Canvest Environmental Protection Group (SEHK:1381) - Share price, News & Analysis

Q: What is the Fair Price of 1381 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1381 (HK$4.28) is trading above our estimate of [[fair value]] (HK$3.63)

1381 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	3/6
Financial Health	2/6
Dividends	1/6

1381 Stock Overview

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

Rewards

Price-To-Earnings ratio (7.9x) is below the Hong Kong market (8.7x)

Earnings are forecast to grow 7.95% per year

Earnings grew by 25.5% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Canvest Environmental Protection Group Competitors

China Datang Corporation Renewable Power

SEHK:1798

HK$15.3b

Concord New Energy Group

SEHK:182

HK$6.4b

Xinyi Energy Holdings

SEHK:3868

HK$24.0b

Beijing Energy International Holding

SEHK:686

HK$5.1b

Price History & Performance

Summary of all time highs, changes and price drops for Canvest Environmental Protection Group
Historical stock prices
Current Share Price	HK$4.28
52 Week High	HK$4.94
52 Week Low	HK$3.12
Beta	0.010
1 Month Change	4.39%
3 Month Change	14.13%
1 Year Change	4.39%
3 Year Change	13.53%
5 Year Change	-0.23%
Change since IPO	82.91%

Recent News & Updates

Jun 28

Here's Why Canvest Environmental Protection Group (HKG:1381) Has Caught The Eye Of Investors

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

May 17

Canvest Environmental Protection Group (HKG:1381) Hasn't Managed To Accelerate Its Returns

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

	1381	HK Renewable Energy	HK Market
7D	1.2%	9.7%	-0.9%
1Y	4.4%	8.9%	-19.7%

Return vs Industry: 1381 underperformed the Hong Kong Renewable Energy industry which returned 10.1% over the past year.

Return vs Market: 1381 exceeded the Hong Kong Market which returned -20.8% over the past year.

Price Volatility

Is 1381's price volatile compared to industry and market?
1381 volatility
1381 Average Weekly Movement	3.3%
Renewable Energy Industry Average Movement	6.4%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.9%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 1381 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1381's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	3,976	Guozhen Yuan	https://www.canvestenvironment.com

Canvest Environmental Protection Group Company Limited, an investment holding company, engages in the operation and management of waste-to-energy projects in the People’s Republic of China. It also provides environmental hygiene and related services. As of December 31, 2021, the company had 35 operating, secured, announced, and managed projects; and a processing capacity of municipal solid waste of 51,990 tonnes.

Canvest Environmental Protection Group Fundamentals Summary

How do Canvest Environmental Protection Group's earnings and revenue compare to its market cap?
1381 fundamental statistics
Market Cap	HK$10.44b
Earnings (TTM)	HK$1.32b
Revenue (TTM)	HK$6.79b

7.9x

P/E Ratio

1.5x

P/S Ratio

Is 1381 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1381 income statement (TTM)
Revenue	HK$6.79b
Cost of Revenue	HK$4.68b
Gross Profit	HK$2.11b
Other Expenses	HK$788.28m
Earnings	HK$1.32b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 23, 2022

Earnings per share (EPS)	0.54
Gross Margin	31.06%
Net Profit Margin	19.46%
Debt/Equity Ratio	143.0%

How did 1381 perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

20%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1381 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1381?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1381. This is calculated by dividing 1381's market cap by their current preferred multiple.
What is 1381's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$10.44b

1381 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.2x
Enterprise Value/EBITDA	8.9x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does 1381's PE Ratio compare to its peers?

1381 PE Ratio vs Peers

The above table shows the PE ratio for 1381 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.9x
1798 China Datang Corporation Renewable Power	13.5x	22.0%	HK$15.3b
182 Concord New Energy Group	6.7x	15.0%	HK$6.4b
3868 Xinyi Energy Holdings	19.4x	18.9%	HK$24.0b
686 Beijing Energy International Holding	7.9x	n/a	HK$5.1b
1381 Canvest Environmental Protection Group	7.9x	8.0%	HK$10.4b

Price-To-Earnings vs Peers: 1381 is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (11.9x).

Price to Earnings Ratio vs Industry

How does 1381's PE Ratio compare vs other companies in the Asian Renewable Energy Industry?

Price-To-Earnings vs Industry: 1381 is good value based on its Price-To-Earnings Ratio (7.9x) compared to the Hong Kong Renewable Energy industry average (8x)

Price to Earnings Ratio vs Fair Ratio

What is 1381's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1381 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.9x
Fair PE Ratio	10.4x

Price-To-Earnings vs Fair Ratio: 1381 is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

Share Price vs Fair Value

What is the Fair Price of 1381 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1381 (HK$4.28) is trading above our estimate of fair value (HK$3.63)

Significantly Below Fair Value: 1381 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Canvest Environmental Protection Group forecast to perform in the next 1 to 3 years based on estimates from 4 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

8.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1381's forecast earnings growth (8% per year) is above the savings rate (1.6%).

Earnings vs Market: 1381's earnings (8% per year) are forecast to grow slower than the Hong Kong market (16.8% per year).

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

Revenue vs Market: 1381's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: 1381's revenue is forecast to decline over the next 3 years (-0.7% 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 (14.9%).

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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

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

21.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1381 has a high level of non-cash earnings.

Growing Profit Margin: 1381's current net profit margins (19.5%) are lower than last year (21.1%).

Past Earnings Growth Analysis

Earnings Trend: 1381's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: 1381's earnings growth over the past year (25.5%) exceeds its 5-year average (21.4% per year).

Earnings vs Industry: 1381 earnings growth over the past year (25.5%) exceeded the Renewable Energy industry -1.9%.

Return on Equity

High ROE: 1381's Return on Equity (14.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Canvest Environmental Protection Group'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: 1381's short term assets (HK$4.0B) exceed its short term liabilities (HK$3.2B).

Long Term Liabilities: 1381's short term assets (HK$4.0B) do not cover its long term liabilities (HK$12.4B).

Debt to Equity History and Analysis

Debt Level: 1381's net debt to equity ratio (123.5%) is considered high.

Reducing Debt: 1381's debt to equity ratio has increased from 84.7% to 143% 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 (4.4x coverage).

Balance Sheet

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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1381's dividend (2.71%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.84%).

High Dividend: 1381's dividend (2.71%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.27%).

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 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.8%), 1381's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 1381 is paying a dividend but the company has no free cash flows.

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Management

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

7.9yrs

Average management tenure

CEO

Guozhen Yuan (56 yo)

no data

Tenure

HK$2,873,000

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 ($USD366.30K) is below average for companies of similar size in the Hong Kong market ($USD533.44K).

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

Leadership Team

Experienced Management: 1381's management team is seasoned and experienced (7.9 years average tenure).

Board Members

Experienced Board: 1381's board of directors are considered experienced (7.8 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	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31