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Kangda International Environmental Co Ltd (HK:6136)
:6136

Kangda International Environmental Co Ltd (6136) AI Stock Analysis

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HK

Kangda International Environmental Co Ltd

(Stuttgart:6136)

Rating:71Outperform
Price Target:
HK$0.50
▲(31.58%Upside)
The stock's attractive valuation is the most significant factor, indicating it may be undervalued. Strong technical indicators support a bullish outlook, while financial performance suggests stable operations but highlights the need for leverage management.

Kangda International Environmental Co Ltd (6136) vs. iShares MSCI Hong Kong ETF (EWH)

Kangda International Environmental Co Ltd Business Overview & Revenue Model

Company DescriptionKangda International Environmental Co Ltd (6136) is a leading company engaged in the investment, construction, and operation of wastewater treatment facilities in China. The company specializes in providing comprehensive environmental services, focusing primarily on municipal wastewater treatment, industrial wastewater treatment, and water supply services. With a commitment to sustainable development, Kangda leverages advanced technologies to deliver effective environmental solutions that cater to the growing demand for improved water quality and environmental protection.
How the Company Makes MoneyKangda International Environmental Co Ltd generates revenue primarily through the construction and operation of wastewater treatment facilities. The company's revenue model is based on long-term concession agreements with local governments, under which Kangda is responsible for designing, building, and operating wastewater treatment plants. In return, the company receives payments based on the volume of wastewater treated, providing a stable and recurring income stream. Additionally, Kangda expands its revenue through the provision of ancillary services such as sludge treatment and disposal. Partnerships with municipal authorities and adherence to government regulations further enhance the company's ability to secure contracts and ensure steady revenue growth.

Kangda International Environmental Co Ltd Financial Statement Overview

Summary
Overall, 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
60
Neutral
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
55
Neutral
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.26B2.22B2.90B2.92B3.33B
Gross Profit1.09B1.08B1.27B1.34B1.33B
EBITDA843.10M907.38M1.03B1.09B1.14B
Net Income168.00M124.75M235.68M412.75M470.49M
Balance Sheet
Total Assets19.15B19.23B18.97B18.28B17.65B
Cash, Cash Equivalents and Short-Term Investments521.16M595.36M559.94M289.90M430.26M
Total Debt9.61B9.92B9.52B9.47B9.27B
Total Liabilities13.13B13.38B13.23B12.87B12.53B
Stockholders Equity5.93B5.71B5.60B5.27B4.92B
Cash Flow
Free Cash Flow351.04M231.81M367.95M319.11M242.48M
Operating Cash Flow403.14M292.92M368.41M320.17M243.73M
Investing Cash Flow151.77M12.80M101.98M-122.08M337.17M
Financing Cash Flow-626.02M-257.11M-563.03M-337.88M-380.76M

Kangda International Environmental Co Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.38
Price Trends
50DMA
0.33
Positive
100DMA
0.32
Positive
200DMA
0.31
Positive
Market Momentum
MACD
<0.01
Negative
RSI
62.70
Neutral
STOCH
75.56
Neutral
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 0.38 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.33, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€802.40M4.412.85%0.08%31.12%
63
Neutral
HK$30.58B8.235.37%5.32%-3.09%4.51%
61
Neutral
HK$627.76M2.205.17%-13.42%-18.54%
46
Neutral
HK$71.00M-11.64%5.16%-2.67%-11.08%
44
Neutral
€212.39M-151.78%-11.84%-150.45%
41
Neutral
HK$135.92M-33.47%-26.87%-53.44%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6136
Kangda International Environmental Co Ltd
0.38
0.14
60.26%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.62
-0.04
-6.06%
HK:1542
Taizhou Water Group Co., Ltd. Class H
1.42
-1.42
-50.00%
HK:1129
China Water Industry Group Limited
0.22
-0.84
-79.25%
HK:6839
Yunnan Water Investment Co., Limited Class H
0.18
>-0.01
-2.20%

Kangda International Environmental Co Ltd Corporate Events

Kangda International Details Finance Lease Agreement
Jul 4, 2025

Kangda International Environmental Co Ltd has provided additional details regarding its Finance Lease Agreement, which involves lease interests determined by the current lending and interest rate environment. The agreement includes fees and expenses consistent with the company’s other financial arrangements, reflecting a stable financial strategy.

Kangda International Enters Finance Lease Agreement for RMB20 Million
Jun 27, 2025

Kangda International Environmental Co Ltd has entered into a finance lease agreement with a lessor to transfer ownership of certain assets for RMB20,000,000, which will then be leased back to the company for 72 months. This transaction, along with previous similar agreements, constitutes a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement due to the aggregate transaction value.

Kangda International Sells Wastewater Treatment Stake for RMB80 Million
Jun 26, 2025

Kangda International Environmental Co Ltd has announced the disposal of its 100% equity interest in Liangshan Kangda Water Co., Ltd. for RMB80,000,000. This transaction involves the sale of the wastewater treatment plant operations established under a 30-year concession agreement with the Liangshan Economic Development Zone. The purchaser is a state-owned entity in the PRC, which highlights a strategic move for Kangda to possibly streamline its operations or reallocate resources.

Kangda International Announces Changes to Nomination Committee
Jun 20, 2025

Kangda International Environmental Co Ltd has announced changes in the composition of its Nomination Committee, effective June 20, 2025. This change, prompted by amendments to the Listing Rules and Corporate Governance Code, involves the replacement of Mr. Zhao Juanxian with Ms. Liu Yujie. The company believes these changes will enhance the board’s effectiveness and diversity, aligning with improved corporate governance practices.

Kangda International Updates Board of Directors and Committee Roles
Jun 20, 2025

Kangda International Environmental Co Ltd has announced the composition of its board of directors and the roles within its board committees. This update provides clarity on the leadership structure, which could impact the company’s strategic direction and governance, potentially influencing stakeholder confidence and the company’s positioning in the environmental services industry.

Kangda International Forms Nomination Committee to Enhance Board Structure
Jun 20, 2025

Kangda International Environmental Co Ltd has established a Nomination Committee as per a resolution by its Board of Directors. The committee is tasked with reviewing the Board’s structure and diversity, identifying qualified individuals for Board membership, and making recommendations to align with the company’s corporate strategy. This move is aimed at ensuring the Board’s composition supports the company’s strategic goals and complies with Hong Kong Stock Exchange listing requirements.

Kangda International Environmental Co Ltd Successfully Concludes AGM with All Resolutions Passed
Jun 6, 2025

Kangda International Environmental Co Ltd announced the successful conclusion of its Annual General Meeting held on June 6, 2025, where all proposed resolutions were approved by shareholders. These resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and approval of a new share option scheme, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility and governance.

Kangda International Updates Share Option Scheme Details
May 19, 2025

Kangda International Environmental Co Ltd has issued a supplemental announcement regarding its annual report for the year ended 31 December 2024. The announcement provides additional information about the company’s Share Option Scheme, indicating that 213,973,500 shares are available for issue, representing 10% of the issued shares. This update does not alter any other information in the annual report, maintaining the company’s transparency and commitment to its stakeholders.

Kangda International Environmental Co Ltd Announces 2025 AGM Agenda
Apr 29, 2025

Kangda International Environmental Co Ltd has announced its upcoming Annual General Meeting scheduled for June 6, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, re-appointment of auditors, and authorization for the board to manage share allotments. These resolutions aim to strengthen the company’s governance and operational capabilities, potentially impacting its market position and stakeholder relations positively.

Kangda International Proposes Amendments to Articles of Association
Apr 15, 2025

Kangda International Environmental Company Limited has announced proposed amendments to its Articles of Association, which will be discussed at the upcoming annual general meeting. The amendments aim to remove the requirement for two co-chairmen, align the articles with new regulatory requirements for paperless and electronic communications, and address treasury shares. These changes are subject to shareholder approval and are expected to enhance the company’s governance and compliance with regulatory standards.

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.Date of analysis: Jul 03, 2025