SIIC Environment Holdings (BHK) AI Stock Analysis

• Market Cap: S$458.47M
• Dividend Yield: 6.29%
• Average Volume (3M): 385.67K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.22
• Revenue Growth: -1.90%
• EPS Growth: -2.24%
• Country: SG
• Employees: 6,252
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.02
• Shares Outstanding: 2,575,665,800
• 10 Day Avg. Volume: 137,720
• 30 Day Avg. Volume: 385,670
• PEG Ratio: 0.00
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -1.81
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: S$0.19 ▲(7.78% Upside)

The stock's overall score is driven by a strong valuation with a low P/E ratio and high dividend yield, indicating potential undervaluation and income appeal. Technical analysis supports a positive trend, though financial performance is weighed down by high leverage and cash flow concerns. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Stable Profitability Margins

Stable profitability margins suggest effective cost management, which supports long-term financial health and operational efficiency.

Regulatory Compliance

Regular compliance with regulatory requirements ensures market presence and investor confidence, supporting sustainable operations.

Adoption of Digital Practices

Embracing digital communication enhances stakeholder engagement and operational efficiency, aligning with modern business practices.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in rising interest rate environments, potentially impacting long-term stability.

Negative Free Cash Flow Growth

Negative cash flow growth suggests liquidity challenges, which can limit the company's ability to invest in growth and manage debt.

Declining Revenue Growth

Declining revenue growth indicates difficulties in market expansion, which could hinder long-term business development and profitability.

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 primarily through the provision of water and waste management services. Key revenue streams include long-term service contracts for wastewater treatment and solid waste management, where the company charges municipalities and industrial clients for operational services. Additionally, the company engages in project financing and public-private partnerships, which can lead to significant upfront capital investment and ongoing operational fees. Partnerships with local governments and private entities enhance their capabilities and expand their market reach, contributing to consistent revenue generation.

SIIC Environment Holdings Financial Statement Overview

Summary

SIIC Environment Holdings shows stable profitability margins but faces challenges with declining revenue growth and high leverage. The cash flow situation is concerning with negative free cash flow growth, indicating potential liquidity risks. Overall, while the company maintains profitability, its financial stability is challenged by high debt levels and cash flow issues.

Income Statement

The company shows a stable gross profit margin around 35%, indicating consistent cost management. However, the net profit margin has declined to 8.4% in TTM, reflecting pressure on profitability. Revenue growth is negative at -1.4% in TTM, suggesting challenges in expanding sales. EBIT and EBITDA margins remain healthy, but the declining revenue growth is a concern.

Balance Sheet

The debt-to-equity ratio is high at 2.14, indicating significant leverage which could pose risks in a rising interest rate environment. Return on equity is modest at 5.9%, suggesting efficient use of equity but not exceptional. The equity ratio is not provided, but the high leverage is a concern for financial stability.

Cash Flow

The company faces challenges with negative free cash flow growth at -70.6% in TTM, indicating potential liquidity issues. Operating cash flow to net income ratio is low at 0.16, suggesting weak cash conversion. The negative free cash flow to net income ratio highlights cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.45B	7.60B	7.57B	8.30B	7.27B	6.25B
Gross Profit	2.60B	2.62B	2.70B	2.63B	2.40B	2.18B
EBITDA	2.64B	2.60B	2.68B	2.60B	2.45B	2.24B
Net Income	627.95M	605.14M	604.02M	780.20M	706.16M	635.34M
Balance Sheet
Total Assets	45.33B	44.96B	42.61B	40.55B	37.51B	34.75B
Cash, Cash Equivalents and Short-Term Investments	4.02B	2.93B	2.95B	2.61B	2.80B	2.67B
Total Debt	23.03B	22.39B	20.30B	19.21B	16.72B	15.34B
Total Liabilities	28.93B	28.87B	27.32B	25.73B	23.48B	21.73B
Stockholders Equity	10.78B	10.64B	10.13B	9.82B	9.53B	8.93B
Cash Flow
Free Cash Flow	-185.92M	-1.20B	772.32M	-1.85B	-555.63M	-108.84M
Operating Cash Flow	1.26B	565.09M	1.90B	-1.39B	315.62M	152.89M
Investing Cash Flow	-1.07B	-1.71B	-1.43B	-658.12M	-867.08M	-215.27M
Financing Cash Flow	955.01M	1.17B	-89.46M	1.76B	678.55M	359.37M

SIIC Environment Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BHK, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.18, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.45 is Neutral, neither overbought nor oversold. The STOCH value of 61.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:BHK.

SIIC Environment Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
U9E	70 Outperform	S$715.22M	4.28	8.29%	7.88%	-4.16%	-12.99%
BHK	67 Neutral	S$458.47M	4.01	―	6.29%	-1.90%	-2.24%
5GD	66 Neutral	S$487.23M	20.10	6.52%	―	-5.31%	-47.29%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
BWM	63 Neutral	S$654.31M	4.87	10.29%	4.78%	6.50%	231.23%
5IG	50 Neutral	S$480.76M	-57.33	-1.18%	―	5.38%	81.93%
TWL	44 Neutral	S$13.72M	-0.99	-73.64%	―	-44.00%	-463.89%

SIIC Environment Holdings Corporate Events

SIIC Environment Holdings Granted New Waiver for Compliance

SIIC Environment Holdings Ltd. has been granted a new waiver from strict compliance with certain Hong Kong Listing Rules due to a change in joint company secretary. The waiver, effective from November 2025 to October 2027, requires Mr. Lee Wei Hsiung to be assisted by Ms. Kam Mei Ha Wendy during this period, with the possibility of revocation if there are material breaches of the rules.

SIIC Environment Holdings Submits Monthly Return for November 2025

SIIC Environment Holdings Ltd. submitted a new monthly return for equity issuers and Hong Kong Depositary Receipts for November 2025 to the Hong Kong Exchanges and Clearing Limited. This submission reflects the company’s compliance with regulatory requirements, although specific movements in authorized or registered share capital were not applicable for this period.

SIIC Environment Holdings Announces Key Leadership Changes

SIIC Environment Holdings Ltd. has announced the redesignation of Mr. Qin Feng from Deputy General Manager to Chief Technology Officer, effective November 19, 2025. Additionally, Mr. Liu Haojiang has been appointed as the Chief Digital Officer. These leadership changes are expected to enhance the company’s focus on technological innovation and digital transformation, potentially strengthening its market position in the environmental protection sector.

SIIC Environment Holdings Reports Stable Equity Structure for October 2025

SIIC Environment Holdings Ltd. submitted a monthly return for equity issuers and Hong Kong Depositary Receipts for October 2025 to the Hong Kong Exchanges and Clearing Limited. The submission indicates no movements in the company’s authorized or registered share capital for the period, suggesting stability in its equity structure.

SIIC Environment Holdings Announces Internal Reorganization

SIIC Environment Holdings Ltd. announced a proposed internal reorganization involving a change in the registered owner of its controlling shareholder, SIIC, to Golden Bell. Despite this change, the ultimate control of the company remains with the Shanghai Government, ensuring no impact on its operations or control structure.

SIIC Environment Holdings Submits Monthly Return for September 2025

SIIC Environment Holdings Ltd. submitted a new monthly return for equity issuers and Hong Kong Depositary Receipts for the period ending September 30, 2025. This submission is part of the company’s regulatory compliance with the Hong Kong Exchanges and Clearing Limited, reflecting its ongoing commitment to transparency in its financial operations.