Kangda International Environmental Co Ltd (6136) AI Stock Analysis

• Market Cap: €876.66M
• Dividend Yield: N/A
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.47
• 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: 1,970,700
• 30 Day Avg. Volume: 2,345,866
• 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: €0.46
• Price Target Upside: 11.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: HK$0.50 ▲(21.95% Upside)

The stock of Kangda International Environmental Co Ltd scores well due to its strong technical indicators and attractive valuation, suggesting potential for price appreciation. However, financial performance is moderate due to high leverage and low net profit margins, which are areas of concern that need addressing to improve financial stability.

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 Environmental Co Ltd generates revenue through several key streams. The primary source is the construction and operation of wastewater treatment facilities, where the company earns income from service fees and government subsidies related to the treatment of municipal and industrial wastewater. Additionally, Kangda may engage in Public-Private Partnership (PPP) projects, which involve collaboration with government entities to develop infrastructure projects, providing a steady income stream. The company also benefits from ongoing maintenance and operational contracts for its treatment facilities, ensuring recurring revenue. Strategic partnerships with local governments and businesses help bolster its revenue model by securing long-term contracts and projects.

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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.26B	2.22B	2.90B	2.92B	3.33B
Gross Profit	1.09B	1.08B	1.27B	1.34B	1.33B
EBITDA	843.10M	907.38M	1.03B	1.09B	1.14B
Net Income	168.00M	124.75M	235.68M	412.75M	470.49M
Balance Sheet
Total Assets	19.15B	19.23B	18.97B	18.28B	17.65B
Cash, Cash Equivalents and Short-Term Investments	521.16M	595.36M	559.94M	318.33M	430.26M
Total Debt	9.61B	9.92B	9.52B	9.47B	9.27B
Total Liabilities	13.13B	13.38B	13.23B	12.87B	12.53B
Stockholders Equity	5.93B	5.71B	5.60B	5.27B	4.92B
Cash Flow
Free Cash Flow	351.04M	231.81M	367.95M	319.11M	242.48M
Operating Cash Flow	403.14M	292.92M	368.41M	320.17M	243.73M
Investing Cash Flow	151.77M	12.80M	101.98M	-122.08M	337.17M
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 Price: 0.41
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.41 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.38, and above the 200-day MA of 0.33, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, 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$679.17M	3.40	6.05%	5.57%	6.42%	-4.80%
6136	70 Outperform	€876.66M	4.63	2.82%	―	3.04%	6.91%
3768	64 Neutral	HK$740.96M	2.78	5.03%	―	-9.45%	-17.46%
1542	49 Neutral	HK$72.50M	-3.38	-12.40%	―	-8.34%	-13.24%
1129	48 Neutral	HK$676.45M	-1.06	-40.48%	―	-43.38%	-25.63%
6839	39 Underperform	HK$230.29M	-0.11	-17.05%	―	-5.97%	-50.72%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Kangda International Environmental Co Ltd Corporate Events

Kangda International Updates on Share Option Exercise Amid Takeover Offer

Kangda International Environmental Co Ltd announced an update regarding the exercise of share options, resulting in the allotment of 75,933,500 shares. This move is part of the company’s ongoing share option scheme, which impacts its capital structure and may influence its market positioning. The announcement follows a mandatory unconditional cash offer by the Joint Offerors to acquire all issued shares and cancel outstanding share options, indicating potential shifts in ownership and strategic direction.

The most recent analyst rating on (HK:6136) stock is a Buy 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 International Updates on Share Allotment Amid Takeover Offer

Kangda International Environmental Co Ltd has announced an update regarding its securities, following a mandatory unconditional cash offer by the Joint Offerors to acquire all issued shares and cancel outstanding share options. The company has allotted 45,400,000 shares as part of its Share Option Scheme, impacting the company’s share distribution and potentially affecting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:6136) stock is a Buy 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 International Announces Cash Offer for Share Acquisition

Kangda International Environmental Co Ltd has announced the despatch of a composite document related to a mandatory unconditional cash offer by First Shanghai Securities Limited on behalf of joint offerors to acquire all issued shares and cancel outstanding share options of the company. This move is part of a strategic effort involving multiple stakeholders, including China Water Affairs Group Limited, which could significantly impact the company’s market positioning and shareholder value.

The most recent analyst rating on (HK:6136) stock is a Buy 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 International Reports Revenue Growth Amid Profit Decline

Kangda International Environmental Co Ltd reported a 4.6% increase in revenue to approximately RMB1,166.5 million for the first half of 2025, driven by growth in construction services. Despite a decrease in profit attributable to owners by 4.7% due to losses and impairments from subsidiary disposals, the company achieved a record net cash inflow from operating activities, marking a 145% increase compared to the previous year.

The most recent analyst rating on (HK:6136) stock is a Buy 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 International Updates on Share Option Scheme Amid Acquisition Offer

Kangda International Environmental Co Ltd announced an update on its share option scheme, revealing that 2,500,000 share options have lapsed while 45,940,000 shares were allotted following the exercise of share options at HK$0.30 each. This development is part of a broader mandatory unconditional cash offer by the Joint Offerors to acquire all issued shares and cancel outstanding share options, potentially impacting the company’s market positioning and shareholder structure.

The most recent analyst rating on (HK:6136) stock is a Buy 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 International Schedules Board Meeting to Review Interim Results

Kangda International Environmental Co Ltd has announced a board meeting scheduled for August 29, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Kangda International Announces Delay in Cash Offer Document Dispatch

Kangda International Environmental Co Ltd, along with Mr. Duan Chuan Liang and Sharp Profit Investments Limited, announced a delay in the dispatch of the composite document related to a mandatory unconditional cash offer to acquire all issued shares and cancel outstanding share options. The extension, granted by the Executive, moves the deadline to September 2, 2025, allowing more time for finalizing the document. Stakeholders are advised to await the composite document before making any decisions regarding the offer.

Kangda International Engages in Strategic Finance Lease Agreement

Kangda International Environmental Co Ltd has entered into a finance lease agreement where it will sell assets worth RMB30,000,000 to a lessor and lease them back for 72 months. This transaction, along with previous similar agreements, constitutes a discloseable transaction under Hong Kong’s Listing Rules, reflecting the company’s strategic financial maneuvers to optimize asset management.

Kangda International Announces Mandatory Cash Offer Following Share Acquisition

Kangda International Environmental Co Ltd has announced a mandatory unconditional cash offer by First Shanghai Securities Limited on behalf of the joint offerors, Mr. Duan and Sharp Profit Investments Limited, to acquire all issued shares and cancel outstanding share options of the company. This move follows Mr. Duan’s exchange of bonds for a significant shareholding, resulting in a requirement to make a cash offer under the Takeovers Code. The offer price is set at HK$0.348 per share, reflecting the volume-weighted average traded price, and is higher than the previous exchange price. This development could impact the company’s shareholder structure and market positioning.

Kangda International Sells Stake in Liangshan Kangda Water Co., Ltd.

Kangda International Environmental Co Ltd has announced the disposal of its 100% equity interests in Liangshan Kangda Water Co., Ltd. The decision was driven by financial considerations, including the aging of outstanding wastewater treatment fees owed by the Liangshan County Government and the future capital requirements for upgrading wastewater treatment facilities. The disposal is seen as a strategic move to mitigate potential losses and improve the company’s financial position.