SEHK:1845

Stock Analysis Report

Weigang Environmental Technology Holding Group

Executive Summary

Weigang Environmental Technology Holding Group Limited engages in the research, design, integration, and commissioning of solid waste treatment systems primarily for hazardous waste incineration projects in China.


Snowflake Analysis

Adequate balance sheet with poor track record.

Share Price & News

How has Weigang Environmental Technology Holding Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1845 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

1845

-0.8%

HK Commercial Services

-2.7%

HK Market


1 Year Return

-35.6%

1845

38.8%

HK Commercial Services

-8.5%

HK Market

Return vs Industry: 1845 underperformed the Hong Kong Commercial Services industry which returned 38.8% over the past year.

Return vs Market: 1845 underperformed the Hong Kong Market which returned -8.5% over the past year.


Shareholder returns

1845IndustryMarket
7 Day1.8%-0.8%-2.7%
30 Day-4.9%10.3%-3.1%
90 Day-10.8%18.8%2.4%
1 Year-35.6%-35.6%42.0%38.8%-5.2%-8.5%
3 Yearn/a-34.3%-39.1%12.0%0.7%
5 Yearn/a-49.5%-53.6%14.1%-4.7%

Price Volatility Vs. Market

How volatile is Weigang Environmental Technology Holding Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Weigang Environmental Technology Holding Group undervalued compared to its fair value and its price relative to the market?

15.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1845's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1845's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1845 is poor value based on its PE Ratio (15.1x) compared to the Commercial Services industry average (12.3x).

PE vs Market: 1845 is poor value based on its PE Ratio (15.1x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1845's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1845 is overvalued based on its PB Ratio (1.5x) compared to the HK Commercial Services industry average (1.2x).


Next Steps

Future Growth

How is Weigang Environmental Technology Holding Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.1%

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 Weigang Environmental Technology Holding Group 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 Weigang Environmental Technology Holding Group performed over the past 5 years?

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1845 has a high level of non-cash earnings.

Growing Profit Margin: 1845's current net profit margins (8.6%) are lower than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: 1845's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: 1845's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1845 had negative earnings growth (-25.1%) over the past year, making it difficult to compare to the Commercial Services industry average (14.3%).


Return on Equity

High ROE: 1845's Return on Equity (9.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Weigang Environmental Technology Holding Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1845's short term assets (CN¥576.0M) exceed its short term liabilities (CN¥158.4M).

Long Term Liabilities: 1845's short term assets (CN¥576.0M) exceed its long term liabilities (CN¥3.6M).


Debt to Equity History and Analysis

Debt Level: 1845's debt to equity ratio (3.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1845's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1845's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1845's interest payments on its debt are well covered by EBIT (16.6x coverage).


Balance Sheet

Inventory Level: 1845 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1845's debt is covered by short term assets (assets are 34.1x debt).


Next Steps

Dividend

What is Weigang Environmental Technology Holding Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1845's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1845'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 1845's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1845'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 1845's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Zhuhua Cai (55yo)

CN¥441,000

Compensation

Mr. Zhuhua Cai serves as Chairman and Chief Executive Officer at Weigang Environmental Technology Holding Group Limited and has been its Executive Director since April 27, 2018. Mr. Cai is responsible for  ...


CEO Compensation Analysis

Compensation vs Market: Zhuhua's total compensation ($USD62.96K) is below average for companies of similar size in the Hong Kong market ($USD226.72K).

Compensation vs Earnings: Zhuhua's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zhuhua Cai
Chairman0yrsCN¥441.00k50.81% CN¥406.5m
Honghui Dong
Executive Director1.8yrsCN¥544.00kno data
Zhaoshan Deng
Executive Director1.8yrsCN¥542.00kno data
Zhouxin Li
Chief Financial Officer2yrsno datano data
Zhicheng Wang
Chief Scientist & Deputy GM1.8yrsno datano data
Ying Huang
Deputy General Manager10.6yrsno datano data
Jinhong Cui
Deputy General Manager0yrsno datano data
Chunbin Gu
Joint Company Secretary and Head of Corporate Investment & Financing1.8yrsno datano data
Shuk So
Joint Company Secretary1.8yrsno datano data
Ziyuan Zheng
Financial Controller1.9yrsno datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 1845's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zhuhua Cai
Chairman0yrsCN¥441.00k50.81% CN¥406.5m
Honghui Dong
Executive Director1.8yrsCN¥544.00kno data
Zhaoshan Deng
Executive Director1.8yrsCN¥542.00kno data
Tao Feng
Independent Non-Executive Director1.1yrsno datano data
Guoliang Jiang
Independent Non-Executive Director1.1yrsno datano data
Zhiqiang Yang
Non-Executive Director1.3yrsno datano data
Jingfeng Ren
Non-Executive Director1.8yrsno data4.5% CN¥36.0m
Zhifeng Yang
Independent Non-Executive Director1.1yrsno datano data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 1845's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.5%.


Top Shareholders

Company Information

Weigang Environmental Technology Holding Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weigang Environmental Technology Holding Group Limited
  • Ticker: 1845
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: HK$800.001m
  • Shares outstanding: 1.33b
  • Website: https://www.gzweigang.com

Number of Employees


Location

  • Weigang Environmental Technology Holding Group Limited
  • No. 181 Science Boulevard
  • 14-15/F, Block A4
  • Guangzhou
  • Guangdong Province
  • 510663
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1845SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2019

Biography

Weigang Environmental Technology Holding Group Limited engages in the research, design, integration, and commissioning of solid waste treatment systems primarily for hazardous waste incineration projects in China. It also provides solid waste treatment, such as thermal desorption of oil sludge, pyrolysis treatment of solid waste, and cement plant parallel kiln co-treatment. The company was formerly known as WeiGang Environmental Protection Holdings Limited and changed its name to Weigang Environmental Technology Holding Group Limited in May 2017. Weigang Environmental Technology Holding Group Limited was founded in 1998 and is based in Guangzhou, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 13:29
End of Day Share Price2020/02/28 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.