsCN¥1.24mno data
Tao Tao Gong
Joint Company Secretary0.67yrCN¥1.91mno data
Liang Wen
Financial Controller & Executive Director1.08yrsCN¥1.43mno data
Ce Sun
Vice President & GM of Engineering8.75yrsCN¥1.33mno data
Po Wen
Vice President4.58yrsCN¥1.70mno data
Yuen Ling Lam
Joint Company Secretary0.67yrno datano data

1.6yrs

Average Tenure

48yo

Average Age

Experienced Management: 548's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wei Hu
Executive Chairman5.25yrsCN¥1.73mno data
Xiang Wen Liao
President & Executive Director1.58yrsCN¥1.67mno data
Liang Wen
Financial Controller & Executive Director1.08yrsCN¥1.43mno data
Yuan Guo
Chairman of Shenzhen International Holdings Limited13.67yrsno datano data
Yuan Jun Chen
Non-Executive Director3.42yrsno datano data
Hua Bai
Independent Non-Executive Director2.17yrsCN¥202.10kno data
Siu Wah Wan
Independent Non-Executive Director2.25yrsCN¥229.50kno data
Cai Shu Guang
Independent Non-Executive Director2.92yrsCN¥227.00kno data
Yan Chen
Non-Executive Director2.25yrsno datano data
Jun Ye
Convener of the Supervisory Committeeno datano datano data

2.9yrs

Average Tenure

54yo

Average Age

Experienced Board: 548's board of directors are not considered experienced ( 2.9 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

Shenzhen Expressway Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shenzhen Expressway Company Limited
  • Ticker: 548
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$19.792b
  • Shares outstanding: 2.18b
  • Website: https://www.sz-expressway.com

Number of Employees


Location

  • Shenzhen Expressway Company Limited
  • Jiangsu Building
  • 2-4 Floor
  • Shenzhen
  • Guangdong Province
  • 518026
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHZHDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMar 1997
548SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 1997
SHZN.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDMar 1997
548SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 1997
548SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 1997
600548SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 2001
600548XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYDec 2001
SHZN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2011

Biography

Shenzhen Expressway Company Limited, together with its subsidiaries, primarily invests in, constructs, operates, and manages toll highways and roads, as well as other urban and transport infrastructure in the People’s Republic of China. It provides construction management and highways operation management services for government and other enterprises, as well as project development and management, advertising, construction consulting, inter-network toll collection, and financial services; and billboard leasing, advertising agency, and design production and related services. The company also invests in industries and project construction; and offers property management, real estate brokerage, and engineering consulting services. In addition, it provides infrastructure construction, environment protection construction, capital market, apartment rental and management, environmental technique development consultation, and land development services. As of December 31, 2018, Shenzhen Expressway Company Limited operated and invested in 16 toll highway projects. The company was founded in 1996 and is headquartered in Shenzhen, the People’s Republic of China. Shenzhen Expressway Company Limited is a subsidiary of Shenzhen International Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 14:56
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.