SIIC Environment Holdings (BHK) AI Stock Analysis

• Market Cap: S$412.11M
• Dividend Yield: 6.88%
• Average Volume (3M): 157.62K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.10
• Revenue Growth: -1.90%
• EPS Growth: -2.24%
• Country: SG
• Employees: 6,252
• Sector: Utilities
• Sector Strength: 74
• Industry: Regulated Water
• EPS (TTM): N/A
• Shares Outstanding: 2,575,665,800
• 10 Day Avg. Volume: 89,010
• 30 Day Avg. Volume: 157,620
• PEG Ratio: 0.20
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.92
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: S$0.00 ▼(-100.00%Downside)

The overall stock score of 71 reflects SIIC Environment Holdings' strong valuation and positive technical momentum, counterbalanced by financial performance concerns, particularly in cash flow management and high leverage. The attractive dividend yield and low P/E ratio enhance its appeal, though financial stability risks must be managed.

SIIC Environment Holdings Business Overview & Revenue Model

Company Description

SIIC Environment Holdings Ltd., an investment holding company, engages in the wastewater treatment, water supply, sludge treatment, solid waste incineration, and other environment related businesses primarily in the People's Republic of China. It operates through three segments: Water and Sludge Treatment; Water Supply; and Waste Incineration. The Water and Sludge Treatment segment constructs, manages, and operates water and sludge related infrastructure under service concession arrangements; and manages and operates water and sludge related infrastructure under non-service concession arrangements, as well as provides financial income under service concession arrangements. The Water Supply segment engages in the construction, management, and operation of water supply related infrastructure under service concession arrangements. The Waste Incineration segment constructs, manages, and operates waste incineration related infrastructure under service concession arrangements. The company has a portfolio of approximately 250 water treatment and supply projects, 8 waste incineration projects, and 13 sludge treatment projects in 19 municipalities and provinces in China. It also provides management and consultancy services; treats and supplies potable water; and installs water meters. The company was formerly known as Asia Water Technology Ltd. and changed its name to SIIC Environment Holdings Ltd. in November 2012. SIIC Environment Holdings Ltd. was incorporated in 2002 and is headquartered in Singapore.

How the Company Makes Money

SIIC Environment Holdings generates revenue through a variety of streams primarily centered around its water and wastewater treatment operations. The company earns income by securing long-term contracts with municipal and industrial clients to design, build, and operate water treatment facilities. These contracts often include fixed payments for construction and recurring fees for operation and maintenance services. Additionally, the company benefits from public-private partnerships, where it collaborates with government bodies to manage and improve water infrastructure, which can lead to stable revenue through service fees and capacity fees. SIIC Environment Holdings may also receive government subsidies and financial support for projects that align with environmental protection goals, further contributing to its revenue.

SIIC Environment Holdings Financial Statement Overview

Summary

SIIC Environment Holdings shows stable revenue growth and strong gross profit margins. However, the high leverage and significant cash flow issues pose risks to financial stability. While profitability metrics like ROE are improving, cash flow challenges need addressing for long-term sustainability.

Income Statement

SIIC Environment Holdings shows stable revenue with a slight increase from 2023 to 2024, indicating steady growth. The Gross Profit Margin remains robust at 34.46% in 2024, although it is slightly lower than the previous year's 35.71%. However, the Net Profit Margin marginally improved to 7.97% from 7.98% in 2023. The absence of EBIT in 2024 is a concern, affecting the EBIT Margin, but EBITDA Margin remains high at 34.26% showcasing operational efficiency.

Balance Sheet

The company maintains a strong equity position with an Equity Ratio of 23.66% in 2024, reflecting healthy capital structure. However, the high Debt-to-Equity Ratio at 2.10 indicates significant leverage, which could pose risks if not managed prudently. Return on Equity improved slightly to 5.69% in 2024, suggesting steady profitability on shareholder investments.

Cash Flow

Cash flow statements reveal a significant decline in Operating Cash Flow and a negative Free Cash Flow in 2024, which raises concerns about cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 0.93, indicating less cash conversion from net income. The Free Cash Flow to Net Income Ratio is negative, further emphasizing cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.60B	7.57B	8.30B	7.27B	6.25B
Gross Profit	2.62B	2.70B	2.63B	2.40B	2.18B
EBITDA	2.60B	2.68B	2.60B	2.45B	2.24B
Net Income	605.14M	604.02M	780.20M	706.16M	635.34M
Balance Sheet
Total Assets	44.96B	42.61B	40.55B	37.51B	34.75B
Cash, Cash Equivalents and Short-Term Investments	2.93B	2.95B	2.61B	2.80B	2.67B
Total Debt	22.39B	20.30B	19.21B	16.72B	15.34B
Total Liabilities	28.87B	27.32B	25.73B	23.48B	21.73B
Stockholders Equity	10.64B	10.13B	9.82B	9.53B	8.93B
Cash Flow
Free Cash Flow	-1.20B	772.32M	-1.85B	-555.63M	-108.84M
Operating Cash Flow	565.09M	1.90B	-1.39B	315.62M	152.89M
Investing Cash Flow	-1.71B	-1.43B	-658.12M	-867.08M	-215.27M
Financing Cash Flow	1.17B	-89.46M	1.76B	678.55M	359.37M

SIIC Environment Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 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 SG:BHK, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:BHK.

SIIC Environment Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHK	71 Outperform	S$412.11M	3.67	5.83%	6.88%	-1.90%	-2.24%
Sector *	58 Neutral	kr4.03B	2.51	13.43%	3.32%	78.04%	29.42%
BOTRF	―	$545.42M	4.14	8.75%	8.24%	―	―
GLVNF	―	$382.61M	―	-8.11%	―	―	―
3UG	―	€433.65M	4.90	8.35%	5.98%	―	―
8900	―	€8.28M	4.56	-41.95%	38.90%	―	―
5GD	58 Neutral	S$179.03M	7.39	6.72%	―	0.07%	-33.33%

SIIC Environment Holdings Corporate Events

SIIC Environment Holdings Submits Monthly Return for May 2025

SIIC Environment Holdings Ltd. submitted a new monthly return for equity issuer and Hong Kong depositary receipts for the month ended 31 May 2025. The submission was made to the Hong Kong Exchanges and Clearing Limited, indicating the company’s compliance with the exchange listing rules, although no movements in authorized or registered share capital were reported.

SIIC Environment Holdings Reports Stable Equity Structure for April 2025

SIIC Environment Holdings Ltd. has submitted its monthly return for equity issuers and Hong Kong depositary receipts for the month ending April 30, 2025, to the Hong Kong Exchanges and Clearing Limited. The submission indicates no movements in the authorized or registered share capital, suggesting stability in the company’s equity structure.