SGX:U9E

Stock Analysis Report

China Everbright Water

Executive Summary

China Everbright Water Limited, an investment holding company, provides integrated environmental water services in the People’s Republic of China.

Snowflake

Fundamentals

Very undervalued with proven 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


Market Performance


7 Day Return

0%

U9E

0.5%

SG Water Utilities

-0.02%

SG Market


1 Year Return

-11.3%

U9E

16.2%

SG Water Utilities

0.6%

SG Market

Return vs Industry: U9E underperformed the SG Water Utilities industry which returned 16.2% over the past year.

Return vs Market: U9E underperformed the SG Market which returned 0.6% over the past year.


Shareholder returns

U9EIndustryMarket
7 Day0%0.5%-0.02%
30 Day0%-0.9%-1.6%
90 Day-11.3%-1.8%-7.3%
1 Year-8.1%-11.3%19.8%16.2%4.6%0.6%
3 Year-40.4%-44.2%-11.4%-17.6%15.1%2.8%
5 Yearn/a13.0%1.4%10.0%-8.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: U9E (SGD0.32) is trading below our estimate of fair value (SGD6.1)

Significantly Undervalued: U9E is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: U9E is good value based on its PE Ratio (6.7x) compared to the Water Utilities industry average (16.8x).

PE vs Market: U9E is good value based on its PE Ratio (6.7x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: U9E is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: U9E is good value based on its PB Ratio (0.6x) compared to the XA Water Utilities industry average (1.2x).


Next Steps

Future Growth

How is China Everbright Water forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: U9E's forecast earnings growth (12.3% per year) is above the savings rate (2.3%).

Earnings vs Market: U9E's earnings (12.3% per year) are forecast to grow faster than the SG market (5.6% per year).

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

Revenue vs Market: U9E's revenue (9.8% per year) is forecast to grow faster than the SG market (5.4% per year).

High Growth Revenue: U9E's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: U9E's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

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

20.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: U9E's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: U9E's earnings growth over the past year (15.4%) is below its 5-year average (20.1% per year).

Earnings vs Industry: U9E earnings growth over the past year (15.4%) exceeded the Water Utilities industry 7.2%.


Return on Equity

High ROE: U9E's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: U9E has a higher Return on Assets than the Water Utilities industry average last year.


Return on Capital Employed

ROCE Improving: U9E has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Everbright Water's financial position?


Financial Position Analysis

Short Term Liabilities: U9E's short term assets (HK$5.0B) exceeds its short term liabilities (HK$3.4B)

Long Term Liabilities: U9E's short term assets (5.0B) do not cover its long term liabilities (8.6B)


Debt to Equity History and Analysis

Debt Level: U9E's debt to equity ratio (89.7%) is considered high

Reducing Debt: U9E's debt to equity ratio has increased from 36.5% to 89.7% 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 (4x coverage).


Balance Sheet

Inventory Level: U9E has a low level of unsold assets or inventory.

Debt Coverage by Assets: U9E's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

4.13%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.6%markettop25%5.7%industryaverage3.1%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: U9E's dividend (4.13%) is higher than the bottom 25% of dividend payers in the SG market (2.55%).

High Dividend: U9E's dividend (4.13%) is low compared to the top 25% of dividend payers in the SG market (5.71%).

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 (24.5%), 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 (23.2% payout ratio).


Next Steps

Management

What is the CEO of China Everbright Water's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Xuesong An (48yo)

4.2yrs

Tenure

0

Mr. An Xuesong 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 ...


Management Age and Tenure

2.7yrs

Average Tenure

46.5yo

Average Age

Experienced Management: U9E's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

56yo

Average Age

Experienced Board: U9E's board of directors are considered experienced (4.2 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.


Ownership Breakdown


Management Team

  • Wendy Ho (49yo)

    Joint Company Secretary

    • Tenure: 1.2yrs
  • Xuesong An (48yo)

    CEO & Executive Director

    • Tenure: 4.2yrs
  • Junling Luo (45yo)

    CFO & Executive Director

    • Tenure: 1.4yrs
  • Pei Peng (32yo)

    Legal Counsel & Joint Company Secretary

    • Tenure: 2.8yrs
  • Niu Kesheng

    GM of the Operations Management Department & Assistant to CEO

    • Tenure: 0.5yrs

Board Members

  • Fonda Cheng (62yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$274.00k
  • Paul Lim (57yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$431.00k
  • Haitao Zhai (50yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
  • Tianyi Wang (56yo)

    Non-Executive Chairman

    • Tenure: 4.2yrs
  • Xuesong An (48yo)

    CEO & Executive Director

    • Tenure: 4.2yrs
  • Junling Luo (45yo)

    CFO & Executive Director

    • Tenure: 1.4yrs
  • Gang Hao (60yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs

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$901.176m
  • 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 integrated environmental water services in the People’s Republic of China. It offers waste water treatment services; and constructs a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:33
End of Day Share Price2019/10/18 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.