SEHK:995

Stock Analysis Report

Executive Summary

Anhui Expressway Company Limited constructs, operates, manages, and develops toll roads and associated service sections in the Anhui Province, the People's Republic of China.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.

Risks

  • Anhui Expressway is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

SEHK:995

3.0%

HK Infrastructure

1.9%

HK Market


1 Year Return

2.0%

SEHK:995

-7.1%

HK Infrastructure

-10.4%

HK Market

995 outperformed the Infrastructure industry which returned -7.1% over the past year.

995 outperformed the Market in Hong Kong which returned -10.5% over the past year.


Share holder returns

995IndustryMarket
7 Day-1.3%3.0%1.9%
30 Day-6.8%-4.8%-7.5%
90 Day-2.0%-5.0%-4.4%
1 Year8.5%2.0%-1.6%-7.1%-7.2%-10.4%
3 Year-19.9%-31.5%-4.8%-17.3%15.3%3.9%
5 Year23.4%-3.4%7.6%-14.3%10.1%-8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Anhui Expressway undervalued based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Anhui Expressway's share price is below the future cash flow value, and at a moderate discount (> 20%).

Anhui Expressway's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Anhui Expressway is good value based on earnings compared to the HK Infrastructure industry average.

Anhui Expressway is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Anhui Expressway is poor value based on expected growth next year.


Price Based on Value of Assets

Anhui Expressway is good value based on assets compared to the HK Infrastructure industry average.


Next Steps

Future Growth

How is Anhui Expressway expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Anhui Expressway's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Anhui Expressway's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

Anhui Expressway's revenue growth is positive but not above the Hong Kong market average.

Anhui Expressway's earnings growth is positive but not above the Hong Kong market average.

Anhui Expressway's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Anhui Expressway is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Anhui Expressway performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Anhui Expressway's year on year earnings growth rate has been positive over the past 5 years.

Anhui Expressway's 1-year earnings growth exceeds its 5-year average (7.3% vs 6.6%)

Anhui Expressway's earnings growth has exceeded the HK Infrastructure industry average in the past year (7.3% vs 6.7%).


Return on Equity

Anhui Expressway has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Anhui Expressway used its assets more efficiently than the HK Infrastructure industry average last year based on Return on Assets.


Return on Capital Employed

Anhui Expressway has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Anhui Expressway's financial position?


Financial Position Analysis

Anhui Expressway is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Anhui Expressway's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Anhui Expressway's level of debt (27.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (43.2% vs 27.7% today).

Debt is well covered by operating cash flow (59.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 71.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

6.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Anhui Expressway's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.24%).

Anhui Expressway's dividend is below the markets top 25% of dividend payers in Hong Kong (6.19%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

What is the CEO of Anhui Expressway's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Zhen Xu (55yo)

4.4yrs

Tenure

CN¥564,000

Compensation

Mr. Zhen Xu has been the Chief Executive Officer and General Manager of Anhui Expressway Company Limited since March 27, 2015 and as its Executive Director since May 20, 2016. 


CEO Compensation Analysis

Zhen's remuneration is lower than average for companies of similar size in Hong Kong.

Zhen's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

55yo

Average Age

The tenure for the Anhui Expressway management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

The tenure for the Anhui Expressway board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCN¥594,10004 Sep 18
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares130,000
Max PriceCN¥4.57

Ownership Breakdown


Management Team

  • Xinyu Xie (52yo)

    Deputy GM

    • Tenure: 5.0yrs
    • Compensation: CN¥486.00k
  • Dafeng Chen (56yo)

    Executive Director

    • Tenure: 5.0yrs
  • Guangzhuo Xiao

    Manager of the Financial Department

    • Tenure: 0.0yrs
  • Zhen Xu (55yo)

    CEO, GM & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥564.00k
  • Chuanfu Qiao (60yo)

    Chairman

    • Tenure: 3.3yrs
  • Huimin Li (55yo)

    Deputy General Manager

    • Tenure: 3.7yrs
    • Compensation: CN¥486.00k
  • Jiping Chen (48yo)

    Deputy General Manager

    • Tenure: 3.0yrs
    • Compensation: CN¥486.00k
  • Huihui Dong (51yo)

    Secretary to the Board

    • Tenure: 2.4yrs
    • Compensation: CN¥453.00k

Board Members

  • Xinyu Xie (52yo)

    Deputy GM

    • Tenure: 5.0yrs
    • Compensation: CN¥486.00k
  • Dafeng Chen (56yo)

    Executive Director

    • Tenure: 5.0yrs
  • Yat Fan Kong (47yo)

    Independent Non-Executive Director

    • Tenure: 5.0yrs
    • Compensation: CN¥120.00k
  • Zhen Xu (55yo)

    CEO, GM & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥564.00k
  • Chuanfu Qiao (60yo)

    Chairman

    • Tenure: 3.3yrs
  • Jian Du (48yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Jun Jiang (46yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥80.00k
  • Xudong Yang (46yo)

    Non-Executive Director

    • Tenure: 2.0yrs
  • Hao Liu (41yo)

    Independent Non-Executive Director

    • Tenure: 2.0yrs
    • Compensation: CN¥80.00k
  • Yuping Chen (56yo)

    Chairman of Supervisory Board

    • Tenure: 2.0yrs

Company Information

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


Key Information

  • Name: Anhui Expressway Company Limited
  • Ticker: 995
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$9.314b
  • Shares outstanding: 1.66b
  • Website: https://www.anhui-expressway.net

Number of Employees


Location

  • Anhui Expressway Company Limited
  • 520 Wangjiang West Road
  • Hefei
  • Anhui Province
  • 230088
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AUHE.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDNov 1996
995SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 1996
HU7DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURNov 1996
995SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 1996
995SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 1996
600012SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJan 2003
600012XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJan 2003

Biography

Anhui Expressway Company Limited constructs, operates, manages, and develops toll roads and associated service sections in the Anhui Province, the People's Republic of China. The company owns interests in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:34
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.