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Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H (HK:0840)
:0840
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Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H
(0840)
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Select Model
Rating:42Neutral
Price Target:
HK$0.19
▼(-13.18% Downside)
Action:ReiteratedDate:12/31/25
The score is primarily weighed down by weak financial performance (sharp revenue decline, negative profitability, and zero operating/free cash flow in 2024). Technical indicators also reflect a pressured trend (price below key moving averages and low RSI), while valuation metrics provide limited support due to negative earnings and no stated dividend yield.
Positive Factors
Improved debt position
A reduction in total debt and a slight improvement in debt-to-equity provide lasting financial flexibility, lowering insolvency risk and giving management room to fund restructuring or capital needs without immediate reliance on dilutive equity or expensive external financing.
Rising shareholder equity
An increase in shareholders' equity signals a stronger capital base to absorb losses and support operations. This increases credibility with lenders and suppliers, enabling multi-month recovery plans and investment in product/service continuity despite near-term revenue weakness.
Agricultural machinery exposure
Exposure to agricultural machinery, specifically irrigation systems, ties the company to structurally recurring demand for farm productivity and water efficiency. This secular demand can support medium-term recovery if the company restores execution and product-market fit.
Negative Factors
Sharp revenue decline
A ~32% top-line contraction materially weakens scale economies and pricing power. Persistently lower revenue impairs fixed-cost absorption, reduces reinvestment capacity, and can trigger customer attrition and supplier renegotiations, making multi-quarter recovery more challenging.
Negative profitability
Negative EBIT/EBITDA and net loss indicate structural issues converting sales into returns. Without sustainable margin restoration, the company cannot self-finance growth or capex, raising the probability of prolonged underperformance or the need for external recapitalization.
Zero operating and free cash flow
A lack of operating and free cash flow undermines the firm's ability to fund working capital, service debt, and invest in product improvements. This forces reliance on external financing or asset sales, increasing execution risk and limiting strategic options over months.
Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H (0840) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$120.53M
Dividend YieldN/A
Average Volume (3M)143.87K
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth-65.44%
EPS Growth-149200.00%
CountryHK
Employees500
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)N/A
Shares Outstanding202,400,000
10 Day Avg. Volume119,200
30 Day Avg. Volume143,866
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.25
Price to Sales (P/S)0.06
P/FCF Ratio0.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Business Overview & Revenue Model
Company DescriptionXinjiang Tianye Water Saving Irrigation System Company Limited designs, manufactures, and sells drip tapes, PVC/PE pipelines, and drip assemblies for use in water saving irrigation systems in the People's Republic of China. It also offers installation services for water saving irrigation systems. In addition, the company engages in land circulation and engineering business; and strategic developing digital agriculture and agriculture service business. The company was founded in 1999 and is headquartered in Shihezi, the People's Republic of China.
How the Company Makes MoneyThe company generates revenue through multiple streams including the sale of its irrigation systems and components, installation services, and maintenance contracts. Key revenue streams include direct sales to agricultural producers, government contracts for large-scale irrigation projects, and partnerships with agricultural cooperatives. Additionally, Xinjiang Tianye may also benefit from subsidies or incentives related to water conservation initiatives supported by government programs, which can further enhance its profitability.
Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Financial Statement Overview
Summary
Weak overall fundamentals: revenue fell ~32% (2023 to 2024), margins deteriorated into losses (negative net/EBIT/EBITDA), and operating/free cash flow dropped to zero in 2024. Balance sheet is comparatively better (lower debt and higher equity year over year) but leverage risk remains if earnings do not recover.Income Statement
The company experienced a significant revenue decline of about 32% from 2023 to 2024. Gross profit margin decreased to 2.8% in 2024 from 4.5% in 2023, indicating pressure on profitability. Notably, the net profit margin turned negative, with a net loss reported in 2024, reflecting challenges in cost management and revenue generation. The EBIT and EBITDA margins are also negative, further emphasizing operational difficulties.40
Negative
Balance Sheet
The debt-to-equity ratio improved slightly over the years, with total debt decreasing and stockholders' equity increasing from 2023 to 2024. However, the equity ratio decreased, indicating increased leverage. The company's total assets grew, but the drop in equity suggests a more leveraged position, which could pose risks if revenue generation does not improve.65
Positive
Cash Flow
The company reported zero operating and free cash flow in 2024, a sharp decline from previous years, suggesting cash flow management issues. The free cash flow to net income ratio cannot be calculated due to negative net income, highlighting constraints in converting profits to cash.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 801.08M | 1.50B | 2.22B | 1.47B | 1.11B | 706.56M |
| Gross Profit | 7.95M | 41.91M | 100.87M | 16.67M | 64.95M | 83.89M |
| EBITDA | -41.74M | -23.74M | 19.07M | -57.13M | -35.72M | 20.00M |
| Net Income | -71.64M | -39.54M | -11.55M | -78.12M | -66.84M | 649.96K |
Balance Sheet | ||||||
| Total Assets | 1.18B | 1.23B | 1.22B | 1.03B | 964.98M | 946.73M |
| Cash, Cash Equivalents and Short-Term Investments | 360.25M | 422.32M | 340.79M | 238.75M | 148.33M | 116.34M |
| Total Debt | 151.43M | 112.25M | 118.90M | 133.02M | 87.03M | 53.06M |
| Total Liabilities | 778.94M | 822.94M | 769.28M | 582.61M | 435.88M | 365.01M |
| Stockholders Equity | 370.68M | 381.72M | 441.38M | 444.02M | 503.93M | 570.30M |
Cash Flow | ||||||
| Free Cash Flow | -49.60M | 114.83M | 115.14M | 53.73M | 32.61M | 24.06M |
| Operating Cash Flow | -38.31M | 126.12M | 129.66M | 60.30M | 48.85M | 44.86M |
| Investing Cash Flow | 5.69M | -10.83M | 12.93M | -6.55M | -10.36M | -13.45M |
| Financing Cash Flow | -32.67M | -36.67M | -44.49M | 26.38M | -9.74M | 21.45M |
Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Technical Analysis
Positive
0.22
Price Trends
0.21
Positive
0.22
Positive
0.20
Positive
Market Momentum
<0.01
Negative
64.33
Neutral
79.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0840, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.33 is Neutral, neither overbought nor oversold. The STOCH value of 79.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0840.
Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$300.00M | 3.67 | 6.36% | 12.96% | 18.37% | 297.18% | |
76 Outperform | HK$15.57B | 8.06 | 10.40% | 4.49% | -9.90% | -20.25% | |
67 Neutral | HK$2.02B | 8.68 | 9.37% | 0.53% | 19.37% | 75.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | HK$2.56B | -11.31 | -1.07% | ― | 7.91% | -6.56% | |
44 Neutral | HK$1.09B | -5.14 | -10.88% | ― | -10.78% | -25.12% | |
42 Neutral | HK$120.53M | -2.56 | -17.69% | ― | -65.44% | -149200.00% |
* Industrials Sector Average
HK:0840
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.