SEHK:62

Stock Analysis Report

Transport International Holdings

Executive Summary

Transport International Holdings Limited, an investment holding company, provides franchised and non-franchised public transportation services in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Transport International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 62's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

62

0.03%

HK Transportation

0.2%

HK Market


1 Year Return

-30.3%

62

-21.1%

HK Transportation

-22.0%

HK Market

Return vs Industry: 62 underperformed the Hong Kong Transportation industry which returned -21.1% over the past year.

Return vs Market: 62 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

62IndustryMarket
7 Day-1.9%0.03%0.2%
30 Day-13.8%-7.5%-10.8%
90 Day-18.2%-14.2%-16.5%
1 Year-26.5%-30.3%-19.1%-21.1%-19.1%-22.0%
3 Year-19.4%-30.9%-10.1%-19.2%-3.7%-13.4%
5 Year13.8%-12.8%2.3%-15.1%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is Transport International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Transport International Holdings undervalued compared to its fair value and its price relative to the market?

11.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 62 (HK$16.48) is trading above our estimate of fair value (HK$14.23)

Significantly Below Fair Value: 62 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 62 is good value based on its PE Ratio (12x) compared to the Transportation industry average (13.2x).

PE vs Market: 62 is poor value based on its PE Ratio (12x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 62's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 62 is overvalued based on its PB Ratio (0.7x) compared to the HK Transportation industry average (0.6x).


Next Steps

Future Growth

How is Transport International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.5%

Forecasted Transportation industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Transport International Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Transport International Holdings performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 62 has high quality earnings.

Growing Profit Margin: 62's current net profit margins (7.5%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: 62's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: 62's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 62 had negative earnings growth (-15.9%) over the past year, making it difficult to compare to the Transportation industry average (-15.9%).


Return on Equity

High ROE: 62's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Transport International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 62's short term assets (HK$2.9B) exceed its short term liabilities (HK$1.6B).

Long Term Liabilities: 62's short term assets (HK$2.9B) do not cover its long term liabilities (HK$4.2B).


Debt to Equity History and Analysis

Debt Level: 62's debt to equity ratio (24.7%) is considered satisfactory.

Reducing Debt: 62's debt to equity ratio has increased from 7.4% to 24.7% over the past 5 years.

Debt Coverage: 62's debt is well covered by operating cash flow (57.2%).

Interest Coverage: 62 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 62 has a high level of physical assets or inventory.

Debt Coverage by Assets: 62's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Transport International Holdings's current dividend yield, its reliability and sustainability?

6.07%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 62's dividend (6.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 62's dividend (6.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.27%).


Stability and Growth of Payments

Stable Dividend: 62's dividend payments have been volatile in the past 10 years.

Growing Dividend: 62's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.7%), 62's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

22.0yrs

Average board tenure


CEO

Roger Lee (56yo)

5.25s

Tenure

HK$8,163,000

Compensation

Mr. Chak-Cheong Lee, also known as Roger, BSc, MSc, MICE, CEng has been Managing Director and Executive Director of Transport International Holdings Limited since January 1, 2015 and March 3, 2014 respecti ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD1.05M) is above average for companies of similar size in the Hong Kong market ($USD492.23K).

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


Board Members

NamePositionTenureCompensationOwnership
Chak Cheong Lee
MD & Executive Director5.25yrsHK$8.16m0.027% HK$2.0m
Cho Chak Chan
Deputy Chairman7.92yrsHK$764.00k0.00045% HK$33.1k
Ping-luen Kwok
Non-Executive Director22.58yrsHK$624.00k0.11% HK$8.0m
Ka-Cheung Li
Independent Non-Executive Director21.33yrsHK$692.00kno data
Nai-pang Leung
Independent Chairman of the Board7.92yrsHK$1.87mno data
Chung Yuen Lui
Non-Executive Director22.58yrsHK$624.00k0.69% HK$50.8m
Winnie J. Ng
Non-Executive Director23.25yrsHK$684.00k0.041% HK$3.0m
Lai Kuen Louey
Non-Executive Director22.58yrsHK$624.00k1.66% HK$122.6m
Siu Chan Ng
Non-Executive Director22.58yrsHK$372.00kno data
Pak Wai Liu
Independent Non-Executive Director8.58yrsHK$612.00kno data

22.0yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 62's board of directors are seasoned and experienced ( 22 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

Transport International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Transport International Holdings Limited
  • Ticker: 62
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: HK$7.366b
  • Shares outstanding: 446.94m
  • Website: https://www.tih.hk

Number of Employees


Location

  • Transport International Holdings Limited
  • No. 9, Po Lun Street
  • 15th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
62SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1997
KWODB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1997

Biography

Transport International Holdings Limited, an investment holding company, provides franchised and non-franchised public transportation services in the People’s Republic of China. The company operates in three segments: Franchised Bus Operation; Property Holdings and Development; and All Other Segments. The Franchised Bus Operation segment provides franchised public bus transportation services in Hong Kong. The Property Holdings and Development segment holds, develops, and rents non-residential properties, including commercial buildings, shopping malls, and industrial properties. The All Other Segments segment provides non-franchised public transportation services; and cross-boundary shuttle bus services. Transport International Holdings Limited also offers non-franchised bus services to the residential and commercial sectors through chartered hire services; and car rental and taxi hire services, as well as trades in bus souvenirs. The company was formerly known as The Kowloon Motor Bus Holdings Limited and changed its name to Transport International Holdings Limited in November 2005. Transport International Holdings Limited was founded in 1997 and is headquartered in Kowloon, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 12:55
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.