Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H (0840) AI Stock Analysis

• Market Cap: HK$97.15M
• Dividend Yield: N/A
• Average Volume (3M): 143.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -65.44%
• EPS Growth: -149200.00%
• Country: HK
• Employees: 500
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -0.03
• Shares Outstanding: 202,400,000
• 10 Day Avg. Volume: 119,200
• 30 Day Avg. Volume: 143,866
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 0.84
• 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

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score reflects significant financial challenges, including declining revenues and negative profitability. Technical indicators suggest a bearish trend, and poor valuation metrics further weigh down the score. The lack of earnings call data and corporate events means these factors do not influence the score.

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Xinjiang Tianye Water Saving Irrigation System Company Limited designs, manufactures, and sells drip tapes, PVC/PE pipelines, and drip assemblies for use in water saving irrigation systems in the People's Republic of China. It also offers installation services for water saving irrigation systems. In addition, the company engages in land circulation and engineering business; and strategic developing digital agriculture and agriculture service business. The company was founded in 1999 and is headquartered in Shihezi, the People's Republic of China.

How the Company Makes Money

The company generates revenue through multiple streams including the sale of its irrigation systems and components, installation services, and maintenance contracts. Key revenue streams include direct sales to agricultural producers, government contracts for large-scale irrigation projects, and partnerships with agricultural cooperatives. Additionally, Xinjiang Tianye may also benefit from subsidies or incentives related to water conservation initiatives supported by government programs, which can further enhance its profitability.

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, negative profitability, and cash flow issues. The balance sheet indicates high leverage, which could be risky without improved earnings. The company needs to address these challenges to stabilize its financial position and return to profitability.

Income Statement

The company experienced a significant revenue decline of about 32% from 2023 to 2024. Gross profit margin decreased to 2.8% in 2024 from 4.5% in 2023, indicating pressure on profitability. Notably, the net profit margin turned negative, with a net loss reported in 2024, reflecting challenges in cost management and revenue generation. The EBIT and EBITDA margins are also negative, further emphasizing operational difficulties.

Balance Sheet

The debt-to-equity ratio improved slightly over the years, with total debt decreasing and stockholders' equity increasing from 2023 to 2024. However, the equity ratio decreased, indicating increased leverage. The company's total assets grew, but the drop in equity suggests a more leveraged position, which could pose risks if revenue generation does not improve.

Cash Flow

The company reported zero operating and free cash flow in 2024, a sharp decline from previous years, suggesting cash flow management issues. The free cash flow to net income ratio cannot be calculated due to negative net income, highlighting constraints in converting profits to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	801.08M	1.50B	2.22B	1.47B	1.11B	706.56M
Gross Profit	7.95M	41.91M	100.87M	16.67M	64.95M	83.89M
EBITDA	-41.74M	-23.74M	19.07M	-57.13M	-35.72M	20.00M
Net Income	-71.64M	-39.54M	-11.55M	-78.12M	-66.84M	649.96K
Balance Sheet
Total Assets	1.18B	1.23B	1.22B	1.03B	964.98M	946.73M
Cash, Cash Equivalents and Short-Term Investments	360.25M	422.32M	340.79M	238.75M	148.33M	116.34M
Total Debt	151.43M	112.25M	118.90M	130.35M	87.03M	53.06M
Total Liabilities	778.94M	822.94M	769.28M	582.61M	435.88M	365.01M
Stockholders Equity	370.68M	381.72M	441.38M	444.02M	503.93M	570.30M
Cash Flow
Free Cash Flow	-49.60M	114.83M	115.14M	53.73M	32.61M	24.06M
Operating Cash Flow	-38.31M	126.12M	129.66M	60.30M	48.85M	44.86M
Investing Cash Flow	5.69M	-10.83M	12.93M	-6.55M	-10.36M	-13.45M
Financing Cash Flow	-32.67M	-36.67M	-44.49M	26.38M	-9.74M	21.45M

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0840, the sentiment is Positive. The current price of 0.2 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.21, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 50.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0840.

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0038	―	$12.78B	9.40	10.40%	5.03%	-9.90%	-20.25%
2499	―	HK$1.99B	16.75	9.37%	0.56%	19.37%	75.13%
2102	―	HK$280.00M	9.93	6.36%	4.90%	18.37%	297.18%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1122	―	HK$1.86B	―	-1.07%	―	7.91%	-6.56%
0840	―	HK$97.15M	―	-17.69%	―	-65.44%	-149200.00%
2153	―	€1.27B	―	-8.98%	―	-7.98%	-25.03%

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H Corporate Events

Xinjiang Tianye Completes Shareholder Restructuring

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. has completed a restructuring of its controlling shareholder. The restructuring involves the transfer of a 38.40% equity interest from the 8th Division SASAC to Tianye Group, enabling Tianye Group to exercise 51.00% of the voting rights in the New Holdco. This change positions the New Holdco as a subsidiary of Tianye Group, with its financial statements consolidated into Tianye Group’s accounts, while the 8th Division SASAC remains the ultimate beneficial controller.

Xinjiang Tianye Reports Significant Revenue Decline in H1 2025

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. reported a significant decline in its financial performance for the first half of 2025. The company experienced a 68.55% decrease in total operating revenue compared to the same period in the previous year, resulting in an unaudited net loss of RMB15,499,000. This downturn has led the board to decide against paying an interim dividend, highlighting the challenging market conditions and operational difficulties faced by the company.

Xinjiang Tianye Issues Profit Alert Amid Market Challenges

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. has issued a profit alert, indicating an expected net loss of approximately RMB15,499,000 for the first half of 2025, compared to a net profit of RMB13,857,000 in the same period of 2024. The loss is attributed to a significant decrease in high-standard farmland construction projects due to changes in market conditions and government policies, leading to a decline in sales of PVC pipeline products and reduced income from engineering services. Despite the anticipated loss, the company’s financial position remains stable.

Xinjiang Tianye Announces Board Meeting to Review Interim Results

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. has announced a board meeting scheduled for August 28, 2025, to discuss and approve the unaudited consolidated interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.