Tianjin Port Co., Ltd. engages in the cargo loading and unloading operations in China. It is also involved in the commodity storage, intermodal transportation, and automobile transportation activities; container handling, and unpacking and related activities; economic information consulting and freight forwarding services; and wholesale and retail of commerce and various materials. The company is based in Tianjin, China.

China

Tianjin Port Co., Ltd.

Industrials

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

600717.SS reported revenue of CNY 12 273mn in the last 12 months, up 2% from FY24. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 3% from FY24 to CNY 0.34.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 6ppts over six months and grown 1ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 21.4% in the last 12 months, a decline from 24.7% in FY23. 

Historically, 600717.SS has reported good net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 7.8%, down from 9.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 3.2%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 2.7% in the last 12 months, a decrease from 3.2% in FY23. 

Tianjin Port Co., Ltd. reported a return on equity (RoE) of 5.0% in the last 12 months, down from 6.1% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.1 in the past several years. This ratio implies a average shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

600717.SS boasts high trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually very stable and remains favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, strong debt servicing capacity, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, negligible return on capital, and poor working capital management.

In highly turbulent market conditions, 600717.SS is not volatile. In other words, the stock will fall far less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be very low. 

In normal market circumstances, 600717.SS is not volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will stay within a narrow range. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is fairly valued on P/E, undervalued on EV/EBITDA, underpriced on P/FCF. 

Tianjin Port Co., Ltd.

CN¥ 4.74

6

Tianjin Port Co., Ltd.

CN¥ 4.74

6

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 4.74

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