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3768

Kunming Dianchi Water Treatment SEHK:3768 Stock Report

Last Price

HK$1.43

Market Cap

HK$1.5b

7D

-5.9%

1Y

-25.9%

Updated

10 Aug, 2022

Data

Company Financials
3768 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health2/6
Dividends3/6

3768 Stock Overview

Kunming Dianchi Water Treatment Co., Ltd., together with its subsidiaries, designs, develops, constructs, operates, and maintains water supply and wastewater treatment facilities in the People’s Republic of China.

Kunming Dianchi Water Treatment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kunming Dianchi Water Treatment
Historical stock prices
Current Share PriceHK$1.43
52 Week HighHK$2.29
52 Week LowHK$1.41
Beta0.32
1 Month Change-11.73%
3 Month Change-13.33%
1 Year Change-25.91%
3 Year Change-32.55%
5 Year Change-52.96%
Change since IPO-62.95%

Recent News & Updates

Shareholder Returns

3768HK Water UtilitiesHK Market
7D-5.9%2.1%1.5%
1Y-25.9%-26.8%-22.7%

Return vs Industry: 3768 matched the Hong Kong Water Utilities industry which returned -26.8% over the past year.

Return vs Market: 3768 underperformed the Hong Kong Market which returned -22.7% over the past year.

Price Volatility

Is 3768's price volatile compared to industry and market?
3768 volatility
3768 Average Weekly Movement3.6%
Water Utilities Industry Average Movement5.1%
Market Average Movement6.6%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 3768 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3768's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19891,403Changyong Chenhttps://www.kmdcwt.com

Kunming Dianchi Water Treatment Co., Ltd., together with its subsidiaries, designs, develops, constructs, operates, and maintains water supply and wastewater treatment facilities in the People’s Republic of China. The company operates through Wastewater Treatment, Water Supply, and Others segments. It designs, constructs, operates, and maintains wastewater treatment or water supply facilities under the transfer-operate-transfer and build-operate-transfer concession agreements.

Kunming Dianchi Water Treatment Fundamentals Summary

How do Kunming Dianchi Water Treatment's earnings and revenue compare to its market cap?
3768 fundamental statistics
Market CapCN¥1.27b
Earnings (TTM)CN¥338.28m
Revenue (TTM)CN¥2.32b

3.7x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3768 income statement (TTM)
RevenueCN¥2.32b
Cost of RevenueCN¥1.59b
Gross ProfitCN¥724.78m
Other ExpensesCN¥386.50m
EarningsCN¥338.28m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.33
Gross Margin31.27%
Net Profit Margin14.60%
Debt/Equity Ratio144.4%

How did 3768 perform over the long term?

See historical performance and comparison

Dividends

12.2%

Current Dividend Yield

46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3768 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 3768?

Other financial metrics that can be useful for relative valuation.

3768 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/Revenue2.8x
Enterprise Value/EBITDA6.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 3768's PE Ratio compare to its peers?

3768 PE Ratio vs Peers
The above table shows the PE ratio for 3768 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average3.9x
6136 Kangda International Environmental
2.9xn/aHK$1.4b
1853 Jilin Province Chuncheng Heating
6.4xn/aHK$914.7m
2281 Luzhou Xinglu Water (Group)
2.4xn/aHK$679.2m
1542 Taizhou Water Group
3.9xn/aHK$546.0m
3768 Kunming Dianchi Water Treatment
3.7xn/aHK$1.5b

Price-To-Earnings vs Peers: 3768 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (3.9x).


Price to Earnings Ratio vs Industry

How does 3768's PE Ratio compare vs other companies in the Asian Water Utilities Industry?

Price-To-Earnings vs Industry: 3768 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the Hong Kong Water Utilities industry average (5.5x)


Price to Earnings Ratio vs Fair Ratio

What is 3768'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.

3768 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3768's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 3768 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3768 (HK$1.43) is trading below our estimate of fair value (HK$4.41)

Significantly Below Fair Value: 3768 is trading below fair value by more than 20%.


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Kunming Dianchi Water Treatment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.6%

Forecasted Utilities 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 Kunming Dianchi Water Treatment 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.


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  • Examine whether Kunming Dianchi Water Treatment is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Kunming Dianchi Water Treatment competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Kunming Dianchi Water Treatment 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


4.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3768 has high quality earnings.

Growing Profit Margin: 3768's current net profit margins (14.6%) are lower than last year (18.2%).


Past Earnings Growth Analysis

Earnings Trend: 3768's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: 3768's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3768 had negative earnings growth (-2.9%) over the past year, making it difficult to compare to the Water Utilities industry average (-1.9%).


Return on Equity

High ROE: 3768's Return on Equity (7.7%) is considered low.


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Financial Health

How is Kunming Dianchi Water Treatment'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: 3768's short term assets (CN¥4.8B) do not cover its short term liabilities (CN¥5.1B).

Long Term Liabilities: 3768's short term assets (CN¥4.8B) exceed its long term liabilities (CN¥2.5B).


Debt to Equity History and Analysis

Debt Level: 3768's net debt to equity ratio (110.5%) is considered high.

Reducing Debt: 3768's debt to equity ratio has increased from 60.7% to 144.4% over the past 5 years.

Debt Coverage: 3768's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3768's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


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Dividend

What is Kunming Dianchi Water Treatment 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

  • Cash Flow Coverage


12.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3768's dividend (12.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.82%).

High Dividend: 3768's dividend (12.19%) is in the top 25% of dividend payers in the Hong Kong market (8.35%)


Stability and Growth of Payments

Stable Dividend: 3768 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3768's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.6%), 3768's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 3768 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?

6.4yrs

Average management tenure


CEO

Changyong Chen (52 yo)

3.08yrs

Tenure

CN¥793,000

Compensation

Mr. Changyong Chen serves as Executive Director at Kunming Dianchi Water Treatment Co., Ltd. since June 19, 2020. He serves as General Manager at Kunming Dianchi Water Treatment Co., Ltd.since July 10, 20...


CEO Compensation Analysis

Compensation vs Market: Changyong's total compensation ($USD117.43K) is below average for companies of similar size in the Hong Kong market ($USD303.06K).

Compensation vs Earnings: Changyong's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 3768's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: 3768's board of directors are considered experienced (4.2 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.


Top Shareholders

Company Information

Kunming Dianchi Water Treatment Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Kunming Dianchi Water Treatment Co., Ltd.
  • Ticker: 3768
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Water Utilities
  • Sector: Utilities
  • Implied Market Cap: HK$1.472b
  • Shares outstanding: 1.03b
  • Website: https://www.kmdcwt.com

Number of Employees


Location

  • Kunming Dianchi Water Treatment Co., Ltd.
  • Water Purification Plant No. 7
  • Kunming Dianchi Tourist Resort
  • Kunming
  • Yunnan Province
  • 650000
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.