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Kangda International Environmental Company (6136) Fair Value & Analysis

Utilities · HK · Market cap HK$1.8B

KI Kangda International Environmental Company 6136 · HK
PriceHK$0.7800
Fair ValueHK$2.03
Upside+160.3%
Quality55/100
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Weak Growth
Thin margins · 9.8% net margin
Moderate debt · generates free cash flow
Ranks above peers (10/13)
Moderate moat 51/100
Evidence: High Range HK$1.52 – HK$2.13 Share as image

Fair value as of: Aug 6, 2026

From 21 valuation models · updated 4 days ago

Fair value updated Aug 6, 2026, revised from HK$2.02 to HK$2.03 (+0.5%) since Jul 2, 2026. Share price +1.3% over the past month.

A solid business, screening 160% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$1.52). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$1.00 HK$0.1840 Fair Value HK$2.03 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 6, 2026.

How to read this chart

60‑month range HK$0.1840 – HK$1.00 · fair‑value band HK$1.52 – HK$2.13 · the HK$0.7800 price screens below the HK$2.03 fair value. Dashed = 300-day average. As of Aug 6, 2026.

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Analysis

Kangda International Environmental Company (6136) currently trades at HK$0.7800, while our model-based Fair Value estimate is HK$2.03, implying the stock looks roughly 160.3% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Utilities 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: high), always confirm before acting.

Over the trailing twelve months, Kangda International Environmental Company generated revenue of HK$2.4B at a net margin of 9.8%. Revenue grew 10.0% year over year. It earns a return on equity of 4.0%. Net debt stands at HK$9.0B. Fundamentals as of Aug 6, 2026

Our scenario range runs from HK$1.52 (bear case) to HK$2.13 (bull case); at HK$0.7800, the current price sits below 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 15% below its 52-week high and 133% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -10% fair-value upside, at 160%, 6136 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$0.0100 HK$0.6500 HK$1.57 80
Residual Income HK$1.88 HK$1.81 HK$1.49 76
Rev-Margin DCF HK$0.3900 HK$1.37 74
All 21 models by family
DCF Models
FCF DCF HK$0.6300 HK$1.68 38
5Y Revenue Exit HK$0.3500 HK$1.39 39
5Y EBITDA Exit HK$0.1500 HK$1.32 HK$2.78 41
5Y P/E Exit HK$0.4800 38
10Y Revenue Exit HK$0.3400 HK$1.07 36
10Y EBITDA Exit HK$0.0500 HK$0.9300 HK$1.93 37
10Y P/E Exit HK$0.0400 HK$0.5100 35
Earnings-Based
Graham-Dodd HK$0.7000 HK$1.27 HK$1.57 54
EPV HK$0.1700 HK$0.5300 HK$0.8200 59
Multiples
P/E Multiple HK$1.39 HK$1.85 HK$2.31 63
P/S Multiple HK$1.31 HK$1.75 HK$2.19 58
P/B Multiple HK$1.31 HK$1.75 HK$2.19 55
EV/EBIT HK$1.71 HK$3.08 HK$4.45 53
EV/EBITDA HK$0.7200 HK$1.76 HK$2.80 54
EV/Revenue HK$0.2300 HK$1.02 43
Asset-Based
NCAV (Graham) HK$1.35 HK$1.81 HK$2.70 50
Growth DCF
Growth DCF HK$0.0100 HK$0.6500 HK$1.57 80
Rev-Margin DCF HK$0.3900 HK$1.37 74
Economic Profit
Residual Income HK$1.88 HK$1.81 HK$1.49 76
ROIC Compounder HK$0.1700 HK$0.5300 HK$0.8200 72
Growth Earnings
Growth-Adj P/E HK$0.9900 HK$1.41 HK$1.84 68

Widest divergence: Asset-Based (HK$1.81) versus DCF Models (HK$0.3500). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$2.4B
Revenue growth (YoY) +10.0%
Net margin 9.8%
Return on equity 4.0%
Free cash flow HK$639M FY2025
P/E ratio 6.4
More key figures
Operating margin 29.2%
EPS (TTM) HK$0.0500
EPS growth (YoY) +113%
Net debt HK$9.0B FY2025

Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 52 · Market factors (momentum, volatility) 82

Profitability 22
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 98
Earnings quality: real cash, not paper profit
Fin. Strength 17
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 87
Price trend over the last 3–12 months (market factor)
52W Momentum 88
Distance to the 52-week high (market factor)
Net Issuance 61
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

Kangda International Environmental Company Limited, an investment holding company, designs, constructs, operates, and maintains wastewater treatment plants, reclaimed water treatment plants, water distribution plants, sludge treatment plants, and other municipal infrastructure in China.

Full company description

Kangda International Environmental Company Limited, an investment holding company, designs, constructs, operates, and maintains wastewater treatment plants, reclaimed water treatment plants, water distribution plants, sludge treatment plants, and other municipal infrastructure in China. It operates through Urban Water Treatment, Water Environment Comprehensive Remediation, and Rural Water Improvement segments. The company is also involved in the provision of river harnessing and improvement, foul water body treatment, and sponge city construction services; construction and operation of water environment facilities in villages, including wastewater treatment facilities; and pipeline construction for collecting wastewater. In addition, it invests in wastewater treatment plants (WTP) and energy industry; constructs municipal infrastructure; provides of WTP and sludge treatment plants operation services and reclaimed water treatment services; invests and manages environmental projects and public infrastructure projects; develops and sells computer software; and sells water purifying materials. The company serves municipal, district, or county level governments, as well as its designees. Kangda International Environmental Company Limited was founded in 1996 and is headquartered in Chongqing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kangda International Environmental Company reported revenue of HK$2.4B in FY2025 versus HK$2.9B in FY2021, a compound −4.5%/yr. Reported net income was HK$237M in FY2025, compounding −12.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$2.4B
Latest YoY
+7.3%
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.
−5.7%
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.
−6.1%
Avg. growth/yr (13Y) 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.
+7.1%
Revenue −4.5%/yr
FY21 HK$2.9B
FY22 HK$2.9B
FY23 HK$2.2B
FY24 HK$2.3B
FY25 HK$2.4B
Net income −12.9%/yr
FY21 HK$413M
FY22 HK$236M
FY23 HK$125M
FY24 HK$168M
FY25 HK$237M
Character of growth · EPS growth decomposed (2014-2025) −7.3 % p.a.
Revenue per share +1.3 pp

of which total revenue +2.4 pp · buybacks/dilution −1.1 pp

EBIT margin +1.6 pp
Tax rate −1.7 pp
Residual (interest, one-offs) −8.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Kangda International Environmental Company Fair Value". https://www.fairvalue-calculator.com/stock/6136

Peer Group

Utilities - Regulated Water · 67 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 55 · Top 25%
Fair Value upside +160% · Top 25%
Return on equity (TTM) 4% · Below median
Return on assets 2% · Above median
Net margin (TTM) 10% · Below median
Operating margin (TTM) 29% · Above median
Revenue growth 10% · Above median
Debt / equity 0.95× · Higher than 75% of peers

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 6.4× · Cheaper than 75% of peers
P/B 0.29× · Cheaper than 75% of peers
P/S (TTM) 0.73× · Cheaper than 75% of peers
P/FCF 0.4× · Cheaper than 75% of peers
EV/EBITDA 8.6× · Cheaper than median

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 100 · sector 1
FUTURE 50 · sector 28
PAST 16 · sector 29
HEALTH 52 · sector 66
DIVIDEND 0 · sector 49

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 Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Aug 6, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $134.33 $65.80 -51%
SBSP3 SBSP3 R$29.22 R$31.23 +7%
SBS SBS $5.79 $5.21 -10%
Essential Utilities, Inc WTRG $38.59 $21.81 -43%
CSMG3 CSMG3 R$66.10 R$60.17 -9%
Grandblue Environment Co 600323 ¥29.42 ¥33.29 +13%
American States Water Company AWR $85.01 $48.02 -44%
Chengdu Xingrong Environment Co 000598 ¥6.97 ¥10.74 +54%
California Water Service Group CWT $49.73 $33.56 -33%
Chongqing Water Group 601158 ¥4.12 ¥2.77 -33%

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Frequently asked questions

Is Kangda International Environmental Company (6136) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of HK$2.03 versus a price of HK$0.7800, about +160% (undervalued).
What is the fair value of 6136?
Our model-based fair value for Kangda International Environmental Company is HK$2.03 (as of Aug 6, 2026), built from audited fundamentals. The current price is HK$0.7800.
What is the quality score of 6136?
Kangda International Environmental Company has a Quality Score of 55/100. 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 Kangda International Environmental Company (6136)?
Kangda International Environmental Company reported trailing-twelve-month revenue of about HK$2.4B (latest available figure, as of Aug 6, 2026).
What is the net profit margin of 6136?
The net profit margin of Kangda International Environmental Company is about 9.8%, meaning it keeps roughly 9.8% of revenue as net income. 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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