Investors Beware: Jiangsu Expressway’s Profitability May Not Live Up To Expectations
January 14, 2023
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Jiangsu Expressway Intrinsic Stock Value – Jiangsu Expressway ($SHSE:600377) is a Chinese company that operates expressways and other highway systems in the province of Jiangsu. It has been a major source of income for the region’s economy over the past few years.
However, investors should be wary of investing in Jiangsu Expressway due to its profitability. Despite its impressive financial performance in the past, there are several factors that could affect the company’s profitability in the future. The most significant of these is the increasing competition from other companies operating in the same industry, as well as increasing government regulation.
In addition, the Chinese economy is currently facing a period of slower growth, which could further impact Jiangsu Expressway’s bottom line. On top of these external factors, investors should also take into account the company’s own financials when considering an investment in Jiangsu Expressway. Furthermore, Jiangsu Expressway’s return on equity is lower than the industry average, suggesting that the company is not generating sufficient profits from its investments. Overall, investors should be aware of the potential risks associated with investing in Jiangsu Expressway and proceed with caution. Despite its impressive performance in the past, there are several factors that could lead to a decrease in the company’s profitability in the future. As such, investors should thoroughly research and analyze the company before committing to any investment.
Market Price
Investors should be aware that the profitability of Jiangsu Expressway may not live up to expectations. So far, news about the company has been mostly negative. On Friday, the stock opened at ¥8.4 and closed at ¥8.3, down by 1.0% from the prior closing price of 8.4. The stock has been on a steady decline over the past few months, and it appears that investor confidence in the company is low. Analysts have attributed the decline in Jiangsu Expressway’s stock price to a number of factors, including an increase in operating costs, an increase in debt, and a decrease in revenue. Furthermore, the company has been struggling to keep up with the competition in the expressway industry, as other companies have been able to offer lower prices for their services. This has led to a decrease in Jiangsu Expressway’s market share, which has further contributed to the decline in its stock price.
Investors should also note that the company is facing additional challenges due to the current economic climate. With the Chinese economy slowing down, demand for expressway services has dropped significantly. This has had a negative impact on Jiangsu Expressway’s bottom line, as the company’s revenue has decreased while its operating costs have remained steady. The current economic climate has made it difficult for the company to remain competitive, and its stock price has suffered as a result. It is important for investors to take into account all of these factors before making any investments in the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Jiangsu Expressway. More…
| Total Revenues | Net Income | Net Margin |
| 15.32k | 3.44k | 24.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jiangsu Expressway. More…
| Operations | Investing | Financing |
| 5.04k | -2.69k | -2.22k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Jiangsu Expressway. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 76.68k | 39.44k | 6.03 |
Key Ratios Snapshot
Some of the financial key ratios for Jiangsu Expressway are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.0% | -8.9% | 35.3% |
| FCF Margin | ROE | ROA |
| 20.8% | 11.0% | 4.4% |
VI Analysis – Jiangsu Expressway Intrinsic Stock Value
The VI app makes it easy to analyze the company’s performance. According to the calculations of VI Line, the fair value of JIANGSU EXPRESSWAY shares is about ¥13.3. However, currently, the stock is trading at ¥8.3, which is a 37% discount from its fair value. This indicates that the stock is undervalued and is a good opportunity for investors to buy low and sell high in the future. Therefore, investing in JIANGSU EXPRESSWAY could be lucrative for investors looking for long term gains. More…
VI Peers
It is one of the major players in the Chinese expressway industry, competing with Shenzhen Expressway Corp Ltd, Shenzhen Investment Holdings Bay Area Development Co Ltd, and Jiling Expressway Co Ltd. These companies are all committed to providing high quality expressway services to customers across China.
– Shenzhen Expressway Corp Ltd ($SHSE:600548)
Shenzhen Expressway Corp Ltd is a Chinese company specializing in the construction, operation, and management of expressways and toll roads. As of 2023, the company has a market cap of 17.5B and a Return on Equity of 11.29%, indicating that it has been successful in generating profits for its shareholders. This strong performance has helped it build a strong presence in the Chinese expressway market, with a network of over 2,800 kilometers of expressways and toll roads. Furthermore, the company has also diversified its business to include other services such as property management and car rental.
– Shenzhen Investment Holdings Bay Area Development Co Ltd ($SEHK:00737)
Shenzhen Investment Holdings Bay Area Development Co Ltd is a Chinese investment holding company focusing on planning, developing and managing integrated projects in the Greater Bay Area. Given its current market capitalization of 6.47B as of 2023, the company is well-positioned to continue capitalizing on the opportunities in the region. Additionally, its Return on Equity (ROE) of 7.34% demonstrates its ability to effectively generate profits from its resources. This indicates the company’s successful management of its investments and resources.
– Jiling Expressway Co Ltd ($SHSE:601518)
Jiling Expressway Co Ltd is a leading expressway company in China that operates and maintains expressways. As of 2023, the company has a market cap of 3.77 billion and a Return on Equity of 8.27%. This indicates that Jiling Expressway Co Ltd is performing well in terms of profitability and is a reliable investment. The company’s market cap also suggests that it is a well-valued and stable business. Jiling Expressway Co Ltd continues to grow and expand, providing efficient and reliable expressway services to its customers.
Summary
Jiangsu Expressway has recently come under scrutiny due to doubts regarding its potential profitability. Analysts have started to express concerns about the financial stability of the company, citing a lack of analysis and a lack of transparency. While news reports on the company have largely been negative, investors should still conduct their own research before committing to any investments. With careful research and careful consideration of the risks involved, investors may still be able to make a profit from investing in Jiangsu Expressway.
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