Anhui Zhonghuan Environmental Protection TechnologyLtd (SZSE:300692) - Share price, News & Analysis

Q: What is the Fair Price of 300692 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

300692 (CN¥7.41) is trading above our estimate of [[fair value]] (CN¥1)

300692 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	1/6
Dividends	2/6

300692 Stock Overview

Anhui Zhonghuan Environmental Protection Technology Co., Ltd.

Rewards

Price-To-Earnings ratio (14.6x) is below the CN market (34.2x)

Earnings grew by 22.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 0.67% is not well covered by earnings

Anhui Zhonghuan Environmental Protection TechnologyLtd Competitors

Guangdong Liantai Environmental ProtectionLtd

SHSE:603797

CN¥3.4b

Fujian Haixia Environmental Protection GroupLtd

SHSE:603817

CN¥3.2b

Penyao Environmental Protection

SZSE:300664

CN¥3.9b

Shenzhen Ecobeauty

SZSE:000010

CN¥4.1b

Price History & Performance

Summary of all time highs, changes and price drops for Anhui Zhonghuan Environmental Protection TechnologyLtd
Historical stock prices
Current Share Price	CN¥7.41
52 Week High	CN¥9.47
52 Week Low	CN¥6.40
Beta	0.26
1 Month Change	3.64%
3 Month Change	-6.44%
1 Year Change	-0.54%
3 Year Change	-6.14%
5 Year Change	n/a
Change since IPO	67.08%

Shareholder Returns

	300692	CN Commercial Services	CN Market
7D	4.7%	2.9%	1.3%
1Y	-0.5%	-10.5%	-6.8%

Return vs Industry: 300692 exceeded the CN Commercial Services industry which returned -10.5% over the past year.

Return vs Market: 300692 exceeded the CN Market which returned -6.8% over the past year.

Price Volatility

Is 300692's price volatile compared to industry and market?
300692 volatility
300692 Average Weekly Movement	4.8%
Commercial Services Industry Average Movement	6.8%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.0%

Stable Share Price: 300692 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 300692's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	1,019	Song Yonglian	https://www.ahzhhb.cn

Anhui Zhonghuan Environmental Protection Technology Co., Ltd. engages in the water treatment and water environment treatment, waste incineration power generation, solid waste treatment, and other environmental protection businesses in China. It offers services, including sludge treatment, urban and rural sewage treatment, ecological restoration of rivers and lakes, river basin treatment, and black and odorous water treatment.

Anhui Zhonghuan Environmental Protection TechnologyLtd Fundamentals Summary

How do Anhui Zhonghuan Environmental Protection TechnologyLtd's earnings and revenue compare to its market cap?
300692 fundamental statistics
Market Cap	CN¥3.14b
Earnings (TTM)	CN¥215.19m
Revenue (TTM)	CN¥1.23b

14.6x

P/E Ratio

2.6x

P/S Ratio

Is 300692 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
300692 income statement (TTM)
Revenue	CN¥1.23b
Cost of Revenue	CN¥779.81m
Gross Profit	CN¥446.58m
Other Expenses	CN¥231.39m
Earnings	CN¥215.19m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.51
Gross Margin	36.41%
Net Profit Margin	17.55%
Debt/Equity Ratio	82.8%

How did 300692 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 300692 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300692?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 300692. This is calculated by dividing 300692's market cap by their current preferred multiple.
What is 300692's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥3.14b

300692 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.5x
Enterprise Value/EBITDA	12.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 300692's PE Ratio compare to its peers?

300692 PE Ratio vs Peers

The above table shows the PE ratio for 300692 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	54x
603797 Guangdong Liantai Environmental ProtectionLtd	10.8x	n/a	CN¥3.4b
603817 Fujian Haixia Environmental Protection GroupLtd	20.9x	n/a	CN¥3.2b
300664 Penyao Environmental Protection	12.7x	n/a	CN¥3.9b
000010 Shenzhen Ecobeauty	171.8x	n/a	CN¥4.1b
300692 Anhui Zhonghuan Environmental Protection TechnologyLtd	14.6x	n/a	CN¥3.1b

Forward PE

Price-To-Earnings vs Peers: 300692 is good value based on its Price-To-Earnings Ratio (14.6x) compared to the peer average (54x).

Price to Earnings Ratio vs Industry

How does 300692's PE Ratio compare vs other companies in the CN Commercial Services Industry?

Price-To-Earnings vs Industry: 300692 is good value based on its Price-To-Earnings Ratio (14.6x) compared to the CN Commercial Services industry average (30.1x)

Price to Earnings Ratio vs Fair Ratio

What is 300692's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

300692 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 300692's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 300692 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300692 (CN¥7.41) is trading above our estimate of fair value (CN¥1)

Significantly Below Fair Value: 300692 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 300692's PEG Ratio to determine if it is good value.

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Future Growth

How is Anhui Zhonghuan Environmental Protection TechnologyLtd forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.7%

Forecasted Commercial Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Anhui Zhonghuan Environmental Protection TechnologyLtd has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Anhui Zhonghuan Environmental Protection TechnologyLtd's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Anhui Zhonghuan Environmental Protection TechnologyLtd performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

34.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 300692 has high quality earnings.

Growing Profit Margin: 300692's current net profit margins (17.5%) are higher than last year (17.1%).

Past Earnings Growth Analysis

Earnings Trend: 300692's earnings have grown significantly by 34.1% per year over the past 5 years.

Accelerating Growth: 300692's earnings growth over the past year (22.2%) is below its 5-year average (34.1% per year).

Earnings vs Industry: 300692 earnings growth over the past year (22.2%) exceeded the Commercial Services industry -11.6%.

Return on Equity

High ROE: 300692's Return on Equity (10.2%) is considered low.

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Financial Health

How is Anhui Zhonghuan Environmental Protection TechnologyLtd's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 300692's short term assets (CN¥1.2B) do not cover its short term liabilities (CN¥1.3B).

Long Term Liabilities: 300692's short term assets (CN¥1.2B) do not cover its long term liabilities (CN¥1.9B).

Debt to Equity History and Analysis

Debt Level: 300692's net debt to equity ratio (74.9%) is considered high.

Reducing Debt: 300692's debt to equity ratio has increased from 29.3% to 82.8% over the past 5 years.

Debt Coverage: 300692's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: 300692's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

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Dividend

What is Anhui Zhonghuan Environmental Protection TechnologyLtd current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 300692's dividend (0.67%) is higher than the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 300692's dividend (0.67%) is low compared to the top 25% of dividend payers in the CN market (1.92%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 300692 has been paying a dividend for less than 10 years.

Growing Dividend: 300692's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.6%), 300692's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 300692 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

CN¥647k

CEO Compensation

CEO

Song Yonglian (52 yo)

no data

Tenure

CN¥647,000

Compensation

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31