Datang Environment Industry Group Co., Ltd. Class H (1272) AI Stock Analysis

• Market Cap: HK$3.44B
• Dividend Yield: 7.18%
• Average Volume (3M): 38.30K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.48
• Revenue Growth: -0.78%
• EPS Growth: 3.03%
• Country: HK
• Employees: 979
• Sector: Industrials
• Sector Strength: 91
• Industry: Waste Management
• EPS (TTM): 0.20
• Shares Outstanding: 624,296,200
• 10 Day Avg. Volume: 58,000
• 30 Day Avg. Volume: 38,300
• PEG Ratio: 0.15
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.33
• 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: 73 Outperform
• Price Target: HK$1.50 ▲(29.31%Upside)

The company's attractive valuation with a low P/E ratio and high dividend yield is the most significant factor, offering potential value and income benefits. Financial performance is stable, with strong cash flow and profitability, though asset and equity declines are a concern. Technical analysis shows no clear momentum, reflecting a neutral market sentiment.

Datang Environment Industry Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Datang Environment Industry Group Co., Ltd. provides environmental protection and energy conservation solutions to coal-fired power generation enterprises in the People's Republic of China. The company operates through Environmental Protection and Energy Conservation Solutions; Renewable Energy Engineering; Thermal Power Engineering; and Other Businesses segments. The Environmental Protection and Energy Conservation Solutions segment engages in the flue gas desulfurization and denitrification facilities concession operation business for coal-fired power plants; the manufacture and sale of denitrification catalysts; engineering business for coal-fired power plants, including the engineering of denitrification, desulfurization, dust removal, ash and slag handling, other environmental protection facilities, and industrial site dust management related engineering; water treatment business; and energy conservation business, such as energy conservation facility engineering and energy management contract. The Renewable Energy Engineering segment provides engineering general contracting services for newly built wind power plants, biomass power plants, and photovoltaic power plants. The Thermal Power Engineering segment offers engineering, procurement, and construction services for thermal power plants. The Other Businesses engages in the fiberglass chimney anti-corrosion, air cooling system engineering general contracting business. It also engages in the development of pollution improvement environmental protection technology, and provision of engineering and technology services. The company was founded in 1984 and is headquartered in Beijing, the People's Republic of China. Datang Environment Industry Group Co., Ltd. is a subsidiary of China Datang Corporation Ltd.

How the Company Makes Money

Datang Environment Industry Group Co., Ltd. generates revenue primarily through its environmental services and solutions. The company's key revenue streams include contracts for the construction and operation of environmental protection systems such as flue gas desulfurization and denitrification units for power plants and industrial facilities. Additionally, the company earns income from water treatment and solid waste treatment projects. Datang Environment Industry Group also engages in renewable energy projects, contributing to its revenue through the development and management of clean energy initiatives. Strategic partnerships with industrial clients and government contracts play a significant role in the company's earnings, providing a steady flow of projects and long-term service agreements.

Datang Environment Industry Group Co., Ltd. Class H Financial Statement Overview

Summary

Balanced financial performance with stable revenue growth, reasonable profitability, and strong cash flow generation. Moderate leverage and efficient use of equity contribute to financial stability, but declining total assets and equity warrant attention.

Income Statement

The company has demonstrated steady revenue growth over recent years, with a 0.89% increase from 2023 to 2024. Its gross profit margin stands at 21.3%, and the net profit margin is 9.52% for 2024, indicating solid profitability. The EBIT margin of 12.27% and EBITDA margin of 23.64% suggest efficient cost management. However, a slight decline in EBITDA margin compared to previous years could be a concern.

Balance Sheet

The debt-to-equity ratio of 0.51 for 2024 reflects moderate leverage, providing a balance between debt and equity financing. The return on equity (ROE) is 7.12%, showing decent efficiency in using shareholders' equity to generate profits. The equity ratio stands at 50.26%, highlighting a stable financial structure. However, the decreasing trend in total assets and stockholders' equity over the years could pose long-term risks.

Cash Flow

The company's free cash flow growth rate from 2023 to 2024 is 16.81%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 3.13 indicates robust cash conversion efficiency. The free cash flow to net income ratio of 2.49 underscores a healthy cash position relative to profits. The consistent positive free cash flow over the years is a significant strength.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.82B	5.77B	5.72B	5.32B	5.29B	6.82B
	Gross Profit
1.27B	1.23B	1.15B	789.42M	341.43M	1.17B
	EBIT
323.58M	708.07M	614.11M	485.97M	-48.12M	743.85M
	EBITDA
1.42B	1.36B	1.46B	1.12B	528.60M	1.38B
	Net Income Common Stockholders
656.01M	549.06M	522.38M	272.43M	-443.27M	211.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
851.25M	994.75M	1.79B	872.20M	1.24B	1.53B
	Total Assets
20.64B	15.35B	18.05B	18.35B	18.43B	20.18B
	Total Debt
6.01B	3.92B	5.59B	5.64B	5.95B	6.07B
	Net Debt
5.16B	2.93B	3.78B	4.77B	4.71B	4.54B
	Total Liabilities
13.41B	7.84B	10.76B	11.45B	11.67B	12.84B
	Stockholders Equity
7.02B	7.71B	7.47B	7.06B	6.88B	7.22B
Cash Flow		Free Cash Flow
1.35B	1.37B	1.17B	205.62M	583.47M	1.24B
	Operating Cash Flow
1.97B	1.72B	1.81B	531.35M	987.03M	1.84B
	Investing Cash Flow
-541.51M	-340.97M	-560.21M	-315.41M	-396.59M	-608.90M
	Financing Cash Flow
-977.79M	-2.14B	-364.16M	-589.50M	-876.73M	-1.28B

Datang Environment Industry Group Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1272, the sentiment is Positive. The current price of 1.16 is above the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.14, and above the 200-day MA of 0.94, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1272.

Datang Environment Industry Group Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1272	73 Outperform	HK$3.44B	5.78	7.24%	7.18%	-0.78%	3.03%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
GCPEF		$2.98B	―	-11.91%	―	―	―
6868	61 Neutral	HK$3.41B	22.78	7.83%	3.48%	-11.58%	-35.85%
TNJIF		$1.16B	6.46	8.42%	5.17%	―	―
DYN		€1.08B	8.12	7.85%	6.90%	―	―
1543	58 Neutral	HK$444.83M	9.73	2.09%	7.71%	-6.00%	―

Datang Environment Industry Group Co., Ltd. Class H Corporate Events

Datang Environment Industry Group Schedules 2024 AGM to Outline Future Strategies

Datang Environment Industry Group Co., Ltd. has announced the scheduling of its 2024 Annual General Meeting (AGM) to be held on June 27, 2025, in Beijing. The AGM will address several key resolutions, including the approval of financial reports for 2024, the financial budget for 2025, and the re-appointment of auditors. This meeting is significant as it outlines the company’s financial and operational strategies for the upcoming year, impacting stakeholders and setting the direction for future growth.

Datang Environment Industry Group Announces Final Dividend Details for 2024

Datang Environment Industry Group Co., Ltd. has announced an update regarding its final cash dividend for the year ending December 31, 2024. The dividend is set at RMB 0.051 per share, with shareholders’ approval scheduled for June 27, 2025. The ex-dividend date is July 2, 2025, and the payment date is August 26, 2025. The announcement also details the withholding tax rates applicable to non-resident shareholders, which range from 10% to 20%, depending on the shareholder’s country of residence and any tax treaties with China. This update is crucial for stakeholders as it provides clarity on the dividend distribution process and tax implications, potentially impacting investment decisions and shareholder returns.

Datang Environment Industry Group Initiates Public Tender for Asset Disposal

Datang Environment Industry Group Co., Ltd. has announced the commencement of a public tender process for the potential disposal of its concession assets related to desulfurization and denitrification agreements with Pingluo Power Plant. The disposal will be conducted through the China Beijing Equity Exchange, with a minimum consideration set at RMB167.72 million. The process involves a 20-day publication period for potential transferees to register and inspect the assets, followed by an online bidding process if multiple qualified transferees are identified. This move could impact the company’s operations by potentially divesting state-owned assets, aligning with regulatory requirements, and possibly affecting its market positioning.

Datang Environment Industry Group Issues Second Tranche of 2025 Commercial Paper

Datang Environment Industry Group Co., Ltd. has successfully issued the second tranche of its super short-term commercial paper for 2025, raising RMB500 million with a 1.84% interest rate over a 93-day term. The proceeds are intended for the repayment of interest-bearing liabilities, which may improve the company’s financial stability and operational efficiency, potentially enhancing its market standing and offering reassurance to stakeholders.

Datang Environment Industry Group Reports 2024 Financial Results with Stable Growth

Datang Environment Industry Group Co., Ltd. reported its annual financial results for 2024, showing a slight revenue increase of 0.9% to RMB5,770.9 million and a gross profit rise of 7.4% to RMB1,229.4 million. The company maintained its position as the largest desulfurization and denitrification concession operator in China, with a proposed final dividend of RMB0.051 per share, reflecting stable growth and a strong market position.

Datang Environment Industry Group Announces Final Dividend for 2024

Datang Environment Industry Group Co., Ltd. has announced a final cash dividend of RMB 0.051 per share for the financial year ending December 31, 2024. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its financial positioning by enhancing shareholder confidence. The specific details regarding the exchange rate, ex-dividend date, and payment date are yet to be announced, indicating that stakeholders should stay informed for further updates.

Datang Environment Industry Group Schedules Board Meeting for Annual Results

Datang Environment Industry Group Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend and address other business matters, potentially impacting the company’s financial strategies and stakeholder interests.