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Capital Environment Holdings Limited
(3989)
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Rating:45Neutral
Price Target:
HK$0.08
â–²(1.25% Upside)
Action:Reiterated
Date:08/06/26
The score is held down primarily by weak financial quality—especially volatile and recently negative operating/free cash flow alongside elevated leverage—and reinforced by bearish technical trends (below key moving averages with negative MACD). A low P/E provides valuation support but is not enough to offset the cash-flow and balance-sheet risk.
Positive Factors
Improving margins
Margins have meaningfully expanded (gross ~36.6%, operating ~25.0%, net ~7.4%), indicating improved cost control or pricing power. Sustained margin expansion strengthens intrinsic profitability, creating durable earnings cushion that supports reinvestment and resilience versus cyclical headwinds.
Negative Factors
Weak cash generation
Cash conversion is the principal weakness: OCF turned negative and FCF was ~-270M in 2025, with repeated negative years. Persistent weak cash generation undermines the company's ability to service debt, fund growth or capex, and maintain financial flexibility without external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving margins
Margins have meaningfully expanded (gross ~36.6%, operating ~25.0%, net ~7.4%), indicating improved cost control or pricing power. Sustained margin expansion strengthens intrinsic profitability, creating durable earnings cushion that supports reinvestment and resilience versus cyclical headwinds.
Read all positive factors
Capital Environment Holdings Limited (3989) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.22B
Dividend Yield7.69%
Average Volume (3M)2.19M
Price to Earnings (P/E)3.4
Beta (1Y)0.34
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. Volume2,749,200
30 Day Avg. Volume2,186,477
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...
How the Company Makes Money
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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 | 1.03B | 1.02B | 1.15B | 1.63B |
| 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 | 13.78M | -269.66M | 55.54M | -675.47M | -520.63M | -876.66M |
| Operating Cash Flow | 21.48M | -255.48M | 297.55M | -385.22M | -231.99M | -445.07M |
| Investing Cash Flow | -11.88M | -187.51M | -214.60M | -237.41M | 7.60B | -1.33B |
| Financing Cash Flow | 15.51M | 273.43M | -81.85M | -219.55M | -7.50B | 764.84M |
Capital Environment Holdings Limited Technical Analysis
Negative
0.08
Price Trends
0.08
Negative
0.09
Negative
0.09
Negative
Market Momentum
>-0.01
Negative
45.61
Neutral
24.68
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 Negative momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 24.68 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$3.25B | 4.86 | 7.06% | 8.90% | -2.83% | 37.98% | |
72 Outperform | HK$9.35B | 10.00 | 8.50% | 6.41% | 4.28% | 6.05% | |
70 Outperform | HK$12.08B | 15.93 | 8.50% | 5.89% | 12.74% | 11.38% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | HK$3.30B | 18.89 | 14.00% | 8.39% | 38.13% | 19.91% | |
45 Neutral | HK$1.22B | 3.40 | 4.16% | 7.69% | 1.64% | 23.16% | |
42 Neutral | HK$4.10B | -3.42 | -50.07% | 2.32% | 0.13% | -51.58% |
* Industrials Sector Average
HK:3989
Capital Environment Holdings Limited
0.08
>-0.01
-8.99%
HK:0895
Dongjiang Environmental Company
1.63
-0.85
-34.21%
HK:1065
Tianjin Capital Environmental Protection Group Co
3.75
0.17
4.81%
HK:1330
Dynagreen Environmental Protection Group Co., Ltd. Class H
6.15
1.26
25.87%
HK:1272
Datang Environment Industry Group Co., Ltd. Class H
1.10
-0.05
-4.45%
HK:6805
Kimou Environmental Holding Limited
3.00
0.71
31.00%
Capital Environment Holdings Limited Corporate Events
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...
Capital Environment shareholders back all AGM resolutions, renew capital mandates
Jun 25, 2026
Capital Environment Holdings Limited, a Cayman Islands–incorporated environmental services and waste management company listed in Hong Kong, provides waste treatment and related environmental solutions to municipal and industrial customers. ...
Capital Environment Sets June 2026 AGM to Approve Mandates and Board Changes
May 27, 2026
Capital Environment Holdings Limited has convened its annual general meeting for 25 June 2026 in Beijing, where shareholders will review the audited financial statements and directors’ and auditors’ reports for the year ended 31 Decemb...
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.