270 Stock Overview
Guangdong Investment Limited, an investment holding company, engages in water resources, property investment and development, department store operation, energy project operation, road and bridge operation, and hotel businesses.
Guangdong Investment Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||HK$8.30|
|52 Week High||HK$11.72|
|52 Week Low||HK$8.28|
|1 Month Change||-16.42%|
|3 Month Change||-22.14%|
|1 Year Change||-24.82%|
|3 Year Change||-47.93%|
|5 Year Change||-20.80%|
|Change since IPO||432.05%|
Recent News & Updates
We Think Guangdong Investment (HKG:270) Is Taking Some Risk With Its Debt
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Guangdong Investment (HKG:270) Is Increasing Its Dividend To HK$0.43
Guangdong Investment Limited's ( HKG:270 ) dividend will be increasing to HK$0.43 on 28th of July. This takes the...
|270||HK Water Utilities||HK Market|
Return vs Industry: 270 underperformed the Hong Kong Water Utilities industry which returned -20.4% over the past year.
Return vs Market: 270 underperformed the Hong Kong Market which returned -20.9% over the past year.
|270 Average Weekly Movement||3.2%|
|Water Utilities Industry Average Movement||5.0%|
|Market Average Movement||6.9%|
|10% most volatile stocks in HK Market||13.7%|
|10% least volatile stocks in HK Market||3.3%|
Stable Share Price: 270 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: 270's weekly volatility (3%) has been stable over the past year.
About the Company
Guangdong Investment Limited, an investment holding company, engages in water resources, property investment and development, department store operation, energy project operation, road and bridge operation, and hotel businesses. Its Water Resources segment provides water distribution, sewage treatment, infrastructure and water pipeline installation services, as well as constructs water supply and sewage treatment infrastructure in Mainland China and Hong Kong. The company’s Property Investment and Development segment invests in various properties in Hong Kong and Mainland China; and develops and sells properties in Mainland China.
Guangdong Investment Fundamentals Summary
|270 fundamental statistics|
Is 270 overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|270 income statement (TTM)|
|Cost of Revenue||HK$18.08b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||0.74|
|Net Profit Margin||16.67%|
How did 270 perform over the long term?See historical performance and comparison
7.3%Current Dividend Yield
Is 270 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 270?
Other financial metrics that can be useful for relative valuation.
|What is 270's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does 270's PE Ratio compare to its peers?
|270 PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
371 Beijing Enterprises Water Group
855 China Water Affairs Group
3768 Kunming Dianchi Water Treatment
6136 Kangda International Environmental
270 Guangdong Investment
Price-To-Earnings vs Peers: 270 is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (4.9x).
Price to Earnings Ratio vs Industry
How does 270's PE Ratio compare vs other companies in the Asian Water Utilities Industry?
Price-To-Earnings vs Industry: 270 is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the Hong Kong Water Utilities industry average (5.5x)
Price to Earnings Ratio vs Fair Ratio
What is 270's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||11.3x|
|Fair PE Ratio||11.2x|
Price-To-Earnings vs Fair Ratio: 270 is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).
Share Price vs Fair Value
What is the Fair Price of 270 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 270 (HK$8.3) is trading below our estimate of fair value (HK$17.26)
Significantly Below Fair Value: 270 is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: 270 is poor value based on its PEG Ratio (1.6x)
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How is Guangdong Investment forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 270's forecast earnings growth (7% per year) is above the savings rate (1.6%).
Earnings vs Market: 270's earnings (7% per year) are forecast to grow slower than the Hong Kong market (16.6% per year).
High Growth Earnings: 270's earnings are forecast to grow, but not significantly.
Revenue vs Market: 270's revenue (14.9% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).
High Growth Revenue: 270's revenue (14.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 270's Return on Equity is forecast to be low in 3 years time (11.8%).
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How has Guangdong Investment performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 270 has high quality earnings.
Growing Profit Margin: 270's current net profit margins (16.7%) are lower than last year (18.8%).
Past Earnings Growth Analysis
Earnings Trend: 270's earnings have declined by 1.9% per year over the past 5 years.
Accelerating Growth: 270's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 270 had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Water Utilities industry average (-1.9%).
Return on Equity
High ROE: 270's Return on Equity (9.1%) is considered low.
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How is Guangdong Investment's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: 270's short term assets (HK$51.2B) exceed its short term liabilities (HK$37.2B).
Long Term Liabilities: 270's short term assets (HK$51.2B) exceed its long term liabilities (HK$30.9B).
Debt to Equity History and Analysis
Debt Level: 270's net debt to equity ratio (34.7%) is considered satisfactory.
Reducing Debt: 270's debt to equity ratio has increased from 17.4% to 50.2% over the past 5 years.
Debt Coverage: 270's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 270's interest payments on its debt are well covered by EBIT (27.8x coverage).
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What is Guangdong Investment current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 270's dividend (7.31%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.73%).
High Dividend: 270's dividend (7.31%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.83%).
Stability and Growth of Payments
Stable Dividend: 270's dividends per share have been stable in the past 10 years.
Growing Dividend: 270's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: At its current payout ratio (82.5%), 270's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: 270 is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Yinheng Wen (45 yo)
Mr. Yinheng Wen has been a Managing Director of Guangdong Investment Ltd. since November 15, 2012. From 2003 to 2006, Mr. Wen served in Guangdong Bureau and Listed Company Supervision Department of China S...
CEO Compensation Analysis
Compensation vs Market: Yinheng's total compensation ($USD430.84K) is about average for companies of similar size in the Hong Kong market ($USD566.66K).
Compensation vs Earnings: Yinheng's compensation has been consistent with company performance over the past year.
Experienced Management: 270's management team is considered experienced (2.6 years average tenure).
Experienced Board: 270's board of directors are considered experienced (6.6 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Guangdong Investment Limited's employee growth, exchange listings and data sources
- Name: Guangdong Investment Limited
- Ticker: 270
- Exchange: SEHK
- Founded: 1973
- Industry: Water Utilities
- Sector: Utilities
- Implied Market Cap: HK$54.264b
- Shares outstanding: 6.54b
- Website: https://www.gdi.com.hk
Number of Employees
- Guangdong Investment Limited
- Guangdong Investment Tower
- 28th and 29th Floors
- Hong Kong
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/01 00:00|
|End of Day Share Price||2022/06/30 00:00|
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.