Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$5.03, the stock trades at a trailing P/E ratio of 9x. Average forward P/E is 8x in the Infrastructure industry in Hong Kong. Total returns to shareholders of 181% over the past three years. Declared Dividend • May 20
Dividend of CN¥0.30 announced Shareholders will receive a dividend of CN¥0.30. Ex-date: 4th June 2026 Payment date: 13th July 2026 Dividend yield will be 4.9%, which is lower than the industry average of 6.5%. Sustainability & Growth Dividend is covered by earnings (64% earnings payout ratio) but not covered by cash flows (103% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 18% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 31
Sichuan Expressway Company Limited, Annual General Meeting, May 22, 2026 Sichuan Expressway Company Limited, Annual General Meeting, May 22, 2026. Announcement • Mar 30
Sichuan Expressway Company Limited to Report Q1, 2026 Results on Apr 30, 2026 Sichuan Expressway Company Limited announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Dec 26
Sichuan Expressway Company Limited to Report Fiscal Year 2025 Results on Mar 31, 2026 Sichuan Expressway Company Limited announced that they will report fiscal year 2025 results on Mar 31, 2026 Announcement • Sep 30
Sichuan Expressway Company Limited to Report Q3, 2025 Results on Oct 31, 2025 Sichuan Expressway Company Limited announced that they will report Q3, 2025 results on Oct 31, 2025 Announcement • Jun 30
Sichuan Expressway Company Limited to Report First Half, 2025 Results on Aug 29, 2025 Sichuan Expressway Company Limited announced that they will report first half, 2025 results on Aug 29, 2025 Announcement • May 22
Sichuan Expressway Company Limited Approves Distribution for the Year Ended 31 December 2024 Final Dividend for H Shares, Payable on or Around 11 July 2025 Sichuan Expressway Company Limited at its AGM held on May 22, 2025, approved the proposed final dividend (the "Final Dividend") of the Company for the 12 months ended 31 December 2024 of RMB 0.29 per share (tax inclusive). Distribution of the Final Dividend to holders of H Shares shall be denominated in RMB and paid in Hong Kong dollars. The applicable exchange rate is the average of the median exchange rates for RMB to Hong Kong dollars as announced by the People's Bank of China in the 5 working days prior to and including 22 May 2025, i.e., HKD 1.00: RMB 0.91964. Accordingly, the Final Dividend payable to each H Share is HKD 0.315341 (before tax). The H Shares register of members of the Company will be closed for the purpose of determining H Shares Shareholders' entitlement to the Final Dividend from 6 June 2025 to 12 June 2025 (both days inclusive), during which period no transfer of H Shares will be registered. The cheques for the Company's Final Dividend of H Shares will be issued by the Receiving Agent, and will be sent by ordinary mail on or around 11 July 2025 ("Dividend Payment Date") to holders of H Shares at their own risks. Announcement • Mar 28
Sichuan Expressway Company Limited to Report Q1, 2025 Results on Apr 30, 2025 Sichuan Expressway Company Limited announced that they will report Q1, 2025 results on Apr 30, 2025 Announcement • Dec 27
Sichuan Expressway Company Limited to Report Fiscal Year 2024 Results on Mar 29, 2025 Sichuan Expressway Company Limited announced that they will report fiscal year 2024 results on Mar 29, 2025 Announcement • Nov 21
Sichuan Expressway Company Limited Announces Board Changes Sichuan Development Holding Co. Ltd. at its extraordinary general meeting held on November 20, 2024 elected and appointed Mr. Yang Shaojun as a non-executive Director of the eighth session of the Board for a term commencing from the date of the consideration and approval at the EGM until the date of expiry of the term of office of the eighth session of the Board, the Board has passed, among others, a resolution on the appointment of Mr. Yang as the vice chairman of the Board, with a term of office from 20 November 2024 until the expiration of the term of office of the eighth session of the Board. Also elect and appoint M s. M a o Yurong as an executive Director of the eighth session of the Board for a term commencing from the date of the consideration and approval at the EGM until the date of expiry of the term of office of the eighth session of the Board. Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.11 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.14 (up from CN¥0.11 in 3Q 2023). Revenue: CN¥1.99b (down 14% from 3Q 2023). Net income: CN¥424.5m (up 25% from 3Q 2023). Profit margin: 21% (up from 15% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • Oct 23
Sichuan Expressway Company Limited Announces Resignation of Wu Xinhua as A Non-Executive Director and Vice Chairman Sichuan Expressway Company Limited announced that Mr. Wu Xinhua ("Mr. Wu") has tendered his resignation from his positions as a non-executive Director and Vice Chairman of the Company with effect from 23 October 2024 due to the change of his work arrangements. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$3.69, the stock trades at a trailing P/E ratio of 9.5x. Average trailing P/E is 8x in the Infrastructure industry in Hong Kong. Total returns to shareholders of 142% over the past three years. Announcement • Sep 30
Sichuan Expressway Company Limited to Report Q3, 2024 Results on Oct 31, 2024 Sichuan Expressway Company Limited announced that they will report Q3, 2024 results on Oct 31, 2024 Board Change • Sep 26
Less than half of directors are independent There are 5 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: 4 independent directors. 6 non-independent directors. Independent Non-Executive Director Jiang Tao was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Sep 03
Sichuan Expressway Company Limited Announces Board and Committee Changes The Board of Sichuan Expressway Company Limited announced that Mr. Zhang Qinghua ("Mr. Zhang") had tendered his resignation from his positions as an independent non-executive Director, the committee chairman of the renumeration and appraisal committee under the Board, a member of the audit committee under the Board and a member of the strategic committee under the Board due to personal work changes, with effect from 3 September 2024. At the EGM, Mr. Jiang Tao ("Mr. Jiang") has been elected as an independent non-executive Director of the eighth session of the Board of the Company, with a term of office from the date of the EGM (i.e. 3 September 2024) until the expiration of the term of office of the eighth session of the Board of the Company. The Board announced that at the twenty-second meeting of the eighth session of the Board of the Company held immediately after the EGM, the Board has passed, among others, a resolution on the appointment of Mr. Jiang as the committee chairman of the renumeration and appraisal committee under the Board, a member of the audit committee under the Board and a member of the strategic committee under the Board, with a term of office from 3 September 2024 until the expiration of the term of office of the eighth session of the Board. The details of the composition of the remuneration and appraisal committee, audit committee and strategic committee under the Board after adjustment are as follows: Renumeration and Appraisal Committee - Mr. Jiang Tao (chairman), Mr. Chen Chaoxiong and Madam Bu Danlu; Audit Committee - Madam Bu Danlu (chairlady), Mr. Zhou Hua and Mr. Jiang Tao; Strategic Committee - Mr. Luo Zuyi (chairman), Mr. Yu Haizong and Mr. Jiang Tao. No change has been made to the composition of the nomination committee under the Board. Reported Earnings • Aug 30
Second quarter 2024 earnings released: EPS: CN¥0.10 (vs CN¥0.11 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.10 (down from CN¥0.11 in 2Q 2023). Revenue: CN¥3.36b (down 9.0% from 2Q 2023). Net income: CN¥306.7m (down 11% from 2Q 2023). Profit margin: 9.1% (down from 9.3% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • Jun 28
Sichuan Expressway Company Limited to Report First Half, 2024 Results on Aug 30, 2024 Sichuan Expressway Company Limited announced that they will report first half, 2024 results on Aug 30, 2024 Upcoming Dividend • May 28
Upcoming dividend of HK$0.26 per share Eligible shareholders must have bought the stock before 04 June 2024. Payment date: 11 July 2024. Payout ratio is a comfortable 65% but the company is not cash flow positive. Trailing yield: 7.5%. Within top quartile of Hong Kong dividend payers (7.5%). Higher than average of industry peers (6.0%). Announcement • May 24
Sichuan Expressway Company Limited Approves Final Dividend for the Year Ended 31 December 2023, Payable on 11 July 2024 Sichuan Expressway Company Limited approved final dividend of RMB 0.24 per share for the year ended 31 December 2023 at its annual general meeting held on 23 May 2024. Ex-dividend date is 04 June 2024. Record date is 12 June 2024. Payment date is 11 July 2024. Reported Earnings • May 01
First quarter 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.14 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.13 (down from CN¥0.14 in 1Q 2023). Revenue: CN¥2.01b (up 1.1% from 1Q 2023). Net income: CN¥391.4m (down 10% from 1Q 2023). Profit margin: 19% (down from 22% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • Apr 10
Sichuan Expressway Company Limited Appoints Luo Zuyi as Executive Director, Authorised Representative, Chairman of Board, Committee Chairman of Strategic Committee and Member of Nomination Committee Sichuan Expressway Company Limited at its extraordinary general meeting held on April 9, 2024, announced Mr. Luo Zuyi has been elected as an executive Director of the eighth session of the Board of the Company, with a term of office from the date of the EGM (that is 9 April 2024) until the expiration of the term of office of the eighth session of the Board of the Company. Pursuant to the listing rules on the SSE and/or the Articles of Association, Mr. Luo shall be eligible for re-election upon the expiration of his term of office. The Board announced that at the fifteenth meeting of the eighth session of the Board of the Company held immediately after the EGM, the Board agreed to appoint Mr. Luo Zuyi as an authorised representative of the Company under Rule 3.05 of the Listing Rules on the Stock Exchange (the Authorised Representative), with effect from 9 April 2024. The Board further announced that the Board has also passed the following resolutions, among other things: the appointment of Mr. Luo Zuyi as the chairman of the Board of the Company; the appointment of Mr. Luo Zuyi as the committee chairman of the strategic committee under the Board; and the appointment of Mr. Luo Zuyi as a member of the nomination committee under the Board, with a term of office from 9 April 2024 until the expiration of the term of office of the eighth session of the Board. Strategic Committee: Mr. Luo Zuyi (Committee Chairman), Mr. Yu Haizong and Mr. Zhang Qinghua. Nomination Committee: Mr. Yu Haizong (Committee Chairman), Mr. Luo Zuyi and Mr. Zhou Hua. No change has been made to the composition of the audit committee and the remuneration and appraisal committee under the Board. Announcement • Mar 29
Sichuan Expressway Company Limited to Report Q1, 2024 Results on Apr 30, 2024 Sichuan Expressway Company Limited announced that they will report Q1, 2024 results on Apr 30, 2024 Declared Dividend • Mar 29
Dividend of CN¥0.24 announced Shareholders will receive a dividend of CN¥0.24. Ex-date: 4th June 2024 Payment date: 11th July 2024 Dividend yield will be 8.2%, which is higher than the industry average of 6.5%. Sustainability & Growth Dividend is covered by earnings (24% 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 2.3% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 6.9% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 28
Sichuan Expressway Company Limited, Annual General Meeting, May 23, 2024 Sichuan Expressway Company Limited, Annual General Meeting, May 23, 2024. Reported Earnings • Mar 28
Full year 2023 earnings released: EPS: CN¥0.39 (vs CN¥0.24 in FY 2022) Full year 2023 results: EPS: CN¥0.39 (up from CN¥0.24 in FY 2022). Revenue: CN¥11.7b (up 20% from FY 2022). Net income: CN¥1.19b (up 64% from FY 2022). Profit margin: 10% (up from 7.4% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Mar 27
Sichuan Expressway Company Limited Proposes Final Dividend for the Year Ended 31 December 2023, Payable on 11 July 2024 Sichuan Expressway Company Limited proposed final dividend of RMB 0.24 per share for the year ended 31 December 2023 at its annual general meeting to be held on 23 May 2024. Ex-dividend date is 04 June 2024. Record date is 12 June 2024. Payment date is 11 July 2024. Announcement • Mar 09
Sichuan Expressway Company Limited Announces Resignation of Li Wenhu as General Manager The board of directors of Sichuan Expressway Company Limited announced that Mr. Li Wenhu ("Mr. Li") has tendered his resignation from his position as general manager of the Company with effect from 8 March 2024 due to the change of his work arrangements. Upon his resignation, Mr. Li would no longer hold any positions in the Group. Announcement • Mar 08
Sichuan Expressway Company Limited Announces Resignation of Li Wenhu as Executive Director and Vice Chairman The board of directors of Sichuan Expressway Company Limited announced that Mr. Li Wenhu (Mr. Li) has tendered his resignation from his positions as an executive Director, Vice Chairman (acting as Chairman), and the authorised representative of the Company with effect from 8 March 2024 due to the change of his work arrangements. Upon his resignation, Mr. Li would no longer hold any positions in the Group. Announcement • Dec 30
Sichuan Expressway Company Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 Sichuan Expressway Company Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.052 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.11 (up from CN¥0.052 in 3Q 2022). Revenue: CN¥2.31b (up 23% from 3Q 2022). Net income: CN¥339.4m (up 114% from 3Q 2022). Profit margin: 15% (up from 8.4% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 10% per year. Announcement • Oct 21
Sichuan Expressway Company Limited Announces Resignation of Gan Yongyi as the Chairman, an Executive Director, the Committee Chairman of the Strategic Committee Under the Board, and A Member of the Nomination Committee Under the Board Sichuan Expressway Company Limited announced that due to reaching the retirement age, Mr. Gan Yongyi ("Mr. Gan") has resigned from the positions as the Chairman, an executive Director, the Committee Chairman of the Strategic Committee under the Board, and a member of the Nomination Committee under the Board of the Company and the authorised representative (the "Authorised Representative") of the Company pursuant to Rule 3.05 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") with effect from 20 October 2023. Upon his resignation, Mr. Gan would no longer hold any position in the Group. Following the resignation of Mr. Gan as a member of the Nomination Committee under the Board of the Company, this will constitute a non-compliance of the requirement of Article 4 of the terms of reference of the Nomination Committee of the Company that the Nomination Committee shall consist of three to seven Directors. Announcement • Sep 30
Sichuan Expressway Company Limited to Report Q3, 2023 Results on Oct 27, 2023 Sichuan Expressway Company Limited announced that they will report Q3, 2023 results on Oct 27, 2023 Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.076 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.11 (up from CN¥0.076 in 2Q 2022). Revenue: CN¥3.69b (up 73% from 2Q 2022). Net income: CN¥343.3m (up 48% from 2Q 2022). Profit margin: 9.3% (down from 11% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Aug 29
Sichuan Expressway Company Limited Announces Resignation of Madam Xue Min as Executive Director The board of directors of Sichuan Expressway Company Limited announced that Madam Xue Min ("Madam Xue") has tendered her resignation from her position as an executive Director of the Company due to change in her work arrangements with effect from 28 August 2023. Madam Xue has confirmed that she has no disagreement with the Board and there is no other matter in relation to her resignation that needs to be brought to the attention of the shareholders of the Company. Announcement • Jul 15
Sichuan Expressway Company Limited Provides Earnings Guidance for the First Half of 2023 Sichuan Expressway Company Limited provided earnings guidance for the first half of 2023. For the period, the company expects the net profit attributable to Shareholders will be approximately RMB 806,889,700, representing an increase of approximately RMB 383,076,700, or approximately 90.39%, as compared to the data for the same period in 2022. Announcement • Jun 28
Sichuan Expressway Company Limited to Report First Half, 2023 Results on Aug 30, 2023 Sichuan Expressway Company Limited announced that they will report first half, 2023 results on Aug 30, 2023 Announcement • Jun 13
Sichuan Expressway Company Limited Announces Resignation of Yan Qixiang as Independent Non-Executive Director, Member of the Audit Committee and Member of the Nomination Committee The board of directors of Sichuan Expressway Company Limited announced that Mr. Yan Qixiang has tendered his resignation from his positions as an independent non-executive Director of the Company, a member of the audit committee under the Board and a member of the nomination committee under the Board due to personal work changes. The resignation of Mr. Yan shall be effective upon the newly appointed independent non-executive Director having been elected by the Company. Until then, Mr. Yan will continue to perform his duties as an independent non-executive Director of the Company and a member of the relevant specialized committees under the Board in accordance with relevant laws, regulations and the articles of association of the Company. Upcoming Dividend • May 30
Upcoming dividend of HK$0.11 per share at 5.0% yield Eligible shareholders must have bought the stock before 06 June 2023. Payment date: 14 July 2023. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 5.0%. Lower than top quartile of Hong Kong dividend payers (7.8%). Lower than average of industry peers (6.0%). Announcement • May 27
Sichuan Expressway Company Limited Declares Final Ordinary Dividend for the Year Ended 31 December 2022, Payable on July 14, 2023 Sichuan Expressway Company Limited declared final ordinary dividend of RMB 0.1 per share for the year ended 31 December 2022. Ex-dividend date 06 June 2023, Record date 14 June 2023 and Payment date 14 July 2023. Exchange rate RMB 1: HKD 1.111951. Announcement • May 06
Sichuan Expressway Company Limited (SEHK:107) completed the acquisition of Sichuan Chengdu Second Expressway Development Co., Ltd. from Sichuan Shu Dao Expressway Group Co., Ltd. and Sichuan Road and Bridge (Group) Co., Ltd. Sichuan Expressway Company Limited (SEHK:107) agreed to acquire Sichuan Chengdu Second Expressway Development Co., Ltd. from Sichuan Shu Dao Expressway Group Co., Ltd. and Sichuan Road and Bridge (Group) Co., Ltd. for CNY 5.9 billion on February 17, 2023. Sichuan Shu Dao will sell 81% stake and Sichuan Road will sell 19% stake in Sichuan Chengdu Second. Transaction has been approved by Sichuan Expressway Company's board and is subject to approval of shareholders. As on March 9, 2023, Transaction is approved by Sichuan Road & Bridge's shareholders. For the period September 30, 2022, Sichuan Chengdu had CNY 16,350 million of total assets, CNY 2,940 million of net assets, CNY 515.291 million of revenues, CNY -91.956 million of net income after tax, 12258.459 million of total debt. Ernst & Young (Hong Kong) Limited acted as an accountant, Octal Capital Limited acted as financial advisor, Lego Corporate Finance Limited acted as financial advisor, Beijing North Asia Asset Assessment Firm (Special General Partnership) acted as an independent qualified valuer in the PRC. and Chelbi Engineering Consultants, Inc as an independent professional traffic consultant in the PRC. to Sichuan Expressway Company Limited.Sichuan Expressway Company Limited (SEHK:107) completed the acquisition of Sichuan Chengdu Second Expressway Development Co., Ltd. from Sichuan Shu Dao Expressway Group Co., Ltd. and Sichuan Road and Bridge (Group) Co., Ltd. on May 4, 2023. Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: CN¥0.14 (vs CN¥0.082 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.14 (up from CN¥0.082 in 1Q 2022). Revenue: CN¥1.99b (down 1.3% from 1Q 2022). Net income: CN¥436.5m (up 74% from 1Q 2022). Profit margin: 22% (up from 13% in 1Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Jan 31
Sichuan Expressway Company Limited Provides Earning Guidance for the Year Ended 31 December 2022 Sichuan Expressway Company Limited provided earning guidance for the year ended 31 December 2022. The board of directors of the Company inform the shareholders of the Company (the "Shareholders") and potential investorsthat, based on its preliminary assessment of the unaudited management accounts for the year ended 31 December 2022 (the "Year") and information currently available to the Board: it is expected that the net profit attributable to Shareholders of the Company for the Year will decrease to approximately RMB 731,042,400, representing a significant decrease from the net profit attributable to Shareholders of RMB 1,870,856,000 recorded for the year ended 31 December 2021 (the "Previous Year"). Such decrease was mainly attributable to the proceeds from the disposal of 91% equity interests in Renshou Trading Landmark Company Limited during the Previous Year, resulting in a significant increase in non-recurring profit and loss. In addition, vehicle tolls in the Year were negatively affected by the COVID-19 and COVID-19 pandemic prevention and control, road network diversion, and restricted power consumption for high temperature etc., resulting in a decrease in vehicle tolls in the same period of the Year. Board Change • Nov 16
Less than half of directors are independent There are 7 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: 4 independent directors. 8 non-independent directors. Independent Non-Executive Director Qinghua Zhang was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Oct 29
Third quarter 2022 earnings released: EPS: CN¥0.052 (vs CN¥0.086 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.052 (down from CN¥0.086 in 3Q 2021). Revenue: CN¥1.88b (down 23% from 3Q 2021). Net income: CN¥159.0m (down 40% from 3Q 2021). Profit margin: 8.4% (down from 11% in 3Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 27
Second quarter 2022 earnings released: EPS: CN¥0.076 (vs CN¥0.12 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.076 (down from CN¥0.12 in 2Q 2021). Revenue: CN¥2.13b (down 13% from 2Q 2021). Net income: CN¥231.9m (down 35% from 2Q 2021). Profit margin: 11% (down from 15% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 30
Upcoming dividend of HK$0.13 per share Eligible shareholders must have bought the stock before 06 June 2022. Payment date: 14 July 2022. Payout ratio is a comfortable 19% but the company is not cash flow positive. Trailing yield: 6.2%. Lower than top quartile of Hong Kong dividend payers (7.8%). Lower than average of industry peers (7.2%). Reported Earnings • Apr 30
First quarter 2022 earnings released: EPS: CN¥0.082 (vs CN¥0.10 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.082 (down from CN¥0.10 in 1Q 2021). Revenue: CN¥2.02b (up 42% from 1Q 2021). Net income: CN¥251.5m (down 20% from 1Q 2021). Profit margin: 13% (down from 22% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent There are 11 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 11 new directors. 1 experienced director. No highly experienced directors. 4 independent directors (7 non-independent directors). Independent Non-Executive Director Lina Liu is the most experienced director on the board, commencing their role in 2016. Independent Non-Executive Director Haizong Yu was the last independent director to join the board, commencing their role in 2021. 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 • Apr 01
Full year 2021 earnings released Full year 2021 results: Revenue: CN¥9.10b (up 67% from FY 2020). Net income: CN¥1.87b (up 177% from FY 2020). Profit margin: 21% (up from 12% in FY 2020). The increase in margin was driven by higher revenue. Over the next year, revenue is expected to shrink by 20% compared to a 3.9% growth forecast for the industry in Hong Kong. Board Change • Mar 22
Less than half of directors are independent There are 11 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 11 new directors. 1 experienced director. No highly experienced directors. 4 independent directors (7 non-independent directors). Independent Non-Executive Director Lina Liu is the most experienced director on the board, commencing their role in 2016. Independent Non-Executive Director Haizong Yu was the last independent director to join the board, commencing their role in 2021. 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 • Aug 28
Second quarter 2021 earnings released: EPS CN¥0.12 (vs CN¥0.034 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥2.45b (up 114% from 2Q 2020). Net income: CN¥359.1m (up 250% from 2Q 2020). Profit margin: 15% (up from 9.0% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Executive Departure • Jun 03
Independent Non-Executive Director Jinkang Gao has left the company On the 25th of May, Jinkang Gao's tenure as Independent Non-Executive Director ended after 1.5 years in the role. We don't have any record of a personal shareholding under Jinkang's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 1.75 years, which is considered inexperienced in the Simply Wall St Risk Model. Upcoming Dividend • May 25
Upcoming dividend of CN¥0.08 per share Eligible shareholders must have bought the stock before 01 June 2021. Payment date: 06 July 2021. Trailing yield: 5.0%. Lower than top quartile of Hong Kong dividend payers (6.0%). Lower than average of industry peers (5.9%). Reported Earnings • May 02
First quarter 2021 earnings released: EPS CN¥0.10 (vs CN¥0.088 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥1.42b (up 126% from 1Q 2020). Net income: CN¥313.0m (up CN¥582.2m from 1Q 2020). Profit margin: 22% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 12% per year. Executive Departure • Apr 02
Staff Representative Supervisor has left the company On the 31st of March, Yaosheng Hu's tenure as Staff Representative Supervisor ended after 4.7 years in the role. We don't have any record of a personal shareholding under Yaosheng's name. A total of 4 executives have left over the last 12 months. Reported Earnings • Apr 01
Full year 2020 earnings released: EPS CN¥0.22 (vs CN¥0.35 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥5.46b (down 15% from FY 2019). Net income: CN¥674.5m (down 38% from FY 2019). Profit margin: 12% (down from 17% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 23
New 90-day high: HK$1.91 The company is up 1.0% from its price of HK$1.90 on 25 November 2020. The Hong Kong market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Infrastructure industry, which is up 7.0% over the same period. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥229.6m, down 78% from the prior year. Total revenue was CN¥5.03b over the last 12 months, down 21% from the prior year. Is New 90 Day High Low • Oct 29
New 90-day low: HK$1.71 The company is down 3.0% from its price of HK$1.76 on 31 July 2020. The Hong Kong market is up 1.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Infrastructure industry, which is down 5.0% over the same period. 
