SEHK:871

Stock Analysis Report

China Dredging Environment Protection Holdings

Executive Summary

China Dredging Environment Protection Holdings Limited, an investment holding company, provides dredging services in the People’s Republic of China.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Share Price & News

How has China Dredging Environment Protection Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

72.8%

871

3.7%

HK Infrastructure

2.9%

HK Market


1 Year Return

53.4%

871

0.4%

HK Infrastructure

0.7%

HK Market

Return vs Industry: 871 exceeded the Hong Kong Infrastructure industry which returned 0.4% over the past year.

Return vs Market: 871 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

871IndustryMarket
7 Day72.8%3.7%2.9%
30 Day48.3%-0.1%-2.5%
90 Day54.8%-5.8%-5.4%
1 Year53.4%53.4%6.5%0.4%4.4%0.7%
3 Year-64.0%-64.0%-1.1%-14.3%17.0%5.2%
5 Year-90.2%-90.2%10.2%-12.2%20.2%0.2%

Price Volatility Vs. Market

How volatile is China Dredging Environment Protection Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Dredging Environment Protection Holdings undervalued compared to its fair value and its price relative to the market?

0.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: 871 (HK$0.18) is trading above our estimate of fair value (HK$0)

Significantly Undervalued: 871 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 871 is unprofitable, so we can't compare its PE Ratio to the Infrastructure industry average.

PE vs Market: 871 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 871's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 871 is good value based on its PB Ratio (0.1x) compared to the HK Infrastructure industry average (0.8x).


Next Steps

Future Growth

How is China Dredging Environment Protection Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

51.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 871 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 871 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 871 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 871's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 871's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 871's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Dredging Environment Protection Holdings performed over the past 5 years?

-38.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 871 is unprofitable, and losses have increased over the past 5 years at a rate of -38.8% per year.

Accelerating Growth: Unable to compare 871's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 871 is unprofitable, making it difficult to compare its past year earnings growth to the Infrastructure industry (1.1%).


Return on Equity

High ROE: 871 has a negative Return on Equity (-14.65%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 871 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 871 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is China Dredging Environment Protection Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 871's short term assets (CN¥1.2B) exceeds its short term liabilities (CN¥1.1B)

Long Term Liabilities: 871's short term assets (1.2B) exceeds its long term liabilities (119.4M)


Debt to Equity History and Analysis

Debt Level: 871's debt to equity ratio (33.2%) is considered satisfactory

Reducing Debt: 871's debt to equity ratio has reduced from 49.8% to 33.2% over the past 5 years.

Debt Coverage: 871's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: Insufficient data to determine if 871's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 871 has a high level of physical assets or inventory.

Debt Coverage by Assets: 871's debt is covered by short term assets (assets are 1.770310x debt).


Next Steps

Dividend

What is China Dredging Environment Protection Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage5.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 871's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 871'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 871's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 871's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 871 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 871'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 Dredging Environment Protection Holdings's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Xuze Wu (52yo)

2.8yrs

Tenure

CN¥479,000

Compensation

Mr. Xuze Wu has been Chief Executive Officer and Executive Director at China Dredging Environment Protection Holdings Limited since January 5, 2017. Mr. Wu has invested in and managed various companies in  ...


Management Age and Tenure

5.9yrs

Average Tenure

55yo

Average Age

Experienced Management: 871's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

52yo

Average Age

Experienced Board: 871's board of directors are considered experienced (3.1 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.


Recent Insider Transactions

SellCN¥75,60101 Mar 19
Kaijin Liu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares504,000
Max PriceCN¥0.15
SellCN¥96,00001 Mar 19
Kaijin Liu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares640,000
Max PriceCN¥0.15
BuyCN¥35,472,63107 Nov 18
Baolong Zhu
EntityIndividual
Shares295,600,000
Max PriceCN¥0.12

Ownership Breakdown


Management Team

  • Shuhua Zhou (56yo)

    Executive Director

    • Tenure: 9.2yrs
    • Compensation: CN¥600.00k
  • Julin Wang (67yo)

    Chief Engineer

    • Tenure: 9.2yrs
  • Kaijin Liu (59yo)

    Chairman of the Board

    • Tenure: 3.1yrs
    • Compensation: CN¥1.20m
  • Xu Wenyue (47yo)

    CFO & Head of Accounting Department

    • Tenure: 5.9yrs
  • Xianbo Yang (54yo)

    General Manager of Jiangsu Xingyu

    • Tenure: 6.9yrs
  • Kwan Lai Wong

    Company Secretary

    • Tenure: 3.3yrs
  • Michael Lee (69yo)

    Group Chief Engineer of the Environmental Protection Dredging Division

    • Tenure: 0yrs
  • Xuze Wu (52yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥479.00k
  • Bin Wu (50yo)

    Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: CN¥479.00k

Board Members

  • Jonathan Chan (45yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: CN¥119.00k
  • Shuhua Zhou (56yo)

    Executive Director

    • Tenure: 9.2yrs
    • Compensation: CN¥600.00k
  • Kaijin Liu (59yo)

    Chairman of the Board

    • Tenure: 3.1yrs
    • Compensation: CN¥1.20m
  • Xuedong Huan (68yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥48.00k
  • Zequan Liang (50yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
  • Xuze Wu (52yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥479.00k
  • Bin Wu (50yo)

    Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: CN¥479.00k

Company Information

China Dredging Environment Protection Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Dredging Environment Protection Holdings Limited
  • Ticker: 871
  • Exchange: SEHK
  • Founded:
  • Industry: Marine Ports and Services
  • Sector: Transportation
  • Market Cap: HK$345.864m
  • Shares outstanding: 1.77b
  • Website: https://www.cdep.com.hk

Number of Employees


Location

  • China Dredging Environment Protection Holdings Limited
  • No. 5 Baoxing Road
  • Baocai Industrial Zone
  • Yancheng
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
871SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2011
4XDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2011

Biography

China Dredging Environment Protection Holdings Limited, an investment holding company, provides dredging services in the People’s Republic of China. The company operates through four segments: Capital and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:47
End of Day Share Price2019/10/14 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.