DB:A9W1

Stock Analysis Report

SIIC Environment Holdings

Executive Summary

SIIC Environment Holdings Ltd., an investment holding company, engages in wastewater treatment, water supply, solid waste management, and other environment-related businesses primarily in the People's Republic of China.

Rewards

PE ratio (5.7x) is below the German market (20.6x)

Earnings are forecast to grow 8.45% per year

Earnings grew by 11.8% over the past year

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

How has SIIC Environment Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A9W1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

A9W1

6.2%

DE Water Utilities

0.07%

DE Market


1 Year Return

-8.3%

A9W1

29.8%

DE Water Utilities

14.8%

DE Market

Return vs Industry: A9W1 underperformed the German Water Utilities industry which returned 33.6% over the past year.

Return vs Market: A9W1 underperformed the German Market which returned 16.6% over the past year.


Shareholder returns

A9W1IndustryMarket
7 Day2.5%6.2%0.07%
30 Day5.1%4.9%1.4%
90 Day17.9%12.9%6.1%
1 Year-4.6%-8.3%36.3%29.8%18.4%14.8%
3 Year-48.3%-52.9%38.5%20.6%17.4%7.0%
5 Year-57.4%-61.2%40.7%12.8%27.9%10.4%

Price Volatility Vs. Market

How volatile is SIIC Environment Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SIIC Environment Holdings undervalued compared to its fair value and its price relative to the market?

5.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: A9W1 (€0.16) is trading above our estimate of fair value (€0.11)

Significantly Below Fair Value: A9W1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: A9W1 is good value based on its PE Ratio (5.7x) compared to the Water Utilities industry average (17.6x).

PE vs Market: A9W1 is good value based on its PE Ratio (5.7x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: A9W1 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: A9W1 is good value based on its PB Ratio (0.4x) compared to the XE Water Utilities industry average (1.5x).


Next Steps

Future Growth

How is SIIC Environment Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A9W1's forecast earnings growth (8.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: A9W1's earnings (8.5% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: A9W1's earnings are forecast to grow, but not significantly.

Revenue vs Market: A9W1's revenue (9.6% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: A9W1's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A9W1's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has SIIC Environment Holdings performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A9W1 has high quality earnings.

Growing Profit Margin: A9W1's current net profit margins (10.6%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: A9W1's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: A9W1's earnings growth over the past year (11.8%) is below its 5-year average (16.2% per year).

Earnings vs Industry: A9W1 earnings growth over the past year (11.8%) exceeded the Water Utilities industry 7.5%.


Return on Equity

High ROE: A9W1's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SIIC Environment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: A9W1's short term assets (CN¥5.6B) do not cover its short term liabilities (CN¥9.1B).

Long Term Liabilities: A9W1's short term assets (CN¥5.6B) do not cover its long term liabilities (CN¥11.1B).


Debt to Equity History and Analysis

Debt Level: A9W1's debt to equity ratio (121.1%) is considered high.

Reducing Debt: A9W1's debt to equity ratio has increased from 60.6% to 121.1% over the past 5 years.

Debt Coverage: A9W1's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: A9W1's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: A9W1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: A9W1's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is SIIC Environment Holdings's current dividend yield, its reliability and sustainability?

4.54%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.5%industryaverage3.9%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate A9W1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate A9W1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if A9W1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if A9W1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: A9W1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of A9W1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of SIIC Environment Holdings's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Xiaobing Xu (51yo)

1.2yrs

Tenure

CN¥245,000

Compensation

Mr. Xiaobing Xu has been Chief Executive Officer of SIIC Environment Holdings Ltd. since November 16, 2018. Mr. Xu has been Deputy Chief Executive Officer at Shanghai Industrial Holdings Limited since Nove ...


Management Age and Tenure

4.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: A9W1's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

50yo

Average Age

Experienced Board: A9W1's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€86,85902 Sep 19
Value Partners Limited
EntityCompany
Shares600,000
Max Price€0.14
Buy€412,04229 Mar 19
Shanghai Industrial Investment (Holding) Co., Ltd.
EntityCompany
Shares1,777,000
Max Price€0.23
Sell€121,59227 Mar 19
Value Partners Limited
EntityCompany
Shares515,000
Max Price€0.24

Ownership Breakdown

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


Management Team

  • Hanguang Huang (57yo)

    GM & Executive Director

    • Tenure: 0.7yrs
  • Jun Feng (56yo)

    Executive Director

    • Tenure: 10.1yrs
    • Compensation: CN¥245.00k
  • Shirley Tan

    Joint Company Secretary

    • Tenure: 4.7yrs
  • Xiaobing Xu (51yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥245.00k
  • Youmin Zhao (48yo)

    Executive Director

    • Tenure: 0.4yrs
  • Zhan Xu (50yo)

    CFO & Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥245.00k
  • Guy Man

    Joint Company Secretary

    • Tenure: 2.3yrs
  • Rachel Cai (35yo)

    Deputy GM of Administration

    • Anyuan Yang (44yo)

      Deputy General Manager of Legal & Compliance Management

      • Tenure: 2.3yrs
    • Yongjian Piao (56yo)

      Vice Chairman & President of Longjiang Environment Protection Group Co.

      • Tenure: 5.4yrs

    Board Members

    • Hanguang Huang (57yo)

      GM & Executive Director

      • Tenure: 0.7yrs
    • Jun Zhou (50yo)

      Non-Executive Chairman

      • Tenure: 7.7yrs
      • Compensation: CN¥490.00k
    • Qiang Wu (48yo)

      Chairman of Fudan Water Engineering and Technology Co.

      • Guat Yeo (58yo)

        Lead Independent Director

        • Compensation: CN¥465.00k
      • Jun Feng (56yo)

        Executive Director

        • Tenure: 10.1yrs
        • Compensation: CN¥245.00k
      • Xiaobing Xu (51yo)

        CEO & Executive Director

        • Tenure: 1.2yrs
        • Compensation: CN¥245.00k
      • Youmin Zhao (48yo)

        Executive Director

        • Tenure: 0.4yrs
      • Zhan Xu (50yo)

        CFO & Executive Director

        • Tenure: 5.2yrs
        • Compensation: CN¥245.00k
      • Hongjun An (50yo)

        Independent Non-Executive Director

        • Tenure: 1.8yrs
        • Compensation: CN¥349.00k
      • Ming Zhong (32yo)

        Independent Non-Executive Director

        • Tenure: 1.8yrs
        • Compensation: CN¥328.00k

      Company Information

      SIIC Environment Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: SIIC Environment Holdings Ltd.
      • Ticker: A9W1
      • Exchange: DB
      • Founded: 2002
      • Industry: Water Utilities
      • Sector: Utilities
      • Market Cap: S$715.775m
      • Listing Market Cap: S$479.319m
      • Shares outstanding: 2.60b
      • Website: https://www.siicenv.com

      Location

      • SIIC Environment Holdings Ltd.
      • No. 37-02, Millenia Tower
      • One Temasek Avenue
      • Singapore
      • 39192
      • Singapore

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      BHKSGX (Singapore Exchange)YesOrdinary SharesSGSGDMar 2005
      A9W1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2005
      807SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2005
      AWAE.FOTCPK (Pink Sheets LLC)SIIC ENVIRONMENTUSUSDMar 2016

      Biography

      SIIC Environment Holdings Ltd., an investment holding company, engages in wastewater treatment, water supply, solid waste management, and other environment-related businesses primarily in the People's Republic of China. It operates through four segments: Construction, Water and Sludge Treatment, Water Supply, and Waste Incineration. The Construction segment is involved in the design, assembly, construction, installation, and commissioning of water supply or waste water treatment systems/plants for industrials and municipals. The Water and Sludge Treatment segment engages in the construction, management, and operation of water and sludge related infrastructure under service concession arrangements; and management and operation of water and sludge related infrastructure under non-service concession arrangements, as well as financial income under service concession arrangements. The Water Supply segment constructs, manages, and operates water supply related infrastructure under service concession arrangements. The Waste Incineration segment constructs, manages, and operates waste incineration related infrastructure under service concession arrangements. The company has a portfolio of approximately 200 water treatment and supply projects, 7 waste incineration projects, and 10 sludge disposal projects across 19 municipalities and provinces in China. It also provides management and consultancy, project design and consultancy, and water meters installation services. The company was formerly known as Asia Water Technology Ltd. and changed its name to SIIC Environment Holdings Ltd. in November 2012. The company was incorporated in 2002 and is headquartered in Singapore. SIIC Environment Holdings Ltd. is a subsidiary of S.I. Infrastructure Holdings Limited. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 20:58
      End of Day Share Price2020/01/20 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.