SEHK:986

Stock Analysis Report

China Environmental Energy Investment

Executive Summary

China Environmental Energy Investment Limited, an investment holding company, engages in the designing, original equipment manufacturing (OEM), and marketing of jewelry.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

How has China Environmental Energy Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

986

1.9%

HK Retail Distributors

0.3%

HK Market


1 Year Return

159.0%

986

-4.3%

HK Retail Distributors

1.3%

HK Market

Return vs Industry: 986 exceeded the Hong Kong Retail Distributors industry which returned -4.3% over the past year.

Return vs Market: 986 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

986IndustryMarket
7 Day-3.8%1.9%0.3%
30 Day13.5%-0.4%0.5%
90 Day36.5%-2.1%-4.6%
1 Year159.0%159.0%-1.6%-4.3%4.9%1.3%
3 Year74.1%74.1%-23.4%-29.7%15.3%3.7%
5 Year-80.4%-92.0%-38.9%-48.6%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Environmental Energy Investment undervalued compared to its fair value and its price relative to the market?

1.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 986's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 986's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 986 is unprofitable, so we can't compare its PE Ratio to the Retail Distributors industry average.

PE vs Market: 986 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 986's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 986 is overvalued based on its PB Ratio (1.8x) compared to the HK Retail Distributors industry average (0.8x).


Next Steps

Future Growth

How is China Environmental Energy Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.0%

Forecasted Retail 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 Energy Investment 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 Energy Investment performed over the past 5 years?

50.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 986 is unprofitable, but has reduced losses over the past 5 years at a rate of 50.7% per year.

Accelerating Growth: Unable to compare 986's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 986 is unprofitable, making it difficult to compare its past year earnings growth to the Retail Distributors industry (-13.3%).


Return on Equity

High ROE: 986 has a negative Return on Equity (-16.48%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 986 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 986 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is China Environmental Energy Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 986's short term assets (HK$306.7M) exceeds its short term liabilities (HK$118.5M)

Long Term Liabilities: 986's short term assets (306.7M) exceeds its long term liabilities (10.2M)


Debt to Equity History and Analysis

Debt Level: 986's debt to equity ratio (5%) is considered satisfactory

Reducing Debt: 986's debt to equity ratio has reduced from 68.5% to 5% over the past 5 years.


Balance Sheet

Inventory Level: 986 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 986's debt is covered by short term assets (assets are 19.737820x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 986 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 986 has less than a year of cash runway if free cash flow continues to grow at historical rates of 74.1% each year.


Next Steps

Dividend

What is China Environmental Energy Investment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage5.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 986's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 986's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 986's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 986'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 986'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 Energy Investment's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Liang Wei (41yo)

1.4yrs

Tenure

HK$248,586

Compensation

Mr. Wei Liang has been Executive Director and Chief Executive Officer of China Environmental Energy Investment Ltd since 2 May 2018. Mr. Wei has over 20 years of experiences of business management, trading ...


CEO Compensation Analysis

Compensation vs. Market: Liang's total compensation ($USD31.69K) is too low to compare against companies of similar size in the Hong Kong market ($USD215.97K).

Compensation vs Earnings: Insufficient data to compare Liang's compensation with company performance.


Board Age and Tenure

2.3yrs

Average Tenure

36yo

Average Age

Experienced Board: 986's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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


Management Team

  • Jingjuan Hong (34yo)

    Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$315.00k
  • Yaying Zhou (36yo)

    Chairperson

    • Tenure: 1.4yrs
    • Compensation: HK$1.43m
  • Liang Wei (41yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$248.59k
  • Louis Tang

    Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$249.67k
  • Kin Ming Chan

    Financial Controller & Company Secretary

    • Tenure: 1.4yrs

Board Members

  • Kwong Chan Tse (49yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: HK$120.00k
  • Jingjuan Hong (34yo)

    Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$315.00k
  • To Wa Yiu (36yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$120.00k
  • Leong Yuen Lau (34yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$120.00k
  • Yaying Zhou (36yo)

    Chairperson

    • Tenure: 1.4yrs
    • Compensation: HK$1.43m
  • Liang Wei (41yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$248.59k
  • Louis Tang

    Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$249.67k

Company Information

China Environmental Energy Investment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Environmental Energy Investment Limited
  • Ticker: 986
  • Exchange: SEHK
  • Founded:
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: HK$630.884m
  • Shares outstanding: 624.64m
  • Website: https://www.986.com.hk

Number of Employees


Location

  • China Environmental Energy Investment Limited
  • Harbour Centre
  • 9th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
986SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 1994

Biography

China Environmental Energy Investment Limited, an investment holding company, engages in the designing, original equipment manufacturing (OEM), and marketing of jewelry. The company operates through Intern ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:32
End of Day Share Price2019/10/22 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.