NOT FOR DISTRIBUTION

Market Cap

US$3.0b

Last Updated

2021/05/10 10:39 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Undervalued established dividend payer.

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: Insufficient data to determine SHZN.Y's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine SHZN.Y's volatility change over the past year.


Market Performance


7 Day Return

0%

SHZN.Y

4.4%

US Infrastructure

0.2%

US Market


1 Year Return

n/a

SHZN.Y

43.1%

US Infrastructure

49.9%

US Market

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

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


Shareholder returns

SHZN.YIndustryMarket
7 Day0%4.4%0.2%
30 Day0%11.9%1.5%
90 Dayn/a17.7%3.3%
1 Yearn/a85.2%43.1%52.4%49.9%
3 Yearn/a12.8%-15.1%63.7%53.4%
5 Yearn/a5.2%-44.6%130.6%104.9%

Long-Term 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.Y ($51.88) is trading below our estimate of fair value ($386.04)

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


Price To Earnings Ratio

PE vs Industry: SHZN.Y is good value based on its PE Ratio (5.6x) compared to the XX Infrastructure industry average (14.2x).

PE vs Market: SHZN.Y is good value based on its PE Ratio (5.6x) compared to the US market (20.3x).


Price to Earnings Growth Ratio

PEG Ratio: SHZN.Y is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SHZN.Y is good value based on its PB Ratio (0.6x) compared to the US Infrastructure industry average (2x).


Future Growth

How is Shenzhen Expressway forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHZN.Y's forecast earnings growth (3.5% per year) is above the savings rate (2%).

Earnings vs Market: SHZN.Y's earnings (3.5% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: SHZN.Y's revenue (2.1% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: SHZN.Y's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHZN.Y's Return on Equity is forecast to be low in 3 years time (10.1%).


Past Performance

How has Shenzhen Expressway performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHZN.Y has high quality earnings.

Growing Profit Margin: SHZN.Y's current net profit margins (28.7%) are lower than last year (35.5%).


Past Earnings Growth Analysis

Earnings Trend: SHZN.Y's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: SHZN.Y's earnings growth over the past year (38.9%) exceeds its 5-year average (11.6% per year).

Earnings vs Industry: SHZN.Y earnings growth over the past year (38.9%) exceeded the Infrastructure industry 2.4%.


Return on Equity

High ROE: SHZN.Y's Return on Equity (11.2%) is considered low.


Financial Health

How is Shenzhen Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: SHZN.Y's short term assets (CN¥10.2B) do not cover its short term liabilities (CN¥15.2B).

Long Term Liabilities: SHZN.Y's short term assets (CN¥10.2B) do not cover its long term liabilities (CN¥16.3B).


Debt to Equity History and Analysis

Debt Level: SHZN.Y's debt to equity ratio (86.4%) is considered high.

Reducing Debt: SHZN.Y's debt to equity ratio has increased from 30.1% to 86.4% over the past 5 years.

Debt Coverage: SHZN.Y's debt is not well covered by operating cash flow (9.1%).

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


Balance Sheet


Dividend

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

6.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHZN.Y's dividend (6.3%) is higher than the bottom 25% of dividend payers in the US market (1.23%).

High Dividend: SHZN.Y's dividend (6.3%) is in the top 25% of dividend payers in the US market (3.4%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.2%), SHZN.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHZN.Y's dividends in 3 years are forecast to be well covered by earnings (45.5% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Xiang Wen Liao (52 yo)

2.67yrs

Tenure

CN¥1,546,900

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 ($USD240.46K) is below average for companies of similar size in the US market ($USD5.33M).

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


Leadership Team

Experienced Management: SHZN.Y's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: SHZN.Y's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Shenzhen Expressway Company Limited
  • Ticker: SHZN.Y
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$23.342b
  • Listing Market Cap: HK$3.005b
  • 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


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 Analysis2021/05/10 10:39
End of Day Share Price2021/03/29 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.