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

Undervalued with excellent balance sheet and pays a dividend.

Risks

  • China Boqi Environmental (Holding) is covered by less than 3 analysts.

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

-6.3%

SEHK:2377

0.2%

HK Commercial Services

1.2%

HK Market


1 Year Return

-17.3%

SEHK:2377

-0.8%

HK Commercial Services

-9.5%

HK Market

2377 underperformed the Commercial Services industry which returned -0.6% over the past year.

2377 underperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

2377IndustryMarket
7 Day-6.3%0.2%1.2%
30 Day11.7%-6.1%-8.0%
90 Day-17.3%4.5%-5.9%
1 Year-12.0%-17.3%2.0%-0.8%-6.2%-9.5%
3 Yearn/a-30.9%-35.7%14.5%3.1%
5 Yearn/a-39.3%-45.6%8.5%-9.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Boqi Environmental (Holding)'s share price is below the future cash flow value, and at a moderate discount (> 20%).

China Boqi Environmental (Holding)'s share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Boqi Environmental (Holding) is good value based on earnings compared to the HK Commercial Services industry average.

China Boqi Environmental (Holding) is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for China Boqi Environmental (Holding), we can't assess if its growth is good value.


Price Based on Value of Assets

China Boqi Environmental (Holding) is good value based on assets compared to the HK Commercial Services industry average.


Next Steps

Future Growth

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

27.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Boqi Environmental (Holding)'s revenue is expected to grow significantly at over 20% yearly.

Unable to determine if China Boqi Environmental (Holding) is high growth as no earnings estimate data is available.

China Boqi Environmental (Holding)'s revenue growth is expected to exceed the Hong Kong market average.

Unable to compare China Boqi Environmental (Holding)'s earnings growth to the Hong Kong market average as no estimate data is available.

Unable to compare China Boqi Environmental (Holding)'s earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

China Boqi Environmental (Holding) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

23.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Boqi Environmental (Holding) has delivered over 20% year on year earnings growth in the past 5 years.

China Boqi Environmental (Holding) has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

China Boqi Environmental (Holding) has become profitable in the last year making it difficult to compare the HK Commercial Services industry average.


Return on Equity

China Boqi Environmental (Holding) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Boqi Environmental (Holding) used its assets more efficiently than the HK Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

China Boqi Environmental (Holding)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

China Boqi Environmental (Holding) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Boqi Environmental (Holding)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Boqi Environmental (Holding)'s level of debt (3%) compared to net worth is satisfactory (less than 40%).

Unable to establish if China Boqi Environmental (Holding)'s debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (129.7%, greater than 20% of total debt).

China Boqi Environmental (Holding) earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 34.8x debt.


Next Steps

Dividend

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

9.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Boqi Environmental (Holding)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.3%).

China Boqi Environmental (Holding)'s dividend is above the markets top 25% of dividend payers in Hong Kong (6.25%).

It is too early to tell whether China Boqi Environmental (Holding) has stable dividend payments.

China Boqi Environmental (Holding) only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).


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?

2.5yrs

Average management tenure


CEO

Zhijun Zeng (48yo)

0.0yrs

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

Zhijun's remuneration is lower than average for companies of similar size in Hong Kong.

Zhijun's compensation has increased in line with China Boqi Environmental (Holding) recently becoming profitable.


Management Age and Tenure

2.5yrs

Average Tenure

50.5yo

Average Age

The tenure for the China Boqi Environmental (Holding) management team is about average.


Board Age and Tenure

1.5yrs

Average Tenure

53yo

Average Age

The average tenure for the China Boqi Environmental (Holding) board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by China Boqi Environmental (Holding) individual insiders in the past 3 months.


Recent Insider Transactions

BuyCN¥349,71019 Jul 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares310,000
Max PriceCN¥1.13
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¥324,82116 May 19
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares203,000
Max PriceCN¥1.60
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
BuyCN¥70,79024 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares50,000
Max PriceCN¥1.42
BuyCN¥353,59918 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares250,000
Max PriceCN¥1.41
BuyCN¥70,00018 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares50,000
Max PriceCN¥1.40
BuyCN¥319,20118 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares228,000
Max PriceCN¥1.40
BuyCN¥48,00015 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares30,000
Max PriceCN¥1.60
BuyCN¥419,63115 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares290,000
Max PriceCN¥1.45
BuyCN¥299,87115 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares201,000
Max PriceCN¥1.49
BuyCN¥314,00015 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares200,000
Max PriceCN¥1.57
BuyCN¥47,10015 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares30,000
Max PriceCN¥1.57
BuyCN¥31,66015 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares20,000
Max PriceCN¥1.58
BuyCN¥79,03015 Oct 18
Zhijun Zeng
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares50,000
Max PriceCN¥1.58

Ownership Breakdown


Management Team

  • Wai Ling Wong (39yo)

    Joint Company Secretary

    • Tenure: 2.5yrs
  • Zhijun Zeng (48yo)

    Vice Chairman & CEO

    • Tenure: 0.0yrs
    • Compensation: CN¥908.00k
  • Richard Cheng (53yo)

    Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: CN¥908.00k
  • Xiaoping Cao (65yo)

    VP & CFO

    • Tenure: 9.4yrs
  • Kongyu Zhang (57yo)

    VP & CTO

    • Tenure: 0.0yrs
  • Xiaoning Qian (45yo)

    VP, Board Secretary & Joint Company Secretary

    • Tenure: 2.5yrs

Board Members

  • Genyu Liu (55yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Andy Xie (59yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Zhijun Zeng (48yo)

    Vice Chairman & CEO

    • Tenure: 0.0yrs
    • Compensation: CN¥908.00k
  • Richard Cheng (53yo)

    Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: CN¥908.00k
  • Zhu Weihang (32yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Chen Xue (52yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Zhifang Lu (65yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs

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$1.411b
  • 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 Analysis2019/08/19 13:04
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
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.