OTCPK:ZHEX.F

Stock Analysis Report

Executive Summary

Zhejiang Expressway Co., Ltd., an investment holding company, invests, develops, operates, maintains, and manages roads in the People’s Republic of China.

Snowflake

Fundamentals

6 star dividend payer and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ZHEX.F

0.2%

US Infrastructure

1.3%

US Market


1 Year Return

22.1%

ZHEX.F

-41.5%

US Infrastructure

5.9%

US Market

Return vs Industry: ZHEX.F exceeded the US Infrastructure industry which returned -41.5% over the past year.

Return vs Market: ZHEX.F exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

ZHEX.FIndustryMarket
7 Day0%0.2%1.3%
30 Day0%-1.6%-1.9%
90 Dayn/a-16.1%-1.8%
1 Year22.1%22.1%-38.5%-41.5%8.3%5.9%
3 Year-6.4%-6.4%-44.4%-56.3%45.6%36.2%
5 Year0.2%0.2%-15.9%-42.8%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Zhejiang 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

Undervalued: ZHEX.F ($1.03) is trading below our estimate of fair value ($2.64)

Significantly Undervalued: ZHEX.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZHEX.F is good value based on its PE Ratio (7.3x) compared to the Infrastructure industry average (10.6x).

PE vs Market: ZHEX.F is good value based on its PE Ratio (7.3x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ZHEX.F is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ZHEX.F is overvalued based on its PB Ratio (1.3x) compared to the US Infrastructure industry average (0.8x).


Next Steps

Future Growth

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

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZHEX.F's forecast earnings growth (4.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ZHEX.F's earnings (4.6% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: ZHEX.F's revenue (7.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ZHEX.F's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ZHEX.F's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Zhejiang Expressway performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ZHEX.F's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: ZHEX.F's earnings growth over the past year (2.7%) is below its 5-year average (9.9% per year).

Earnings vs Industry: ZHEX.F earnings growth over the past year (2.7%) underperformed the Infrastructure industry 36.9%.


Return on Equity

High ROE: ZHEX.F's Return on Equity (14.3%) is considered low.


Return on Assets

ROA vs Industry: ZHEX.F's Return on Assets is below or equal to the Infrastructure industry average last year.


Return on Capital Employed

ROCE Improving: ZHEX.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Zhejiang Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: ZHEX.F's short term assets (CN¥73.2B) exceeds its short term liabilities (CN¥55.0B)

Long Term Liabilities: ZHEX.F's short term assets (73.2B) exceeds its long term liabilities (23.7B)


Debt to Equity History and Analysis

Debt Level: ZHEX.F's debt to equity ratio (173.7%) is considered high

Reducing Debt: ZHEX.F's debt to equity ratio has increased from 14.5% to 173.7% over the past 5 years.

Debt Coverage: ZHEX.F's debt is not well covered by operating cash flow (1.3%).

Interest Coverage: ZHEX.F's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: ZHEX.F's debt is covered by short term assets (assets are 1.407710x debt).


Next Steps

Dividend

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

6.15%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.3%forecastin3Years6.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ZHEX.F's dividend (6.15%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: ZHEX.F's dividend (6.15%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: ZHEX.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), ZHEX.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZHEX.F's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Jianhu Luo (48yo)

7.3yrs

Tenure

CN¥926,000

Compensation

Ms. Jianhu Luo has been a General Manager of Zhejiang Expressway Co. Ltd. since June 11, 2012. Ms. Luo has been an Executive Director of Zhejiang Expressway Co. Ltd. since June 2012. She serves as the Boa ...


CEO Compensation Analysis

Compensation vs. Market: Jianhu's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

6.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: ZHEX.F's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

51.5yo

Average Age

Experienced Board: ZHEX.F's board of directors are not considered experienced ( 2.9 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.


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Ownership Breakdown


Management Team

  • Jing Zhang (56yo)

    Deputy General Manager and General Counsel

    • Tenure: 3.7yrs
    • Compensation: CN¥414.00k
  • Huikang Ding (64yo)

    Deputy General Manager

    • Tenure: 7.3yrs
    • Compensation: CN¥366.00k
  • Tony Zheng (50yo)

    Deputy GM & Company Secretary

    • Tenure: 8.6yrs
    • Compensation: CN¥443.00k
  • Jianhu Luo (48yo)

    General Manager & Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥926.00k
  • Xiuhua Zhang (50yo)

    Deputy General Manager

    • Tenure: 0yrs
    • Compensation: CN¥796.00k
  • Dehua Wang (45yo)

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: CN¥746.00k
  • Yimin Zhu (58yo)

    Deputy General Manager

    • Tenure: 4.3yrs
    • Compensation: CN¥796.00k
  • Tao Cheng (55yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥926.00k
  • Zheng Hui

    Executive

    • Tenure: 0yrs
    • Compensation: CN¥751.00k

Board Members

  • Rosa Lee (42yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥214.00k
  • Buck Pei (62yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥211.00k
  • Jianhu Luo (48yo)

    General Manager & Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥926.00k
  • Benmeng Dai (54yo)

    Non Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥3.00k
  • Tao Cheng (55yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥926.00k
  • Huiliang Yao (47yo)

    Chairman of the Supervisory Committee

    • Tenure: 0yrs
  • Zhihong Yu (55yo)

    Chairman of the Board

    • Tenure: 1.5yrs
  • Ji Yu (44yo)

    Non-Executive Director

    • Tenure: 1.5yrs
  • Bin Chen (52yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥57.00k
  • Qunli Yu (51yo)

    Non-Executive Director

    • Tenure: 1.5yrs

Company Information

Zhejiang Expressway Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhejiang Expressway Co., Ltd.
  • Ticker: ZHEX.F
  • Exchange: OTCPK
  • Founded: 1997
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: HK$29.403b
  • Listing Market Cap: HK$3.748b
  • Shares outstanding: 4.34b
  • Website: https://www.zjec.com.cn

Number of Employees


Location

  • Zhejiang Expressway Co., Ltd.
  • No. 2 Mingzhu International Business Center
  • 5th Floor
  • Hangzhou
  • Zhejiang Province
  • 310020
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZHEX.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDMay 1997
ZHJDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMay 1997
576SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMay 1997
576SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMay 1997
576SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMay 1997

Biography

Zhejiang Expressway Co., Ltd., an investment holding company, invests, develops, operates, maintains, and manages roads in the People’s Republic of China. It operates through Toll Operation, Securities Ope ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:44
End of Day Share Price2019/07/18 00:00
Earnings2019/06/30
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.