New Universe Environmental Group Limited (0436) AI Stock Analysis

• Market Cap: HK$203.39M
• Dividend Yield: 2.46%
• Average Volume (3M): 475.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -5.95%
• EPS Growth: 33.73%
• Country: HK
• Employees: 401
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): >-0.01
• Shares Outstanding: 3,035,696,800
• 10 Day Avg. Volume: 692,000
• 30 Day Avg. Volume: 475,900
• PEG Ratio: 0.20
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 3.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.07 ▼(-4.29% Downside)

The overall stock score is primarily influenced by declining financial performance and weak technical indicators. The valuation metrics further highlight profitability challenges, despite a stable balance sheet and positive free cash flow growth. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a strong equity ratio provides a solid foundation for the company, supporting long-term financial stability and potential for future growth.

Positive Free Cash Flow Growth

Positive free cash flow growth indicates the company's ability to generate cash for reinvestment and debt reduction, enhancing its financial flexibility and sustainability.

Waste Management Market Position

Operating in the waste management sector with a focus on sustainability positions the company well in an industry with growing environmental concerns and regulatory support.

Negative Factors

Declining Revenue

Consistent revenue decline over several years suggests challenges in maintaining market share and competitiveness, potentially impacting long-term growth prospects.

Decreased Profitability

Decreasing profit margins indicate operational inefficiencies and pricing pressures, which can erode financial performance and shareholder value over time.

Negative Net Income

A shift to negative net income reflects financial struggles and may limit the company's ability to invest in growth opportunities or return capital to shareholders.

New Universe Environmental Group Limited Business Overview & Revenue Model

Company Description

New Universe Environmental Group Limited, an investment holding company, primarily provides environmental waste treatment and disposal services in the People's Republic of China. It provides environmental treatment and management services for handling general and hazardous industrial waste for various chemical related industries; and regulated medical waste for hospitals and clinics, as well as chemical tank truck cleansing services. The company is also involved in the operation of solid waste landfill, which handles general industrial waste and environmentally friendly post-incineration substances; provision of environmental industrial sewage and sludge treatment; and provision of environmental technical consultancy and engineering, and management services. In addition, it provides environmental plating sewage treatment services in an eco-plating specialized zone; invests in plastic materials dyeing business; and holds land and buildings. The company was formerly known as New Universe International Group Limited and changed its name to New Universe Environmental Group Limited in May 2016. The company was founded in 1996 and is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

The company generates revenue through multiple streams, primarily by offering waste management services to municipalities and businesses. Key revenue sources include fees charged for waste collection, treatment, and disposal services, as well as income from recycling materials that are processed and sold. Additionally, New Universe Environmental Group may engage in projects related to waste-to-energy conversion, which can provide financial returns through energy sales and subsidies. Strategic partnerships with local governments and private sector companies enhance their service offerings and expand market reach, contributing significantly to their earnings.

New Universe Environmental Group Limited Financial Statement Overview

Summary

The company is experiencing declining revenues and profitability, as indicated by the income statement. While the balance sheet shows a stable equity ratio, profitability metrics have weakened. Cash flow analysis reveals positive free cash flow growth, but overall financial health is impacted by declining operational efficiency and net income losses.

Income Statement

The company experienced a decline in total revenue from 2020 to 2024, with a noticeable drop each year. Gross profit margins have decreased significantly over the years, reflecting reduced profitability. The net income has also transitioned from positive to negative, indicating financial struggles. EBIT and EBITDA margins have similarly deteriorated, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity ratio, indicating a strong capital base. However, the debt-to-equity ratio has decreased due to reduced total debt, suggesting improved leverage. Return on equity has dropped significantly, reflecting declining profitability. Overall, the balance sheet remains stable but shows weakened profitability.

Cash Flow

Operating cash flow has fluctuated over the years, with a significant decline in 2024 compared to previous years. Despite these fluctuations, free cash flow has shown positive growth in recent years, indicating potential for reinvestment. The operating cash flow to net income ratio is positive, but the negative net income raises concerns about sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	440.14M	349.42M	405.61M	516.14M	727.17M	789.34M
Gross Profit	76.27M	54.83M	65.42M	119.36M	191.66M	219.78M
EBITDA	91.48M	52.68M	61.31M	142.20M	151.35M	209.96M
Net Income	-19.75M	-26.34M	-33.12M	7.27M	40.42M	74.58M
Balance Sheet
Total Assets	1.25B	1.25B	1.30B	1.51B	1.78B	1.75B
Cash, Cash Equivalents and Short-Term Investments	234.20M	220.82M	186.37M	270.28M	302.07M	257.52M
Total Debt	50.04M	44.75M	44.33M	98.63M	200.44M	214.18M
Total Liabilities	294.21M	283.17M	288.06M	438.54M	601.20M	582.27M
Stockholders Equity	862.78M	869.05M	908.25M	961.68M	1.05B	1.03B
Cash Flow
Free Cash Flow	43.67M	44.26M	-73.00K	41.98M	86.04M	143.54M
Operating Cash Flow	64.72M	60.98M	17.80M	74.38M	133.62M	199.04M
Investing Cash Flow	-25.93M	-12.90M	-25.45M	23.34M	-35.50M	-92.68M
Financing Cash Flow	-19.24M	-9.61M	-74.57M	-113.07M	-58.61M	-121.83M

New Universe Environmental Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0436, the sentiment is Positive. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.16 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0436.

New Universe Environmental Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1397	75 Outperform	HK$531.20M	6.00	21.36%	3.17%	6.12%	78.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1790	60 Neutral	HK$520.00M	7.78	4.69%	―	17.22%	-21.23%
0436	52 Neutral	HK$203.39M	-12.18	-1.91%	2.46%	-5.95%	33.73%
1395	51 Neutral	HK$184.92M	15.18	4.68%	―	38.07%	―
0923	47 Neutral	HK$91.64M	-0.19	-107.25%	―	-2.08%	-647.01%
1845	46 Neutral	HK$213.33M	-3.88	-12.96%	―	-9.79%	-1187.50%

New Universe Environmental Group Limited Corporate Events

New Universe Environmental Group Faces Legal Proceedings as Loan Guarantor

New Universe Environmental Group Limited is facing legal proceedings as a guarantor for a loan provided to its joint venture, Liuzhou Xinyu Rongkai, by the Bank of China Limited, Liuzhou Branch. The proceedings, which involve a claim for an outstanding loan amount and related costs, are not expected to have a material adverse effect on the company’s financial position. The company plans to seek legal advice and will keep stakeholders informed with further announcements.