China Everbright Greentech (SEHK:1257) - Share price, News & Analysis

1257 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	1/6
Past Performance	2/6
Financial Health	2/6
Dividends	2/6

1257 Stock Overview

China Everbright Greentech Limited, an investment holding company, engages in the design, construction, operation, and maintenance of integrated biomass and waste-to-energy projects in China.

Rewards

Trading at 70.7% below our estimate of its fair value

Earnings are forecast to grow 14.42% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.92% is not well covered by earnings

China Everbright Greentech Competitors

China Longyuan Power Group

SEHK:916

HK$128.6b

Veolia Environnement

ENXTPA:VIE

€18.0b

TUS ENVIRONMENTAL SCIENCE AND TECHNOLOGY DEVELOPMENT

SZSE:000826

CN¥4.7b

Dongjiang Environmental

SEHK:895

HK$5.3b

Price History & Performance

Summary of all time highs, changes and price drops for China Everbright Greentech
Historical stock prices
Current Share Price	HK$2.04
52 Week High	HK$3.50
52 Week Low	HK$1.87
Beta	0.54
1 Month Change	-5.12%
3 Month Change	-24.44%
1 Year Change	-32.67%
3 Year Change	-61.65%
5 Year Change	-62.84%
Change since IPO	-61.51%

Shareholder Returns

	1257	HK Renewable Energy	HK Market
7D	4.1%	-1.0%	2.8%
1Y	-32.7%	23.8%	-24.5%

Return vs Industry: 1257 underperformed the Hong Kong Renewable Energy industry which returned 24.9% over the past year.

Return vs Market: 1257 underperformed the Hong Kong Market which returned -25.2% over the past year.

Price Volatility

Is 1257's price volatile compared to industry and market?
1257 volatility
1257 Average Weekly Movement	7.1%
Renewable Energy Industry Average Movement	7.8%
Market Average Movement	8.1%
10% most volatile stocks in HK Market	15.1%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 1257 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1257's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	3,889	Xiaodong Qian	https://www.ebgreentech.com

China Everbright Greentech Limited, an investment holding company, engages in the design, construction, operation, and maintenance of integrated biomass and waste-to-energy projects in China. It is involved in the construction and operation of biomass direct combustion power generation projects, biomass heat supply projects, biomass electricity and heat cogeneration projects, and integrated biomass and waste-to-energy projects; and hazardous waste landfill projects, hazardous waste incineration projects, and physicochemical and resources recycling projects. The company also engages in the environmental remediation for restoration of industrial contaminated sites, contaminated farmland, and mines and landfills; treatment of industrial gas emission, oil sludge, river/lake sediments, and industrial sludge; and construction and operation of wetland parks, environmental stewardship services, and anti-seepage at landfill sites.

China Everbright Greentech Fundamentals Summary

How do China Everbright Greentech's earnings and revenue compare to its market cap?
1257 fundamental statistics
Market Cap	HK$4.21b
Earnings (TTM)	HK$1.11b
Revenue (TTM)	HK$8.45b

3.8x

P/E Ratio

0.5x

P/S Ratio

Is 1257 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1257 income statement (TTM)
Revenue	HK$8.45b
Cost of Revenue	HK$6.10b
Gross Profit	HK$2.35b
Other Expenses	HK$1.24b
Earnings	HK$1.11b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.54
Gross Margin	27.77%
Net Profit Margin	13.15%
Debt/Equity Ratio	145.3%

How did 1257 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

20%

Payout Ratio

Does 1257 pay a reliable dividends?

See 1257 dividend history and benchmarks

When do you need to buy 1257 by to receive an upcoming dividend?
China Everbright Greentech dividend dates
Ex Dividend Date	May 19 2022
Dividend Pay Date	Jun 10 2022
Days until Ex dividend	1 day
Days until Dividend pay date	23 days

Does 1257 pay a reliable dividends?

See 1257 dividend history and benchmarks

Valuation

Is China Everbright Greentech undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 1257 (HK$2.04) is trading below our estimate of fair value (HK$6.97)

Significantly Below Fair Value: 1257 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 1257 is good value based on its PE Ratio (3.8x) compared to the Hong Kong Renewable Energy industry average (8.6x).

PE vs Market: 1257 is good value based on its PE Ratio (3.8x) compared to the Hong Kong market (8.7x).

Price to Earnings Growth Ratio

PEG Ratio: 1257 is good value based on its PEG Ratio (0.3x)

Price to Book Ratio

PB vs Industry: 1257 is good value based on its PB Ratio (0.3x) compared to the HK Renewable Energy industry average (0.5x).

Future Growth

How is China Everbright Greentech forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1257's forecast earnings growth (14.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 1257's earnings (14.4% per year) are forecast to grow slower than the Hong Kong market (14.8% per year).

High Growth Earnings: 1257's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1257's revenue (8.3% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 1257's revenue (8.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1257's Return on Equity is forecast to be low in 3 years time (9.4%).

Past Performance

How has China Everbright Greentech performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1257 has high quality earnings.

Growing Profit Margin: 1257's current net profit margins (13.1%) are lower than last year (15.3%).

Past Earnings Growth Analysis

Earnings Trend: 1257's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: 1257's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1257 had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the Renewable Energy industry average (15.6%).

Return on Equity

High ROE: 1257's Return on Equity (7.9%) is considered low.

Financial Health

How is China Everbright Greentech's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1257's short term assets (HK$11.9B) exceed its short term liabilities (HK$8.7B).

Long Term Liabilities: 1257's short term assets (HK$11.9B) do not cover its long term liabilities (HK$17.7B).

Debt to Equity History and Analysis

Debt Level: 1257's net debt to equity ratio (127.8%) is considered high.

Reducing Debt: 1257's debt to equity ratio has increased from 46.6% to 145.3% over the past 5 years.

Debt Coverage: 1257's debt is not well covered by operating cash flow (2.1%).

Interest Coverage: 1257's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

Dividend

What is China Everbright Greentech current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.92%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1257's dividend (3.92%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.88%).

High Dividend: 1257's dividend (3.92%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.8%).

Stability and Growth of Payments

Stable Dividend: 1257 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1257 has only been paying a dividend for 4 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.5%), 1257's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 1257 is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Utilities industry.

Management

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

6.3yrs

Average management tenure

CEO

Xiaodong Qian (48 yo)

6.33yrs

Tenure

HK$4,181,000

Compensation

Mr. Xiaodong Qian has been the Vice President of China Everbright Environment Group Limited since May 2021. He has been an Executive Director of China Everbright Environment Group Limited since January 1,...

CEO Compensation Analysis

Compensation vs Market: Xiaodong's total compensation ($USD532.63K) is about average for companies of similar size in the Hong Kong market ($USD429.14K).

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

Leadership Team

Experienced Management: 1257's management team is seasoned and experienced (6.3 years average tenure).

Board Members

Experienced Board: 1257's board of directors are considered experienced (5 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31