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Guangdong Investment

SEHK:270
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
270
SEHK
HK$106B
Market Cap
  1. Home
  2. HK
  3. Utilities
Company description

Guangdong Investment Limited engages in water resources, infrastructure, property investment and development, department store, road and bridge operation, and hotel businesses. The last earnings update was 52 days ago. More info.


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270 Share Price and Events
7 Day Returns
1%
SEHK:270
2.3%
HK Water Utilities
0.5%
HK Market
1 Year Returns
24%
SEHK:270
8.3%
HK Water Utilities
-15.9%
HK Market
270 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Guangdong Investment (270) 1% 12.2% 7.4% 24% 46.5% 84.1%
HK Water Utilities 2.3% 8% -1.7% 8.3% 26.4% 41.8%
HK Market 0.5% -2.7% -9.9% -15.9% 20.6% 3%
1 Year Return vs Industry and Market
  • 270 outperformed the Water Utilities industry which returned 8.3% over the past year.
  • 270 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
270
Industry
5yr Volatility vs Market

Value

 Is Guangdong Investment undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Guangdong Investment to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Guangdong Investment.

SEHK:270 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:270
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Water Utilities Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.34 (1 + (1- 25%) (9.33%))
0.574
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 6.65%)
7.32%

Discounted Cash Flow Calculation for SEHK:270 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Guangdong Investment is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:270 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 7.32%)
2019 6,215.00 Analyst x2 5,790.93
2020 4,577.33 Analyst x3 3,973.99
2021 5,686.33 Analyst x3 4,599.96
2022 6,079.34 Est @ 6.91% 4,582.32
2023 6,409.99 Est @ 5.44% 4,501.87
2024 6,692.55 Est @ 4.41% 4,379.60
2025 6,939.28 Est @ 3.69% 4,231.21
2026 7,160.05 Est @ 3.18% 4,067.93
2027 7,362.53 Est @ 2.83% 3,897.55
2028 7,552.52 Est @ 2.58% 3,725.32
Present value of next 10 years cash flows HK$43,750.69
SEHK:270 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$7,552.52 × (1 + 2%) ÷ (7.32% – 2%)
HK$144,808.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$144,808.25 ÷ (1 + 7.32%)10
HK$71,427.47
SEHK:270 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$43,750.69 + HK$71,427.47
HK$115,178.16
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$115,178.16 / 6,537.82
HK$17.62
SEHK:270 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$17.62
Current discount Discount to share price of HK$16.20
= -1 x (HK$16.20 - HK$17.62) / HK$17.62
8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Guangdong Investment is available for.
Intrinsic value
8%
Share price is HK$16.2 vs Future cash flow value of HK$17.62
Current Discount Checks
For Guangdong Investment to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Guangdong Investment's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Guangdong Investment's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Guangdong Investment's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Guangdong Investment's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:270 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in HKD HK$0.78
SEHK:270 Share Price ** SEHK (2019-06-14) in HKD HK$16.2
Hong Kong Water Utilities Industry PE Ratio Median Figure of 8 Publicly-Listed Water Utilities Companies 7.85x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Guangdong Investment.

SEHK:270 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:270 Share Price ÷ EPS (both in HKD)

= 16.2 ÷ 0.78

20.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guangdong Investment is overvalued based on earnings compared to the HK Water Utilities industry average.
  • Guangdong Investment is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Guangdong Investment's expected growth come at a high price?
Raw Data
SEHK:270 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
9.2%per year
Asia Water Utilities Industry PEG Ratio Median Figure of 6 Publicly-Listed Water Utilities Companies 0.64x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

SEHK:270 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.64x ÷ 9.2%

2.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guangdong Investment is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Guangdong Investment's assets?
Raw Data
SEHK:270 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in HKD HK$6.18
SEHK:270 Share Price * SEHK (2019-06-14) in HKD HK$16.2
Hong Kong Water Utilities Industry PB Ratio Median Figure of 10 Publicly-Listed Water Utilities Companies 0.78x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:270 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:270 Share Price ÷ Book Value per Share (both in HKD)

= 16.2 ÷ 6.18

2.62x

* Primary Listing of Guangdong Investment.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guangdong Investment is overvalued based on assets compared to the HK Water Utilities industry average.
X
Value checks
We assess Guangdong Investment's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Water Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Water Utilities industry average (and greater than 0)? (1 check)
  5. Guangdong Investment has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Guangdong Investment expected to grow at an attractive rate?
  • Guangdong Investment's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Guangdong Investment's earnings growth is positive but not above the Hong Kong market average.
  • Guangdong Investment's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:270 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:270 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 9.2%
SEHK:270 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 11.8%
Hong Kong Water Utilities Industry Earnings Growth Rate Market Cap Weighted Average 11.6%
Asia Water Utilities Industry Revenue Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:270 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:270 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 20,391 9,813 6,427 6
2020-12-31 17,798 8,573 5,802 11
2019-12-31 16,494 7,238 5,327 9
SEHK:270 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-03-31 13,480 5,132
2018-12-31 13,364 6,327 5,015
2018-09-30 13,025 4,944
2018-06-30 12,830 5,376 4,571
2018-03-30 12,543 5,586
2017-12-31 12,169 5,072 5,685
2017-09-30 11,488 5,767
2017-06-30 11,065 5,451 5,723
2017-03-31 10,686 4,192
2016-12-31 10,464 6,099 4,212
2016-09-30 10,246 4,184
2016-06-30 9,806 5,981 3,959

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Guangdong Investment's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
  • Guangdong Investment's revenue is expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:270 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Guangdong Investment Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:270 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.98 1.10 0.94 7.00
2020-12-31 0.89 0.99 0.82 12.00
2019-12-31 0.82 0.89 0.75 12.00
SEHK:270 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-03-31 0.78
2018-12-31 0.77
2018-09-30
2018-06-30 0.70
2018-03-30
2017-12-31 0.88
2017-09-30
2017-06-30 0.91
2017-03-31
2016-12-31 0.67
2016-09-30
2016-06-30 0.63

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Guangdong Investment is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Guangdong Investment's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Guangdong Investment has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Guangdong Investment performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Guangdong Investment's growth in the last year to its industry (Water Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Guangdong Investment's year on year earnings growth rate has been positive over the past 5 years.
  • Guangdong Investment's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Guangdong Investment's 1-year earnings growth is negative, it can't be compared to the HK Water Utilities industry average.
Earnings and Revenue History
Guangdong Investment's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Guangdong Investment Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:270 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 13,480.05 5,132.10 2,077.13
2018-12-31 13,363.60 5,015.12 2,077.13
2018-09-30 13,025.41 4,943.52 1,851.18
2018-06-30 12,830.11 4,571.37 2,031.77
2018-03-30 12,543.07 5,585.88 1,851.18
2017-12-31 12,168.84 5,685.37 1,851.18
2017-09-30 11,487.73 5,766.92 1,640.67
2017-06-30 11,064.60 5,722.79 1,687.30
2017-03-31 10,686.22 4,192.46 1,640.67
2016-12-31 10,464.20 4,212.04 1,640.05
2016-09-30 10,245.60 4,184.04 1,535.33
2016-06-30 9,805.82 3,959.08 1,566.07
2016-03-31 9,495.25 4,045.85 1,535.33
2015-12-31 9,171.96 3,905.28 1,535.33
2015-09-30 8,882.37 3,833.70 1,362.46
2015-06-30 8,795.97 4,149.14 1,416.08
2015-03-31 8,626.88 4,220.57 1,036.80
2014-12-31 8,426.29 4,397.13 1,367.95
2014-09-30 8,467.58 4,697.35 352.59
2014-06-30 8,168.04 4,467.09 1,367.50
2014-03-31 8,079.03 4,446.60 1,313.59
2013-12-31 7,990.02 4,426.12 1,259.68
2013-09-30 7,935.35 4,198.69 1,227.77
2013-06-30 7,880.68 3,971.25 1,195.86
2013-03-31 7,808.39 3,692.54 1,213.33
2012-12-31 7,736.10 3,413.82 1,230.81
2012-09-30 7,646.43 3,332.59 1,182.95
2012-06-30 7,556.76 3,251.35 1,135.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Guangdong Investment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Guangdong Investment used its assets more efficiently than the HK Water Utilities industry average last year based on Return on Assets.
  • Guangdong Investment's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Guangdong Investment's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Water Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Guangdong Investment has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Guangdong Investment's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Guangdong Investment's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Guangdong Investment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Guangdong Investment's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Guangdong Investment's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Guangdong Investment Company Filings, last reported 2 months ago.

SEHK:270 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 49,460.45 9,884.06 16,642.15
2018-12-31 49,460.45 9,884.06 16,642.15
2018-09-30 49,440.81 5,460.18 16,831.32
2018-06-30 49,440.81 5,460.18 16,831.32
2018-03-30 49,163.57 6,587.79 15,658.33
2017-12-31 49,163.57 6,516.73 15,658.33
2017-09-30 46,757.09 6,600.78 17,670.61
2017-06-30 46,757.09 6,600.78 17,670.61
2017-03-31 38,238.69 6,672.05 14,817.54
2016-12-31 38,238.69 6,790.25 14,817.54
2016-09-30 37,835.42 8,391.06 15,021.93
2016-06-30 37,835.42 8,391.06 15,021.93
2016-03-31 37,267.43 8,963.34 15,523.98
2015-12-31 37,267.43 8,906.05 15,523.98
2015-09-30
2015-06-30 37,185.84 7,741.28 18,174.75
2015-03-31 35,664.15 5,577.39 15,209.81
2014-12-31 35,664.15 5,577.39 15,209.81
2014-09-30
2014-06-30 33,827.48 4,293.55 13,087.83
2014-03-31 33,827.48 4,293.55 13,087.83
2013-12-31 32,181.52 3,838.21 11,569.12
2013-09-30 32,181.52 3,838.21 11,569.12
2013-06-30 30,279.41 3,171.63 10,258.33
2013-03-31 30,279.41 3,171.63 10,258.33
2012-12-31 28,384.25 4,283.40 4,903.93
2012-09-30 28,384.25 4,283.40 4,903.93
2012-06-30 27,027.78 5,745.54 4,777.93
  • Guangdong Investment's level of debt (20%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (12.7% vs 20% today).
  • Debt is well covered by operating cash flow (64%, greater than 20% of total debt).
  • Guangdong Investment earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Guangdong Investment's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Guangdong Investment has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.3%
Current annual income from Guangdong Investment dividends. Estimated to be 4.01% next year.
If you bought HK$2,000 of Guangdong Investment shares you are expected to receive HK$66 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Guangdong Investment's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Guangdong Investment's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Upcoming dividend payment

Purchase Guangdong Investment before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:270 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Hong Kong Water Utilities Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:270 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.71 8.00
2020-12-31 0.67 13.00
2019-12-31 0.60 13.00
SEHK:270 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.535 3.528
2019-03-29 0.535 3.651
2018-03-28 0.485 3.510
2017-04-26 0.420 3.761
2017-03-29 0.420 3.604
2016-04-27 0.340 3.053
2016-03-23 0.340 3.370
2015-04-27 0.280 2.667
2015-03-30 0.280 2.557
2014-04-24 0.230 2.412
2014-03-25 0.230 2.974
2013-04-02 0.200 2.875
2012-08-24 0.180 2.879
2012-04-25 0.180 3.285
2012-03-19 0.180 3.344
2011-08-29 0.170 3.538
2011-03-31 0.150 3.635
2010-08-30 0.110 2.745
2010-04-08 0.110 2.897
2009-09-14 0.110 2.647

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Guangdong Investment's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Guangdong Investment's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Guangdong Investment afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Guangdong Investment has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Guangdong Investment's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Yinheng Wen
COMPENSATION HK$3,481,000
AGE 41
TENURE AS CEO 6.6 years
CEO Bio

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 Securities Regulatory Commission and has regulatory experience of listed companies in China, supervising their merger, acquisition and restructuring activities. From 2006 to 2011, he worked for Dalian Commodity Exchange and served a number of positions including Director of the Surveillance Department. He joined Guangdong Investment Ltd. in November 2011 as a Deputy General Manager. He has been an Executive Director of Guangdong Investment Ltd. since November 15, 2012. He serves as a Director of Teem Holdings Limited and (Guangdong Teem (Holdings) Limited), both of which are subsidiaries of the Guangdong Investment Ltd. He holds a Bachelor's Degree in Economics from Jinan University, PRC and a Degree in Master of Commerce in International Professional Accounting from the University of New South Wales, Australia.

CEO Compensation
  • Yinheng's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Yinheng's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Guangdong Investment management team in years:

11.2
Average Tenure
51.5
Average Age
  • The average tenure for the Guangdong Investment management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Yinheng Wen

TITLE
MD & Executive Director
COMPENSATION
HK$3M
AGE
41
TENURE
6.6 yrs

Johnson Tsang

TITLE
CFO & Executive Director
COMPENSATION
HK$2M
AGE
48
TENURE
11.2 yrs

Theresa Ho Lam

TITLE
Company Secretary & Executive Director
COMPENSATION
HK$3M
AGE
62
TENURE
26.5 yrs

Wailin Hou

TITLE
Chairman of the Board
AGE
55
Board of Directors Tenure

Average tenure and age of the Guangdong Investment board of directors in years:

19.1
Average Tenure
61.5
Average Age
  • The average tenure for the Guangdong Investment board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Johnson Tsang

TITLE
CFO & Executive Director
COMPENSATION
HK$2M
AGE
48
TENURE
11.2 yrs

Theresa Ho Lam

TITLE
Company Secretary & Executive Director
COMPENSATION
HK$3M
AGE
62
TENURE
3.7 yrs

Wailin Hou

TITLE
Chairman of the Board
AGE
55

John Chan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$749K
AGE
74
TENURE
21 yrs

Yinheng Wen

TITLE
MD & Executive Director
COMPENSATION
HK$3M
AGE
41
TENURE
6.6 yrs

David Li

TITLE
Independent Non-Executive Director
COMPENSATION
HK$770K
AGE
79
TENURE
21 yrs

Moses Cheng

TITLE
Independent Non-Executive Director
COMPENSATION
HK$700K
AGE
68
TENURE
19.6 yrs

Wai Keung Li

TITLE
Non-Executive Director
AGE
61
TENURE
19.1 yrs

Daniel Fung

TITLE
Independent Non-Executive Director
COMPENSATION
HK$700K
AGE
64
TENURE
19.4 yrs

Hui Zhang

TITLE
Non-Executive Director
AGE
59
TENURE
16.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Guangdong Investment insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
13. Jun 19 Buy Kwok-Po Li Individual 10. Jun 19 10. Jun 19 372,000 HK$16.04 HK$5,965,765
13. Jun 19 Buy Kwok-Po Li Individual 11. Jun 19 11. Jun 19 628,000 HK$16.08 HK$10,101,127
05. Dec 18 Sell Hon Tsang Individual 03. Dec 18 03. Dec 18 -821,200 HK$15.40 HK$-12,646,480
05. Dec 18 Sell Capital Group International Inc. Company 03. Dec 18 03. Dec 18 -11,468,000 HK$15.03 HK$-172,400,755
05. Dec 18 Sell Capital Research and Management Company Company 03. Dec 18 03. Dec 18 -10,742,000 HK$15.03 HK$-161,486,650
05. Sep 18 Buy Kwok-Po Li Individual 03. Sep 18 03. Sep 18 2,280,000 HK$13.98 HK$31,870,523
05. Sep 18 Buy Kwok-Po Li Individual 04. Sep 18 04. Sep 18 2,000,000 HK$13.95 HK$27,899,805
04. Sep 18 Buy Kwok-Po Li Individual 31. Aug 18 31. Aug 18 720,000 HK$13.82 HK$9,947,376
06. Jul 18 Buy Capital Research and Management Company Company 03. Jul 18 03. Jul 18 2,666,000 HK$12.51 HK$33,339,923
X
Management checks
We assess Guangdong Investment's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Guangdong Investment has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Only 2 Days Left To Cash In On Guangdong Investment Limited (HKG:270) Dividend

See our latest analysis for Guangdong Investment Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. … The Bottom Line Has Guangdong Investment got what it takes to maintain its dividend payments? … Earnings per share growth has been unremarkable, and while the company is paying out a majority of its earnings and cash flow in the form of dividends, the dividend payments don't appear excessive.

Simply Wall St -

Do Directors Own Guangdong Investment Limited (HKG:270) Shares?

The big shareholder groups in Guangdong Investment Limited (HKG:270) have power over the company. … View our latest analysis for Guangdong Investment SEHK:270 Ownership Summary, May 29th 2019 What Does The Institutional Ownership Tell Us About Guangdong Investment? … Insider Ownership Of Guangdong Investment The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Why Fundamental Investors Might Love Guangdong Investment Limited (HKG:270)

For those interested in digger a bit deeper into my commentary, read the full report on Guangdong Investment here. … SEHK:270 Historical Dividend Yield, May 14th 2019 Next Steps: For Guangdong Investment, I've put together three pertinent aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for 270’s future growth? … Take a look at our free research report of analyst consensus for 270’s outlook.

Simply Wall St -

Did You Miss Guangdong Investment's (HKG:270) 76% Share Price Gain?

To wit, the Guangdong Investment share price has climbed 76% in five years, easily topping the market return of 22% (ignoring dividends). … Over half a decade, Guangdong Investment managed to grow its earnings per share at 1.9% a year. … This EPS growth is slower than the share price growth of 12% per year, over the same period.

Simply Wall St -

Guangdong Investment Limited (HKG:270): What Does The Future Look Like?

After Guangdong Investment Limited's (HKG:270) earnings announcement on 31 December 2018, … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of 4.6%.

Simply Wall St -

Should You Be Tempted To Sell Guangdong Investment Limited (HKG:270) Because Of Its P/E Ratio?

We'll apply a basic P/E ratio analysis to Guangdong Investment Limited's (HKG:270), to help you decide if the stock is worth further research. … Based on the last twelve months, Guangdong Investment's P/E ratio is 18.49. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Guangdong Investment Limited's (HKG:270) CEO Being Overpaid?

This analysis aims first to contrast CEO compensation with other large companies. … According to our data, Guangdong Investment Limited has a market capitalization of HK$97b, and pays its CEO total annual compensation worth HK$3.1m. … We took a group of companies with market capitalizations over HK$63b, and calculated the median CEO total compensation to be HK$3.7m

Simply Wall St -

Is Guangdong Investment Limited's (HKG:270) 11% ROE Strong Compared To Its Industry?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Guangdong Investment Limited (HKG:270). … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.11 in profit.

Simply Wall St -

Are Insiders Buying Guangdong Investment Limited (HKG:270) Stock?

So we'll take a look at whether insiders have been buying or selling shares in Guangdong Investment Limited (HKG:270). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Guangdong Investment Insider Transactions Over The Last Year.

Simply Wall St -

Guangdong Investment Limited (HKG:270) Earns A Nice Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed

Simply Wall St -

Company Info

Description

Guangdong Investment Limited engages in water resources, infrastructure, property investment and development, department store, road and bridge operation, and hotel businesses. It operates through seven segments: Water Resources, Property Investment and Development, Department Store, Electric Power Generation, Hotel Operation and Management, Road and Bridge, and Others. The Water Resources segment provides water distribution and sewage treatment services; and construction of water supply and sewage treatment infrastructure in Mainland China and Hong Kong. The Property Investment and Development segment invests in various properties, such as shopping malls, office buildings, and hotels in Hong Kong and Mainland China; and engages in the development of properties in Mainland China. This segment also provides property management services for various commercial properties. The Department Stores segment operates department stores in Mainland China. The Electric Power Generation segment operates coal-fired power plants that supply electricity and steam in the Guangdong province, Mainland China. The Hotel Operation and Management segment operates hotels and manages third parties hotels in Hong Kong and Mainland China. As of December 31, 2018, this segment managed 34 hotels, including 2 in Hong Kong, 1 in Macau, and 31 in Mainland China. It also invests in various road and bridge projects; and provides treasury services in Hong Kong and Mainland China, as well as corporate services. The company was formerly known as Union Globe Development Limited and changed its name to Guangdong Investment Limited in January 1987. The company was incorporated in 1973 and is based in Central, Hong Kong. Guangdong Investment Limited is a subsidiary of GDH Limited.

Details
Name: Guangdong Investment Limited
270
Exchange: SEHK
Founded: 1973
HK$105,912,707,328
6,537,821,440
Website: http://www.gdi.com.hk
Address: Guangdong Investment Limited
Guangdong Investment Tower,
28th and 29th Floors,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 270 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK GGDV.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB GUG Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SHSC 270 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jan 1992
SZSC 270 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jan 1992
OTCPK GGDV.Y ADR Pink Sheets LLC US USD 06. Nov 2008
Number of employees
Current staff
Staff numbers
6,983
Guangdong Investment employees.
Industry
Water Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 12:43
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.