SEHK:576

Stock Analysis Report

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Executive Summary

Zhejiang Expressway Co., Ltd., an investment holding company, invests, develops, operates, maintains, and manages roads in the People’s Republic of China. More Details


Snowflake Analysis

6 star dividend payer and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 576 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.4%

576

0.9%

HK Infrastructure

1.2%

HK Market


1 Year Return

-15.3%

576

-18.3%

HK Infrastructure

2.3%

HK Market

Return vs Industry: 576 exceeded the Hong Kong Infrastructure industry which returned -18.3% over the past year.

Return vs Market: 576 underperformed the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

576IndustryMarket
7 Day5.4%0.9%1.2%
30 Day0.5%1.7%6.1%
90 Day-2.3%-2.8%3.1%
1 Year-9.4%-15.3%-13.2%-18.3%6.6%2.3%
3 Year-30.3%-42.2%-30.2%-40.6%-4.7%-15.1%
5 Year-22.3%-41.1%-15.5%-33.9%19.1%-1.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zhejiang Expressway undervalued compared to its fair value and its price relative to the market?

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 576 (HK$5.64) is trading below our estimate of fair value (HK$9.07)

Significantly Below Fair Value: 576 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 576 is good value based on its PE Ratio (8.7x) compared to the HK Infrastructure industry average (10x).

PE vs Market: 576 is good value based on its PE Ratio (8.7x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 576 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 576 is overvalued based on its PB Ratio (1x) compared to the HK Infrastructure industry average (0.6x).


Next Steps

Future Growth

How is Zhejiang Expressway forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 576's forecast earnings growth (23.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 576's earnings (23.9% per year) are forecast to grow faster than the Hong Kong market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 576's revenue (13.2% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 576's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 576's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Zhejiang Expressway performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 576 has a large one-off gain of CN¥1.9B impacting its June 30 2020 financial results.

Growing Profit Margin: 576's current net profit margins (23.8%) are lower than last year (31.8%).


Past Earnings Growth Analysis

Earnings Trend: 576's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 576's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 576 had negative earnings growth (-33.9%) over the past year, making it difficult to compare to the Infrastructure industry average (-7.2%).


Return on Equity

High ROE: 576's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is Zhejiang Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: 576's short term assets (CN¥80.9B) exceed its short term liabilities (CN¥57.9B).

Long Term Liabilities: 576's short term assets (CN¥80.9B) exceed its long term liabilities (CN¥26.8B).


Debt to Equity History and Analysis

Debt Level: 576's debt to equity ratio (172.4%) is considered high.

Reducing Debt: 576's debt to equity ratio has increased from 95.2% to 172.4% over the past 5 years.

Debt Coverage: 576's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: 576's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Zhejiang Expressway current dividend yield, its reliability and sustainability?

7.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 576's dividend (7.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 576's dividend (7.3%) is in the top 25% of dividend payers in the Hong Kong market (6.77%)


Stability and Growth of Payments

Stable Dividend: 576's dividends per share have been stable in the past 10 years.

Growing Dividend: 576's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.7%), 576's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 576's dividends in 3 years are forecast to be well covered by earnings (42.6% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Jianhu Luo (49 yo)

8.33yrs

Tenure

CN¥999,000

Compensation

Ms. Jianhu Luo has been a General Manager of Zhejiang Expressway Co. Ltd. since June 11, 2012. Ms. Luo has been an Executive Director of Zhejiang Expressway Co. Ltd. since June 2012. She serves as the Boa ...


CEO Compensation Analysis

Compensation vs Market: Jianhu's total compensation ($USD149.40K) is below average for companies of similar size in the Hong Kong market ($USD591.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jianhu Luo
General Manager & Executive Director8.33yrsCN¥999.00kno data
Dehua Wang
Chief Financial Officer6.58yrsCN¥873.00kno data
Xiuhua Zhang
Deputy General Managerno dataCN¥873.00kno data
Yimin Zhu
Deputy General Manager5.25yrsCN¥873.00kno data
Wang Bingjiong
Deputy General Manager0.92yrCN¥134.00kno data
Zheng Hui
Executiveno dataCN¥851.00kno data
Ninghui Chen
Executive Director0.42yrno datano data
Bingjiong Wang
Deputy General Manager0.92yrno datano data
Tony Zheng
Deputy GM & Company Secretary9.58yrsCN¥443.00kno data

5.9yrs

Average Tenure

52yo

Average Age

Experienced Management: 576's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianhu Luo
General Manager & Executive Director8.33yrsCN¥999.00kno data
Ninghui Chen
Executive Director0.42yrno datano data
Wai Lee
Independent Non-Executive Director5.83yrsCN¥223.00kno data
Kerwei Pei
Independent Non-Executive Director8.33yrsCN¥220.00kno data
Meiyun He
Independent Supervisor3.83yrsno datano data
Qing Wang Wu
Independent Supervisor3.08yrsno datano data
Benmeng Dai
Non Executive Directorno dataCN¥3.00kno data
Huagang Zhan
Employee Representative Supervisorno dataCN¥895.00kno data
Zhihong Yu
Chairman of the Board2.5yrsno datano data
Bin Chen
Independent Non-Executive Director2.5yrsCN¥85.00kno data
Yingjie Yuan
Non-Executive Director0.67yrno datano data
Ye Fan
Non-Executive Director0.42yrno datano data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: 576's board of directors are not considered experienced ( 2.8 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

Zhejiang Expressway Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhejiang Expressway Co., Ltd.
  • Ticker: 576
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$24.495b
  • Shares outstanding: 4.34b
  • Website: https://www.zjec.com.cn

Number of Employees


Location

  • Zhejiang Expressway Co., Ltd.
  • No. 2 Mingzhu Intl. Business Ctr
  • 5th Floor
  • Hangzhou
  • Zhejiang Province
  • 310020
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZHEX.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDMay 1997
ZHJDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMay 1997
576SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMay 1997
576SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMay 1997
576SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMay 1997

Biography

Zhejiang Expressway Co., Ltd., an investment holding company, invests, develops, operates, maintains, and manages roads in the People’s Republic of China. It operates through Toll Operation, Securities Ope ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 12:52
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.