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

-1.8%

SG Water Utilities

-1.2%

SG Market


1 Year Return

-14.9%

U9E

7.6%

SG Water Utilities

-2.4%

SG Market

U9E underperformed the Water Utilities industry which returned 7.6% over the past year.

U9E underperformed the Market in Singapore which returned -2.4% over the past year.


Share holder returns

U9EIndustryMarket
7 Day0%-1.8%-1.2%
30 Day-3.1%0.5%0.9%
90 Day-7.4%-2.8%-4.5%
1 Year-11.8%-14.9%10.8%7.6%1.5%-2.4%
3 Year-45.7%-49.2%-10.0%-16.0%16.1%3.6%
5 Yearn/a12.4%1.5%9.3%-8.9%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Everbright Water's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Everbright Water's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Everbright Water is good value based on earnings compared to the Asia Water Utilities industry average.

China Everbright Water is good value based on earnings compared to the Singapore market.


Price Based on Expected Growth

China Everbright Water is good value based on expected growth next year.


Price Based on Value of Assets

China Everbright Water is good value based on assets compared to the Asia Water Utilities industry average.


Next Steps

Future Growth

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

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Everbright Water's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

China Everbright Water's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).

China Everbright Water's revenue growth is expected to exceed the Singapore market average.

China Everbright Water's earnings growth is expected to exceed the Singapore market average.

China Everbright Water's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

China Everbright Water is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

China Everbright Water has delivered over 20% year on year earnings growth in the past 5 years.

China Everbright Water's 1-year earnings growth is less than its 5-year average (15.4% vs 20.1%)

China Everbright Water's earnings growth has exceeded the Asia Water Utilities industry average in the past year (15.4% vs 6.2%).


Return on Equity

China Everbright Water has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Everbright Water used its assets more efficiently than the Asia Water Utilities industry average last year based on Return on Assets.


Return on Capital Employed

China Everbright Water has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Everbright Water's financial position?


Financial Position Analysis

China Everbright Water is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Everbright Water's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

China Everbright Water's level of debt (89.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (36.5% vs 89.7% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

Low level of unsold assets.

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?

3.65%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Everbright Water's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.52%).

China Everbright Water's dividend is below the markets top 25% of dividend payers in Singapore (5.66%).

China Everbright Water has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but China Everbright Water only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).


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?

2.6yrs

Average management tenure


CEO

Xuesong An (48yo)

4.1yrs

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

2.6yrs

Average Tenure

46.5yo

Average Age

The tenure for the China Everbright Water management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

56yo

Average Age

The tenure for the China Everbright Water board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Wendy Ho (49yo)

    Joint Company Secretary

    • Tenure: 1.1yrs
  • Xuesong An (48yo)

    CEO & Executive Director

    • Tenure: 4.1yrs
  • Junling Luo (45yo)

    CFO & Executive Director

    • Tenure: 1.3yrs
  • Pei Peng (32yo)

    Legal Counsel & Joint Company Secretary

    • Tenure: 2.7yrs
  • Niu Kesheng

    GM of the Operations Management Department & Assistant to CEO

    • Tenure: 0.4yrs

Board Members

  • Fonda Cheng (62yo)

    Independent Non-Executive Director

    • Tenure: 12.2yrs
    • Compensation: HK$274.00k
  • Paul Lim (57yo)

    Independent Non-Executive Director

    • Tenure: 12.2yrs
    • Compensation: HK$431.00k
  • Haitao Zhai (50yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
  • Tianyi Wang (56yo)

    Non-Executive Chairman

    • Tenure: 4.1yrs
  • Xuesong An (48yo)

    CEO & Executive Director

    • Tenure: 4.1yrs
  • Junling Luo (45yo)

    CFO & Executive Director

    • Tenure: 1.3yrs
  • Gang Hao (60yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs

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$871.885m
  • Shares outstanding: 2.81b
  • 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 Analysis2019/09/23 12:33
End of Day Share Price2019/09/23 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.