Kangda International Environmental Co Ltd (6136) AI Stock Analysis

• Market Cap: HK$1.34B
• Dividend Yield: N/A
• Average Volume (3M): 4.01M
• Price to Earnings (P/E): 1.6
• Beta (1Y): 0.12
• Revenue Growth: 3.04%
• EPS Growth: 6.91%
• Country: HK
• Employees: 2,285
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.05
• Shares Outstanding: 2,307,008,500
• 10 Day Avg. Volume: 5,214,000
• 30 Day Avg. Volume: 4,006,100
• PEG Ratio: 0.11
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 1.86
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.56 ▲(16.04% Upside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

The overall stock score of 60 reflects stable financial performance with strong cash flow management and undervaluation based on the P/E ratio. However, high leverage and low net profit margins pose financial risks. Technical indicators suggest mixed momentum, with potential oversold conditions. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Recurring concession-based revenue

The company's core model—municipal wastewater operations with concession/fee payments plus construction and BOT/PPP finance income—provides durable, predictable cash inflows. Long concession terms and per‑cubic‑meter fees create steady revenue visibility and resilience across economic cycles.

High gross and operating margins

Sustained high gross and EBITDA margins indicate efficient operations and pricing power within the regulated water sector. These margins support ongoing investment in plant operations and maintenance, cushioning earnings against demand swings and preserving operating cash generation over the medium term.

Strong cash generation and conversion

Rapid FCF growth and high operating‑cash‑to‑earnings ratios show the company converts earnings into cash effectively. Robust cash generation strengthens the balance sheet, funds reinvestment into plants and new projects, and provides buffers for capital expenditures and working capital needs over 2–6 months.

Negative Factors

High financial leverage

Significant leverage raises refinancing and interest‑rate exposure risks. High debt levels can constrain bidding for new concessions, elevate financing costs, and increase the need for timely cash generation to meet obligations, posing a material structural risk to financial flexibility in the medium term.

Low net profitability and ROE

Despite strong gross and EBITDA margins, low net margin and weak ROE imply heavy non‑operating costs (notably financing) or tax impacts that limit shareholder returns. Persistently low bottom‑line profitability reduces retained capital for growth and weakens long‑term shareholder value creation.

Dependence on project financing and high financing outflows

The business relies on project finance and has material financing outflows, increasing exposure to refinancing risk and rising funding costs. If capital markets tighten or rates rise, financing-dependent project rollouts and margin stability could be impaired, pressuring growth and liquidity over months.

Kangda International Environmental Co Ltd Business Overview & Revenue Model

Company Description

Kangda International Environmental Company Limited, an investment holding company, engages in the urban water treatment, water environment comprehensive remediation, and rural water improvement businesses in People's Republic of China. Its Urban Water Treatment segment is involved in the design, construction, upgradation, and operation of wastewater treatment plants (WTP), reclaimed water treatment plants, sludge treatment plants, and water distribution plants; and the operation and maintenance of wastewater treatment facilities entrusted by governments. The company's Water Environment Comprehensive Remediation segment provides river harnessing and improvement, foul water body treatment, and sponge city construction services. Its Rural Water Improvement segment is involved in the construction and operation of water environment facilities in villages, including wastewater treatment, pipeline construction for collecting wastewater, and rural living environment activities. The company also constructs municipal infrastructure; invests and manages environmental and public infrastructure projects; develops and sells WTP equipment and computer software; and sells water purifying materials. It serves municipal, district, or county level governments, as well as their designees. The company was founded in 1996 and is headquartered in Chongqing, the People's Republic of China.

How the Company Makes Money

Kangda International generates revenue through multiple streams, primarily by providing engineering, procurement, and construction (EPC) services for environmental projects. The company earns money from long-term service contracts for the operation and maintenance of wastewater treatment plants and waste disposal facilities. Additionally, Kangda benefits from government contracts and subsidies aimed at enhancing environmental protection. Strategic partnerships with local governments and private enterprises also play a crucial role in securing projects and expanding its market reach. The company may also generate income from consulting services related to environmental compliance and sustainability practices.

Kangda International Environmental Co Ltd Financial Statement Overview

Summary

Kangda International Environmental Co Ltd demonstrates stable revenue growth and effective cash flow management, with strong gross and operating margins. However, the high leverage and relatively low net profit margins highlight potential areas of financial risk and opportunities for operational improvements. The company is positioned for steady growth but needs to address its leverage to enhance financial stability.

Income Statement

The company has shown a slight increase in revenue over the past year with a revenue growth rate of 2.03%. Gross profit margin remains strong at 48.16%, reflecting efficient cost management. However, the net profit margin is relatively low at 7.43%, indicating room for improvement in controlling operating expenses. EBIT and EBITDA margins are healthy at 35.56% and 37.28%, respectively, suggesting strong core operations.

Balance Sheet

The company has a high debt-to-equity ratio of 1.62, indicating significant leverage, which could pose a risk if not managed carefully. Return on equity is moderate at 2.83%, showing limited profitability from shareholder investments. The equity ratio is 30.99%, pointing to a balanced asset financing structure but with considerable reliance on debt.

Cash Flow

Free cash flow grew by 51.44%, showing strong cash generation capabilities. The operating cash flow to net income ratio of 2.40 indicates robust cash conversion from earnings. Free cash flow to net income is also strong at 2.09, suggesting effective cash management. However, the high financing cash outflows could indicate potential refinancing needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.31B	2.26B	2.22B	2.90B	2.92B	3.33B
Gross Profit	1.13B	1.09B	1.08B	1.27B	1.34B	1.33B
EBITDA	811.24M	843.10M	907.38M	1.03B	1.09B	1.14B
Net Income	162.84M	168.00M	124.75M	235.68M	412.75M	470.49M
Balance Sheet
Total Assets	19.06B	19.15B	19.23B	18.97B	18.28B	17.65B
Cash, Cash Equivalents and Short-Term Investments	640.46M	521.16M	595.36M	559.94M	318.33M	430.26M
Total Debt	9.58B	9.61B	9.92B	9.52B	9.47B	9.27B
Total Liabilities	12.92B	13.13B	13.38B	13.23B	12.87B	12.53B
Stockholders Equity	6.05B	5.93B	5.71B	5.60B	5.27B	4.92B
Cash Flow
Free Cash Flow	567.69M	351.04M	231.81M	367.95M	319.11M	242.48M
Operating Cash Flow	636.41M	403.14M	292.92M	368.41M	320.17M	243.73M
Investing Cash Flow	-101.28M	151.77M	12.80M	101.98M	-122.08M	337.17M
Financing Cash Flow	-598.88M	-626.02M	-257.11M	-563.03M	-337.88M	-380.76M

Kangda International Environmental Co Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6136, the sentiment is Positive. The current price of 0.48 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.52, and above the 200-day MA of 0.42, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6136.

Kangda International Environmental Co Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2281	75 Outperform	HK$687.77M	1.91	6.36%	6.03%	4.85%	-4.80%
3768	69 Neutral	HK$710.09M	1.09	4.69%	―	-9.45%	-17.46%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
6136	60 Neutral	HK$1.34B	1.59	2.82%	―	3.04%	6.91%
1542	43 Neutral	HK$55.00M	-3.26	-9.98%	―	-8.34%	-13.24%
1129	43 Neutral	HK$240.23M	-0.47	-31.95%	―	-43.38%	-25.63%
6839	42 Neutral	HK$167.05M	-0.05	-514.90%	―	-5.97%	-50.72%

Kangda International Environmental Co Ltd Corporate Events

Kangda International Environmental Sets Out Board and Committee Structure

Kangda International Environmental Company Limited has announced the current composition of its board of directors, naming four executive directors, one non-executive director and three independent non-executive directors, with Mr. Du Lindong serving as chairman. The company also detailed the memberships and chairmanships of its three key board committees—audit, remuneration and nomination—clarifying governance responsibilities and reinforcing its corporate oversight framework for investors and other stakeholders.

The most recent analyst rating on (HK:6136) stock is a Hold with a HK$0.54 price target. To see the full list of analyst forecasts on Kangda International Environmental Co Ltd stock, see the HK:6136 Stock Forecast page.

Kangda International Reshapes Top Management With New Chairman and CFO Exit

Kangda International Environmental Company Limited has announced the resignation of executive director and chief financial officer Zhou Wei, effective 4 February 2026, citing personal and family reasons, with the board noting there is no disagreement or issue requiring shareholder attention. On the same date, the company will appoint Du Lindong as executive director and chairman of the board, leveraging his more than 25 years of investment and finance experience in the PRC and prior senior roles at China Financial International Investments Limited and China Water Affairs Group Limited. Du has signed a three-year service contract with an annual fee of HK$3 million, subject to performance assessment and regular rotation and re-election requirements, while existing executive director Li Zhong will step down as chairman but remain on the board, signaling a leadership reshuffle that may strengthen ties with key shareholders and deepen financial and investment expertise at the top of the organization.

The most recent analyst rating on (HK:6136) stock is a Hold with a HK$0.54 price target. To see the full list of analyst forecasts on Kangda International Environmental Co Ltd stock, see the HK:6136 Stock Forecast page.

Kangda International Sells Dongping Wastewater Concession Back to Local Government for RMB127 Million

Kangda International Environmental Company Limited has agreed to transfer the concession right, wastewater treatment plant and related assets of its Dongping project company, Dongping Kangda, to Dongping County Taida, which is acting on behalf of the Dongping government, for approximately RMB127.1 million. The transaction, triggered under a concession arrangement originally signed in 2016 and later supplemented in 2020, represents a buyback of the project’s subject assets by the local authorities and is classified under Hong Kong listing rules as a discloseable transaction, signaling a moderate but not transformational adjustment to Kangda’s project portfolio and its long-term cooperation framework with municipal partners.

The most recent analyst rating on (HK:6136) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kangda International Environmental Co Ltd stock, see the HK:6136 Stock Forecast page.

Kangda Renews Connected Construction Services Deal With Jiangxi Silver Dragon to 2028

Kangda HK, a wholly owned subsidiary of Kangda International Environmental, has renewed its construction services arrangement with Jiangxi Silver Dragon, a non-wholly owned subsidiary of China Water Affairs Group, for a new three-year term from 1 January 2026 to 31 December 2028. The renewed Construction Services Agreement formalizes ongoing connected transactions between the related parties under Hong Kong Listing Rules, with transaction size ratios exceeding 0.1% but remaining below 5%, meaning they are subject to reporting, annual review and announcement requirements, while being exempt from independent shareholders’ approval for both CWA and Kangda, thereby providing continuity of construction service revenues and clarity on compliance obligations without triggering more onerous approval processes.

The most recent analyst rating on (HK:6136) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kangda International Environmental Co Ltd stock, see the HK:6136 Stock Forecast page.