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Capital Environment Holdings Limited (3989) AI Stock Analysis
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Capital Environment Holdings Limited
(HKEX:3989)
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.
Capital Environment Holdings Limited (3989) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 1.14B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.38M
- Price to Earnings (P/E)
- 3.3
- Beta (1Y)
- 0.23
- Revenue Growth
- 1.64%
- EPS Growth
- 23.16%
- Country
- Hong Kong
- Employees
- 3,251
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Waste Management
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-energy...
Capital Environment Holdings Limited Financial Statement Overview
Summary
Profitability improved (gross margin ~36.6% and operating margin ~25.0% in 2025), but the business shows multi-year revenue decline and elevated leverage (debt-to-equity ~1.6x). The biggest drag is weak cash conversion: operating cash flow and free cash flow turned negative in 2025 and have been volatile with several negative years.
Income Statement
58NeutralBalance Sheet
46NeutralCash Flow
32Negative| 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
Price Trends
Market Momentum
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 -0.00 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
Overall Rating
HK:127274Outperform
HK:133074Outperform
HK:106567Neutral
HK:680554.5Neutral- HK:398954Neutral
HK:089544Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:1272 | 74Outperform | HKD 3.12B | 4.59 | 7.06% | 9.28% | -2.83% | 37.98% |
| HK:1330 | 74Outperform | HKD 12.17B | 15.11 | 8.58% | 5.94% | 17.05% | 8.15% |
| HK:1065 | 67Neutral | HKD 9.35B | 9.81 | 8.40% | 6.54% | 2.19% | 11.28% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| HK:6805 | 55Neutral | HKD 2.87B | 16.17 | 14.00% | 9.65% | 38.13% | 19.91% |
| HK:3989 | 54Neutral | HKD 1.14B | 3.33 | 4.16% | ― | 1.64% | 23.16% |
| HK:0895 | 44Neutral | HKD 3.60B | -3.27 | -49.92% | ― | 0.67% | -10.72% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:3989 | Capital Environment Holdings Limited | 0.08 | -0.00 | -3.61% | |
| HK:0895 | Dongjiang Environmental Company Class H | 1.47 | -1.08 | -42.55% | |
| HK:1065 | Tianjin Capital Environmental Protection Group Co Class H | 3.67 | -0.33 | -8.31% | |
| HK:1330 | Dynagreen Environmental Protection Group Co., Ltd. Class H | 6.43 | 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
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 mi...
Capital Environment invests RMB254 million in Xinxiang waste-to-energy steam project
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 supp...
Capital Environment Wins Connected Qixian Waste Management Tender
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 on...
Capital Environment Schedules Board Meeting to Approve 2026 Interim Results
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 board...
Capital Environment refreshes board with new executive and non-executive directors
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 att...
Capital Environment Reshapes Board and Committees to Bolster Governance
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 refreshed...
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