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270

Guangdong Investment SEHK:270 Stock Report

Last Price

HK$8.30

Market Cap

HK$54.3b

7D

-6.3%

1Y

-24.8%

Updated

01 Jul, 2022

Data

Company Financials +
270 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance1/6
Financial Health4/6
Dividends4/6

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

Summary of all time highs, changes and price drops for Guangdong Investment
Historical stock prices
Current Share PriceHK$8.30
52 Week HighHK$11.72
52 Week LowHK$8.28
Beta0.13
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 IPO432.05%

Recent News & Updates

May 23
We Think Guangdong Investment (HKG:270) Is Taking Some Risk With Its Debt

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...

May 02
Guangdong Investment (HKG:270) Is Increasing Its Dividend To HK$0.43

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...

Shareholder Returns

270HK Water UtilitiesHK Market
7D-6.3%-3.9%0.5%
1Y-24.8%-20.2%-20.3%

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.

Price Volatility

Is 270's price volatile compared to industry and market?
270 volatility
270 Average Weekly Movement3.2%
Water Utilities Industry Average Movement5.0%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

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

FoundedEmployeesCEOWebsite
197310,236Yinheng Wenhttps://www.gdi.com.hk

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

How do Guangdong Investment's earnings and revenue compare to its market cap?
270 fundamental statistics
Market CapHK$54.26b
Earnings (TTM)HK$4.81b
Revenue (TTM)HK$28.88b

11.3x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
270 income statement (TTM)
RevenueHK$28.88b
Cost of RevenueHK$18.08b
Gross ProfitHK$10.80b
Other ExpensesHK$5.99b
EarningsHK$4.81b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.74
Gross Margin37.40%
Net Profit Margin16.67%
Debt/Equity Ratio50.2%

How did 270 perform over the long term?

See historical performance and comparison

Dividends

7.3%

Current Dividend Yield

82%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 270 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

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

  • PEG Ratio

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.

270 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA9.3x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does 270's PE Ratio compare to its peers?

270 PE Ratio vs Peers
The above table shows the PE ratio for 270 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.9x
371 Beijing Enterprises Water Group
5.8x9.9%HK$24.0b
855 China Water Affairs Group
6.3x13.6%HK$11.9b
3768 Kunming Dianchi Water Treatment
4.4xn/aHK$1.8b
6136 Kangda International Environmental
3.1xn/aHK$1.5b
270 Guangdong Investment
11.3x7.0%HK$54.3b

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.

270 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ratio11.2x

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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Future Growth

How is Guangdong Investment forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.0%

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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Past Performance

How has Guangdong Investment performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.9%

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.


Discover strong past performing companies

Financial Health

How is Guangdong Investment's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

What is Guangdong Investment current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


7.31%

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.


Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure


CEO

Yinheng Wen (45 yo)

9.58yrs

Tenure

HK$3,381,000

Compensation

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.


Leadership Team

Experienced Management: 270's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: 270's board of directors are considered experienced (6.6 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

Guangdong Investment Limited's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Guangdong Investment Limited
  • Guangdong Investment Tower
  • 28th and 29th Floors
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.