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Zonqing Environmental Limited (HK:1855)
:1855
Hong Kong Market
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Zonqing Environmental Limited (1855) AI Stock Analysis

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HK:1855

Zonqing Environmental Limited

(1855)

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Neutral 47 (OpenAI - Gpt-5.6Sol)
Rating:47Neutral
Price Target:
HK$0.17
▼(-87.05% Downside)
Action:Reiterated
Date:09/08/26
The score is held down primarily by weakening financial performance (shrinking revenue and sharply lower profitability, alongside meaningful leverage) and weak technicals (price below major moving averages with slightly negative MACD). These are partially offset by a strong rebound in 2025 operating and free cash flow, but valuation support is limited given the negative P/E and no dividend yield data.
Positive Factors
Strong 2025 Cash Generation
The sharp 2025 recovery in operating and free cash flow materially improves liquidity and provides internal funding capacity. If cash conversion remains positive, the company can better support operations, service obligations, and pursue investment without relying as heavily on external financing.
Negative Factors
Declining Revenue
Two consecutive years of revenue contraction point to weakening top-line momentum and a less stable demand outlook than in 2023. Persistent shrinkage can reduce operating leverage, limit reinvestment capacity, and make it harder for the company to rebuild sustainable earnings over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong 2025 Cash Generation
The sharp 2025 recovery in operating and free cash flow materially improves liquidity and provides internal funding capacity. If cash conversion remains positive, the company can better support operations, service obligations, and pursue investment without relying as heavily on external financing.
Read all positive factors

Zonqing Environmental Limited (1855) vs. iShares MSCI Hong Kong ETF (EWH)

Zonqing Environmental Limited Business Overview & Revenue Model

Company Description
ZONQING Environmental Limited, operating with its subsidiaries throughout the People's Republic of China, focuses on a diverse range of environmental services, including landscaping, ecological rehabilitation, and associated ventures. Its extensiv...

Zonqing Environmental Limited Financial Statement Overview

Summary
Overall fundamentals are mixed: revenue has declined for two consecutive years and profitability has weakened sharply (net margin ~1.3% in 2025 vs ~5.7% in 2023; net income fell to ~21m from ~135m). The balance sheet carries meaningful leverage (debt-to-equity ~1.11 in 2025) and ROE cooled to ~3.1%. Offsetting these pressures, 2025 cash flow rebounded strongly (operating cash flow ~623m; free cash flow ~609m), supporting near-term liquidity, though cash flow has been volatile historically.
Income Statement
46
Neutral
Balance Sheet
44
Neutral
Cash Flow
68
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.39B1.64B1.74B2.36B1.12B936.60M
Gross Profit272.77M345.32M314.03M450.85M193.75M211.23M
EBITDA130.21M184.23M151.03M250.89M-31.09M66.03M
Net Income-22.53M21.95M39.97M135.21M-96.34M28.53M
Balance Sheet
Total Assets4.16B4.36B4.38B3.85B4.18B2.25B
Cash, Cash Equivalents and Short-Term Investments238.00M291.24M122.78M210.41M220.23M51.53M
Total Debt766.31M769.25M891.75M809.48M1.06B509.23M
Total Liabilities3.36B3.54B3.59B3.08B3.26B1.66B
Stockholders Equity678.68M696.01M668.97M649.60M867.75M585.31M
Cash Flow
Free Cash Flow579.62M608.72M-49.36M209.37M86.30M-104.76M
Operating Cash Flow595.57M622.85M-42.26M221.53M99.35M-101.22M
Investing Cash Flow-130.41M-212.38M-79.65M164.98M-84.02M-6.67M
Financing Cash Flow-273.80M-247.10M34.27M-396.33M116.04M10.56M

Zonqing Environmental Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.29
Price Trends
50DMA
0.19
Negative
100DMA
0.22
Negative
200DMA
0.67
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
31.38
Neutral
STOCH
34.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1855, the sentiment is Negative. The current price of 1.29 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.19, and above the 200-day MA of 0.67, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.38 is Neutral, neither overbought nor oversold. The STOCH value of 34.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1855.

Zonqing Environmental Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$305.36M11.9211.30%2.33%86.04%118.12%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
48
Neutral
HK$1.90B18.603.16%0.51%-14.03%-62.71%
47
Neutral
HK$131.17M-5.13-3.28%0.27%-16.86%-167.83%
46
Neutral
HK$75.19M-0.55-1098.54%1.93%-9.52%62.63%
44
Neutral
HK$53.67B20.184.63%3.39%2.43%-36.44%
40
Underperform
HK$1.31B18.25129.09%6.25%98.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1855
Zonqing Environmental Limited
0.16
-4.11
-96.18%
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.06
-0.11
-9.13%
HK:0871
China Dredging Environment Protection Holdings Limited
0.05
-0.01
-20.97%
HK:1372
China Carbon Neutral Development Group Limited
1.31
0.37
38.83%
HK:2236
Wison Engineering Services Co., Ltd.
0.49
-0.03
-4.90%
HK:8629
Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd. Class H
9.00
0.62
7.35%

Zonqing Environmental Limited Corporate Events

Zonqing Environmental Swings to Interim Loss as Revenue and Margins Weaken
Aug 21, 2026
Zonqing Environmental Limited reported unaudited interim results for the six months ended 30 June 2026, showing revenue of RMB520.3 million, down from RMB761.9 million a year earlier, reflecting a notable contraction in business activity. Gross pr...
Zonqing Environmental Sets August Board Meeting to Review Interim Results
Aug 11, 2026
Zonqing Environmental Limited has scheduled a board meeting for 21 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026 and to consider the publication of these results. The board will also decide w...
Zonqing Environmental Flags Interim Loss as Major Projects Wind Down
Aug 7, 2026
Zonqing Environmental Limited has warned that it expects to post a loss after tax of between RMB5 million and RMB20 million for the six months ended 30 June 2026, compared with a profit of about RMB36.3 million a year earlier. The reversal is main...
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 08, 2026