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Capital Environment Holdings Limited
(3989)
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Rating:54Neutral
Price Target:
HK$0.09
â–²(11.25% Upside)
Action:Reiterated
Date:10/16/26
The score is held back primarily by financial risk factors—especially inconsistent/negative operating and free cash flow alongside elevated leverage and a shrinking revenue base—despite improving margins. Technicals are moderately supportive with price above key moving averages and modestly positive momentum. Valuation looks favorable due to a low P/E, but it is not enough to outweigh the cash flow and balance sheet concerns.
Positive Factors
Improving Profitability Margins
Improving gross and operating margins indicate better profitability per unit of revenue, with operating margin rising from about 20.5% to 25.0% and gross margin reaching 36.6%. If maintained, this can cushion modest volume pressure and support earnings resilience.
Negative Factors
Multi-Year Revenue Decline
Revenue has declined for several consecutive years, including a 3.9% year-over-year fall in 2025 after smaller declines in prior years. A shrinking top line can limit operating leverage, reduce reinvestment capacity, and make margin improvements harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability Margins
Improving gross and operating margins indicate better profitability per unit of revenue, with operating margin rising from about 20.5% to 25.0% and gross margin reaching 36.6%. If maintained, this can cushion modest volume pressure and support earnings resilience.
Read all positive factors
Capital Environment Holdings Limited (3989) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.14B
Dividend Yield7.69%
Average Volume (3M)2.22M
Price to Earnings (P/E)3.3
Beta (1Y)0.23
Revenue Growth1.64%
EPS Growth23.16%
CountryHK
Employees3,251
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)0.02
Shares Outstanding14,294,732,000
10 Day Avg. Volume2,462,600
30 Day Avg. Volume2,217,133
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.13
Price to Sales (P/S)0.25
P/FCF Ratio-3.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Capital Environment Holdings Limited Business Overview & Revenue Model
Company Description
Capital Environment Holdings, an investment vehicle, primarily delivers environmental services, focusing on comprehensive waste management and transforming refuse into energy across mainland China and New Zealand. Their involvement in waste-to-ene...
Capital Environment Holdings Limited Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
46
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.63B | 3.61B | 3.67B | 4.08B | 4.59B | 5.40B |
| Gross Profit | 1.37B | 1.32B | 1.31B | 1.39B | 1.39B | 1.64B |
| EBITDA | 1.17B | 1.18B | 1.01B | 1.02B | 1.18B | 1.72B |
| Net Income | 293.08M | 267.40M | 234.12M | 285.38M | 1.69B | 510.75M |
Balance Sheet | ||||||
| Total Assets | 21.44B | 21.21B | 20.88B | 20.29B | 20.14B | 26.17B |
| Cash, Cash Equivalents and Short-Term Investments | 430.68M | 493.36M | 659.30M | 2.29B | 2.95B | 2.81B |
| Total Debt | 11.02B | 10.95B | 10.65B | 10.52B | 10.14B | 14.05B |
| Total Liabilities | 13.94B | 13.92B | 13.89B | 13.59B | 13.45B | 18.46B |
| Stockholders Equity | 7.15B | 6.95B | 6.66B | 6.43B | 6.49B | 6.21B |
Cash Flow | ||||||
| Free Cash Flow | 21.00M | -269.66M | 55.54M | -675.47M | -520.63M | -876.66M |
| Operating Cash Flow | 42.37M | -255.48M | 297.55M | -385.22M | -231.99M | -445.07M |
| Investing Cash Flow | -117.26M | -187.51M | -214.60M | -237.41M | 7.60B | -1.33B |
| Financing Cash Flow | 16.94M | 273.43M | -81.85M | -219.55M | -7.50B | 764.84M |
Capital Environment Holdings Limited Technical Analysis
Negative
0.08
Price Trends
0.08
Negative
0.08
Negative
0.09
Negative
Market Momentum
>-0.01
Positive
47.81
Neutral
26.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3989, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 26.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3989.
Capital Environment Holdings Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$3.12B | 4.59 | 7.06% | 9.28% | -2.83% | 37.98% | |
72 Outperform | HK$9.35B | 9.81 | 8.40% | 6.54% | 2.19% | 11.28% | |
70 Outperform | HK$12.17B | 15.11 | 8.58% | 5.94% | 17.05% | 8.15% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | HK$1.14B | 3.33 | 4.16% | 7.69% | 1.64% | 23.16% | |
52 Neutral | HK$2.87B | 16.17 | 14.00% | 9.62% | 38.13% | 19.91% | |
44 Neutral | HK$3.60B | -3.27 | -49.92% | 2.32% | 0.67% | -10.72% |
* Industrials Sector Average
HK:3989
Capital Environment Holdings Limited
0.08
>-0.01
-3.61%
HK:0895
Dongjiang Environmental Company
1.47
-1.08
-42.55%
HK:1065
Tianjin Capital Environmental Protection Group Co
3.67
-0.33
-8.31%
HK:1330
Dynagreen Environmental Protection Group Co., Ltd. Class H
6.44
1.23
23.54%
HK:1272
Datang Environment Industry Group Co., Ltd. Class H
1.05
-0.03
-2.96%
HK:6805
Kimou Environmental Holding Limited
2.59
0.34
15.11%
Capital Environment Holdings Limited Corporate Events
Capital Environment posts higher interim profit on stable revenue
Aug 21, 2026
Capital Environment Holdings Limited reported unaudited interim results for the six months ended 30 June 2026, showing total revenue of RMB1,859.2 million, broadly stable against RMB1,875.9 million a year earlier. Gross profit improved to RMB736.6...
Capital Environment invests RMB254 million in Xinxiang waste-to-energy steam project
Aug 21, 2026
Capital Environment Holdings Limited plans to expand its waste-to-energy footprint via its wholly owned unit, Shenzhen Qianhai Capital Environment Investment, which will invest RMB254.15 million in a waste incineration project for heat and steam s...
Capital Environment Wins Connected Qixian Waste Management Tender
Aug 6, 2026
Capital Environment Holdings’ subsidiary, Capital Environment Technology, has secured a public tender from Sichuan Qingshi to provide waste screening and leachate treatment services under the Qixian Management Project. The contracts, signed ...
Capital Environment Schedules Board Meeting to Approve 2026 Interim Results
Jul 31, 2026
Capital Environment Holdings Limited, a Cayman Islands–incorporated company listed on the Hong Kong Stock Exchange, operates in the environmental services and waste management space through various subsidiaries. The group is governed by a bo...
Capital Environment refreshes board with new executive and non-executive directors
Jul 30, 2026
Capital Environment Holdings Limited has announced the retirement and resignation of non-executive director Hao Chunmei, effective 30 July 2026, with both the board and Ms. Hao confirming there are no disagreements or issues requiring shareholder ...
Capital Environment Reshapes Board and Committees to Bolster Governance
Jul 30, 2026
Capital Environment Holdings Limited has updated its board composition, confirming a structure that includes executive, non-executive and independent non-executive directors, led by chairman Li Qingsong and general manager Guo Chaoyang. The refres...
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.