SEHK:1237

Stock Analysis Report

China Environmental Technology and Bioenergy Holdings

Executive Summary

China Environmental Technology and Bioenergy Holdings Limited, an investment holding company, manufactures and sells outdoor wooden products in the People's Republic of China, North America, Europe, other Asia Pacific, and Australasia.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

How has China Environmental Technology and Bioenergy Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1237's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

1237

-0.4%

HK Leisure

-1.9%

HK Market


1 Year Return

-63.0%

1237

-19.5%

HK Leisure

1.1%

HK Market

Return vs Industry: 1237 underperformed the Hong Kong Leisure industry which returned -19.5% over the past year.

Return vs Market: 1237 underperformed the Hong Kong Market which returned 1.1% over the past year.


Shareholder returns

1237IndustryMarket
7 Day-1.3%-0.4%-1.9%
30 Day-40.0%-0.5%1.7%
90 Day-49.2%-8.4%7.0%
1 Year-63.0%-63.0%-16.5%-19.5%4.7%1.1%
3 Year-77.9%-77.9%-32.4%-36.7%22.6%10.3%
5 Year-96.4%-96.4%-52.3%-54.8%19.8%-0.1%

Price Volatility Vs. Market

How volatile is China Environmental Technology and Bioenergy Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Environmental Technology and Bioenergy Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1237 (HK$0.15) is trading below our estimate of fair value (HK$3.14)

Significantly Below Fair Value: 1237 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1237 is unprofitable, so we can't compare its PE Ratio to the Leisure industry average.

PE vs Market: 1237 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1237's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1237 is good value based on its PB Ratio (0.1x) compared to the HK Leisure industry average (0.8x).


Next Steps

Future Growth

How is China Environmental Technology and Bioenergy Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.3%

Forecasted Consumer Durables 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 China Environmental Technology and Bioenergy Holdings 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 China Environmental Technology and Bioenergy Holdings performed over the past 5 years?

-79.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1237 has large one-off items impacting its financial results.

Growing Profit Margin: 1237's current net profit margins (-29.8%) are lower than last year (-4.6%).


Past Earnings Growth Analysis

Earnings Trend: 1237 is unprofitable, and losses have increased over the past 5 years at a rate of -79.2% per year.

Accelerating Growth: Unable to compare 1237's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1237 is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (7%).


Return on Equity

High ROE: 1237 has a negative Return on Equity (-22.49%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Environmental Technology and Bioenergy Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1237's short term assets (CN¥513.3M) exceeds its short term liabilities (CN¥105.6M)

Long Term Liabilities: 1237's short term assets (513.3M) exceeds its long term liabilities (20.4M)


Debt to Equity History and Analysis

Debt Level: 1237's debt to equity ratio (4.8%) is considered satisfactory

Reducing Debt: 1237's debt to equity ratio has reduced from 55.3% to 4.8% over the past 5 years.

Debt Coverage: 1237's debt is well covered by operating cash flow (376.1%).

Interest Coverage: Insufficient data to determine if 1237's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1237 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1237's debt is covered by short term assets (assets are 11.4x debt).


Next Steps

Dividend

What is China Environmental Technology and Bioenergy Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1237's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1237'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 1237's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1237's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1237 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1237'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 China Environmental Technology and Bioenergy Holdings's salary, the management and board of directors tenure and is there insider trading?

7.4yrs

Average board tenure


CEO

Zheyan Wu (40yo)

0yrs

Tenure

CN¥777,000

Compensation

Mr. Zheyan Wu serves as the Chief Executive Officer at Merry Garden Holdings Limited. Mr. Wu joined Zhangping Kimura as a workshop director since 1997 and obtained knowledge and experiences in the timber p ...


CEO Compensation Analysis

Compensation vs Market: Zheyan's total compensation ($USD111.07K) is below average for companies of similar size in the Hong Kong market ($USD216.21K).

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


Board Age and Tenure

7.4yrs

Average Tenure

59yo

Average Age

Experienced Board: 1237's board of directors are considered experienced (7.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Zheyan Wu (40yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥777.00k
  • Qingmei Xie (51yo)

    Executive Chairperson

    • Tenure: 3.5yrs
    • Compensation: CN¥57.00k
  • Tianfu Chen (53yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Kin Yee Lee (35yo)

    Company Secretary

    • Tenure: 1.3yrs

Board Members

  • Hin Chi Lam (55yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥102.00k
  • Zheyan Wu (40yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥777.00k
  • Qingmei Xie (51yo)

    Executive Chairperson

    • Tenure: 3.5yrs
    • Compensation: CN¥57.00k
  • Dongping Wu (64yo)

    Founder & Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥154.00k
  • Zhongwei Jin (81yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥102.00k
  • Wenqiang Su (63yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥102.00k

Company Information

China Environmental Technology and Bioenergy Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Environmental Technology and Bioenergy Holdings Limited
  • Ticker: 1237
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$95.738m
  • Shares outstanding: 617.67m
  • Website: https://www.merrygardenholdings.com

Number of Employees


Location

  • China Environmental Technology and Bioenergy Holdings Limited
  • Fushan Industrial District
  • Zhangping
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1237SEHK (The Stock Exchange of Hong Kong Ltd.)HKD0.01HKHKDNo data
1237SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2012
2956SEHK (The Stock Exchange of Hong Kong Ltd.)HKD0.05(PARALLEL 25/11/19)HKHKDOct 2019

Biography

China Environmental Technology and Bioenergy Holdings Limited, an investment holding company, manufactures and sells outdoor wooden products in the People's Republic of China, North America, Europe, other  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 12:51
End of Day Share Price2019/11/11 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.