Niutech Environment Technology Corporation engages in the research and development, production, and sale of environment protection equipment worldwide. It offers tire to oil, plastic to oil, oil purification, CB processing, biomass pyrolysis, and oil sludge systems. The company is based in Jinan, China.

China

Niutech Environment Technology Corporation

Industrials

The company pays dividends from time to time. It has paid dividends in less than half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are somewhat mixed. In the past 12 months, the dividend yield has been low and below its peers. On average, the company pays dividends annually. 

688309.SS reported revenue of CNY 199mn in the last 12 months, up 29% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 28% from FY24 to CNY 0.27.

Over the past six months, the stock has consistently climbed, resulting in 15% total increase. When compared to its international counterparts in the same sector and industry (as shown above), the stock has exceeded their performances, leading by 18ppts in total. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is favourable. This generally signifies that a stock is fairly valued or marginally undervalued abd is becoming more 'expensive', suggesting a short-term spike in confidence by the market at large.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 17.1% in the last 12 months, a decline from 18.0% in FY23. 

Historically, 688309.SS has reported good net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 11.1%, a growth from 11.1% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 2.4% in the last 12 months, an increase from 2.1% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 2.9%, below the peers. 

Niutech Environment Technology Corporation reported a return on equity (RoE) of 3.0% in the last 12 months, up from 2.5% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.2 in the past several years. This ratio implies a weak shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

688309.SS has average trading liquidity. The average private investor can sell his common position in the stock in a single trading day under normal market conditions. Liquidity is usually very stable and remains favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to weak positions in its industry, negligible return on capital.

In highly turbulent market conditions, 688309.SS is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, 688309.SS is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to notable. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITDA, overvalued on P/FCF. 

Niutech Environment Technology Corporation

CN¥ 16.92

3

Niutech Environment Technology Corporation

CN¥ 16.92

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 16.92

About

About

About

About