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Shenzhen Investment Holdings Bay Area Development

Market Cap

HK$9.4b

Last Updated

2021/05/13 10:24 UTC

Data Sources

Company Financials +

Executive Summary

Shenzhen Investment Holdings Bay Area Development Company Limited, an investment holding company, develops, operates, and manages expressways and bridges in the People’s Republic of China. More Details


Snowflake Analysis

Mediocre balance sheet with questionable track record.

Share Price & News

How has Shenzhen Investment Holdings Bay Area Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 737 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 737's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

737

-0.5%

HK Infrastructure

-1.1%

HK Market


1 Year Return

2.0%

737

12.1%

HK Infrastructure

24.0%

HK Market

Return vs Industry: 737 underperformed the Hong Kong Infrastructure industry which returned 12.1% over the past year.

Return vs Market: 737 underperformed the Hong Kong Market which returned 24% over the past year.


Shareholder returns

737IndustryMarket
7 Day-1.9%-0.5%-1.1%
30 Day2.0%-1.7%-0.4%
90 Day5.2%4.4%-6.8%
1 Year14.8%2.0%19.7%12.1%28.8%24.0%
3 Year-18.0%-36.8%-12.0%-24.8%1.7%-9.1%
5 Year23.8%-21.8%2.0%-19.3%59.5%32.5%

Long-Term Price Volatility Vs. Market

How volatile is Shenzhen Investment Holdings Bay Area Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shenzhen Investment Holdings Bay Area Development undervalued compared to its fair value and its price relative to the market?

11.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 737 (HK$3.02) is trading above our estimate of fair value (HK$2.4)

Significantly Below Fair Value: 737 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 737 is poor value based on its PE Ratio (11.2x) compared to the Hong Kong Infrastructure industry average (8.6x).

PE vs Market: 737 is good value based on its PE Ratio (11.2x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 737's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 737 is overvalued based on its PB Ratio (1.6x) compared to the HK Infrastructure industry average (0.6x).


Future Growth

How is Shenzhen Investment Holdings Bay Area Development forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.4%

Forecasted Transportation industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 737's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if 737's earnings are forecast to grow faster than the Hong Kong market

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

Revenue vs Market: Insufficient data to determine if 737's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 737's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 737's Return on Equity is forecast to be low in 3 years time (14.3%).


Past Performance

How has Shenzhen Investment Holdings Bay Area Development performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 737 has a large one-off gain of CN¥546.2M impacting its December 31 2020 financial results.

Growing Profit Margin: Insufficient data to determine if 737's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: 737's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: 737's earnings growth over the past year (12.9%) exceeds its 5-year average (-2.3% per year).

Earnings vs Industry: 737 earnings growth over the past year (12.9%) exceeded the Infrastructure industry 3.6%.


Return on Equity

High ROE: 737's Return on Equity (13.9%) is considered low.


Financial Health

How is Shenzhen Investment Holdings Bay Area Development's financial position?


Financial Position Analysis

Short Term Liabilities: 737's short term assets (CN¥1.6B) exceed its short term liabilities (CN¥787.2M).

Long Term Liabilities: 737's short term assets (CN¥1.6B) exceed its long term liabilities (CN¥830.0M).


Debt to Equity History and Analysis

Debt Level: 737's debt to equity ratio (21.6%) is considered satisfactory.

Reducing Debt: 737's debt to equity ratio has increased from 3.9% to 21.6% over the past 5 years.

Debt Coverage: 737's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 737's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Shenzhen Investment Holdings Bay Area Development current dividend yield, its reliability and sustainability?

3.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 737's dividend (3.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.93%).

High Dividend: 737's dividend (3.62%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 737's dividend payments have been volatile in the past 10 years.

Growing Dividend: 737's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.7%), 737's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 737's dividends in 3 years are not forecast to be well covered by earnings (105.3% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Tianliang Zhang (57 yo)

3.08yrs

Tenure

CN¥2,330,000

Compensation

Mr. Tianliang Zhang has been Executive Director and General Manager of Shenzhen Investment Holdings Bay Area Development Company Limited (formerly known as Hopewell Highway Infrastructure Limited) since Ap...


CEO Compensation Analysis

Compensation vs Market: Tianliang's total compensation ($USD360.90K) is below average for companies of similar size in the Hong Kong market ($USD622.73K).

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


Leadership Team

Experienced Management: 737's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: 737's board of directors are considered experienced (3.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shenzhen Investment Holdings Bay Area Development Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shenzhen Investment Holdings Bay Area Development Company Limited
  • Ticker: 737
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$9.399b
  • Shares outstanding: 3.08b
  • Website: https://www.sihbay.com

Number of Employees


Location

  • Shenzhen Investment Holdings Bay Area Development Company Limited
  • Hopewell Centre
  • Room 63-02
  • Wan Chai
  • Hong Kong

Listings


Biography

Shenzhen Investment Holdings Bay Area Development Company Limited, an investment holding company, develops, operates, and manages expressways and bridges in the People’s Republic of China. It operates thro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/13 10:24
End of Day Share Price2021/05/13 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.