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

Fundamentals

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


Market Performance


7 Day Return

-7.8%

BHK

2.8%

SG Water Utilities

0.9%

SG Market


1 Year Return

-11.3%

BHK

17.0%

SG Water Utilities

1.4%

SG Market

Return vs Industry: BHK underperformed the SG Water Utilities industry which returned 17% over the past year.

Return vs Market: BHK underperformed the SG Market which returned 1.4% over the past year.


Shareholder returns

BHKIndustryMarket
7 Day-7.8%2.8%0.9%
30 Day-4.1%-2.4%-2.3%
90 Day-11.3%-2.7%-6.7%
1 Year-8.2%-11.3%20.5%17.0%5.4%1.4%
3 Year-55.2%-58.8%-10.0%-16.3%15.8%3.4%
5 Year-68.3%-70.8%11.6%0.4%11.3%-7.0%

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?

1.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BHK (SGD0.24) is trading below our estimate of fair value (SGD0.24)

Significantly Undervalued: BHK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BHK is good value based on its PE Ratio (5.4x) compared to the Water Utilities industry average (16.6x).

PE vs Market: BHK is good value based on its PE Ratio (5.4x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: BHK is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: BHK is good value based on its PB Ratio (0.4x) compared to the XA Water Utilities industry average (1.2x).


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?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHK's forecast earnings growth (10.6% per year) is above the savings rate (2.3%).

Earnings vs Market: BHK's earnings (10.6% per year) are forecast to grow faster than the SG market (5.7% per year).

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

Revenue vs Market: BHK's revenue (10.6% per year) is forecast to grow faster than the SG market (5.4% per year).

High Growth Revenue: BHK's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BHK's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

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

17.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BHK's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: BHK's earnings growth over the past year (6.1%) is below its 5-year average (17.7% per year).

Earnings vs Industry: BHK earnings growth over the past year (6.1%) underperformed the Water Utilities industry 7.2%.


Return on Equity

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


Return on Assets

ROA vs Industry: BHK's Return on Assets is below or equal to the Water Utilities industry average last year.


Return on Capital Employed

ROCE Improving: BHK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is SIIC Environment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BHK's short term assets (CN¥6.0B) do not cover its short term liabilities (CN¥9.0B)

Long Term Liabilities: BHK's short term assets (6.0B) do not cover its long term liabilities (11.5B)


Debt to Equity History and Analysis

Debt Level: BHK's debt to equity ratio (126.1%) is considered high

Reducing Debt: BHK's debt to equity ratio has increased from 70.2% to 126.1% over the past 5 years.

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

Interest Coverage: BHK's interest payments on its debt are not well covered by EBIT (1.9x 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?

4.85%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage3.1%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: BHK is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BHK's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of SIIC Environment Holdings's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Xiaobing Xu (51yo)

0.9yrs

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 ...


Management Age and Tenure

4.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: BHK's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

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


Recent Insider Transactions

BuyCN¥133,83102 Sep 19
Value Partners Limited
EntityCompany
Shares600,000
Max PriceCN¥0.22
BuyCN¥628,43529 Mar 19
Shanghai Industrial Investment (Holding) Co., Ltd.
EntityCompany
Shares1,777,000
Max PriceCN¥0.35
SellCN¥185,66827 Mar 19
Value Partners Limited
EntityCompany
Shares515,000
Max PriceCN¥0.36

Ownership Breakdown


Management Team

  • Hanguang Huang (57yo)

    GM & Executive Director

    • Tenure: 0.4yrs
  • Jun Feng (56yo)

    Executive Director

    • Tenure: 9.8yrs
    • Compensation: CN¥245.00k
  • Shirley Tan

    Joint Company Secretary

    • Tenure: 4.4yrs
  • Xiaobing Xu (51yo)

    CEO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥245.00k
  • Youmin Zhao (48yo)

    Executive Director

    • Tenure: 0.2yrs
  • Zhan Xu (50yo)

    CFO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥245.00k
  • Guy Man

    Joint Company Secretary

    • Tenure: 2.1yrs
  • Rachel Cai (35yo)

    Deputy GM of Administration

    • Tenure: 0yrs
  • Anyuan Yang (44yo)

    Deputy General Manager of Legal & Compliance Management

    • Tenure: 2yrs
  • Yongjian Piao (56yo)

    Vice Chairman & President of Longjiang Environment Protection Group Co.

    • Tenure: 5.2yrs

Board Members

  • Hanguang Huang (57yo)

    GM & Executive Director

    • Tenure: 0.4yrs
  • Jun Zhou (50yo)

    Non-Executive Chairman

    • Tenure: 7.4yrs
    • Compensation: CN¥490.00k
  • Qiang Wu (48yo)

    Chairman of Fudan Water Engineering and Technology Co.

    • Tenure: 0yrs
  • Guat Yeo (58yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: CN¥465.00k
  • Jun Feng (56yo)

    Executive Director

    • Tenure: 9.8yrs
    • Compensation: CN¥245.00k
  • Xiaobing Xu (51yo)

    CEO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥245.00k
  • Youmin Zhao (48yo)

    Executive Director

    • Tenure: 0.2yrs
  • Zhan Xu (50yo)

    CFO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥245.00k
  • Hongjun An (50yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥349.00k
  • Ming Zhong (32yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥328.00k

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$624.676m
  • 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 Repu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:40
End of Day Share Price2019/10/14 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.