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China Dredging Environment Protection Holdings (0871) Fair Value & Analysis

Industrials · HK · Market cap HK$102M

CD China Dredging Environment Protection Holdings 0871 · HK
PriceHK$0.0470
Fair ValueHK$0.0517
Upside+10.0%
Quality50/100
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Weak Growth
Loss-making · -32.5% net margin
High debt · generates free cash flow
Mixed vs. peers (6/12)
Narrow moat 6/100
Evidence: Medium Range HK$0.0434 – HK$0.0600 Share as image

Fair value as of: Aug 13, 2026

From 9 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$0.0536 to HK$0.0517 (−3.6%) since Aug 5, 2026. Share price −26.6% over the past month.

A solid business, screening 10% undervalued on our models.

What matters now

  • Our model range runs from HK$0.0434 (bear) to HK$0.0600 (bull), base HK$0.0517. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 50/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

HK$0.2800 HK$0.0460 Fair Value HK$0.0517 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.0460 – HK$0.2800 · fair‑value band HK$0.0434 – HK$0.0600 · the HK$0.0470 price screens below the HK$0.0517 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Dredging Environment Protection Holdings (0871) currently trades at HK$0.0470, while our model-based Fair Value estimate is HK$0.0517, implying the stock looks roughly 10.0% undervalued today. The Quality Score stands at 50/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, China Dredging Environment Protection Holdings generated revenue of HK$302M at a net margin of -32.5%. Revenue declined 2.9% year over year. It earns a return on equity of -29.6%. Net debt stands at HK$272M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.0434 (bear case) to HK$0.0600 (bull case); at HK$0.0470, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 58% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at 10%, 0871 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$0.1600 HK$0.2100 HK$0.2900 80
Rev-Margin DCF HK$0.0500 HK$0.0700 HK$0.0900 74
EV/EBITDA HK$0.5200 HK$0.7100 HK$0.9000 54
All 9 models by family
DCF Models
FCF DCF HK$0.1500 HK$0.2100 HK$0.2900 38
5Y Revenue Exit HK$0.0500 HK$0.0600 HK$0.0800 39
5Y EBITDA Exit HK$0.3000 HK$0.5000 HK$0.7500 41
10Y Revenue Exit HK$0.1000 HK$0.1100 HK$0.1200 36
10Y EBITDA Exit HK$0.2300 HK$0.3400 HK$0.4600 37
Multiples
EV/EBITDA HK$0.5200 HK$0.7100 HK$0.9000 54
Asset-Based
NCAV (Graham) HK$0.0100 HK$0.0100 HK$0.0200 50
Growth DCF
Growth DCF HK$0.1600 HK$0.2100 HK$0.2900 80
Rev-Margin DCF HK$0.0500 HK$0.0700 HK$0.0900 74

Widest divergence: Multiples (HK$0.7100) versus Asset-Based (HK$0.0100). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$302M
Revenue growth (YoY) -2.9%
Net margin -32.5%
Return on equity -29.6%
Free cash flow HK$43.7M FY2025
Operating margin -0.9%
More key figures
EPS (TTM) HK$-0.0100
Net debt HK$272M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 48 · Market factors (momentum, volatility) 19

Profitability 4
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 3
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Dredging Environment Protection Holdings Limited, an investment holding company, engages in dredging business in Mainland China and internationally. It operates through three segments: Capital and Reclamation Dredging Business; Environmental Protection Dredging and Water Management Business; Other Marine Business.

Full company description

China Dredging Environment Protection Holdings Limited, an investment holding company, engages in dredging business in Mainland China and internationally. It operates through three segments: Capital and Reclamation Dredging Business; Environmental Protection Dredging and Water Management Business; Other Marine Business. The company offers capital and reclamation dredging services, and related consultation services; and dredging, water management, and construction services for promoting environmental interests and water quality for inland rivers. It also provides marine hoisting, installation, salvaging, vessel chartering, and other engineering services; manages and leases shopping malls and factories; and constructs hotels. In addition, the company is involved in the manufacturing of dredging machines; provision of management and hoisting wind power equipment services; lending and venture capital financing business in the technology sector; and property development, management, and investment activities. The company was formerly known as Xiangyu Dredging Holdings Limited and changed its name to China Dredging Environment Protection Holdings Limited in January 2014. China Dredging Environment Protection Holdings Limited was founded in 2002 and is headquartered in Yancheng, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Dredging Environment Protection Holdings reported revenue of HK$302M in FY2025 versus HK$387M in FY2021, a compound −6.0%/yr. Reported net income was −HK$98.1M in FY2025.

Growth Quality 30/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$302M
Latest YoY
−7.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.1%
Avg. growth/yr (17Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.9%
Revenue −6.0%/yr
FY21 HK$387M
FY22 HK$385M
FY23 HK$375M
FY24 HK$325M
FY25 HK$302M
Net income
FY21 HK$22.6M
FY22 −HK$340M
FY23 −HK$231M
FY24 −HK$322M
FY25 −HK$98.1M

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Cite: Fair Value Calculator (2026). "China Dredging Environment Protection Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0871

Peer Group

Engineering & Construction · 838 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 50 · Above median
Fair Value upside +6% · Above median
Return on assets 0% · Bottom 25%
Net margin (TTM) -32% · Bottom 25%
Operating margin (TTM) -1% · Bottom 25%
Revenue growth -3% · Below median
Debt / equity 4.41× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/B 0.45× · Cheaper than 75% of peers
P/S (TTM) 0.04× · Cheaper than 75% of peers
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 1.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 42 · sector 14
FUTURE 0 · sector 14
PAST 0 · sector 26
HEALTH 0 · sector 94
DIVIDEND 0 · sector 42

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
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Rail Vikas Nigam Limited RVNL ₹230.00 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
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GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 45,400 KRW 43,924 KRW -3%

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Frequently asked questions

Is China Dredging Environment Protection Holdings (0871) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.0517 versus a price of HK$0.0470, about +10% (undervalued).
What is the fair value of 0871?
Our model-based fair value for China Dredging Environment Protection Holdings is HK$0.0517 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.0470.
What is the quality score of 0871?
China Dredging Environment Protection Holdings has a Quality Score of 50/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Dredging Environment Protection Holdings (0871)?
China Dredging Environment Protection Holdings reported trailing-twelve-month revenue of about HK$302M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0871?
The net profit margin of China Dredging Environment Protection Holdings is about -32.5%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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