Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥17.10, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Commercial Services industry in China. Total returns to shareholders of 18% over the past three years. New Risk • May 20
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 17% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks High level of debt (55% net debt to equity). Shareholders have been diluted in the past year (17% increase in shares outstanding). New Risk • May 15
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 55% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥21.47, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 18x in the Commercial Services industry in China. Total returns to shareholders of 38% over the past three years. Major Estimate Revision • Apr 24
Consensus EPS estimates increase by 19% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from CN¥1.45 to CN¥1.73. Revenue forecast unchanged at CN¥3.46b. Net income forecast to grow 4.3% next year vs 31% growth forecast for Commercial Services industry in China. Consensus price target up from CN¥21.39 to CN¥24.91. Share price fell 11% to CN¥17.19 over the past week. Announcement • Apr 20
Wangneng Environment Co.,Ltd, Annual General Meeting, May 12, 2026 Wangneng Environment Co.,Ltd, Annual General Meeting, May 12, 2026, at 14:30 China Standard Time. Location: 3F, Tower F, No. 899, Huanshan Road, Longxi Subdistrict, Wuxing District, Huzhou, Zhejiang China Reported Earnings • Apr 19
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: CN¥1.69 (up from CN¥1.31 in FY 2024). Revenue: CN¥3.24b (up 2.2% from FY 2024). Net income: CN¥721.2m (up 29% from FY 2024). Profit margin: 22% (up from 18% in FY 2024). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 12%. Revenue is forecast to grow 5.3% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Mar 31
Wangneng Environment Co.,Ltd to Report Q1, 2026 Results on Apr 28, 2026 Wangneng Environment Co.,Ltd announced that they will report Q1, 2026 results on Apr 28, 2026 Announcement • Dec 31
Wangneng Environment Co.,Ltd to Report Fiscal Year 2025 Results on Apr 18, 2026 Wangneng Environment Co.,Ltd announced that they will report fiscal year 2025 results on Apr 18, 2026 Board Change • Dec 12
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Bin Kuang was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 02
Third quarter 2025 earnings released: EPS: CN¥0.39 (vs CN¥0.35 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.39 (up from CN¥0.35 in 3Q 2024). Revenue: CN¥853.7m (up 1.7% from 3Q 2024). Net income: CN¥169.6m (up 13% from 3Q 2024). Profit margin: 20% (up from 18% in 3Q 2024). Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Declared Dividend • Oct 19
First half dividend reduced to CN¥0.20 Dividend of CN¥0.20 is 0.07% lower than last year. Ex-date: 21st October 2025 Payment date: 21st October 2025 Dividend yield will be 2.9%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is well covered by both earnings (37% earnings payout ratio) and cash flows (22% cash payout ratio). The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 18% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Sep 30
Wangneng Environment Co.,Ltd to Report Q3, 2025 Results on Oct 30, 2025 Wangneng Environment Co.,Ltd announced that they will report Q3, 2025 results on Oct 30, 2025 Price Target Changed • Sep 05
Price target increased by 20% to CN¥21.39 Up from CN¥17.80, the current price target is provided by 1 analyst. New target price is 24% above last closing price of CN¥17.24. Stock is up 28% over the past year. The company is forecast to post earnings per share of CN¥1.38 for next year compared to CN¥1.31 last year. Announcement • Jul 02
Wangneng Environment Co.,Ltd to Report First Half, 2025 Results on Aug 28, 2025 Wangneng Environment Co.,Ltd announced that they will report first half, 2025 results on Aug 28, 2025 Announcement • May 27
Wangneng Environment Co.,Ltd Approves Cash Dividend for 2024 Wangneng Environment Co.,Ltd approved a cash dividend of CNY 3.00000000 per 10 shares (tax included) for 2024, at its AGM held on 23 May 2025. Major Estimate Revision • Apr 24
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥3.52b to CN¥3.32b. EPS estimate also fell from CN¥1.78 per share to CN¥1.38 per share. Net income forecast to grow 6.5% next year vs 28% growth forecast for Commercial Services industry in China. Consensus price target down from CN¥18.87 to CN¥17.80. Share price was steady at CN¥16.42 over the past week. New Risk • Apr 20
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 32% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks High level of debt (74% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Announcement • Apr 19
Wangneng Environment Co.,Ltd Proposes Final Cash Dividend for 2024 Wangneng Environment Co.,Ltd announced on 18 April 2025 the profit distribution proposal for 2024 as follows: Final cash dividend per 10 shares (tax included) of CNY 3.00000000. Reported Earnings • Apr 18
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥1.31 (down from CN¥1.40 in FY 2023). Revenue: CN¥3.17b (flat on FY 2023). Net income: CN¥560.9m (down 7.0% from FY 2023). Profit margin: 18% (down from 19% in FY 2023). Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 4% per year. Announcement • Apr 18
Wangneng Environment Co.,Ltd, Annual General Meeting, May 23, 2025 Wangneng Environment Co.,Ltd, Annual General Meeting, May 23, 2025, at 14:30 China Standard Time. Location: 3F, Tower F, No. 899, Huanshan Road, Longxi Subdistrict, Wuxing District, Huzhou, Zhejiang China Announcement • Mar 31
Wangneng Environment Co.,Ltd to Report Q1, 2025 Results on Apr 30, 2025 Wangneng Environment Co.,Ltd announced that they will report Q1, 2025 results on Apr 30, 2025 Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥20.44, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 17x in the Commercial Services industry in China. Total returns to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥10.27 per share. Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥17.91, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 17x in the Commercial Services industry in China. Total loss to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥9.79 per share. Announcement • Dec 31
Wangneng Environment Co.,Ltd to Report Fiscal Year 2024 Results on Apr 18, 2025 Wangneng Environment Co.,Ltd announced that they will report fiscal year 2024 results on Apr 18, 2025 Announcement • Nov 28
Wangneng Environment Co.,Ltd (SZSE:002034) announces an Equity Buyback for CNY 100 million worth of its shares. Wangneng Environment Co.,Ltd (SZSE:002034) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its A shares. The shares will be purchased at a price not exceeding CNY 22 per share. The shares repurchased will be used for Equity incentive plans, employee stock ownership plans, or conversion of convertible corporate bonds. The program will be funded from company's own funds and special loan funds. The program will be valid for a period of 12 months. Major Estimate Revision • Nov 05
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥3.40b to CN¥3.23b. EPS estimate also fell from CN¥1.67 per share to CN¥1.47 per share. Net income forecast to grow 24% next year vs 45% growth forecast for Commercial Services industry in China. Consensus price target broadly unchanged at CN¥17.56. Share price was steady at CN¥15.15 over the past week. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.35 (vs CN¥0.38 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.35 (down from CN¥0.38 in 3Q 2023). Revenue: CN¥839.1m (down 2.5% from 3Q 2023). Net income: CN¥149.6m (down 9.6% from 3Q 2023). Profit margin: 18% (down from 19% in 3Q 2023). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 2% per year. Upcoming Dividend • Oct 04
Upcoming dividend of CN¥0.20 per share Eligible shareholders must have bought the stock before 11 October 2024. Payment date: 11 October 2024. Payout ratio is a comfortable 49% and the cash payout ratio is 90%. Trailing yield: 3.8%. Within top quartile of Chinese dividend payers (2.2%). Higher than average of industry peers (1.6%). Announcement • Sep 30
Wangneng Environment Co.,Ltd to Report Q3, 2024 Results on Oct 30, 2024 Wangneng Environment Co.,Ltd announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥15.80, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Commercial Services industry in China. Total loss to shareholders of 22% over the past three years. Announcement • Sep 20
Wangneng Environment Co.,Ltd Approves Interim Cash Dividend for the Year 2024 Wangneng Environment Co.,Ltd at its Extraordinary General Meeting held on 18 September 2024, approved interim cash dividend per ten shares (tax included) of CNY 2.00000000 for the year 2024. Reported Earnings • Sep 02
Second quarter 2024 earnings released: EPS: CN¥0.42 (vs CN¥0.44 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.42 (down from CN¥0.44 in 2Q 2023). Revenue: CN¥803.6m (up 19% from 2Q 2023). Net income: CN¥181.3m (down 3.2% from 2Q 2023). Profit margin: 23% (down from 28% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Announcement • Aug 31
Wangneng Environment Co.,Ltd Announces Interim Cash Dividend Proposal for the First Half of 2024 Wangneng Environment Co.,Ltd announced interim profit distribution proposal for the first half of 2024 as: Cash dividend/10 shares (tax included) of CNY 2.00000000. Buy Or Sell Opportunity • Jul 26
Now 21% overvalued Over the last 90 days, the stock has fallen 8.7% to CN¥12.82. The fair value is estimated to be CN¥10.59, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 32% in the next 2 years. Buy Or Sell Opportunity • Jul 11
Now 22% overvalued Over the last 90 days, the stock has fallen 5.6% to CN¥13.05. The fair value is estimated to be CN¥10.66, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 32% in the next 2 years. Announcement • Jul 08
Wangneng Environment Co.,Ltd (SZSE:002034) commences an Equity Buyback for CNY 50 million worth of its shares, under the authorization approved on February 23, 2024. Wangneng Environment Co.,Ltd (SZSE:002034) commences share repurchases on July 5, 2024, under the program mandated by the shareholders in the Extraordinary General Meeting held on February 23, 2024. As per the mandate, the company is authorized to repurchase its own shares for a total of CNY 50 million. The shares will be purchased at a price not exceeding CNY 13 per share. The purpose of the program is to safeguard the company's value and protect the rights and interests of investors, based on its confidence in the company's development prospects and reasonable judgment on the company's value. All the shares repurchased will be used for cancellation to reduce the company's registered capital. The program will be funded from company's own funds. The program will be valid for 12 months from the date of the shareholder's meeting. Announcement • Jun 29
Wangneng Environment Co.,Ltd to Report First Half, 2024 Results on Aug 30, 2024 Wangneng Environment Co.,Ltd announced that they will report first half, 2024 results on Aug 30, 2024 Declared Dividend • Jun 01
Dividend of CN¥0.30 announced Shareholders will receive a dividend of CN¥0.30. Ex-date: 6th June 2024 Payment date: 6th June 2024 Dividend yield will be 3.3%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by both earnings (35% earnings payout ratio) and cash flows (68% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 42% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 31
Wangneng Environment Co.,Ltd Announces Final Cash Dividend Plan on A Share for 2023, Payable on 06 June 2024 Wangneng Environment Co.,Ltd announced final profit distribution plan to be implemented (A shares) with Cash dividend/10 shares (tax included) of CNY 3.00000000 for 2023. Record date is 05 June 2024, Ex-date is 06 June 2024, Payment date is 06 June 2024. Major Estimate Revision • May 03
Consensus revenue estimates fall by 22% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥4.38b to CN¥3.41b. EPS estimate fell from CN¥2.21 to CN¥1.67 per share. Net income forecast to grow 19% next year vs 41% growth forecast for Commercial Services industry in China. Consensus price target down from CN¥20.88 to CN¥17.65. Share price rose 2.7% to CN¥14.42 over the past week. Announcement • Apr 29
Wangneng Environment Co.,Ltd, Annual General Meeting, May 21, 2024 Wangneng Environment Co.,Ltd, Annual General Meeting, May 21, 2024, at 14:45 China Standard Time. Location: 3F, Block F, No. 899, Huanshan Road, Longxi Subdistrict, Wuxing District, Huzhou, Zhejiang China Buy Or Sell Opportunity • Apr 20
Now 20% overvalued Over the last 90 days, the stock has fallen 5.6% to CN¥14.02. The fair value is estimated to be CN¥11.68, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 5.3%. Revenue is forecast to grow by 56% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. New Risk • Apr 02
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.4x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.4x net interest cover). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Apr 02
Full year 2023 earnings released: EPS: CN¥1.37 (vs CN¥1.69 in FY 2022) Full year 2023 results: EPS: CN¥1.37 (down from CN¥1.69 in FY 2022). Revenue: CN¥3.20b (down 4.6% from FY 2022). Net income: CN¥590.5m (down 18% from FY 2022). Profit margin: 19% (down from 22% in FY 2022). Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Mar 30
Wangneng Environment Co.,Ltd to Report Q1, 2024 Results on Apr 27, 2024 Wangneng Environment Co.,Ltd announced that they will report Q1, 2024 results on Apr 27, 2024 Announcement • Jan 10
Wangneng Environment Co.,Ltd Announces Board Appointments Wangneng Environment Co.,Ltd announced that at the EGM was held on January 8, 2024, the company approved the appointment of Shan Chao, non-independent director, Fu Tao, independent director, Hu Junjie, independent director Xie Qiaoxin, independent director Huang Yongqiang, shareholder supervisor. Announcement • Dec 30
Wangneng Environment Co.,Ltd to Report Fiscal Year 2023 Results on Apr 27, 2024 Wangneng Environment Co.,Ltd announced that they will report fiscal year 2023 results on Apr 27, 2024 Price Target Changed • Nov 21
Price target decreased by 9.5% to CN¥22.59 Down from CN¥24.97, the current price target is an average from 2 analysts. New target price is 48% above last closing price of CN¥15.22. Stock is down 19% over the past year. The company is forecast to post earnings per share of CN¥1.67 for next year compared to CN¥1.69 last year. Announcement • Nov 19
Wangneng Environment Co.,Ltd Announces Implementation of Profit Distribution for the Third Quarter of 2023, Payable on 23 November 2023 Wangneng Environment Co.,Ltd announced the implementation of Cash dividend (tax included) of CNY 2.00000000 per 10 A shares for the third quarter of 2023. Record date: 22 November 2023 with Ex-date: 23 November 2023. Payment date: 23 November 2023. Announcement • Nov 15
Wangneng Environment Co.,Ltd Approves Third Quarter Cash Dividend for the Year 2023 Wangneng Environment Co.,Ltd announced at EGM held on November 13, 2023, approved third quarter Cash dividend/10 shares (tax included): CNY2.00000000 for the year 2023. Announcement • Oct 29
Wangneng Environment Co.,Ltd Proposes Quarterly Dividend Wangneng Environment Co.,Ltd on 27 October 2023 the profit distribution proposal for the third quarter of 2023 as follows: Cash dividend/10 shares (tax included): CNY 2.00000000. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.38 (vs CN¥0.48 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.38 (down from CN¥0.48 in 3Q 2022). Revenue: CN¥860.3m (flat on 3Q 2022). Net income: CN¥165.5m (down 20% from 3Q 2022). Profit margin: 19% (down from 24% in 3Q 2022). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.44 (vs CN¥0.39 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.44 (up from CN¥0.39 in 2Q 2022). Revenue: CN¥674.9m (down 16% from 2Q 2022). Net income: CN¥187.2m (up 13% from 2Q 2022). Profit margin: 28% (up from 21% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • May 27
Wangneng Environment Co.,Ltd Approves Final Cash Dividend on A Shares for 2022, Payable on 01 June 2023 Wangneng Environment Co.,Ltd approved final Cash dividend/10 shares (tax included) (A Shares) of CNY 4.9999990 for 2022. Record date: 31 May 2023. Ex-date: 01 June 2023. Payment date: 01 June 2023. Major Estimate Revision • Apr 27
Consensus revenue estimates decrease by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥4.36b to CN¥3.85b. EPS estimate reaffirmed at CN¥2.21. Net income forecast to grow 40% next year vs 55% growth forecast for Commercial Services industry in China. Consensus price target down from CN¥26.35 to CN¥25.73. Share price was steady at CN¥16.92 over the past week. Major Estimate Revision • Apr 21
Consensus revenue estimates decrease by 12%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥4.36b to CN¥3.85b. EPS estimate increased from CN¥2.21 to CN¥2.23 per share. Net income forecast to grow 33% next year vs 42% growth forecast for Commercial Services industry in China. Consensus price target down from CN¥26.35 to CN¥25.73. Share price fell 5.7% to CN¥16.76 over the past week. Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: CN¥1.66 (vs CN¥1.53 in FY 2021) Full year 2022 results: EPS: CN¥1.66 (up from CN¥1.53 in FY 2021). Revenue: CN¥3.37b (up 14% from FY 2021). Net income: CN¥713.2m (up 10% from FY 2021). Profit margin: 21% (in line with FY 2021). Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to CN¥27.54 Down from CN¥30.01, the current price target is an average from 3 analysts. New target price is 44% above last closing price of CN¥19.19. Stock is up 17% over the past year. The company is forecast to post earnings per share of CN¥1.68 for next year compared to CN¥1.53 last year. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Director Mingkang Fang was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.48 (vs CN¥0.34 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.48 (up from CN¥0.34 in 3Q 2021). Revenue: CN¥864.0m (down 36% from 3Q 2021). Net income: CN¥205.6m (up 35% from 3Q 2021). Profit margin: 24% (up from 11% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥24.64, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 14x in the Commercial Services industry in China. Total returns to shareholders of 69% over the past three years. Announcement • Jun 07
Wangneng Environment Co., Ltd., Annual General Meeting, Jun 20, 2022 Wangneng Environment Co., Ltd., Annual General Meeting, Jun 20, 2022, at 14:50 China Standard Time. Agenda: To consider the provision of guarantee quota for subsidiaries. Board Change • Jun 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Director Mingkang Fang was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • May 27
Wangneng Environment Co., Ltd. Announces Cash Dividend, Payable on 31 May 2022 Wangneng Environment Co., Ltd. announced 2021 final profit distribution plan to be implemented (A shares) as Cash dividend/10 shares (tax included): CNY 2.99999300. Record date as 30 May 2022, ex-date as May 31, 2022 and payment date as May 31, 2022. Reported Earnings • Apr 28
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: CN¥1.53 (up from CN¥1.25 in FY 2020). Revenue: CN¥2.97b (up 75% from FY 2020). Net income: CN¥648.0m (up 24% from FY 2020). Profit margin: 22% (down from 31% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 41%. Earnings per share (EPS) missed analyst estimates by 16%. Over the next year, revenue is forecast to grow 27%, compared to a 13% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target increased to CN¥29.83 Up from CN¥20.56, the current price target is an average from 3 analysts. New target price is 65% above last closing price of CN¥18.10. Stock is up 1.5% over the past year. The company is forecast to post earnings per share of CN¥2.03 for next year compared to CN¥1.50 last year. Reported Earnings • Jan 26
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: CN¥1.50 (up from CN¥1.25 in FY 2020). Revenue: CN¥3.28b (up 93% from FY 2020). Net income: CN¥645.1m (up 24% from FY 2020). Profit margin: 20% (down from 31% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 55%. Earnings per share (EPS) missed analyst estimates by 6.8%. Over the next year, revenue is expected to shrink by 24% compared to a 15% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥19.51, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 14x in the Commercial Services industry in China. Total returns to shareholders of 73% over the past three years. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment deteriorated over the past week After last week's 20% share price decline to CN¥17.45, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Commercial Services industry in China. Total returns to shareholders of 76% over the past three years. Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥21.36, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Commercial Services industry in China. Total returns to shareholders of 64% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.44 (vs CN¥0.35 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: CN¥568.9m (up 39% from 2Q 2020). Net income: CN¥185.1m (up 28% from 2Q 2020). Profit margin: 33% (down from 35% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • May 25
Wangneng Environment Co., Ltd. Announces 2020 Final Profit Distribution Plan to Be Implemented (A Shares), Payable on 31 May 2021 Wangneng Environment Co., Ltd. announced 2020 final profit distribution plan to be implemented (A shares) of CNY 5.00000000 per 10 shares (tax included), with Record date: 28 May 2021; Ex-date: 31 May 2021; and Payment date: 31 May 2021. Announcement • May 22
Wangneng Environment Co., Ltd. Approves Cash Dividend for the Year 2020 Wangneng Environment Co., Ltd. at its annual general meeting held on May 20, 2021, approved cash dividend per ten shares (tax included) of CNY 5.00000000 for the year 2020. Reported Earnings • May 01
First quarter 2021 earnings released: EPS CN¥0.35 (vs CN¥0.20 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥544.9m (up 66% from 1Q 2020). Net income: CN¥146.7m (up 72% from 1Q 2020). Profit margin: 27% (up from 26% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Apr 30
Wangneng Environment Co., Ltd. Proposes Final Dividend for the Year 2020 Wangneng Environment Co., Ltd. proposed final cash dividend of CNY 5.00000000 per 10 shares (tax included) for the year 2020. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥18.88, the stock is trading at a trailing P/E ratio of 15.5x, up from the previous P/E ratio of 13.2x. This compares to an average P/E of 25x in the Commercial Services industry in China. Total return to shareholders over the past three years is a loss of 30%. Is New 90 Day High Low • Mar 01
New 90-day high: CN¥18.08 The company is up 7.0% from its price of CN¥16.86 on 01 December 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is down 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.31 per share. Reported Earnings • Jan 28
Full year 2020 earnings released: EPS CN¥1.22 (vs CN¥0.99 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: CN¥1.70b (up 50% from FY 2019). Net income: CN¥513.2m (up 25% from FY 2019). Profit margin: 30% (down from 36% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Jan 28
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) also surpassed analyst estimates by 3.4%. Over the next year, revenue is forecast to grow 3.8%, compared to a 31% growth forecast for the Commercial Services industry in China. Announcement • Jan 20
Wangneng Approves the Election of Cao Yue as Independent Director Wangneng at its Extraordinary General Meeting of 2021 on 15 January 2021, approved the election of Cao Yue as independent director. Is New 90 Day High Low • Dec 08
New 90-day low: CN¥16.16 The company is down 13% from its price of CN¥18.48 on 09 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is down 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.89 per share. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥473.2m, up 19% from the prior year. Total revenue was CN¥1.45b over the last 12 months, up 32% from the prior year. Is New 90 Day High Low • Oct 22
New 90-day low: CN¥16.25 The company is down 18% from its price of CN¥19.80 on 24 July 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.96 per share. Announcement • Oct 19
Wangneng Environment Co., Ltd. to Report Q3, 2020 Results on Oct 27, 2020 Wangneng Environment Co., Ltd. announced that they will report Q3, 2020 results on Oct 27, 2020 Is New 90 Day High Low • Sep 24
New 90-day low: CN¥17.16 The company is down 4.0% from its price of CN¥17.93 on 24 June 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.92 per share. Announcement • Jul 19
Wangneng Environment Co., Ltd. to Report First Half, 2020 Results on Aug 12, 2020 Wangneng Environment Co., Ltd. announced that they will report first half, 2020 results on Aug 12, 2020