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Zonqing Environmental Limited (1855) AI Stock Analysis

HK:1855

Zonqing Environmental Limited

(HKEX:1855)

Select Model
Rating:48.3Neutral
Price Target:HKD 0.14â–²(5.38% Upside)
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 strengthens near-term liquidity and provides internal funding for operations. If cash conversion holds, it can reduce reliance on external financing and support investment despite weaker reported earnings, although historical volatility warrants caution.
Negative Factors
Shrinking revenue and earningsDeclining revenue alongside a steep reduction in net income signals weakened demand or execution and reduces the company’s earnings cushion. The lower margin leaves less capacity to absorb further pressure, making durable profit recovery dependent on renewed growth and sustained operational improvement.

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

-100%-75%-50%-25%0%25%HK:1855-94.72%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 107.25M
Dividend Yield
―
Average Volume (3M)
289.57K
Price to Earnings (P/E)
-4.1
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
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.39B1.64B1.74B2.36B1.12B936.60M
Gross Profit272.77M345.32M314.03M450.85M193.75M211.23M
EBITDA133.69M189.68M156.59M250.89M-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 SentimentNegative
Last Price0.13

Price Trends

50DMA0.16Negative
100DMA0.18Negative
200DMA0.44Negative

Market Momentum

MACD-0.01Positive
RSI31.29Neutral
STOCH37.03Neutral

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 0.13 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 31.29 is Neutral, neither overbought nor oversold. The STOCH value of 37.03 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

HK:1855 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:8629HK:862961NeutralHKD 247.68M9.5911.30%2.88%86.04%118.12%
HK:2236HK:223651NeutralHKD 1.75B16.363.16%―-14.03%-62.71%
HK:1855HK:185548NeutralHKD 107.25M-4.05-3.28%―-16.86%-167.83%
HK:3996HK:399643NeutralHKD 104.28B18.174.43%3.81%-0.79%-32.91%
HK:0871HK:087142NeutralHKD 75.19M-0.56-1098.54%―-9.52%62.63%
HK:1372HK:137240UnderperformHKD 1.02B-5.77-142.37%―10.01%-1258.08%

* Industrials Sector Average

Performance Comparison

-50%0%50%HK:1855HK:3996HK:0871HK:1372HK:2236HK:8629Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1855 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1855Zonqing Environmental Limited0.13-2.41-94.88%
HK:3996China Energy Engineering Corp. Ltd. Class H0.94-0.19-16.96%
HK:0871China Dredging Environment Protection Holdings Limited0.05-0.01-16.67%
HK:1372China Carbon Neutral Development Group Limited1.04-0.21-16.80%
HK:2236Wison Engineering Services Co., Ltd.0.430.0410.26%
HK:8629Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd. Class H7.300.558.21%

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...

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 whet...

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 mainly...

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