Zonqing Environmental Limited (1855) AI Stock Analysis

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Zonqing Environmental Limited

(HKEX:1855)

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Rating:48.3Neutral

Price Target:HKD 0.12▼(-0.83% Downside)

Action:reiterated

Date:10/16/26

The score is primarily constrained by declining and fragile earnings, leverage, and weak technical momentum. Stronger cash generation provides some support, but the negative P/E and absence of dividend income further limit the investment profile.

Positive Factors

Strong 2025 cash generationThe sharp 2025 rebound in operating and free cash flow materially strengthens liquidity and provides internal funding capacity. If cash conversion remains positive, it can support operations, debt servicing, and selective investment without relying as heavily on external financing.

Negative Factors

Shrinking revenueTwo consecutive years of revenue contraction point to a weaker and less stable top-line trajectory than the strong growth achieved in 2023. Sustained shrinking revenue can reduce operating leverage, limit reinvestment capacity, and make recovery in earnings more difficult.

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

Market Cap: HKD 99.00M
Dividend Yield: ―
Average Volume (3M): 269.96K
Price to Earnings (P/E): -3.7
Beta (1Y): 0.69
Revenue Growth: -16.86%
EPS Growth: -167.83%
Country: Hong Kong
Employees: 754
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

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 extensive p...

Zonqing Environmental Limited Financial Statement Overview

Summary

Cash generation is a relative strength, but declining revenue, thin recent profitability, high leverage, and volatile returns reduce the score.

Income Statement

54Neutral

Balance Sheet

49Neutral

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.39B	1.64B	1.74B	2.36B	1.12B	936.60M
Gross Profit	272.77M	345.32M	314.03M	450.85M	193.75M	211.23M
EBITDA	133.69M	189.68M	156.59M	250.89M	-31.09M	66.03M
Net Income	-22.53M	21.95M	39.97M	135.21M	-96.34M	28.53M
Balance Sheet
Total Assets	4.16B	4.36B	4.38B	3.85B	4.18B	2.25B
Cash, Cash Equivalents and Short-Term Investments	238.00M	291.24M	122.78M	210.41M	220.23M	51.53M
Total Debt	766.31M	769.25M	891.75M	809.48M	1.06B	509.23M
Total Liabilities	3.36B	3.54B	3.59B	3.08B	3.26B	1.66B
Stockholders Equity	678.68M	696.01M	668.97M	649.60M	867.75M	585.31M
Cash Flow
Free Cash Flow	579.62M	608.72M	-49.36M	209.37M	86.30M	-104.76M
Operating Cash Flow	595.57M	622.85M	-42.26M	221.53M	99.35M	-101.22M
Investing Cash Flow	-130.41M	-212.38M	-79.65M	164.98M	-84.02M	-6.67M
Financing Cash Flow	-273.80M	-247.10M	34.27M	-396.33M	116.04M	10.56M

Zonqing Environmental Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.12

Price Trends

50DMA0.15Negative

100DMA0.17Negative

200DMA0.37Negative

Market Momentum

MACD-0.01Negative

RSI32.17Neutral

STOCH11.55Positive

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 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.15, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 32.17 is Neutral, neither overbought nor oversold. The STOCH value of 11.55 is Positive, 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

HK:1855 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:8629	69Neutral	HKD 261.25M	10.13	11.30%	2.73%	86.04%	118.12%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:2236	59Neutral	HKD 1.59B	15.81	3.16%	―	-14.03%	-62.71%
HK:1855	48Neutral	HKD 101.48M	-3.75	-3.28%	―	-16.86%	-167.83%
HK:3996	43Neutral	HKD 101.42B	18.14	4.43%	3.98%	-0.79%	-32.91%
HK:0871	42Neutral	HKD 78.20M	-0.58	-1098.54%	―	-9.52%	62.63%
HK:1372	40Underperform	HKD 980.48M	-5.61	-142.37%	―	10.01%	-1258.08%

* Industrials Sector Average

Performance Comparison

HK:1855 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1855	Zonqing Environmental Limited	0.12	-1.95	-94.20%
HK:3996	China Energy Engineering Corp. Ltd. Class H	0.90	-0.24	-21.12%
HK:0871	China Dredging Environment Protection Holdings Limited	0.05	-0.02	-27.78%
HK:1372	China Carbon Neutral Development Group Limited	1.01	-0.65	-39.16%
HK:2236	Wison Engineering Services Co., Ltd.	0.41	0.02	5.06%
HK:8629	Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd. Class H	7.70	-0.09	-1.16%

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 profi...

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: Oct 16, 2026

Zonqing Environmental Limited AI Stock Analysis