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6136

Kangda International Environmental SEHK:6136 Stock Report

Last Price

HK$0.70

Market Cap

HK$1.5b

7D

0%

1Y

2.9%

Updated

03 Jul, 2022

Data

Company Financials
6136 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health0/6
Dividends0/6

6136 Stock Overview

Kangda International Environmental Company Limited, an investment holding company, engages in the urban water treatment, water environment comprehensive remediation, and rural water improvement businesses in People’s Republic of China.

Kangda International Environmental Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kangda International Environmental
Historical stock prices
Current Share PriceHK$0.70
52 Week HighHK$1.06
52 Week LowHK$0.63
Beta0.89
1 Month Change-1.41%
3 Month Change0%
1 Year Change2.94%
3 Year Change-27.83%
5 Year Change-54.25%
Change since IPO-78.19%

Recent News & Updates

Oct 06
Here's Why We Think Kangda International Environmental (HKG:6136) Is Well Worth Watching

Here's Why We Think Kangda International Environmental (HKG:6136) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Aug 26
Returns On Capital At Kangda International Environmental (HKG:6136) Have Hit The Brakes

Returns On Capital At Kangda International Environmental (HKG:6136) Have Hit The Brakes

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically...

Shareholder Returns

6136HK Water UtilitiesHK Market
7D0%-3.9%0.5%
1Y2.9%-20.2%-20.3%

Return vs Industry: 6136 exceeded the Hong Kong Water Utilities industry which returned -20.2% over the past year.

Return vs Market: 6136 exceeded the Hong Kong Market which returned -20.3% over the past year.

Price Volatility

Is 6136's price volatile compared to industry and market?
6136 volatility
6136 Average Weekly Movement3.1%
Water Utilities Industry Average Movement5.0%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 6136 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6136's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19962,426Jerry Duanhttps://www.kangdaep.com

Kangda International Environmental Company Limited, an investment holding company, engages in the urban water treatment, water environment comprehensive remediation, and rural water improvement businesses in People’s Republic of China. Its Urban Water Treatment segment is involved in the design, construction, upgradation, and operation of wastewater treatment plants (WTP), reclaimed water treatment plants, sludge treatment plants, and water distribution plants; and the operation and maintenance of wastewater treatment facilities entrusted by governments. The company’s Water Environment Comprehensive Remediation segment provides river harnessing and improvement, foul water body treatment, and sponge city construction services.

Kangda International Environmental Fundamentals Summary

How do Kangda International Environmental's earnings and revenue compare to its market cap?
6136 fundamental statistics
Market CapCN¥1.28b
Earnings (TTM)CN¥412.75m
Revenue (TTM)CN¥2.92b

3.1x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6136 income statement (TTM)
RevenueCN¥2.92b
Cost of RevenueCN¥1.58b
Gross ProfitCN¥1.34b
Other ExpensesCN¥922.53m
EarningsCN¥412.75m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin45.75%
Net Profit Margin14.14%
Debt/Equity Ratio175.1%

How did 6136 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 6136 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

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6136?

Other financial metrics that can be useful for relative valuation.

6136 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/Revenue3.8x
Enterprise Value/EBITDA10.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 6136's PE Ratio compare to its peers?

6136 PE Ratio vs Peers
The above table shows the PE ratio for 6136 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.1x
3768 Kunming Dianchi Water Treatment
4.4xn/aHK$1.8b
1853 Jilin Province Chuncheng Heating
5.5xn/aHK$788.7m
2281 Luzhou Xinglu Water (Group)
2.6xn/aHK$739.4m
1542 Taizhou Water Group
4xn/aHK$560.2m
6136 Kangda International Environmental
3.1xn/aHK$1.5b

Price-To-Earnings vs Peers: 6136 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the peer average (4.1x).


Price to Earnings Ratio vs Industry

How does 6136's PE Ratio compare vs other companies in the Asian Water Utilities Industry?

Price-To-Earnings vs Industry: 6136 is good value based on its Price-To-Earnings Ratio (3.1x) compared to the Hong Kong Water Utilities industry average (5.5x)


Price to Earnings Ratio vs Fair Ratio

What is 6136'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.

6136 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6136's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 6136 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6136 (HK$0.7) is trading below our estimate of fair value (HK$4.45)

Significantly Below Fair Value: 6136 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6136's PEG Ratio to determine if it is good value.


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Future Growth

How is Kangda International Environmental 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


12.6%

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 Kangda International Environmental 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.


Discover growth companies

  • Examine whether Kangda International Environmental 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.
  • Kangda International Environmental competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Kangda International Environmental 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


4.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6136 has high quality earnings.

Growing Profit Margin: 6136's current net profit margins (14.1%) are higher than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: 6136's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: 6136's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6136 had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Water Utilities industry average (-1.9%).


Return on Equity

High ROE: 6136's Return on Equity (7.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Kangda International Environmental's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6136's short term assets (CN¥5.4B) do not cover its short term liabilities (CN¥5.6B).

Long Term Liabilities: 6136's short term assets (CN¥5.4B) do not cover its long term liabilities (CN¥7.3B).


Debt to Equity History and Analysis

Debt Level: 6136's net debt to equity ratio (169.7%) is considered high.

Reducing Debt: 6136's debt to equity ratio has increased from 156.2% to 175.1% over the past 5 years.

Debt Coverage: 6136's debt is not well covered by operating cash flow (3.4%).

Interest Coverage: 6136's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


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Dividend

What is Kangda International Environmental current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6136's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6136's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6136's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6136's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 6136 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 6136 has not reported any payouts.


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Management

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

3.3yrs

Average management tenure


CEO

Jerry Duan (31 yo)

3.25yrs

Tenure

CN¥1,440,000

Compensation

Mr. Linnan Duan, also known as Jerry, serves as Chief Executive Officer of Kangda International Environmental Company Ltd. since April 9, 2019 and has been its Executive Director since April 4, 2019. Mr. D...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD214.89K) is about average for companies of similar size in the Hong Kong market ($USD305.63K).

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


Leadership Team

Experienced Management: 6136's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: 6136's board of directors are considered experienced (3.3 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

Kangda International Environmental Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Kangda International Environmental Company Limited
  • Ticker: 6136
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Water Utilities
  • Sector: Utilities
  • Implied Market Cap: HK$1.498b
  • Shares outstanding: 2.14b
  • Website: https://www.kangdaep.com

Number of Employees


Location

  • Kangda International Environmental Company Limited
  • No. 72 Avenue of Stars
  • High-Tech Park
  • Chongqing
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/06/30 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.