China Conch Environment Protection Holdings Ltd. (0587) AI Stock Analysis

• Market Cap: HK$1.04B
• Dividend Yield: 5.26%
• Average Volume (3M): 942.27K
• Price to Earnings (P/E): 154.1
• Beta (1Y): 1.08
• Revenue Growth: -12.14%
• EPS Growth: -97.71%
• Country: HK
• Employees: 3,288
• Sector: Industrials
• Sector Strength: 92
• Industry: Waste Management
• EPS (TTM): <0.01
• Shares Outstanding: 1,826,765,000
• 10 Day Avg. Volume: 804,367
• 30 Day Avg. Volume: 942,269
• PEG Ratio: -0.30
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.66
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$0.50 ▼(-12.28%Downside)

The overall stock score reflects a balance of financial stability and challenges. While the company maintains a strong capital structure and operating cash flows, issues with profitability and high valuation metrics weigh on the score. The technical analysis suggests bearish momentum, further impacting the stock's attractiveness.

China Conch Environment Protection Holdings Ltd. Business Overview & Revenue Model

Company Description

China Conch Environment Protection Holdings Limited, an investment holding company, provides treatment solutions for industrial solid and hazardous waste primarily utilizing cement kiln waste treatment technologies in the People's Republic of China. It also provides resource recycling and technical consultation services. The company was incorporated in 2020 and is headquartered in Wuhu, China. China Conch Environment Protection Holdings Limited is a subsidiary of China Conch Venture Holdings Limited.

How the Company Makes Money

China Conch Environment Protection Holdings Ltd. generates revenue by offering various environmental protection services such as waste treatment, resource recycling, and pollution control. The company leverages advanced technologies to efficiently manage and recycle waste materials, converting them into usable resources. Revenue streams include service fees from waste management, sales of recycled materials, and potentially government subsidies or incentives for environmental initiatives. The company may also engage in strategic partnerships with local governments and businesses to expand its reach and effectiveness, contributing to its earnings.

China Conch Environment Protection Holdings Ltd. Financial Statement Overview

Summary

China Conch Environment Protection Holdings Ltd. exhibits financial stability with a solid capital structure, yet faces challenges in profitability and revenue growth. The company demonstrates strong operating cash flows but needs to improve profit margins and manage leverage to ensure sustainable growth.

Income Statement

The company's revenue has shown fluctuations, with a recent decline from 2023 to 2024. Gross Profit Margin in 2024 was approximately 37.3%, with a significant drop in net profit margin to 0.4%, indicating pressure on profitability. EBIT and EBITDA margins have also decreased, highlighting challenges in maintaining operational efficiency.

Balance Sheet

The debt-to-equity ratio in 2024 was approximately 1.58, suggesting a moderate level of leverage. Return on equity has significantly decreased to 0.2% in 2024, reflecting reduced profitability on equity capital. The equity ratio stands at 30.2%, indicating a stable capital structure with reliance on equity.

Cash Flow

Operating cash flow remains strong, though free cash flow has improved from negative in previous years to positive in 2024. The operating cash flow to net income ratio is robust, but the free cash flow to net income ratio shows volatility, indicating potential instability in cash generation relative to profits.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.69B	1.88B	1.73B	1.70B	1.14B
	Gross Profit
629.27M	893.57M	910.14M	1.02B	749.65M
	EBIT
132.80M	453.08M	497.56M	739.98M	575.27M
	EBITDA
445.82M	711.03M	724.85M	894.90M	677.69M
	Net Income Common Stockholders
6.28M	264.13M	328.66M	578.61M	468.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
345.62M	295.30M	273.06M	612.79M	670.48M
	Total Assets
9.75B	9.41B	8.54B	7.51B	4.89B
	Total Debt
4.66B	4.27B	3.78B	3.05B	1.17B
	Net Debt
4.31B	4.02B	3.51B	2.45B	527.66M
	Total Liabilities
6.09B	5.70B	5.15B	4.42B	3.09B
	Stockholders Equity
2.95B	2.99B	2.73B	2.42B	1.05B
Cash Flow		Free Cash Flow
-154.96M	-196.82M	-946.76M	-1.49B	-1.03B
	Operating Cash Flow
434.08M	631.11M	542.99M	767.72M	453.46M
	Investing Cash Flow
-540.18M	-973.72M	-1.41B	-2.18B	-1.63B
	Financing Cash Flow
205.46M	315.81M	541.32M	1.37B	1.57B

China Conch Environment Protection Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0587, the sentiment is Positive. The current price of 0.57 is above the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.57, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0587.

China Conch Environment Protection Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$4.44B	12.22	5.28%	248.14%	4.08%	-12.12%
0587	55 Neutral	HK$1.04B	154.05	0.21%	5.26%	-12.14%	-97.71%
EGRNF		$274.36M	―		―	―	―
CJRCF		$1.42B	28.99	0.79%	1.66%	―	―
LUG		€570.25M	―	-17.32%	―	―	―
WCHNF		$974.85M	11.13	5.10%	2.67%	―	―
DYN		€1.09B	8.01	7.85%	6.99%	―	―

China Conch Environment Protection Holdings Ltd. Corporate Events

China Conch Environment Protection Holdings Ltd. Announces AGM and Strategic Resolutions

China Conch Environment Protection Holdings Ltd. has announced its upcoming annual general meeting, scheduled for June 26, 2025. Key agenda items include the adoption of financial statements, re-election of directors, appointment of auditors, and the approval of mandates for share buybacks and issuance, reflecting strategic governance and operational planning.

China Conch Proposes Auditor Change to Ernst & Young

China Conch Environment Protection Holdings Limited has announced a proposed change of auditor, with KPMG set to retire following the 2025 annual general meeting. The company plans to appoint Ernst & Young as the new auditor, citing enhanced independence and good corporate governance as reasons for the change. This transition is expected to be in the best interest of the company and its shareholders, pending approval at the 2025 meeting.

China Conch Environment Protection Releases Q1 2025 Financials for Subsidiary

China Conch Environment Protection Holdings Limited announced the unaudited financial results for the first quarter of 2025 for its subsidiary, Anhui Conch Environment Group. The subsidiary reported total assets of RMB 8,288.04 million, total liabilities of RMB 5,210.87 million, and a net profit of RMB 14.47 million. The release of this financial information follows the issuance of green medium-term notes, highlighting the company’s commitment to sustainable finance. Stakeholders are advised to exercise caution as these figures have not been audited.

China Conch Environment Protection Completes Issuance of 2025 Green Notes

China Conch Environment Protection Holdings Ltd. announced the successful issuance of its 2025 first tranche green medium-term notes, amounting to RMB1.0 billion, with a coupon rate of 1.8%. This issuance, led by China Minsheng Banking Corp., Ltd., reflects the company’s commitment to sustainable financing and strengthens its position in the green finance market, providing potential growth opportunities for stakeholders.

China Conch Environment Protection Holdings Ltd. Announces Board Meeting for Annual Results

China Conch Environment Protection Holdings Ltd. has announced a board meeting scheduled for March 24, 2025, to discuss and approve the audited consolidated annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and other business matters, which could impact the company’s financial strategy and shareholder returns.