company background image
986

China Environmental Energy InvestmentSEHK:986 Stock Report

Market Cap

HK$142.4m

7D

3.6%

1Y

-66.5%

Updated

17 Oct, 2021

Data

Company Financials
986 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

986 Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for China Environmental Energy Investment
Historical stock prices
Current Share PriceHK$0.11
52 Week HighHK$0.099
52 Week LowHK$0.40
Beta0.62
1 Month Change-8.80%
3 Month Change0%
1 Year Change-66.47%
3 Year Change-71.50%
5 Year Change-81.91%
Change since IPO-100.00%

Recent News & Updates

Aug 04
We Think China Environmental Energy Investment (HKG:986) Can Stay On Top Of Its Debt

We Think China Environmental Energy Investment (HKG:986) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Mar 17
Is China Environmental Energy Investment (HKG:986) Using Too Much Debt?

Is China Environmental Energy Investment (HKG:986) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

986HK Retail DistributorsHK Market
7D3.6%2.9%1.1%
1Y-66.5%13.0%5.3%

Return vs Industry: 986 underperformed the Hong Kong Retail Distributors industry which returned 13% over the past year.

Return vs Market: 986 underperformed the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 986's price volatile compared to industry and market?
986 volatility
986 Beta0.62
Industry Beta0.62
Market Beta1

Stable Share Price: 986 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: 986's weekly volatility has increased from 13% to 19% over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a30Liang Weihttps://www.986.com.hk

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 Design, OEM and Marketing of Jewelry; and Money Lending segments. It also offers loans as money lending; and invests in securities.

China Environmental Energy Investment Fundamentals Summary

How do China Environmental Energy Investment's earnings and revenue compare to its market cap?
986 fundamental statistics
Market CapHK$142.42m
Earnings (TTM)HK$4.45m
Revenue (TTM)HK$105.65m

32.1x

P/E Ratio

1.3x

P/S Ratio

Is 986 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
986 income statement (TTM)
RevenueHK$105.65m
Cost of RevenueHK$73.42m
Gross ProfitHK$32.23m
ExpensesHK$27.78m
EarningsHK$4.45m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0036
Gross Margin30.51%
Net Profit Margin4.21%
Debt/Equity Ratio7.3%

How did 986 perform over the long term?

See historical performance and comparison

Valuation

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

32.11x

Price to Earnings (PE) 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 good value based on its PE Ratio (32.1x) compared to the Hong Kong Retail Distributors industry average (41.6x).

PE vs Market: 986 is poor value based on its PE Ratio (32.1x) compared to the Hong Kong market (9.7x).


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 good value based on its PB Ratio (0.5x) compared to the HK Retail Distributors industry average (0.7x).


Future Growth

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

16.9%

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.


Past Performance

How has China Environmental Energy Investment performed over the past 5 years?

17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 986 has a large one-off gain of HK$3.4M impacting its March 31 2021 financial results.

Growing Profit Margin: 986 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 986 has become profitable over the past 5 years, growing earnings by 17.5% per year.

Accelerating Growth: 986 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 986 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Retail Distributors industry (23.9%).


Return on Equity

High ROE: 986's Return on Equity (1.4%) is considered low.


Financial Health

How is China Environmental Energy Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 986's short term assets (HK$168.3M) exceed its short term liabilities (HK$34.5M).

Long Term Liabilities: 986's short term assets (HK$168.3M) exceed its long term liabilities (HK$16.1M).


Debt to Equity History and Analysis

Debt Level: 986's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: 986's debt to equity ratio has reduced from 13.9% to 7.3% over the past 5 years.

Debt Coverage: 986's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 986 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

3.4yrs

Average board tenure


CEO

Liang Wei (43 yo)

3.42yrs

Tenure

HK$252,000

Compensation

Mr. Liang Wei has been Executive Director and Chief Executive Officer of China Environmental Energy Investment Ltd since May 2, 2018. Mr. Wei has experience of business management, trading and property inv...


CEO Compensation Analysis

Compensation vs Market: Liang's total compensation ($USD32.40K) is below average for companies of similar size in the Hong Kong market ($USD230.47K).

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


Board Members

Experienced Board: 986's board of directors are considered experienced (3.4 years average tenure).


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 substantially diluted in the past year, with total shares outstanding growing by 100%.


Top Shareholders

Company Information

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


Key Information

  • Name: China Environmental Energy Investment Limited
  • Ticker: 986
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: HK$142.417m
  • Shares outstanding: 1.25b
  • Website: https://www.986.com.hk

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 10:10
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.