SEHK:270

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Guangdong Investment

Executive Summary

Guangdong Investment Limited, together with its subsidiaries, engages in water resources, property investment and development, department store, electric power generation, energy project operation, road and bridge operation, and hotel businesses. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.

Share Price & News

How has Guangdong Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 270 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 270's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

270

-0.4%

HK Water Utilities

1.5%

HK Market


1 Year Return

-20.0%

270

-18.3%

HK Water Utilities

11.3%

HK Market

Return vs Industry: 270 underperformed the Hong Kong Water Utilities industry which returned -18.3% over the past year.

Return vs Market: 270 underperformed the Hong Kong Market which returned 11.3% over the past year.


Shareholder returns

270IndustryMarket
7 Day-1.5%-0.4%1.5%
30 Day12.7%12.2%8.1%
90 Day6.9%1.0%6.0%
1 Year-16.5%-20.0%-14.5%-18.3%15.9%11.3%
3 Year34.5%19.8%-5.4%-16.3%1.7%-8.9%
5 Year47.5%22.3%2.8%-13.6%33.3%10.8%

Long-Term Price Volatility Vs. Market

How volatile is Guangdong Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Guangdong Investment undervalued compared to its fair value and its price relative to the market?

21.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 270 (HK$12.94) is trading below our estimate of fair value (HK$16.5)

Significantly Below Fair Value: 270 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 270 is poor value based on its PE Ratio (17.7x) compared to the HK Water Utilities industry average (6x).

PE vs Market: 270 is poor value based on its PE Ratio (17.7x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 270 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 270 is overvalued based on its PB Ratio (2.1x) compared to the HK Water Utilities industry average (0.5x).


Next Steps

Future Growth

How is Guangdong Investment forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 270's forecast earnings growth (11.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 270's earnings (11.2% per year) are forecast to grow slower than the Hong Kong market (22% per year).

High Growth Earnings: 270's earnings are forecast to grow, but not significantly.

Revenue vs Market: 270's revenue (6.9% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).

High Growth Revenue: 270's revenue (6.9% 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 (13.7%).


Next Steps

Past Performance

How has Guangdong Investment performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 270 has high quality earnings.

Growing Profit Margin: 270's current net profit margins (22.3%) are lower than last year (33.4%).


Past Earnings Growth Analysis

Earnings Trend: 270's earnings have grown by 4.2% 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 (-2.9%) over the past year, making it difficult to compare to the Water Utilities industry average (-2.1%).


Return on Equity

High ROE: 270's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is Guangdong Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 270's short term assets (HK$27.5B) exceed its short term liabilities (HK$14.8B).

Long Term Liabilities: 270's short term assets (HK$27.5B) exceed its long term liabilities (HK$14.2B).


Debt to Equity History and Analysis

Debt Level: 270's debt to equity ratio (19.2%) is considered satisfactory.

Reducing Debt: 270's debt to equity ratio has reduced from 22.4% to 19.2% over the past 5 years.

Debt Coverage: 270's debt is well covered by operating cash flow (64.2%).

Interest Coverage: 270 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 270's dividend (4.47%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.19%).

High Dividend: 270's dividend (4.47%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.4%), 270's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 270's dividends in 3 years are forecast to be covered by earnings (69% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Yinheng Wen (43 yo)

8yrs

Tenure

HK$3,398,000

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 ($USD438.41K) is below average for companies of similar size in the Hong Kong market ($USD830.23K).

Compensation vs Earnings: Yinheng's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yinheng Wen
MD & Executive Director8yrsHK$3.40mno data
Hon Tsang
CFO & Executive Director12.58yrsHK$2.12mno data
Wailin Hou
Executive Chairman of the Board1.42yrsno datano data
Tiejun Lin
Executive Vice Chairman0.67yrno datano data
Na Yang
Company Secretary & General Counsel1.92yrsno datano data

1.9yrs

Average Tenure

50yo

Average Age

Experienced Management: 270's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yinheng Wen
MD & Executive Director8yrsHK$3.40mno data
Hon Tsang
CFO & Executive Director12.58yrsHK$2.12mno data
Wailin Hou
Executive Chairman of the Board1.42yrsno datano data
Tiejun Lin
Executive Vice Chairman0.67yrno datano data
Cho Chak Chan
Independent Non-Executive Director22.42yrsHK$749.00k0.083%
HK$ 70.5m
Mo Chi Cheng
Independent Non-Executive Director21yrsHK$700.00k0.035%
HK$ 29.3m
Daniel Fung
Independent Non-Executive Director20.83yrsHK$700.00kno data
Kwok-Po Li
Independent Non-Executive Director22.42yrsHK$718.00k0.38%
HK$ 323.5m
Ting Yuk Wu
Independent Non-Executive Director8.25yrsHK$752.00kno data
Runing Lan
Non-Executive Director5.83yrsno datano data
Cai Yong
Non-Executive Director4.25yrsno datano data
Qingchun Feng
Non-Executive Director0.25yrno datano data

8.1yrs

Average Tenure

56yo

Average Age

Experienced Board: 270's board of directors are considered experienced (8.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Guangdong Investment Limited
  • Ticker: 270
  • Exchange: SEHK
  • Founded: 1973
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: HK$84.599b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GGDV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
GUGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
270SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
270SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
270SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
GGDV.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008

Biography

Guangdong Investment Limited, together with its subsidiaries, engages in water resources, property investment and development, department store, electric power generation, energy project operation, road an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 10:11
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.