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Market Cap

US$3.7b

Last Updated

2021/05/08 23:23 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

6 star dividend payer and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ZHEX.F is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ZHEX.F's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

ZHEX.F

4.4%

US Infrastructure

0.2%

US Market


1 Year Return

n/a

ZHEX.F

43.2%

US Infrastructure

49.9%

US Market

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

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


Shareholder returns

ZHEX.FIndustryMarket
7 Day0.9%4.4%0.2%
30 Day-4.6%11.2%2.2%
90 Day1.1%20.9%4.2%
1 Yearn/a85.3%43.2%52.4%49.9%
3 Year-11.9%-11.9%12.7%-15.2%63.7%53.4%
5 Yearn/a5.3%-44.6%130.5%104.8%

Long-Term 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

Below Fair Value: ZHEX.F ($0.87) is trading below our estimate of fair value ($3.24)

Significantly Below Fair Value: 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 (5.7x) compared to the XX Infrastructure industry average (14.5x).

PE vs Market: ZHEX.F is good value based on its PE Ratio (5.7x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: ZHEX.F is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ZHEX.F is good value based on its PB Ratio (1x) compared to the US Infrastructure industry average (2x).


Future Growth

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

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZHEX.F's forecast earnings growth (5.4% per year) is above the savings rate (2%).

Earnings vs Market: ZHEX.F's earnings (5.4% per year) are forecast to grow slower than the US market (15.1% per year).

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

Revenue vs Market: ZHEX.F's revenue (5.3% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: ZHEX.F's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZHEX.F's Return on Equity is forecast to be low in 3 years time (14.8%).


Past Performance

How has Zhejiang Expressway performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZHEX.F has a large one-off gain of CN¥1.2B impacting its March 31 2021 financial results.

Growing Profit Margin: ZHEX.F's current net profit margins (30.2%) are higher than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: ZHEX.F's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: ZHEX.F's earnings growth over the past year (57.3%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: ZHEX.F earnings growth over the past year (57.3%) exceeded the Infrastructure industry 4%.


Return on Equity

High ROE: ZHEX.F's Return on Equity (14%) is considered low.


Financial Health

How is Zhejiang Expressway's financial position?


Financial Position Analysis

Short Term Liabilities: ZHEX.F's short term assets (CN¥109.3B) exceed its short term liabilities (CN¥86.7B).

Long Term Liabilities: ZHEX.F's short term assets (CN¥109.3B) exceed its long term liabilities (CN¥27.4B).


Debt to Equity History and Analysis

Debt Level: ZHEX.F's debt to equity ratio (70.3%) is considered high.

Reducing Debt: ZHEX.F's debt to equity ratio has increased from 33.9% to 70.3% over the past 5 years.

Debt Coverage: ZHEX.F's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ZHEX.F's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

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

6.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZHEX.F's dividend (6.4%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: ZHEX.F's dividend (6.4%) is in the top 25% of dividend payers in the US market (3.41%)


Stability and Growth of Payments

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 (36.3%), 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 (36.4% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Jianhu Luo (49 yo)

8.92yrs

Tenure

CN¥1,092,000

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 ($USD169.74K) is below average for companies of similar size in the US market ($USD5.33M).

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


Leadership Team

Experienced Management: ZHEX.F's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: ZHEX.F's board of directors are considered experienced (3.1 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

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$29.099b
  • Listing Market Cap: HK$3.747b
  • Shares outstanding: 4.34b
  • Website: https://www.zjec.com.cn

Number of Employees


Location

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

Listings


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 Analysis2021/05/08 23:23
End of Day Share Price2021/05/06 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.