SEHK:2377

Stock Analysis Report

China Boqi Environmental (Holding)

Executive Summary

China Boqi Environmental (Holding) Co., Ltd., an environment protection company, provides flue gas treatment services in the People's Republic of China and internationally.

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has China Boqi Environmental (Holding)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.4%

2377

1.8%

HK Commercial Services

0.8%

HK Market


1 Year Return

-18.9%

2377

29.0%

HK Commercial Services

0.5%

HK Market

Return vs Industry: 2377 underperformed the Hong Kong Commercial Services industry which returned 29% over the past year.

Return vs Market: 2377 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

2377IndustryMarket
7 Day7.4%1.8%0.8%
30 Day5.5%7.1%-0.5%
90 Day-3.3%8.2%-5.6%
1 Year-13.7%-18.9%32.0%29.0%4.1%0.5%
3 Yearn/a-28.0%-33.4%15.5%3.9%
5 Yearn/a-43.7%-49.7%19.9%-0.2%

Price Volatility Vs. Market

How volatile is China Boqi Environmental (Holding)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Boqi Environmental (Holding) undervalued compared to its fair value and its price relative to the market?

25.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 2377 (HK$1.16) is trading below our estimate of fair value (HK$1.55)

Significantly Undervalued: 2377 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2377 is good value based on its PE Ratio (4.9x) compared to the Commercial Services industry average (13.3x).

PE vs Market: 2377 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 2377's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2377 is good value based on its PB Ratio (0.5x) compared to the HK Commercial Services industry average (1.1x).


Next Steps

Future Growth

How is China Boqi Environmental (Holding) forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2377's forecast earnings growth (5.3% per year) is above the savings rate (2%).

Earnings vs Market: 2377's earnings (5.3% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 2377's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2377's revenue (17% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 2377's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2377's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has China Boqi Environmental (Holding) performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2377's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: 2377's earnings growth over the past year (18.3%) is below its 5-year average (24.2% per year).

Earnings vs Industry: 2377 earnings growth over the past year (18.3%) exceeded the Commercial Services industry 10.1%.


Return on Equity

High ROE: 2377's Return on Equity (9.9%) is considered low.


Return on Assets

ROA vs Industry: 2377's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: 2377's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China Boqi Environmental (Holding)'s financial position?


Financial Position Analysis

Short Term Liabilities: 2377's short term assets (CN¥2.2B) exceeds its short term liabilities (CN¥1.4B)

Long Term Liabilities: 2377's short term assets (2.2B) exceeds its long term liabilities (24.0M)


Debt to Equity History and Analysis

Debt Level: 2377's debt to equity ratio (6.1%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 2377's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2377's debt is well covered by operating cash flow (115.1%).

Interest Coverage: 2377 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2377 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2377's debt is covered by short term assets (assets are 16.142320x debt).


Next Steps

Dividend

What is China Boqi Environmental (Holding)'s current dividend yield, its reliability and sustainability?

7.53%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.3%markettop25%6.3%industryaverage1.9%forecastin3Years6.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2377's dividend (7.53%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 2377's dividend (7.53%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: Too early to tell whether 2377's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2377's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.9%), 2377's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2377's dividends in 3 years are forecast to be well covered by earnings (20.9% payout ratio).


Next Steps

Management

What is the CEO of China Boqi Environmental (Holding)'s salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Zhijun Zeng (48yo)

0yrs

Tenure

CN¥908,000

Compensation

Mr. Zeng Zhijun, serves as the Vice Chairman and Chief Executive Officer of China Boqi Environmental (Holding) Co., Ltd and has been its Executive Director since January 30, 2015. Mr. Zeng is responsible f ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Zhijun's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

2.7yrs

Average Tenure

48yo

Average Age

Experienced Management: 2377's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 2377's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 2377 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥575,00010 Oct 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares500,000
Max PriceCN¥1.15
BuyCN¥637,60810 Oct 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares553,000
Max PriceCN¥1.15
BuyCN¥585,00016 Sep 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares500,000
Max PriceCN¥1.17
BuyCN¥349,71019 Jul 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares310,000
Max PriceCN¥1.13
BuyCN¥324,82116 May 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares203,000
Max PriceCN¥1.60
BuyCN¥162,60016 May 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares101,000
Max PriceCN¥1.61
BuyCN¥78,89016 May 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares49,000
Max PriceCN¥1.61
BuyCN¥46,69014 May 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares29,000
Max PriceCN¥1.61
BuyCN¥86,94009 May 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares54,000
Max PriceCN¥1.61
BuyCN¥80,00026 Apr 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares50,000
Max PriceCN¥1.60
BuyCN¥240,00111 Apr 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares150,000
Max PriceCN¥1.60
BuyCN¥240,00011 Apr 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares150,000
Max PriceCN¥1.60
BuyCN¥3,24004 Apr 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares2,000
Max PriceCN¥1.62
BuyCN¥296,99901 Apr 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares180,000
Max PriceCN¥1.65
BuyCN¥297,00001 Apr 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares180,000
Max PriceCN¥1.65
BuyCN¥504,81706 Nov 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares358,000
Max PriceCN¥1.41
BuyCN¥740,09906 Nov 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares500,000
Max PriceCN¥1.48
BuyCN¥137,75002 Nov 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares100,000
Max PriceCN¥1.38
BuyCN¥764,89902 Nov 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares551,000
Max PriceCN¥1.39
BuyCN¥70,99031 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares50,000
Max PriceCN¥1.42
BuyCN¥69,50031 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares50,000
Max PriceCN¥1.39
BuyCN¥70,50025 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares50,000
Max PriceCN¥1.41

Ownership Breakdown


Management Team

  • Wai Ling Wong (39yo)

    Joint Company Secretary

    • Tenure: 2.7yrs
  • Wai Ling Wong (39yo)

    Joint Company Secretary

    • Tenure: 2.7yrs
  • Zhijun Zeng (48yo)

    Vice Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥908.00k
  • Richard Cheng (53yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥908.00k
  • Xiaoping Cao (65yo)

    VP & CFO

    • Tenure: 9.6yrs
  • Kongyu Zhang (57yo)

    VP & CTO

    • Tenure: 0yrs
  • Xiaoning Qian (45yo)

    VP, Board Secretary & Joint Company Secretary

    • Tenure: 2.7yrs

Board Members

  • Genyu Liu (55yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
  • Andy Xie (59yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
  • Zhijun Zeng (48yo)

    Vice Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥908.00k
  • Richard Cheng (53yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥908.00k
  • Zhu Weihang (32yo)

    Non-Executive Director

    • Tenure: 2.8yrs
  • Tony Tuo (50yo)

    Non-Executive Director

    • Tenure: 4.8yrs
  • Chen Xue (52yo)

    Non-Executive Director

    • Tenure: 2.8yrs
  • Zhifang Lu (65yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs

Company Information

China Boqi Environmental (Holding) Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Boqi Environmental (Holding) Co., Ltd.
  • Ticker: 2377
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: HK$1.168b
  • Shares outstanding: 1.01b
  • Website: https://www.chinaboqi.com

Number of Employees


Location

  • China Boqi Environmental (Holding) Co., Ltd.
  • R&F Center
  • 11th Floor
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2377SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2018

Biography

China Boqi Environmental (Holding) Co., Ltd., an environment protection company, provides flue gas treatment services in the People's Republic of China and internationally. It engages in the project engine ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:49
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.