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.

Rewards

Trading at 18.6% below its fair value

Earnings are forecast to grow 7.41% per year

Pays a high and reliable dividend of 6.02%

Risk Analysis

No risks detected for 995 from our risk checks.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 995 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

995

-0.3%

HK Infrastructure

1.7%

HK Market


1 Year Return

-8.0%

995

-9.8%

HK Infrastructure

-2.9%

HK Market

Return vs Industry: 995 exceeded the Hong Kong Infrastructure industry which returned -9.8% over the past year.

Return vs Market: 995 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

995IndustryMarket
7 Day0.9%-0.3%1.7%
30 Day-7.6%-7.1%-4.8%
90 Day-0.9%-3.2%3.4%
1 Year-2.2%-8.0%-4.6%-9.8%0.7%-2.9%
3 Year-11.9%-24.6%-3.1%-15.7%15.3%3.6%
5 Year6.0%-17.1%0.8%-20.0%15.9%-3.5%

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 compared to its fair value and its price relative to the market?

18.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 995 (HK$4.62) is trading below our estimate of fair value (HK$5.67)

Significantly Below Fair Value: 995 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 995 is good value based on its PE Ratio (6.2x) compared to the Infrastructure industry average (8.1x).

PE vs Market: 995 is good value based on its PE Ratio (6.2x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 995 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 995 is good value based on its PB Ratio (0.7x) compared to the HK Infrastructure industry average (0.7x).


Next Steps

Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 995's forecast earnings growth (7.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 995's earnings (7.4% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).

High Growth Earnings: 995's earnings are forecast to grow, but not significantly.

Revenue vs Market: 995's revenue (2.3% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).

High Growth Revenue: 995's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 995's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Anhui Expressway performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 995 has high quality earnings.

Growing Profit Margin: 995's current net profit margins (37.9%) are higher than last year (37.7%).


Past Earnings Growth Analysis

Earnings Trend: 995's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: 995's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 995 had negative earnings growth (-0.03%) over the past year, making it difficult to compare to the Infrastructure industry average (1.1%).


Return on Equity

High ROE: 995's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Anhui Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: 995's short term assets (CN¥2.7B) exceed its short term liabilities (CN¥1.7B).

Long Term Liabilities: 995's short term assets (CN¥2.7B) exceed its long term liabilities (CN¥2.2B).


Debt to Equity History and Analysis

Debt Level: 995's debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: 995's debt to equity ratio has reduced from 44.1% to 24.2% over the past 5 years.

Debt Coverage: 995's debt is well covered by operating cash flow (67.7%).

Interest Coverage: 995's interest payments on its debt are well covered by EBIT (590.6x coverage).


Balance Sheet

Inventory Level: 995 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 995's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

6.02%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%2.3%markettop25%6.3%industryaverage5.4%forecastin3Years5.9%

Current dividend yield vs market & industry

Notable Dividend: 995's dividend (6.02%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 995's dividend (6.02%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 995's dividends per share have been stable in the past 10 years.

Growing Dividend: 995's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.1%), 995's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 995's dividends in 3 years are forecast to be well covered by earnings (37.5% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Zhen Xu (55yo)

4.9yrs

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

Compensation vs Market: Zhen's total compensation ($USD80.73K) is below average for companies of similar size in the Hong Kong market ($USD540.41K).

Compensation vs Earnings: Zhen's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zhen Xu
CEO, GM & Executive Director4.9yrsCN¥564.00kno data
Dafeng Chen
Executive Director5.5yrsno datano data
Huimin Li
Deputy General Manager4.2yrsCN¥486.00kno data
Jiping Chen
Deputy General Manager3.5yrsCN¥486.00kno data
Xinyu Xie
Deputy GM5.5yrsCN¥486.00kno data
Huihui Dong
Secretary to the Board2.9yrsCN¥453.00kno data
Xiaolong Xiang
Executive Chairman of the Board0yrsno datano data
Guangzhuo Xiao
Manager of the Financial Department0yrsno datano data

4.2yrs

Average Tenure

54yo

Average Age

Experienced Management: 995's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhen Xu
CEO, GM & Executive Director4.9yrsCN¥564.00kno data
Dafeng Chen
Executive Director5.5yrsno datano data
Xinyu Xie
Deputy GM5.5yrsCN¥486.00kno data
Xiaolong Xiang
Executive Chairman of the Board0yrsno datano data
Yat Fan Kong
Independent Non-Executive Director5.5yrsCN¥120.00kno data
Jian Du
Non-Executive Director3.8yrsno datano data
Jun Jiang
Independent Non-Executive Director3.3yrsCN¥80.00kno data
Xudong Yang
Non-Executive Director2.5yrsno datano data
Hao Liu
Independent Non-Executive Director2.5yrsCN¥80.00kno data
Yuping Chen
Chairman of Supervisory Board2.5yrsno datano data

3.8yrs

Average Tenure

50yo

Average Age

Experienced Board: 995's board of directors are considered experienced (3.8 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

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$9.430b
  • 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 the Hening Expressway, New Tianchang Section of National Trunk 205, Gaojie Expressway, Xuanguang Expressway, Lianhuo Expressway Anhui Section, Guangci Expressway, Ninghuai Expressway Tianchang Section, and Ningxuanhang Expressway. It also provides pawn loan services. The company was founded in 1996 and is headquartered in Hefei, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:36
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
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.