SEHK:8196

Stock Analysis Report

Executive Summary

Great Water Holdings Limited, an investment holding company, provides engineering services for the wastewater and drinking water treatment facilities in the People’s Republic of China.

Snowflake

Fundamentals

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-19.1%

8196

7.5%

HK Trade Distributors

0.9%

HK Market


1 Year Return

-57.1%

8196

11.6%

HK Trade Distributors

0.6%

HK Market

Return vs Industry: 8196 underperformed the Hong Kong Trade Distributors industry which returned 11.6% over the past year.

Return vs Market: 8196 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

8196IndustryMarket
7 Day-19.1%7.5%0.9%
30 Day-31.4%-7.8%0.4%
90 Day22.0%8.2%-5.5%
1 Year-57.1%-57.1%15.0%11.6%4.2%0.6%
3 Year-86.1%-86.1%-7.8%-16.2%15.5%3.9%
5 Yearn/a-38.4%-50.5%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Great Water Holdings undervalued compared to its fair value and its price relative to the market?

0.85x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 8196's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 8196's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8196 is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: 8196 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 8196's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8196 is overvalued based on its PB Ratio (0.8x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is Great Water Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8196 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 8196 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 8196 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8196's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8196's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 8196's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Great Water Holdings performed over the past 5 years?

-8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8196 is unprofitable, and losses have increased over the past 5 years at a rate of -8.9% per year.

Accelerating Growth: Unable to compare 8196's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8196 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (1%).


Return on Equity

High ROE: 8196 has a negative Return on Equity (-5.48%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 8196 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 8196 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Great Water Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8196's short term assets (CN¥399.8M) exceeds its short term liabilities (CN¥217.2M)

Long Term Liabilities: 8196's short term assets (399.8M) exceeds its long term liabilities (11.5M)


Debt to Equity History and Analysis

Debt Level: 8196's debt to equity ratio (32.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 8196's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8196's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 8196's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 8196 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8196's debt is covered by short term assets (assets are 5.607260x debt).


Next Steps

Dividend

What is Great Water Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8196's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8196's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 8196's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8196's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8196's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Yang Xie (56yo)

0yrs

Tenure

CN¥895,000

Compensation

Mr. Yang Xie serves as the Chairman and Chief Executive Officer of Great Water Holdings Limited. Mr. Xie has been an Executive Director of Great Water Holdings Limited since March 25, 2015. 


CEO Compensation Analysis

Compensation vs. Market: Yang's total compensation ($USD126.38K) is about average for companies of similar size in the Hong Kong market ($USD212.49K).

Compensation vs Earnings: Yang's compensation has been consistent with company performance over the past year.


Board Age and Tenure

3.9yrs

Average Tenure

49yo

Average Age

Experienced Board: 8196's board of directors are considered experienced (3.9 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

SellCN¥17,993,57009 Jul 19
Chen Kuo Yang
EntityIndividual
Shares17,608,000
Max PriceCN¥1.02

Ownership Breakdown


Management Team

  • Alex Tsui (46yo)

    CFO & Company Secretary

    • Tenure: 4.4yrs
  • Yang Xie (56yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥895.00k
  • Xuan He (36yo)

    Compliance Officer & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥431.00k
  • Zhao Kang (42yo)

    Executive General Manager

    • Tenure: 0yrs
  • Shao Chen (40yo)

    Head of Administration & Human Resources Department

    • Tenure: 12.7yrs
  • Huan Feng (36yo)

    Vice General Manager of Marketing Department

    • Tenure: 0yrs
  • Lei Wang (36yo)

    Vice General Manager of Engineering

    • Tenure: 0yrs
  • De Leng (40yo)

    Head of Finance Department - China

    • Tenure: 0yrs

Board Members

  • Chi Wai Tse (51yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥101.00k
  • Yang Xie (56yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥895.00k
  • Xuan He (36yo)

    Compliance Officer & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥431.00k
  • Lan Lan Gong (43yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥101.00k
  • Shuang Bai (47yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥101.00k
  • Cheng Ha (60yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥101.00k

Company Information

Great Water Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great Water Holdings Limited
  • Ticker: 8196
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$216.000m
  • Shares outstanding: 300.00m
  • Website: https://www.greatwater.com.cn

Number of Employees


Location

  • Great Water Holdings Limited
  • No. 18, Keyan Road
  • Science City
  • Guangzhou
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8196SEHK (The Stock Exchange of Hong Kong Ltd.)YesDomestic SharesHKHKDDec 2015

Biography

Great Water Holdings Limited, an investment holding company, provides engineering services for the wastewater and drinking water treatment facilities in the People’s Republic of China. It operates through  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 13:03
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.