SEHK:1790

Stock Analysis Report

Executive Summary

TIL Enviro Limited provides wastewater treatment services in Ningxia, the People’s Republic of China.

Rewards

PE ratio (4.8x) is below the Hong Kong market (10.5x)

Earnings grew by 40.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (HK$530M)



Snowflake Analysis

Solid track record and fair value.

Share Price & News

How has TIL Enviro's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1790 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1790

-3.8%

HK Commercial Services

-4.1%

HK Market


1 Year Return

-5.2%

1790

36.2%

HK Commercial Services

-0.5%

HK Market

Return vs Industry: 1790 underperformed the Hong Kong Commercial Services industry which returned 38.9% over the past year.

Return vs Market: 1790 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1790IndustryMarket
7 Day0%-3.8%-4.1%
30 Day1.9%7.0%-1.2%
90 Day12.2%6.9%3.4%
1 Year-5.2%-5.2%39.5%36.2%3.2%-0.5%
3 Yearn/a-30.2%-35.3%20.4%8.2%
5 Yearn/a-44.1%-50.1%19.0%-0.9%

Price Volatility Vs. Market

How volatile is TIL Enviro's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TIL Enviro undervalued compared to its fair value and its price relative to the market?

4.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1790's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1790's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1790 is good value based on its PE Ratio (4.8x) compared to the Commercial Services industry average (12.2x).

PE vs Market: 1790 is good value based on its PE Ratio (4.8x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1790's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1790 is good value based on its PB Ratio (0.6x) compared to the HK Commercial Services industry average (1.2x).


Next Steps

Future Growth

How is TIL Enviro forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.9%

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 TIL Enviro 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.


Next Steps

Past Performance

How has TIL Enviro performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1790 has high quality earnings.

Growing Profit Margin: 1790's current net profit margins (20%) are higher than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: 1790's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: 1790's earnings growth over the past year (40.2%) exceeds its 5-year average (18.8% per year).

Earnings vs Industry: 1790 earnings growth over the past year (40.2%) exceeded the Commercial Services industry 9.3%.


Return on Equity

High ROE: 1790's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TIL Enviro's financial position?


Financial Position Analysis

Short Term Liabilities: 1790's short term assets (HK$653.4M) exceed its short term liabilities (HK$199.1M).

Long Term Liabilities: 1790's short term assets (HK$653.4M) do not cover its long term liabilities (HK$809.0M).


Debt to Equity History and Analysis

Debt Level: 1790's debt to equity ratio (78.2%) is considered high.

Reducing Debt: Insufficient data to determine if 1790's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1790's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1790's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: 1790 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1790's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is TIL Enviro's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1790's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1790'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 1790's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1790'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 1790'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 TIL Enviro's salary, the management and board of directors tenure and is there insider trading?

HK$2m

CEO Compensation


CEO

Kok Sun Wong (46yo)

0yrs

Tenure

HK$1,654,000

Compensation

Mr. Wong Kok Sun is an Executive Director and Chief Executive Director of TIL Enviro Limited. 


CEO Compensation Analysis

Compensation vs Market: Kok Sun's total compensation ($USD212.72K) is about average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Insider Trading

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 been substantially diluted in the past year, with total shares outstanding growing by 324.1%.


Management Team

  • Sum Yi Tsui (32yo)

    Company Secretary

    • Kok Sun Wong (46yo)

      CEO & Executive Director

      • Compensation: HK$1.65m
    • Sze Wong (45yo)

      Financial controller

      • Tenure: 3.1yrs
    • Ning Han (60yo)

      General manager

      • Tenure: 6.3yrs

    Board Members

    • Chin Sean Lim (38yo)

      Chairman

      • Compensation: HK$12.00k
    • Yee Tan (44yo)

      Independent Non-Executive Director

      • Compensation: HK$12.00k
    • Kok Sun Wong (46yo)

      CEO & Executive Director

      • Compensation: HK$1.65m
    • Sang Hew (55yo)

      Independent Non-Executive Director

      • Tenure: 1.3yrs
      • Compensation: HK$12.00k
    • Raymond Tam (38yo)

      Independent Non-Executive Director

      • Compensation: HK$12.00k

    Company Information

    TIL Enviro Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: TIL Enviro Limited
    • Ticker: 1790
    • Exchange: SEHK
    • Founded: 2011
    • Industry: Environmental and Facilities Services
    • Sector: Commercial Services
    • Market Cap: HK$550.000m
    • Shares outstanding: 1.00b
    • Website: https://www.tilenviro.com

    Number of Employees


    Location

    • TIL Enviro Limited
    • CITIC Plaza
    • Level 61
    • Guangzhou
    • Guangdong Province
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    1790SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2018

    Biography

    TIL Enviro Limited provides wastewater treatment services in Ningxia, the People’s Republic of China. The company also supplies water to power plants and public institutions; and provides municipal solid waste transfer services and other waste treatment services. It operates and four wastewater treatment facilities located in Yinchuan on transfer-operate-transfer basis. The company was founded in 2011 and is headquartered in Guangzhou, the People’s Republic of China. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 13:18
    End of Day Share Price2020/01/24 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.