Pan Asia Environmental Protection Group Ltd. (0556) AI Stock Analysis

• Market Cap: HK$405.90M
• Dividend Yield: N/A
• Average Volume (3M): 848.73K
• Price to Earnings (P/E): 23.2
• Beta (1Y): -0.16
• Revenue Growth: 9.77%
• EPS Growth: 165.63%
• Country: HK
• Employees: 89
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): <0.01
• Shares Outstanding: 990,000,000
• 10 Day Avg. Volume: 475,000
• 30 Day Avg. Volume: 848,733
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$0.50 ▲(25.00% Upside)

The overall stock score of 73.4 reflects strong financial performance as the most significant factor, supported by robust revenue growth, financial stability, and cash flow efficiency. Technical analysis presents a neutral outlook, with mixed short-term trends and mild bullish momentum. Valuation is fair but not particularly attractive, with a moderate P/E ratio and no dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for the company's services and supports long-term business expansion.

Financial Stability

Minimal leverage enhances financial stability, reducing risk and providing flexibility for future investments and growth opportunities.

Cash Generation

Strong cash generation supports operational needs and strategic investments, enhancing the company's ability to sustain growth.

Negative Factors

Profit Margin Pressure

While margins have improved, they remain relatively low, which could limit profitability and competitive positioning in the long term.

Industry Competition

The waste management industry is competitive, which could pressure pricing and margins, challenging the company's market share and profitability.

Employee Base

A small workforce may limit the company's ability to scale operations and manage large contracts, impacting growth potential and service delivery.

Pan Asia Environmental Protection Group Ltd. Business Overview & Revenue Model

Company Description

Pan Asia Environmental Protection Group Ltd. (0556) is a Hong Kong-based company primarily engaged in the environmental protection sector. The company focuses on providing comprehensive waste management solutions, including waste treatment, recycling services, and the development of environmentally friendly technologies. Its core services aim to enhance sustainability and minimize ecological impact across various industries in the Asia-Pacific region.

How the Company Makes Money

Pan Asia Environmental Protection Group Ltd. generates revenue through multiple streams, primarily from its waste management and recycling services. The company contracts with municipal governments and private enterprises to provide waste collection, treatment, and disposal services, which form a significant portion of its income. Additionally, the company earns revenues from the sale of recycled materials and by-products derived from its processing operations. Strategic partnerships with local governments and corporations bolster its market presence and facilitate access to larger contracts. The company's investment in innovative environmental technologies further enhances its offerings, allowing it to tap into emerging markets focused on sustainability and compliance with stringent environmental regulations.

Pan Asia Environmental Protection Group Ltd. Financial Statement Overview

Summary

Pan Asia Environmental Protection Group Ltd. exhibits strong financial performance across all key areas. The income statement reflects substantial revenue and profit growth, the balance sheet showcases financial stability with minimal leverage, and the cash flow statement indicates robust cash generation and liquidity. The company is on a positive financial trajectory with improved profitability, stability, and cash flow efficiency.

Income Statement

The company has shown a strong improvement in its revenue, with a revenue growth rate of 14.1% from 2023 to 2024. Gross profit margin increased to 14.4%, and net profit margin improved significantly to 6.9%. The EBIT and EBITDA margins also indicate enhanced operational efficiency. Overall, the income statement reflects a positive financial trajectory with improved profitability.

Balance Sheet

The balance sheet is strong, highlighted by a low debt-to-equity ratio of 0.005, indicating minimal leverage and financial risk. The company maintains a robust equity ratio of 88.6%, showcasing strong financial stability. Return on equity improved to 1.5%, reflecting enhanced shareholder value. The balance sheet indicates financial health and stability.

Cash Flow

The company has demonstrated robust cash flow management, with a 41.3% increase in free cash flow from 2023 to 2024, signifying strong cash generation. Operating cash flow to net income ratio is at 1.88, indicating efficient cash conversion. The free cash flow to net income ratio of 1.87 further underscores healthy cash flow dynamics. Overall, the cash flow statement is indicative of strong liquidity and cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.51M	220.34M	155.57M	38.16M	39.39M
Gross Profit	36.23M	28.43M	20.02M	2.95M	1.76M
EBITDA	33.16M	12.71M	3.99M	-9.12M	-10.18M
Net Income	17.25M	1.45M	-899.00K	26.98M	-46.53M
Balance Sheet
Total Assets	1.32B	1.29B	1.25B	1.23B	1.27B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.24B	1.20B	1.22B	1.22B
Total Debt	5.89M	33.84M	47.89M	45.36M	47.40M
Total Liabilities	151.02M	155.23M	131.98M	100.44M	145.93M
Stockholders Equity	1.16B	1.14B	1.12B	1.13B	1.12B
Cash Flow
Free Cash Flow	32.31M	22.85M	-32.16M	-9.94M	17.71M
Operating Cash Flow	32.38M	22.98M	-32.14M	-9.94M	17.81M
Investing Cash Flow	3.94M	2.28M	4.30M	4.43M	3.98M
Financing Cash Flow	-15.24M	7.85M	8.44M	7.80M	-5.09M

Pan Asia Environmental Protection Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0556, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.39, and below the 200-day MA of 0.43, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 32.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0556.

Pan Asia Environmental Protection Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2377	74 Outperform	HK$900.44M	3.46	8.32%	4.26%	8.09%	30.76%
0556	73 Outperform	HK$405.90M	23.24	1.33%	―	9.77%	165.63%
1527	66 Neutral	HK$298.35M	3.23	9.21%	5.33%	-10.98%	69.56%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
0436	54 Neutral	HK$170.00M	―	-1.91%	2.86%	-5.95%	33.73%
1845	52 Neutral	HK$214.67M	―	-12.25%	―	-5.82%	-2921.43%
1452	47 Neutral	HK$62.25M	―	-24.77%	―	-0.22%	-22.16%

Pan Asia Environmental Protection Group Ltd. Corporate Events

Pan Asia Environmental Protection Group Ltd. Updates Nomination Committee

Pan Asia Environmental Protection Group Ltd. has announced the appointment of Ms. PAN Chang as a member of its Nomination Committee, effective from June 30, 2025. This change is part of a broader update to the committee’s terms of reference to align with the revised Corporate Governance Code, which will be effective from July 1, 2025. The updated terms will be available on the company’s and Hong Kong Exchanges’ websites, indicating a commitment to enhanced governance practices.

Pan Asia Environmental Protection Group Updates Board of Directors

Pan Asia Environmental Protection Group Ltd. has announced an updated list of its board of directors, effective from June 30, 2025. This update includes the roles and functions of each director, highlighting the company’s governance structure with the establishment of three committees: Audit, Nomination, and Remuneration. The announcement reflects the company’s commitment to robust corporate governance, which may enhance its operational efficiency and stakeholder confidence.

Pan Asia Environmental Protection Group Updates Nomination Committee Terms

Pan Asia Environmental Protection Group Limited has revised the terms of reference for its Nomination Committee, which is a key component of its corporate governance structure. The Committee, established in 2007, will continue to ensure that the majority of its members are independent non-executive directors, which reinforces the company’s commitment to maintaining transparency and accountability in its board practices.

Pan Asia Environmental Protection Group Unanimously Passes AGM Resolutions

Pan Asia Environmental Protection Group Ltd. held its Annual General Meeting on May 30, 2025, where all proposed resolutions were unanimously approved. These resolutions included the re-election of directors, the authorization of directors’ remuneration, the re-appointment of auditors, and the granting of mandates to repurchase and issue shares. The approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility in its market activities.