OTCPK:SHZN.F

Stock Analysis Report

Executive Summary

Shenzhen Expressway Company Limited, together with its subsidiaries, primarily invests in, constructs, operates, and manages toll highways and roads, as well as other urban and transport infrastructure in the People’s Republic of China.

Snowflake

Solid track record established dividend payer.

Rewards

Trading at 65.6% below its fair value

Revenue is forecast to grow by 0.89% next year

Earnings grew by 134.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -10.7% per year for the next 3 years

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results


Share Price & News

How has Shenzhen Expressway's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHZN.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SHZN.F

-5.2%

US Infrastructure

0.3%

US Market


1 Year Return

n/a

SHZN.F

-35.6%

US Infrastructure

12.5%

US Market

Return vs Industry: Insufficient data to determine how SHZN.F performed against the US Infrastructure industry.

Return vs Market: Insufficient data to determine how SHZN.F performed against the US Market.


Shareholder returns

SHZN.FIndustryMarket
7 Day0%-5.2%0.3%
30 Day0%1.9%4.1%
90 Dayn/a0.7%5.6%
1 Yearn/a-32.5%-35.6%15.0%12.5%
3 Year13.7%13.7%-41.6%-53.9%49.1%39.4%
5 Year72.3%72.3%-11.8%-40.9%62.8%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Shenzhen Expressway undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHZN.F ($1.12) is trading below our estimate of fair value ($3.25)

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


Price To Earnings Ratio

PE vs Industry: SHZN.F is good value based on its PE Ratio (5.1x) compared to the Infrastructure industry average (11.5x).

PE vs Market: SHZN.F is good value based on its PE Ratio (5.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SHZN.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SHZN.F is overvalued based on its PB Ratio (1.1x) compared to the US Infrastructure industry average (0.7x).


Next Steps

Future Growth

How is Shenzhen Expressway forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHZN.F's earnings are forecast to decline over the next 3 years (-10.7% per year).

Earnings vs Market: SHZN.F's earnings are forecast to decline over the next 3 years (-10.7% per year).

High Growth Earnings: SHZN.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SHZN.F's revenue (7.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SHZN.F's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHZN.F's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Shenzhen Expressway performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHZN.F has large one-off items impacting its financial results.

Growing Profit Margin: SHZN.F's current net profit margins (69.5%) are higher than last year (30.5%).


Past Earnings Growth Analysis

Earnings Trend: SHZN.F's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: SHZN.F's earnings growth over the past year (134.1%) exceeds its 5-year average (17.7% per year).

Earnings vs Industry: SHZN.F earnings growth over the past year (134.1%) exceeded the Infrastructure industry 16.6%.


Return on Equity

High ROE: SHZN.F's Return on Equity (20.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shenzhen Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: SHZN.F's short term assets (CN¥6.9B) exceeds its short term liabilities (CN¥6.3B)

Long Term Liabilities: SHZN.F's short term assets (6.9B) do not cover its long term liabilities (16.7B)


Debt to Equity History and Analysis

Debt Level: SHZN.F's debt to equity ratio (70.5%) is considered high

Reducing Debt: SHZN.F's debt to equity ratio has increased from 62.1% to 70.5% over the past 5 years.

Debt Coverage: SHZN.F's debt is not well covered by operating cash flow (15%).

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


Balance Sheet

Inventory Level: SHZN.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: SHZN.F's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Shenzhen Expressway's current dividend yield, its reliability and sustainability?

3.80%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.3%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: SHZN.F's dividend (3.8%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SHZN.F's dividend (3.8%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

Stable Dividend: SHZN.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: SHZN.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.3%), SHZN.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHZN.F's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Xiang Wen Liao (51yo)

1.2yrs

Tenure

CN¥1,665,100

Compensation

Mr. Xiang Wen Liao has been President of Shenzhen Expressway Co., Ltd. since September 10, 2018. Mr. Liao served as Vice President of Shenzhen Expressway Co., Ltd. since September 2009 until September 10,  ...


CEO Compensation Analysis

Compensation vs Market: Xiang Wen's total compensation ($USD237.53K) is below average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

1.2yrs

Average Tenure

48yo

Average Age

Experienced Management: SHZN.F's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

54yo

Average Age

Experienced Board: SHZN.F's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥2,673,82323 Oct 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
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Max PriceCN¥1.33
SellCN¥558,09622 Oct 19
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Max PriceCN¥1.32
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Max PriceCN¥1.31
SellCN¥195,36111 Oct 19
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Max PriceCN¥1.32
SellCN¥374,03501 Oct 19
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Max PriceCN¥1.36
BuyCN¥27,10401 Oct 19
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Max PriceCN¥1.36
SellCN¥154,89330 Sep 19
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Max PriceCN¥1.32
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Max PriceCN¥1.33
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Max PriceCN¥1.33
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Max PriceCN¥1.29
SellCN¥51,66218 Sep 19
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Max PriceCN¥1.29
BuyCN¥69,28817 Sep 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Max PriceCN¥1.28
SellCN¥1,895,35004 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Shares1,652,000
Max PriceCN¥1.15
SellCN¥5,921,07031 May 19
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Max PriceCN¥1.21
SellCN¥14,086,40616 May 19
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Shares11,796,000
Max PriceCN¥1.19
BuyCN¥137,63907 Mar 19
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Shares122,000
Max PriceCN¥1.13
BuyCN¥188,17926 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Shares160,000
Max PriceCN¥1.18
SellCN¥590,15214 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Shares514,088
Max PriceCN¥1.15
BuyCN¥69,91313 Dec 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Shares70,000
Max PriceCN¥1.00
SellCN¥5,132,70806 Dec 18
FMR LLC
EntityCompany
Shares5,196,000
Max PriceCN¥0.99

Ownership Breakdown

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


Management Team

  • Tao Tao Gong (46yo)

    Joint Company Secretary

    • Tenure: 0.3yrs
    • Compensation: CN¥1.91m
  • Xiang Wen Liao (51yo)

    President & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥1.67m
  • Eva Lam (53yo)

    Joint Company Secretary

    • Tenure: 0.3yrs
  • Wei Hu (57yo)

    Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: CN¥1.73m
  • Ce Sun (54yo)

    Vice President & GM of Engineering

    • Tenure: 8.3yrs
    • Compensation: CN¥1.33m
  • Po Wen (46yo)

    Vice President

    • Tenure: 4.2yrs
    • Compensation: CN¥1.70m
  • Bi Huang (48yo)

    Deputy Administrative Officer & Vice President

    • Tenure: 11.4yrs
    • Compensation: CN¥1.45m
  • Zhao Gui ping (46yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: CN¥1.47m
  • Liang Wen (46yo)

    Financial Controller & Executive Director

    • Tenure: 0.7yrs
    • Compensation: CN¥1.43m
  • Shou Chen (48yo)

    Chief Engineer

    • Tenure: 1.2yrs
    • Compensation: CN¥1.24m

Board Members

  • Yuan Guo (65yo)

    Chairman of Shenzhen International Holdings Limited

    • Tenure: 13.3yrs
  • Yuan Jun Chen (58yo)

    Non-Executive Director

    • Tenure: 3yrs
  • Xiang Wen Liao (51yo)

    President & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥1.67m
  • Wei Hu (57yo)

    Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: CN¥1.73m
  • Hua Bai (50yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥202.10k
  • Wilson Wan (58yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥229.50k
  • Cai Shu Guang (64yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥227.00k
  • Yan Chen (47yo)

    Non-Executive Director

    • Tenure: 1.8yrs
  • Jun Ye (45yo)

    Convener of the Supervisory Committee

    • Tenure: 0yrs
  • Liang Wen (46yo)

    Financial Controller & Executive Director

    • Tenure: 0.7yrs
    • Compensation: CN¥1.43m

Company Information

Shenzhen Expressway Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shenzhen Expressway Company Limited
  • Ticker: SHZN.F
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$24.870b
  • Listing Market Cap: HK$3.178b
  • Shares outstanding: 2.18b
  • Website: https://www.sz-expressway.com

Number of Employees


Location

  • Shenzhen Expressway Company Limited
  • Jiangsu Building
  • 2-4 Floor
  • Shenzhen
  • Guangdong Province
  • 518026
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHZHDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMar 1997
548SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 1997
SHZN.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDMar 1997
548SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 1997
548SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 1997
600548SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 2001
600548XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYDec 2001
SHZN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2011

Biography

Shenzhen Expressway Company Limited, together with its subsidiaries, primarily invests in, constructs, operates, and manages toll highways and roads, as well as other urban and transport infrastructure in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:54
End of Day Share Price2019/08/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.