Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H (0840) AI Stock Analysis

• Market Cap: HK$111.70M
• Dividend Yield: N/A
• Average Volume (3M): 379.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -33.66%
• EPS Growth: N/A
• Country: HK
• Employees: 500
• Sector: Industrials
• Sector Strength: 78
• Industry: Agricultural - Machinery
• EPS (TTM): -0.12
• Shares Outstanding: 202,400,000
• 10 Day Avg. Volume: 304,600
• 30 Day Avg. Volume: 379,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ―

The overall stock score for Xinjiang Tianye Water Saving Irrigation System Co., Ltd. is low due to significant financial challenges, including declining revenues, negative profitability, and cash flow problems. The technical analysis indicates a bearish trend, and valuation is unattractive due to a negative P/E ratio and lack of dividends. The company faces substantial risks, particularly if it doesn't improve its financial health and market positioning.

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Xinjiang 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 Money

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. generates revenue through the sale of its water-saving irrigation products and systems. The company targets farmers, agricultural enterprises, and government projects that require efficient irrigation solutions to optimize water usage and improve crop yields. Revenue streams include direct sales of irrigation equipment, installation services, and after-sales support. The company may also engage in partnerships with agricultural organizations and government agencies to expand its market reach and influence. Additionally, factors such as government policies promoting water conservation and sustainable agriculture can significantly contribute to its earnings.

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Financial Statement Overview

Summary

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. faces significant financial challenges, with declining revenues, negative profitability, and cash flow issues. The balance sheet indicates high leverage, which could be risky without improved earnings. The company needs to address these challenges to stabilize its financial position and return to profitability.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.50B	2.22B	1.44B	1.11B	701.93M
Gross Profit	41.91M	100.87M	16.67M	64.95M	94.87M
EBITDA	-23.74M	19.07M	―	―	20.00M
Net Income	-39.54M	―	―	―	2.06M
Balance Sheet
Total Assets	1.23B	1.22B	1.03B	964.98M	946.73M
Cash, Cash Equivalents and Short-Term Investments	422.32M	340.79M	238.75M	148.33M	116.34M
Total Debt	112.25M	118.90M	130.35M	87.03M	53.06M
Total Liabilities	822.94M	769.28M	582.61M	435.88M	365.01M
Stockholders Equity	381.72M	416.35M	426.01M	503.93M	570.30M
Cash Flow
Free Cash Flow	114.83M	115.14M	53.73M	32.61M	24.06M
Operating Cash Flow	126.12M	129.66M	60.30M	48.85M	44.86M
Investing Cash Flow	―	12.93M	―	―	―
Financing Cash Flow	―	-44.49M	38.36M	―	21.45M

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.21 is below the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.19, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 32.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥269.12B	15.13	8.31%	2.76%	6.08%	11.04%
0840	42 Neutral	HK$111.70M	―	-9.93%	―	-33.66%	―
FIRRF	―	$1.74B	8.96	11.27%	5.29%	―	―
QGLHF	―	$251.36M	―	-0.75%	―	―	―
1Q2	―	€141.53M	―	-8.98%	―	―	―
2102	64 Neutral	HK$208.00M	16.51	2.83%	6.52%	9.25%	23.53%
2499	60 Neutral	HK$1.76B	15.90	9.06%	0.65%	15.31%	222.54%

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Corporate Events

Xinjiang Tianye Faces Income Guarantee Shortfall in 2024

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. announced a major transaction related to the non-fulfillment of an income guarantee for the year 2024 by its subsidiary, Xinjiang Hongrui Huixin New Material Technology Co., Ltd. The subsidiary failed to meet the agreed operating revenue and return on net assets, prompting the parent company to consider transferring its equity interest or seeking reimbursement. This situation could impact the company’s financial strategies and stakeholder relations, highlighting challenges in meeting financial commitments.

Xinjiang Tianye Announces Change of Hong Kong Office Location

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. has announced a change in its principal place of business in Hong Kong to 22/F., World-Wide House, Central, Hong Kong, effective from April 15, 2025. This relocation may reflect strategic positioning efforts in the region, potentially impacting the company’s operations and stakeholder relations.

Xinjiang Tianye Reports Significant Financial Decline in 2024

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. reported a significant decline in its financial performance for the year ended December 31, 2024. The company’s operating income decreased by approximately 32.44% compared to the previous year, and it recorded a net loss attributable to the parent of approximately RMB39,536,000, a substantial increase from the previous year’s net loss. This downturn in financial results highlights challenges in the company’s operations and may impact its market positioning and stakeholder confidence.

Xinjiang Tianye Issues Profit Warning Amid Increased Losses

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. has issued a profit warning, expecting a significant increase in net loss for the year ending December 2024, ranging from RMB43 million to RMB48 million, compared to the previous year’s loss of approximately RMB10.5 million. This anticipated loss is primarily due to a decrease in gross profit from reduced income in completed construction projects, although the company’s financial position remains stable.

Xinjiang Tianye Clarifies Board Meeting Notice and Agenda

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. has issued a clarification announcement regarding a previous notice of a board meeting. The company corrected clerical errors in the announcement and confirmed that the board meeting will discuss the approval of the audited consolidated annual results for 2024 and consider the payment of a final dividend. This announcement ensures transparency and accuracy in the company’s communications with stakeholders.

Xinjiang Tianye Announces Board Meeting to Review Annual Results

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to review and approve the unaudited consolidated annual results for the year ending December 31, 2024. The meeting will also consider the potential payment of a final dividend, which could have implications for the company’s financial strategy and shareholder returns.

Xinjiang Tianye Terminates Major Joint Venture Transaction

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. announced the termination of a major transaction involving the formation of a joint venture and the disposal of target equity through contribution in kind. The termination agreement, reached with the Eighth Division SASAC, releases all parties from obligations related to the Capital Contribution Agreement without any termination fees. The company stated that this decision will not adversely affect its current business operations or financial condition, and shareholders are advised to exercise caution in dealing with the company’s shares.

Xinjiang Tianye Announces Delay in Dispatch of Transaction Circular

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. announced a further delay in the dispatch of a circular related to a major transaction and connected transaction, involving the formation of a joint venture and the disposal of target equity through a contribution in kind. The delay is due to the need for additional time to compile the necessary information, with the new expected dispatch date set on or before 14 March 2025. This postponement might impact stakeholders’ planning and the company’s strategic positioning in the market.