GSH - Guangshen Railway: Cheap For Good Reason

• Guangshen Railway registered a net loss in FY 2020 which was in line with its earlier profit warning, and it also omitted dividends for the first time in 25 years.
• The company's 1Q 2021 results are still expected to be weak, but market consensus sees Guangshen Railway delivering a revenue growth of close to 20%-plus for the full year.
• Guangshen Railway's downside is protected by its net cash position, while the company's future upside is dependent on the pace of railway pricing reform.
• The market values Guangshen Railway at 0.33 times P/B and 12.9 times consensus forward FY 2022 P/E, and the stock offers a consensus forward FY 2021 dividend yield of 3.5%.

For further details see: