SGX:BHK

Stock Analysis Report

SIIC Environment Holdings

Executive Summary

SIIC Environment Holdings Ltd., an investment holding company, engages in wastewater treatment, water supply, solid waste management, and other environment-related businesses primarily in the People's Republic of China.


Snowflake Analysis

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has SIIC Environment Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BHK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

BHK

6.2%

SG Water Utilities

8.2%

SG Market


1 Year Return

-40.6%

BHK

-16.7%

SG Water Utilities

-27.3%

SG Market

Return vs Industry: BHK underperformed the SG Water Utilities industry which returned -15.4% over the past year.

Return vs Market: BHK underperformed the SG Market which returned -23.8% over the past year.


Shareholder returns

BHKIndustryMarket
7 Day0.5%6.2%8.2%
30 Day-20.0%-2.9%-20.8%
90 Day-26.0%-9.4%-26.4%
1 Year-38.5%-40.6%-14.3%-16.7%-24.2%-27.3%
3 Year-60.9%-64.0%-18.3%-24.0%-20.5%-29.0%
5 Year-74.9%-76.9%-31.8%-37.9%-18.7%-32.6%

Price Volatility Vs. Market

How volatile is SIIC Environment Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SIIC Environment Holdings undervalued compared to its fair value and its price relative to the market?

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BHK (SGD0.2) is trading below our estimate of fair value (SGD0.28)

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


Price To Earnings Ratio

PE vs Industry: BHK is good value based on its PE Ratio (4.2x) compared to the Water Utilities industry average (13.1x).

PE vs Market: BHK is good value based on its PE Ratio (4.2x) compared to the SG market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: BHK is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: BHK is good value based on its PB Ratio (0.3x) compared to the XA Water Utilities industry average (1.1x).


Next Steps

Future Growth

How is SIIC Environment Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHK's forecast earnings growth (9.7% per year) is above the savings rate (1.8%).

Earnings vs Market: BHK's earnings (9.7% per year) are forecast to grow faster than the SG market (5% per year).

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

Revenue vs Market: BHK's revenue (8.3% per year) is forecast to grow faster than the SG market (4.1% per year).

High Growth Revenue: BHK'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: BHK's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has SIIC Environment Holdings performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHK has high quality earnings.

Growing Profit Margin: BHK's current net profit margins (10.1%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: BHK's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: BHK's earnings growth over the past year (11.1%) is below its 5-year average (14.5% per year).

Earnings vs Industry: BHK earnings growth over the past year (11.1%) exceeded the Water Utilities industry 9.8%.


Return on Equity

High ROE: BHK's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is SIIC Environment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BHK's short term assets (CN¥5.9B) do not cover its short term liabilities (CN¥9.3B).

Long Term Liabilities: BHK's short term assets (CN¥5.9B) do not cover its long term liabilities (CN¥11.2B).


Debt to Equity History and Analysis

Debt Level: BHK's debt to equity ratio (121.4%) is considered high.

Reducing Debt: BHK's debt to equity ratio has increased from 64.5% to 121.4% over the past 5 years.

Debt Coverage: BHK's debt is not well covered by operating cash flow (1.1%).

Interest Coverage: BHK's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

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


Next Steps

Dividend

What is SIIC Environment Holdings's current dividend yield, its reliability and sustainability?

4.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BHK's dividend (4.98%) is higher than the bottom 25% of dividend payers in the SG market (3.23%).

High Dividend: BHK's dividend (4.98%) is low compared to the top 25% of dividend payers in the SG market (7.09%).


Stability and Growth of Payments

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

Growing Dividend: BHK'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 (22.5%), BHK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BHK's dividends in 3 years are forecast to be well covered by earnings (19.8% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Xiaobing Xu (51yo)

1.33s

Tenure

CN¥245,000

Compensation

Mr. Xiaobing Xu has been Chief Executive Officer of SIIC Environment Holdings Ltd. since November 16, 2018. Mr. Xu has been Deputy Chief Executive Officer at Shanghai Industrial Holdings Limited since Nove ...


Leadership Team

NamePositionTenureCompensationOwnership
Xiaobing Xu
CEO & Executive Director1.33yrsCN¥245.00kno data
Jun Feng
Executive Director10.25yrsCN¥245.00kno data
Zhan Xu
Executive Director5.33yrsCN¥245.00kno data
Congliang Tang
Chief Financial Officerno datano data0.0084% CN¥43.5k
Huijing Cai
Deputy GM of Administrationno datano data0.0069% CN¥35.4k
Anyuan Yang
Deputy General Manager of Legal & Compliance Management2.42yrsno datano data
Hanguang Huang
GM & Executive Director0.83yrno data0.096% CN¥495.1k
Yongjian Piao
Vice Chairman & President of Longjiang Environment Protection Group Co.5.58yrsno datano data
Youmin Zhao
Executive Director0.58yrno datano data
Sey Liy Tan
Joint Company Secretary4.83yrsno datano data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Management: BHK's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiaobing Xu
CEO & Executive Director1.33yrsCN¥245.00kno data
Jun Feng
Executive Director10.25yrsCN¥245.00kno data
Zhan Xu
Executive Director5.33yrsCN¥245.00kno data
Hanguang Huang
GM & Executive Director0.83yrno data0.096% CN¥495.1k
Youmin Zhao
Executive Director0.58yrno datano data
Jun Zhou
Non-Executive Chairman7.83yrsCN¥490.00kno data
Qiang Wu
Chairman of Fudan Water Engineering and Technology Co.no datano datano data
Guat Yeo
Lead Independent Directorno dataCN¥465.00kno data
Hongjun An
Independent Non-Executive Director2yrsCN¥349.00kno data
Ming Zhong
Independent Non-Executive Director2yrsCN¥328.00kno data

3.7yrs

Average Tenure

50yo

Average Age

Experienced Board: BHK's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

SIIC Environment Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SIIC Environment Holdings Ltd.
  • Ticker: BHK
  • Exchange: SGX
  • Founded: 2002
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: S$515.358m
  • Shares outstanding: 2.60b
  • Website: https://www.siicenv.com

Location

  • SIIC Environment Holdings Ltd.
  • No. 37-02, Millenia Tower
  • One Temasek Avenue
  • Singapore
  • 39192
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHKSGX (Singapore Exchange)YesOrdinary SharesSGSGDMar 2005
A9W1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2005
807SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2005
AWAE.FOTCPK (Pink Sheets LLC)SIIC ENVIRONMENTUSUSDMar 2016

Biography

SIIC Environment Holdings Ltd., an investment holding company, engages in wastewater treatment, water supply, solid waste management, and other environment-related businesses primarily in the People's Republic of China. It operates through four segments: Construction, Water and Sludge Treatment, Water Supply, and Waste Incineration. The Construction segment is involved in the design, assembly, construction, installation, and commissioning of water supply or waste water treatment systems/plants for industrials and municipals. The Water and Sludge Treatment segment engages in the construction, management, and operation of water and sludge related infrastructure under service concession arrangements; and management and operation of water and sludge related infrastructure under non-service concession arrangements, as well as financial income under service concession arrangements. The Water Supply segment constructs, manages, and operates water supply related infrastructure under service concession arrangements. The Waste Incineration segment constructs, manages, and operates waste incineration related infrastructure under service concession arrangements. The company has a portfolio of approximately 200 water treatment and supply projects, 7 waste incineration projects, and 10 sludge disposal projects across 19 municipalities and provinces in China. It also provides management and consultancy, project design and consultancy, and water meters installation services. The company was formerly known as Asia Water Technology Ltd. and changed its name to SIIC Environment Holdings Ltd. in November 2012. The company was incorporated in 2002 and is headquartered in Singapore. SIIC Environment Holdings Ltd. is a subsidiary of S.I. Infrastructure Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 12:56
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.