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

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

(HKEX:0840)

Select Model

Rating:44Neutral

Price Target:HKD 0.15▼(-7.01% Downside)

Action:reiterated

Date:09/11/26

The score is held down primarily by weak fundamentals—negative operating profitability and a sharp swing to deeply negative free cash flow despite modestly positive operating cash flow. Technical signals are also mildly bearish (negative MACD, RSI below 50, and price below longer-term moving averages), while valuation provides limited support because the company is loss-making and no dividend yield is available.

Positive Factors

Revenue recoveryThe return to double-digit revenue growth indicates improving demand or sales execution after earlier contraction. If sustained, a larger revenue base could improve operating leverage and create a foundation for restoring profitability, although current margins remain weak.

Negative Factors

Persistently weak profitabilityVery low gross margin and continued negative operating margins show that the revenue recovery has not yet produced sustainable earnings power. Without material improvement in unit economics or cost absorption, growth may continue to require resources without generating adequate shareholder returns.

Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H (0840) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 81.05M
Dividend Yield: ―
Average Volume (3M): 148.79K
Price to Earnings (P/E): -1.8
Beta (1Y): 0.34
Revenue Growth: 40.38%
EPS Growth: 44.68%
Country: Hong Kong
Employees: 430
Sector: Industrials
Sector Strength: 63
Industry: Agricultural - Machinery

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

Company Description

Xinjiang Tianye Water Saving Irrigation System Company Limited focuses on the creation, production, and distribution of essential components for water-efficient irrigation systems throughout the People's Republic of China. This includes drip tapes, P...

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

Summary

Revenue has returned to growth and losses have narrowed, but profitability remains weak with low gross margin (~5.8%) and negative operating margins (EBIT/EBITDA ~-3%). The key risk is cash generation: operating cash flow is positive (~24M) but free cash flow is deeply negative (~-111M), suggesting reduced financial flexibility and potential funding pressure if the trend persists.

Income Statement

32Negative

Balance Sheet

56Neutral

Cash Flow

41Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09B	848.40M	1.50B	2.22B	1.47B	1.11B
Gross Profit	63.24M	53.87M	41.91M	100.87M	16.67M	64.95M
EBITDA	3.01B	-30.76M	-8.04M	19.07M	-57.13M	-35.72M
Net Income	-39.18M	-54.82M	-39.54M	-11.55M	-78.12M	-66.84M
Balance Sheet
Total Assets	1.23B	1.29B	1.23B	1.22B	1.03B	964.98M
Cash, Cash Equivalents and Short-Term Investments	330.14M	477.90M	422.32M	340.79M	238.75M	148.33M
Total Debt	152.03M	117.32M	112.25M	118.90M	133.02M	87.03M
Total Liabilities	867.42M	937.07M	822.94M	769.28M	582.61M	435.88M
Stockholders Equity	332.98M	327.00M	381.72M	441.38M	444.02M	503.93M
Cash Flow
Free Cash Flow	-110.95M	37.68M	114.83M	115.14M	53.73M	32.61M
Operating Cash Flow	24.26M	44.24M	126.12M	129.66M	60.30M	48.85M
Investing Cash Flow	-8.55M	-4.55M	-10.83M	12.93M	-6.55M	-10.36M
Financing Cash Flow	-7.54M	2.88M	-36.67M	-44.49M	26.38M	-9.74M

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

Technical Analysis SentimentNegative

Last Price0.16

Price Trends

50DMA0.17Negative

100DMA0.18Negative

200DMA0.19Negative

Market Momentum

MACD-0.00Positive

RSI46.22Neutral

STOCH37.26Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0840, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.17, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0840.

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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:0840 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:3339	76Outperform	HKD 11.98B	7.20	12.47%	7.14%	21.86%	25.46%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:0038	62Neutral	HKD 14.38B	16.97	10.71%	4.03%	18.38%	14.26%
HK:0631	61Neutral	HKD 21.48B	10.84	12.81%	5.36%	19.07%	29.20%
HK:1157	52Neutral	HKD 57.01B	13.09	6.73%	8.95%	22.97%	6.24%
HK:0840	44Neutral	HKD 81.56M	-1.77	-11.88%	―	40.38%	44.68%
HK:2153	39Underperform	HKD 974.34M	-6.92	-9.84%	―	-6.74%	-2.06%

* Industrials Sector Average

Performance Comparison

HK:0840 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:0840	Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H	0.16	-0.06	-27.65%
HK:0038	First Tractor Co Class H	7.55	-0.10	-1.27%
HK:3339	Lonking Holdings	2.80	-0.12	-4.24%
HK:0631	Sany Heavy Equipment International Holdings Co	6.53	-0.39	-5.69%
HK:1157	Zoomlion Heavy Industry Science & Technology Co Class H	4.99	-2.18	-30.39%
HK:2153	Tat Hong Equipment Service Co. Ltd.	0.83	-0.21	-19.71%

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

Xinjiang Tianye Swings to Tiny Interim Profit as Revenue Jumps 75%

Aug 28, 2026

Xinjiang Tianye Water Saving Irrigation System Company Limited reported a sharp rebound in performance for the six months ended 30 June 2026, with total operating revenue rising 74.54% year on year to about RMB558.4 million, driven mainly by growth i...

Xinjiang Tianye Schedules Board Meeting to Review Interim Results and Dividend

Aug 18, 2026

Xinjiang Tianye Water Saving Irrigation System Company Limited, a Hong Kong‑listed PRC joint stock company in the water‑saving irrigation sector, provides irrigation systems and technologies that support agricultural development, with ope...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 11, 2026

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

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