SGX:U9E

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China Everbright Water

Executive Summary

China Everbright Water Limited, an investment holding company, provides water environmental management services in Mainland China and Germany.


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has China Everbright Water's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: U9E's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.5%

U9E

2.5%

SG Water Utilities

7.9%

SG Market


1 Year Return

-36.6%

U9E

-4.3%

SG Water Utilities

-14.6%

SG Market

Return vs Industry: U9E underperformed the SG Water Utilities industry which returned -4.6% over the past year.

Return vs Market: U9E underperformed the SG Market which returned -14.7% over the past year.


Shareholder returns

U9EIndustryMarket
7 Day12.5%2.5%7.9%
30 Day9.8%0.1%6.8%
90 Day-21.1%-3.8%-7.8%
1 Year-35.3%-36.6%-2.3%-4.3%-11.1%-14.6%
3 Year-49.2%-52.1%-15.2%-20.8%-9.5%-19.4%
5 Year-76.4%-78.0%-42.4%-47.3%-4.3%-20.8%

Price Volatility Vs. Market

How volatile is China Everbright Water's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Everbright Water undervalued compared to its fair value and its price relative to the market?

8.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: U9E (SGD0.23) is trading below our estimate of fair value (SGD0.24)

Significantly Below Fair Value: U9E is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: U9E is good value based on its PE Ratio (4.2x) compared to the Water Utilities industry average (12.9x).

PE vs Market: U9E is good value based on its PE Ratio (4.2x) compared to the SG market (12x).


Price to Earnings Growth Ratio

PEG Ratio: U9E is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: U9E is good value based on its PB Ratio (0.4x) compared to the XA Water Utilities industry average (1x).


Next Steps

Future Growth

How is China Everbright Water forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: U9E's forecast earnings growth (12.1% per year) is above the savings rate (2.2%).

Earnings vs Market: U9E's earnings (12.1% per year) are forecast to grow faster than the SG market (7.5% per year).

High Growth Earnings: U9E's earnings are forecast to grow, but not significantly.

Revenue vs Market: U9E's revenue (9.7% per year) is forecast to grow faster than the SG market (3.8% per year).

High Growth Revenue: U9E's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: U9E's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has China Everbright Water performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: U9E has high quality earnings.

Growing Profit Margin: U9E's current net profit margins (15%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: U9E's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: U9E's earnings growth over the past year (23.2%) exceeds its 5-year average (20.4% per year).

Earnings vs Industry: U9E earnings growth over the past year (23.2%) exceeded the Water Utilities industry 10.3%.


Return on Equity

High ROE: U9E's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is China Everbright Water's financial position?


Financial Position Analysis

Short Term Liabilities: U9E's short term assets (HK$4.9B) exceed its short term liabilities (HK$4.6B).

Long Term Liabilities: U9E's short term assets (HK$4.9B) do not cover its long term liabilities (HK$8.6B).


Debt to Equity History and Analysis

Debt Level: U9E's debt to equity ratio (95.1%) is considered high.

Reducing Debt: U9E's debt to equity ratio has increased from 32% to 95.1% over the past 5 years.

Debt Coverage: U9E's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: U9E's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

What is China Everbright Water's current dividend yield, its reliability and sustainability?

5.97%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: U9E's dividend (5.97%) is higher than the bottom 25% of dividend payers in the SG market (2.72%).

High Dividend: U9E's dividend (5.97%) is low compared to the top 25% of dividend payers in the SG market (6%).


Stability and Growth of Payments

Stable Dividend: U9E has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: U9E's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.9%), U9E's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: U9E's dividends in 3 years are forecast to be well covered by earnings (24.9% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Xuesong An (48yo)

4.83yrs

Tenure

HK$4,703,000

Compensation

Mr. Xuesong An has been the Chief Executive Officer of China Everbright Water Limited since August 14, 2015. Mr. An serves as Deputy General Manager at China Everbright International Limited. Mr. An served ...


CEO Compensation Analysis

Compensation vs Market: Xuesong's total compensation ($USD606.83K) is about average for companies of similar size in the SG market ($USD686.31K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xuesong An
CEO & Executive Director4.83yrsHK$4.70mno data
Junling Luo
CFO & Executive Director2.08yrsHK$3.06mno data
Kesheng Niu
GM of the Operations Management Department & Assistant to CEO1.17yrsno datano data
Pinglin An
Technical Directorno datano datano data
Pei Peng
Legal Counsel & Joint Company Secretary3.42yrsno datano data
Wing Tsz Ho
Joint Company Secretary1.08yrsno datano data

3.3yrs

Average Tenure

48yo

Average Age

Experienced Management: U9E's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xuesong An
CEO & Executive Director4.83yrsHK$4.70mno data
Junling Luo
CFO & Executive Director2.08yrsHK$3.06mno data
Fong Yee Cheng
Independent Non-Executive Director12.92yrsHK$528.00k0.022% HK$140.0k
Yu Neng Lim
Independent Non-Executive Director12.92yrsHK$650.00k0.056% HK$362.0k
Haitao Zhai
Independent Non-Executive Director4.83yrsHK$528.00kno data
Tianyi Wang
Non-Executive Chairman4.83yrsno datano data
Gang Hao
Independent Non-Executive Director2.25yrsHK$522.00kno data

4.8yrs

Average Tenure

56yo

Average Age

Experienced Board: U9E's board of directors are considered experienced (4.8 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.


Top Shareholders

Company Information

China Everbright Water Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Everbright Water Limited
  • Ticker: U9E
  • Exchange: SGX
  • Founded:
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: S$643.697m
  • Shares outstanding: 2.86b
  • Website: https://www.ebwater.com

Number of Employees


Location

  • China Everbright Water Limited
  • Oriental Xintiandi Plaza
  • 26th Floor, Block A
  • Shenzhen
  • Guangdong Province
  • 518000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOTR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014
U9ESGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 2014
BIU2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014
1857SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2014

Biography

China Everbright Water Limited, an investment holding company, provides water environmental management services in Mainland China and Germany. It offers municipal waste water treatment, industrial waste water treatment, water supply, reusable water, sludge harmless treatment, sponge city construction and operation, river-basin ecological restoration, waste water source heat pump, leachate treatment, and engineering construction, as well as researches and develops water environment technologies. The company also provides project investment, planning and design, and operations management services; investment and investment management, business development and management, and pipeline network construction and maintenance services; and survey, mapping, design, and consultancy services for municipal projects. As of December 31, 2019, it invested in and operated water treatment projects with a designed daily waste water treatment capacity of approximately 6.2 m3. The company is based in Shenzhen, the People’s Republic of China. China Everbright Water Limited is a subsidiary of China Everbright Water Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 12:39
End of Day Share Price2020/06/05 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.