Announcement • Jul 10
Anhui Expressway Company Limited Announces Resignation of Yang Jianguo as A Non- Executive Director and A Member of the Audit Committee Anhui Expressway Company Limited announced that Mr. Yang Jianguo has tendered his resignation as a non- executive Director and a member of the audit committee of the Board due to change of his work arrangement. The resignation of Mr. Yang will take effect upon the receipt of the same by the Board. Pursuant to the provisions of the Companies Law of the People's Republic of China and other applicable laws and regulations, as well as the Articles of Association, the resignation of Mr. Yang will not result in the number of Directors of the Company falling below the minimum number required under the law and will not affect the normal operation of the Board. Upon the resignation taking effect, Mr. Yang will not hold any position in the Company. Announcement • Jun 30
Anhui Expressway Company Limited to Report First Half, 2026 Results on Aug 25, 2026 Anhui Expressway Company Limited announced that they will report first half, 2026 results on Aug 25, 2026 Announcement • May 22
Anhui Expressway Company Limited, Annual General Meeting, Jun 26, 2026 Anhui Expressway Company Limited, Annual General Meeting, Jun 26, 2026, at 14:30 China Standard Time. Location: 520 wangjiang west road, hefei, anhui, China Announcement • Mar 30
Anhui Expressway Company Limited to Report Q1, 2026 Results on Apr 29, 2026 Anhui Expressway Company Limited announced that they will report Q1, 2026 results on Apr 29, 2026 Announcement • Feb 04
Anhui Expressway Company Limited (SHSE:600012) acquired 7% stake in Shandong Hi-speed Company Limited (SHSE:600350) from Shandong High-Speed Group Co., Ltd. Anhui Expressway Company Limited (SHSE:600012) entered into a share transfer agreement to acquire 7% stake in Shandong Hi-speed Company Limited (SHSE:600350) from Shandong High-Speed Group Co., Ltd. for CNY 3 billion on October 21, 2025. A cash consideration valued at CNY 8.92 per share will be paid by Anhui Expressway Company Limited. As part of consideration, Anhui Expressway Company conditionally agreed to acquire, 338,419,957 A shares of Shandong Hi-speed Company Limited. The acquisition consideration will be paid in two cash installments by the Anhui Expressway Company. The first installment, amounting to approximately CNY 905.61 million (30% of the total), is to be paid within five working days after the conditions precedent for the share transfer agreement are met. The second installment, totaling approximately CNY 2.11 billion (70% of the total), is due within ten working days following the confirmation from the Shanghai Stock Exchange regarding the share transfer agreement, and before the transfer registration of the shares.
The Share Transfer Agreement will become effective only upon the fulfillment of several conditions precedent. Firstly, both parties must secure approval from their respective authorized decision-making bodies in compliance with applicable laws, regulations, and their articles of association. Secondly, approval for the acquisition must be obtained from the relevant state-owned assets supervision and administration department or its authorized state-invested enterprise. Lastly, any additional conditions for effectiveness as stipulated by law and administrative regulations must be met, including obtaining any required approvals from other competent authorities, if necessary. The board of Shandong Hi-speed are of the view that the terms of the agreement are fair and reasonable, on normal commercial terms, and in the interests of Shandong Hi-speed and its shareholders. Accordingly, the Board of Anhui Expressway Company Limited recommend the Shareholders to vote in favor of the proposed resolution to approve the Share Transfer Agreement and the transactions contemplated thereunder at the EGM, which is scheduled to take place on December 30, 2025. As of December 30, 2025, the transaction has been approved by the shareholders of Anhui Expressway Company Limited.
Anhui Expressway Company Limited (SHSE:600012) completed the acquisition of 7% stake in Shandong Hi-speed Company Limited (SHSE:600350) from Shandong High-Speed Group Co., Ltd. February 4, 2026. Announcement • Dec 26
Anhui Expressway Company Limited to Report Fiscal Year 2025 Results on Mar 28, 2026 Anhui Expressway Company Limited announced that they will report fiscal year 2025 results on Mar 28, 2026 Announcement • Oct 22
Anhui Expressway Company Limited (SHSE:600012) entered into a share transfer agreement to acquire 7% stake in Shandong Hi-speed Company Limited (SHSE:600350) from Shandong High-Speed Group Co., Ltd. for CNY 3.0 billion. Anhui Expressway Company Limited (SHSE:600012) entered into a share transfer agreement to acquire 7% stake in Shandong Hi-speed Company Limited (SHSE:600350) from Shandong High-Speed Group Co., Ltd. for CNY 3.0 billion on October 21, 2025. A cash consideration valued at CNY 8.92 per share will be paid by Anhui Expressway Company Limited. As part of consideration, Anhui Expressway Company conditionally agreed to acquire, 338,419,957 A shares of Shandong Hi-speed Company Limited. The acquisition consideration will be paid in two cash installments by the Anhui Expressway Company. The first installment, amounting to approximately CNY 905.61 million (30% of the total), is to be paid within five working days after the conditions precedent for the share transfer agreement are met. The second installment, totaling approximately CNY 2.11 billion (70% of the total), is due within ten working days following the confirmation from the Shanghai Stock Exchange regarding the share transfer agreement, and before the transfer registration of the shares.
The Share Transfer Agreement will become effective only upon the fulfillment of several conditions precedent. Firstly, both parties must secure approval from their respective authorized decision-making bodies in compliance with applicable laws, regulations, and their articles of association. Secondly, approval for the acquisition must be obtained from the relevant state-owned assets supervision and administration department or its authorized state-invested enterprise. Lastly, any additional conditions for effectiveness as stipulated by law and administrative regulations must be met, including obtaining any required approvals from other competent authorities, if necessary. Announcement • Sep 30
Anhui Expressway Company Limited to Report Q3, 2025 Results on Oct 29, 2025 Anhui Expressway Company Limited announced that they will report Q3, 2025 results on Oct 29, 2025 Reported Earnings • Aug 31
Second quarter 2025 earnings released: EPS: CN¥0.24 (vs CN¥0.21 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.24 (up from CN¥0.21 in 2Q 2024). Revenue: CN¥919.7m (down 48% from 2Q 2024). Net income: CN¥409.3m (up 17% from 2Q 2024). Profit margin: 45% (up from 20% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue is expected to decline by 14% p.a. on average during the next 3 years, while revenues in the Infrastructure industry in Hong Kong are expected to grow by 3.5%. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Aug 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 3.4% per year for the foreseeable future. Minor Risks High level of debt (61% net debt to equity). Dividend is not well covered by cash flows (dividend per share is over 140x cash flows per share). Announcement • Jun 30
Anhui Expressway Company Limited to Report First Half, 2025 Results on Aug 29, 2025 Anhui Expressway Company Limited announced that they will report first half, 2025 results on Aug 29, 2025 Announcement • Jun 29
Anhui Expressway Company Limited Announces Resignation of Lee Chung Shing as Company Secretary, Effective June 27, 2025 The board of directors of Anhui Expressway Company Limited announced that the Company has received a written resignation from Mr. Lee Chung Shing ("Mr. Lee"). Due to change of work arrangement, Mr. Lee tendered his resignation as the company secretary and an authorised representative of the Company (the "Authorised Representative") under Rule 3.05 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited with effect from 27 June 2025. Announcement • Jun 24
Anhui Expressway Company Limited Approves Final Dividend for the Year Ended 31 December 2024, Payable on or Before 30 July 2025 Anhui Expressway Company Limited at Annual General Meeting Held on 24 June 2025 the payment of a final dividend of RMB 0.604 per share (tax included) for the year ended 31 December 2024 to all Shareholders as recommended by the Board was passed at the AGM. The Company will pay dividends in respect of the H Shares to the holders of H Shares of the Company whose names appear in the register of members of the Company on 4 July 2025. Pursuant to the articles of association of the Company, the Company has appointed Bank of China (Hong Kong) Trustees Limited (the "Receiving Agent") to receive on behalf of holders of H Shares all dividends declared in respect of H Shares. The Receiving Agent is a trust company registered under the Trustee Ordinance in Hong Kong. Cheques for the H Share dividends will be issued by the Receiving Agent and are expected to be despatched by ordinary post to holders of H Shares at their own risk on or before 30 July 2025 (payment date of dividends for H Shares). Major Estimate Revision • Jun 21
Consensus revenue estimates decrease by 11% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from CN¥6.75b to CN¥6.02b. EPS estimate unchanged at CN¥1.12 per share. Net income forecast to grow 11% next year vs 6.5% growth forecast for Infrastructure industry in Hong Kong. Consensus price target up from HK$14.79 to HK$15.93. Share price rose 7.6% to HK$14.50 over the past week. Upcoming Dividend • Jun 19
Upcoming dividend of CN¥0.60 per share Eligible shareholders must have bought the stock before 26 June 2025. Payment date: 30 July 2025. Payout ratio is a comfortable 57% but the company is paying out more than the cash it is generating. Trailing yield: 4.8%. Lower than top quartile of Hong Kong dividend payers (7.5%). Lower than average of industry peers (5.5%). Announcement • May 30
Anhui Expressway Company Limited, Annual General Meeting, Jun 24, 2025 Anhui Expressway Company Limited, Annual General Meeting, Jun 24, 2025, at 14:30 China Standard Time. New Risk • Apr 29
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 61% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (61% net debt to equity). Dividend is not well covered by cash flows (dividend per share is over 136x cash flows per share). Reported Earnings • Apr 04
Full year 2024 earnings released: EPS: CN¥1.01 (vs CN¥1.00 in FY 2023) Full year 2024 results: EPS: CN¥1.01 (up from CN¥1.00 in FY 2023). Revenue: CN¥7.09b (up 6.9% from FY 2023). Net income: CN¥1.67b (flat on FY 2023). Profit margin: 24% (down from 25% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 4.6% p.a. on average during the next 3 years, while revenues in the Infrastructure industry in Hong Kong are expected to grow by 1.5%. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Apr 02
Consensus revenue estimates increase by 20% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from CN¥5.39b to CN¥6.44b. EPS estimate unchanged from CN¥1.11 at last update. Infrastructure industry in Hong Kong expected to see average net income growth of 3.7% next year. Consensus price target down from HK$15.00 to HK$14.60. Share price rose 6.5% to HK$11.16 over the past week. Announcement • Mar 31
Anhui Expressway Company Limited Proposes Final Ordinary Dividend for the Year Ended 31 December 2024, Payable on or Before August 15, 2025 Anhui Expressway Company Limited board of directors proposes to distribute a final ordinary dividend for the year ended 31 December 2024 of RMB 0.604 per share, amounting to a total of RMB 1,001,800,000 at the meeting of the board of directors on 28 March 2025. The final dividend is expected to be paid on or before 15 August 2025, subject to approval at the Company's 2024 annual general meeting. Announcement • Mar 28
Anhui Expressway Company Limited to Report Q1, 2025 Results on Apr 29, 2025 Anhui Expressway Company Limited announced that they will report Q1, 2025 results on Apr 29, 2025 Announcement • Dec 27
Anhui Expressway Company Limited to Report Fiscal Year 2024 Results on Mar 31, 2025 Anhui Expressway Company Limited announced that they will report fiscal year 2024 results on Mar 31, 2025 Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.25 (vs CN¥0.31 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.25 (down from CN¥0.31 in 3Q 2023). Revenue: CN¥1.99b (down 1.5% from 3Q 2023). Net income: CN¥411.2m (down 20% from 3Q 2023). Profit margin: 21% (down from 25% in 3Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is expected to decline by 23% p.a. on average during the next 3 years, while revenues in the Infrastructure industry in Hong Kong are expected to grow by 2.5%. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 30
Anhui Expressway Company Limited to Report Q3, 2024 Results on Oct 29, 2024 Anhui Expressway Company Limited announced that they will report Q3, 2024 results on Oct 29, 2024 Buy Or Sell Opportunity • Sep 24
Now 22% overvalued Over the last 90 days, the stock has fallen 1.1% to HK$9.28. The fair value is estimated to be HK$7.58, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 3.0%. Revenue is forecast to decline by 31% in 2 years. Earnings are forecast to grow by 8.9% in the next 2 years. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.21 (vs CN¥0.23 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.21 (down from CN¥0.23 in 2Q 2023). Revenue: CN¥1.77b (up 50% from 2Q 2023). Net income: CN¥350.2m (down 7.9% from 2Q 2023). Profit margin: 20% (down from 32% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 18% p.a. on average during the next 3 years, while revenues in the Infrastructure industry in Hong Kong are expected to grow by 2.5%. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Jul 03
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 13% to HK$9.98. The fair value is estimated to be HK$8.07, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 4.6%. Revenue is forecast to decline by 26% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Announcement • Jun 28
Anhui Expressway Company Limited to Report First Half, 2024 Results on Aug 31, 2024 Anhui Expressway Company Limited announced that they will report first half, 2024 results on Aug 31, 2024 Buy Or Sell Opportunity • Jun 18
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 8.4% to HK$9.70. The fair value is estimated to be HK$8.03, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 4.6%. Revenue is forecast to decline by 26% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Upcoming Dividend • Jun 04
Upcoming dividend of CN¥0.60 per share Eligible shareholders must have bought the stock before 11 June 2024. Payment date: 12 July 2024. Payout ratio is a comfortable 60% but the company is not cash flow positive. Trailing yield: 6.5%. Lower than top quartile of Hong Kong dividend payers (7.7%). In line with average of industry peers (6.1%). Buy Or Sell Opportunity • May 31
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 15% to HK$9.86. The fair value is estimated to be HK$8.14, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 4.6%. Revenue is forecast to decline by 26% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Buy Or Sell Opportunity • May 13
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 27% to HK$9.97. The fair value is estimated to be HK$8.20, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 4.7%. Revenue is forecast to decline by 26% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Valuation Update With 7 Day Price Move • May 10
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$9.68, the stock trades at a trailing P/E ratio of 8.9x. Average forward P/E is 7x in the Infrastructure industry in Hong Kong. Total returns to shareholders of 125% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$8.17 per share. Declared Dividend • May 08
Dividend of CN¥0.60 announced Shareholders will receive a dividend of CN¥0.60. Ex-date: 11th June 2024 Payment date: 12th July 2024 Dividend yield will be 6.5%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (60% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 7.7% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 08
Anhui Expressway Company Limited, Annual General Meeting, Jun 06, 2024 Anhui Expressway Company Limited, Annual General Meeting, Jun 06, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Hefei, Anhui China Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.28 (vs CN¥0.28 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.28 (up from CN¥0.28 in 1Q 2023). Revenue: CN¥1.29b (up 12% from 1Q 2023). Net income: CN¥459.7m (flat on 1Q 2023). Profit margin: 36% (down from 40% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 15% p.a. on average during the next 3 years, while revenues in the Infrastructure industry in Hong Kong are expected to grow by 3.9%. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Apr 10
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 186% Dividend yield: 7.2% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 01
Full year 2023 earnings released: EPS: CN¥1.00 (vs CN¥0.87 in FY 2022) Full year 2023 results: EPS: CN¥1.00 (up from CN¥0.87 in FY 2022). Revenue: CN¥6.63b (up 27% from FY 2022). Net income: CN¥1.66b (up 15% from FY 2022). Profit margin: 25% (down from 28% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 11% p.a. on average during the next 3 years, while revenues in the Infrastructure industry in Hong Kong are expected to grow by 4.5%. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Mar 26
Now 20% undervalued Over the last 90 days, the stock has risen 15% to HK$8.74. The fair value is estimated to be HK$10.93, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 8.1% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Buy Or Sell Opportunity • Mar 11
Now 21% undervalued Over the last 90 days, the stock has risen 19% to HK$8.95. The fair value is estimated to be HK$11.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 8.1% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Buy Or Sell Opportunity • Jan 26
Now 20% undervalued Over the last 90 days, the stock has risen 6.1% to HK$8.03. The fair value is estimated to be HK$10.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 8.1% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Buying Opportunity • Jan 11
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.3%. The fair value is estimated to be HK$10.05, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 8.1% in 2 years. Earnings is forecast to grow by 19% in the next 2 years. Announcement • Dec 30
Anhui Expressway Company Limited to Report Fiscal Year 2023 Results on Mar 29, 2024 Anhui Expressway Company Limited announced that they will report fiscal year 2023 results on Mar 29, 2024 Announcement • Nov 22
Anhui Expressway Company Limited Announce Executive Changes The board of directors of Anhui Expressway Company Limited announced that the Company has recently received the written resignation application from Ms. Deng Ping (Ms. Deng). Due to change of work arrangement, Ms. Deng tendered her resignation as deputy general manager of the Company. Ms. Deng has confirmed that she has no disagreement with the Board in any respect and there are no other matters relating to her resignation that need to be brought to the attention of the shareholders (the Shareholders) of the Company or The Stock Exchange of Hong Kong Limited (the Stock Exchange). Ms. Deng's resignation application took effect upon the receipt of the same by the Board of the Company. After her resignation, Ms. Deng will not hold any position in the Company. The Board announced that, pursuant to the nomination from the general manager of the Company, and followed by the consideration by the human resources and remuneration committee under the Board of the Company, the appointment of Mr. Zhang Jinlin (Mr. Zhang) as deputy general manager of the Company was approved by the Board in a meeting held on 21 November 2023 for a term commencing on the date of approval at the Board meeting and ending on the date of the appointment of the new session of the Board. Mr. Zhang, born in February 1967, holds a postgraduate degree, and is a senior engineer. He started working in July 1988, and served as a technician in the Anhui High-level Expressway Construction Commanding Bureau, the deputy director of the central control room of Anhui High-level Expressway Administration, the director of the central control room of the operation division of Anhui Expressway Holding Corporation, Party's Branch Committee member and deputy director of the Hefei management office of Anhui Expressway Company Limited, Party's Branch Committee member and deputy general manager of Anhui High-level Project Management Co. Ltd., member of the Party Committee and deputy general manager of Anhui Expressway Network Operations Company Limited. From December 2018 to March 2021, he served as the Party's Branch secretary general and chairman of the board of directors of Xuanguang Expressway Company Limited. From March 2021 to October 2023, he served as the secretary of the Party Committee and director of the Wuhu Expressway management center of Anhui Transportation Holding Group. The Board announced that, pursuant to the nomination from the general manager of the Company, and followed by the consideration by the human resources and remuneration committee under the Board of the Company, the appointment of Mr. Wu Jianmin (Mr. Wu) as chief engineer of the Company was approved by the Board in a meeting held on 21 November 2023 for a term commencing on the date of approval at the Board meeting and ending on the date of the appointment of the new session of the Board. Mr. Wu, born in November 1969, has a university degree, a master's degree in engineering, and is a senior engineer. He started working in July 1992, and served as the head of the quality inspection department, deputy project manager, and manager of Anhui Provincial Port & Shipping Engineering Company, the deputy manager of the direct branch of Anhui Provincial Road Port Engineering Company, the deputy director of the Sixu Expressway Construction Office of Anhui Provincial Communications Investment Group, the deputy director of the Xinqiao International Airport Expressway Construction Office, and the Party branch secretary and director of the Jiqi Expressway (Lixin - Huainan section) Construction Office, of Anhui Provincial Communications Investment Group. From April 2016 to June 2020, he served as the Party branch secretary and director of the He'an Expressway Reconstruction and Expansion Project Office of Anhui Transportation Holding Group. From June 2020 to December 2022, he served as the chief engineer of Anhui Transportation Construction Management Co. Ltd. From December 2022 to October 2023, he served as a member of the Party Committee and chief engineer of Anhui Transportation Construction Management Co. Ltd. Reported Earnings • Oct 31
Third quarter 2023 earnings released: EPS: CN¥0.31 (vs CN¥0.31 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.31 (up from CN¥0.31 in 3Q 2022). Revenue: CN¥2.02b (up 73% from 3Q 2022). Net income: CN¥511.3m (flat on 3Q 2022). Profit margin: 25% (down from 43% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 6.3% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 29
Anhui Expressway Company Limited Announces Management Changes The board of directors of Anhui Expressway Company Limited announced that the Company has recently received the written resignation applications from Mr. Yang Xiaoguang and Mr. Tao Wensheng. Due to retirement, Mr. Yang has tendered his resignation as an executive director and the vice chairman of the Company. Due to change of work arrangement, Mr. Tao has tendered his resignation as an executive director and the general manager of the Company. At the same time, each of them ceased to be a member of the strategic development and investment committee of the Company. The Board announces that, as nominated by the chairman of the Company, uponconsideration by the Human Resources and Remuneration Committee under the Board of the Company, the Board resolved in a meeting held on 28 September 2023 to approve the appointment of Mr. Wang Xiaowen ("Mr. Wang"), in replacement of Mr. Tao, as the general manager of the Company for a term commencing on the date of approval at the Board meeting and ending on the date of the appointment of the new session of the Board. Mr. Wang Xiaowen, born in 1970, has the master degree and the title of senior auditor. He started to work in July 1990, serving as the deputy secretary of the Committee of Chinese Communist Youth League under the Political Section of Anqing RoadTransportation Corporation; the chief of the Finance Section, office director, member of the Committee of the General Party Branch and deputy division director of Gaojie Expressway Management Division, Anhui Expressway Holding Corporation; the secretary of the Party Branch and the executive vice president of Anhui High-speed Logistics Corporation; the secretary of the General Party Branch and chief of He ' an Expressway Management Division, Anhui Transportation Holding Group and the executive director and president of Anhui Anqing Yangtze River Expressway Bridge Limited Liability Company from August 2015 to August 2021; the secretary of the Party Committee and director of He'an Expressway Management Center, Anhui Transportation Holding Group Company Limited and the executive director and president of Anhui Anqing Yangtze River Expressway Bridge Limited Liability Company from August 2021 to December 2022; the chief of the Finance Department, the secretary of the General Party Branch and chief of the Financial Sharing Center, Anhui Transportation Holding Group Company Limited from December 2022 to September 2023. Buying Opportunity • Sep 25
Now 21% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be HK$10.68, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has grown by 20%. Revenue is forecast to grow by 59% in 2 years. Earnings is forecast to grow by 20% in the next 2 years. Major Estimate Revision • Sep 07
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥7.24b to CN¥6.43b. EPS estimate fell from CN¥1.08 to CN¥0.985 per share. Net income forecast to grow 14% next year vs 13% growth forecast for Infrastructure industry in Hong Kong. Consensus price target up from HK$8.83 to HK$9.77. Share price was steady at HK$7.80 over the past week. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.23 (vs CN¥0.16 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.23 (up from CN¥0.16 in 2Q 2022). Revenue: CN¥1.18b (down 36% from 2Q 2022). Net income: CN¥380.0m (up 46% from 2Q 2022). Profit margin: 32% (up from 14% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jun 06
Upcoming dividend of CN¥0.55 per share at 7.6% yield Eligible shareholders must have bought the stock before 13 June 2023. Payment date: 19 July 2023. Payout ratio is a comfortable 61% but the company is paying out more than the cash it is generating. Trailing yield: 7.6%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (6.0%). Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: CN¥0.28 (vs CN¥0.24 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.28 (up from CN¥0.24 in 1Q 2022). Revenue: CN¥1.15b (up 19% from 1Q 2022). Net income: CN¥459.5m (up 13% from 1Q 2022). Profit margin: 40% (down from 42% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 26% per year. Major Estimate Revision • Apr 04
Consensus revenue estimates decrease by 10%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥8.00b to CN¥7.18b. EPS estimate increased from CN¥1.08 to CN¥1.09 per share. Net income forecast to grow 19% next year vs 19% growth forecast for Infrastructure industry in Hong Kong. Consensus price target up from HK$8.95 to HK$9.46. Share price was steady at HK$7.59 over the past week. Buying Opportunity • Jan 04
Now 20% undervalued Over the last 90 days, the stock is up 25%. The fair value is estimated to be HK$8.03, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 71% in 2 years. Earnings is forecast to grow by 28% in the next 2 years. Board Change • Nov 16
Less than half of directors are independent There are 8 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 8 new directors. 4 experienced directors. No highly experienced directors. 3 independent directors (6 non-independent directors). Member of Supervisory Committee Yue Jiang is the most experienced director on the board, commencing their role in 2016. Independent Non-Executive Director Jianping Zhang was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.31 (vs CN¥0.23 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.31 (up from CN¥0.23 in 3Q 2021). Revenue: CN¥1.17b (up 31% from 3Q 2021). Net income: CN¥507.3m (up 34% from 3Q 2021). Profit margin: 43% (up from 42% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Sep 08
Consensus revenue estimates increase by 71% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from CN¥3.96b to CN¥6.79b. EPS estimate increased from CN¥0.87 to CN¥0.92 per share. Net income forecast to grow 22% next year vs 13% growth forecast for Infrastructure industry in Hong Kong. Consensus price target broadly unchanged at HK$8.89. Share price rose 2.3% to HK$5.78 over the past week. Reported Earnings • Aug 29
Second quarter 2022 earnings released: EPS: CN¥0.16 (vs CN¥0.22 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.16 (down from CN¥0.22 in 2Q 2021). Revenue: CN¥1.85b (up 120% from 2Q 2021). Net income: CN¥259.9m (down 27% from 2Q 2021). Profit margin: 14% (down from 43% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is expected to shrink by 16% compared to a 10% growth forecast for the Infrastructure industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 17
Upcoming dividend of CN¥0.55 per share Eligible shareholders must have bought the stock before 24 May 2022. Payment date: 20 July 2022. Payout ratio is a comfortable 59% and this is well supported by cash flows. Trailing yield: 9.4%. Within top quartile of Hong Kong dividend payers (7.8%). Higher than average of industry peers (7.3%). Reported Earnings • May 03
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: CN¥0.24 (up from CN¥0.23 in 1Q 2021). Revenue: CN¥966.3m (flat on 1Q 2021). Net income: CN¥406.1m (up 6.3% from 1Q 2021). Profit margin: 42% (up from 40% in 1Q 2021). Revenue exceeded analyst estimates by 8.1%. Earnings per share (EPS) also surpassed analyst estimates by 1.9%. Over the next year, revenue is forecast to grow 7.5%, compared to a 7.2% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 8 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 8 new directors. 4 experienced directors. No highly experienced directors. 3 independent directors (6 non-independent directors). Member of Supervisory Committee Yue Jiang is the most experienced director on the board, commencing their role in 2016. Independent Non-Executive Director Jianping Zhang was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Major Estimate Revision • Apr 07
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from CN¥3.81b to CN¥4.21b. EPS estimate fell from CN¥1.10 to CN¥1.04. Net income forecast to grow 11% next year vs 4.8% growth forecast for Infrastructure industry in Hong Kong. Consensus price target up from HK$7.42 to HK$9.68. Share price was steady at HK$7.72 over the past week. Reported Earnings • Mar 30
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: CN¥0.91 (up from CN¥0.55 in FY 2020). Revenue: CN¥3.92b (up 49% from FY 2020). Net income: CN¥1.51b (up 65% from FY 2020). Profit margin: 39% (up from 35% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.1%. Earnings per share (EPS) also surpassed analyst estimates by 1.9%. Over the next year, revenue is expected to shrink by 2.8% compared to a 2.7% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 14% per year. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improved over the past week After last week's 15% share price gain to HK$7.60, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 6x in the Infrastructure industry in Hong Kong. Total returns to shareholders of 82% over the past three years. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 20% share price gain to HK$5.82, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 6x in the Infrastructure industry in Hong Kong. Total returns to shareholders of 38% over the past three years. Reported Earnings • Oct 29
Third quarter 2021 earnings released The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: CN¥893.7m (down 3.5% from 3Q 2020). Net income: CN¥378.6m (up 1.8% from 3Q 2020). Profit margin: 42% (up from 40% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 1% per year.