Beijing Capital International Airport Co., Ltd. Class H has moved from NEUTRAL to UNDERVALUED
It has a Fundamental Analysis Score of 53 and a Capital Cube Implied Price of 8.16 HKD
Relative Valuation
Beijing Capital International Airport Co., Ltd. Class H's price of HKD 7.22 is lower than CapitalCube's implied price of HKD 8.72. CapitalCube believes that at these levels, Beijing Capital International Airport Co., Ltd. Class H is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between HKD 4.96 and HKD 8.01.
Company Overview
- Relative underperformance last month is down from a median performance last year.
- Beijing Capital International Airport Co., Ltd. Class H trades at a lower Price/Book multiple (0.66) than its peer median (1.26).
- The market expects 694-HK to grow more slowly than its peers and for its median ROE to decline.
- 694-HK's relatively high profit margins are burdened by relative asset inefficiency.
- Change in the company's annual revenues seems to be coming at the expense of earnings.
- Over the last five years, 694-HK's return on assets has improved from below median to better than the median among its peers, suggesting that the company has improved its relative operations markedly.
- The company's relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
- While 694-HK's revenues growth in recent years has been around the peer median, the stock's below peer median PE ratio suggests that the market likely sees the company's long-term growth prospects to be fading.
- The company's relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
- 694-HK seems to be constrained by the current level of debt.
Investment Outlook
Beijing Capital International Airport Co., Ltd. Class H has a fundamental score of 44 and has a relative valuation of UNDERVALUED.
Beijing Capital International Airport Co., Ltd. Class H's Fundamental Analysis Score is about average , thus not allowing for a specific classification into the Value – Price Matrix.
Drivers of Valuation
The market expects 694-HK's current median rates of return to decline.
The market expects less growth from 694-HK than the median of its chosen peers (PE of 8.05 compared to peer median of 22.30) and for its current rates of return that are around peer median (ROE of 8.34%) to decline.
The company trades at a lower Price/Book multiple of 0.66 compared to its peer median of 1.26.
694-HK has moved to a relatively low PE from a Turnaround profile at the prior year-end.
Peer Analysis
A complete list of valuation metrics is available on the company page.
Company Profile
Beijing Capital International Airport Co., Ltd. is engaged in the operation and management of airport. Its operations are carried out through the Aeronautical and Non-aeronautical businesses. The Aeronautical business consists of aircraft landings and take-offs, passenger service facilities, ground support, fire-fighting, and rescue services for domestic and foreign air transportation enterprises. The Non-aeronautical business includes ground handling agent services; duty free, retail shops, and restaurant operations; advertising spaces and property leasing, and car parking services. The company was founded in 1958 and is headquartered in Beijing, China.
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