SEHK:1381

Stock Analysis Report

Canvest Environmental Protection Group

Executive Summary

Canvest Environmental Protection Group Company Limited, an investment holding company, engages in the development, construction, operation, and management of waste-to-energy plants in the People’s Republic of China.

Rewards

Trading at 16.2% below its fair value

Earnings are forecast to grow 16.31% per year

Earnings grew by 27.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has Canvest Environmental Protection Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1381 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

1381

1.8%

HK Renewable Energy

3.7%

HK Market


1 Year Return

-17.4%

1381

-11.2%

HK Renewable Energy

2.4%

HK Market

Return vs Industry: 1381 underperformed the Hong Kong Renewable Energy industry which returned -11.2% over the past year.

Return vs Market: 1381 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

1381IndustryMarket
7 Day0.9%1.8%3.7%
30 Day-3.7%2.6%4.2%
90 Day-8.7%-4.6%1.1%
1 Year-16.1%-17.4%-8.1%-11.2%6.0%2.4%
3 Year0.6%-2.6%-9.6%-18.1%25.6%12.9%
5 Yearn/a-42.2%-51.6%23.2%2.5%

Price Volatility Vs. Market

How volatile is Canvest Environmental Protection Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Canvest Environmental Protection Group undervalued compared to its fair value and its price relative to the market?

16.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1381 (HK$3.36) is trading below our estimate of fair value (HK$4.01)

Significantly Below Fair Value: 1381 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1381 is poor value based on its PE Ratio (9.8x) compared to the Renewable Energy industry average (8.2x).

PE vs Market: 1381 is good value based on its PE Ratio (9.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1381 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1381 is overvalued based on its PB Ratio (1.5x) compared to the HK Renewable Energy industry average (0.5x).


Next Steps

Future Growth

How is Canvest Environmental Protection Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1381's forecast earnings growth (16.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 1381's earnings (16.3% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: 1381's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1381's revenue (17.5% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 1381's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1381's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Canvest Environmental Protection Group performed over the past 5 years?

32.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1381 has high quality earnings.

Growing Profit Margin: 1381's current net profit margins (20.8%) are lower than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: 1381's earnings have grown significantly by 32.6% per year over the past 5 years.

Accelerating Growth: 1381's earnings growth over the past year (27.6%) is below its 5-year average (32.6% per year).

Earnings vs Industry: 1381 earnings growth over the past year (27.6%) exceeded the Renewable Energy industry 5.6%.


Return on Equity

High ROE: 1381's Return on Equity (15.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canvest Environmental Protection Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1381's short term assets (HK$2.0B) exceed its short term liabilities (HK$1.9B).

Long Term Liabilities: 1381's short term assets (HK$2.0B) do not cover its long term liabilities (HK$4.6B).


Debt to Equity History and Analysis

Debt Level: 1381's debt to equity ratio (82.5%) is considered high.

Reducing Debt: 1381's debt to equity ratio has reduced from 83.2% to 82.5% over the past 5 years.

Debt Coverage: 1381's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1381's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: 1381 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1381's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Canvest Environmental Protection Group's current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.2%markettop25%6.2%industryaverage3.7%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: 1381's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 1381's dividend (1.37%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.17%).


Stability and Growth of Payments

Stable Dividend: 1381 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1381's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.3%), 1381's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1381's dividends in 3 years are forecast to be well covered by earnings (17.5% payout ratio).


Next Steps

Management

What is the CEO of Canvest Environmental Protection Group's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Guozhen Yuan (53yo)

0yrs

Tenure

HK$2,515,000

Compensation

Mr. Guozhen Yuan serves as the Chief Executive Officer of Canvest Environmental Protection Group Company Limited. Mr. Yuan is responsible for executing the overall strategies and managing the daily operati ...


CEO Compensation Analysis

Compensation vs Market: Guozhen's total compensation ($USD322.67K) is below average for companies of similar size in the Hong Kong market ($USD477.59K).

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


Management Age and Tenure

5.3yrs

Average Tenure

45yo

Average Age

Experienced Management: 1381's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

44.5yo

Average Age

Experienced Board: 1381's board of directors are considered experienced (5.3 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

  • Loretta Lee (44yo)

    Chairlady

    • Tenure: 5.3yrs
    • Compensation: HK$3.82m
  • Li Jianwen Lai (40yo)

    Deputy Chairman

    • Tenure: 5.3yrs
    • Compensation: HK$630.00k
  • Guozhen Yuan (53yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.52m
  • Chun Tung Lai (45yo)

    Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$6.03m
  • Lisa Wong (46yo)

    CFO & Company Secretary

    • Tenure: 6.5yrs
  • Lanqun Song (52yo)

    VP & Chief Engineer

    • Tenure: 5.3yrs
  • Bo Chen (43yo)

    VP & Chief Engineer

    • Tenure: 5.3yrs

Board Members

  • Jason Chan (46yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$240.00k
  • Zhenquan Sha (59yo)

    Independent & Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$180.00k
  • Jun Feng (56yo)

    Non-Executive Director

    • Tenure: 2.8yrs
  • Loretta Lee (44yo)

    Chairlady

    • Tenure: 5.3yrs
    • Compensation: HK$3.82m
  • Li Jianwen Lai (40yo)

    Deputy Chairman

    • Tenure: 5.3yrs
    • Compensation: HK$630.00k
  • Guozhen Yuan (53yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.52m
  • Chun Tung Lai (45yo)

    Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$6.03m
  • Alexander Lui (40yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$180.00k
  • Yui Lai (44yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$180.00k
  • Wing Yin Chung (42yo)

    Independent & Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$180.00k

Company Information

Canvest Environmental Protection Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canvest Environmental Protection Group Company Limited
  • Ticker: 1381
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: HK$8.197b
  • Shares outstanding: 2.44b
  • Website: https://www.canvestenvironment.com

Number of Employees


Location

  • Canvest Environmental Protection Group Company Limited
  • Unit 6803B, International Commerce Centre
  • Level 68
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1381SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2014
0XCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2014
1381SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2014

Biography

Canvest Environmental Protection Group Company Limited, an investment holding company, engages in the development, construction, operation, and management of waste-to-energy plants in the People’s Republic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 13:10
End of Day Share Price2019/12/13 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.