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

• Market Cap: HK$693.00M
• Dividend Yield: N/A
• Average Volume (3M): 66.07K
• Price to Earnings (P/E): 36.5
• Beta (1Y): -0.23
• Revenue Growth: 9.77%
• EPS Growth: 165.63%
• Country: HK
• Employees: 89
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): <0.01
• Shares Outstanding: 990,000,000
• 10 Day Avg. Volume: 53,600
• 30 Day Avg. Volume: 66,066
• PEG Ratio: 0.03
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 13.83
• 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: 69 Neutral
• Price Target: HK$0.64 ▲(13.39% Upside)

The overall stock score is primarily driven by strong financial performance, indicating robust profitability, stability, and cash flow efficiency. Technical analysis shows bullish momentum, although overbought conditions suggest caution. The valuation is less attractive due to a high P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and successful market penetration, supporting long-term business expansion.

Financial Stability

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

Cash Generation

Robust cash generation supports operational needs and strategic initiatives, ensuring liquidity and the ability to fund growth projects.

Negative Factors

Employee Base

A relatively small workforce may limit the company's ability to scale operations quickly and meet increasing demand, impacting growth potential.

Profit Margins

While margins have improved, they remain modest, which may constrain profitability and limit reinvestment capabilities in the long term.

Market Competition

Operating in the competitive waste management sector, the company may face pressure on pricing and margins, impacting long-term profitability.

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 engaged in environmental protection services and solutions. The company operates primarily in the waste management and recycling sectors, providing a range of services including waste collection, treatment, and disposal, as well as recycling and resource recovery. Pan Asia focuses on promoting sustainable practices and innovative technologies to address environmental challenges 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 charges fees for waste collection, processing, and disposal services provided to municipal and commercial clients. Additionally, it earns income from the sale of recycled materials, which contributes significantly to its revenue. The company may also engage in joint ventures or partnerships with local governments and businesses to enhance its service offerings and expand its market reach, further bolstering its financial performance. Overall, the combination of service fees and the sale of recyclables forms the core of its revenue model.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	249.44M	251.51M	220.34M	155.57M	38.16M	39.39M
Gross Profit	33.69M	36.23M	28.43M	20.02M	2.95M	1.76M
EBITDA	30.54M	33.16M	12.71M	3.99M	-14.20M	-15.88M
Net Income	15.58M	17.25M	1.45M	-899.00K	8.30M	-29.35M
Balance Sheet
Total Assets	1.30B	1.32B	1.29B	1.25B	1.23B	1.27B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.26B	1.24B	1.20B	1.22B	1.22B
Total Debt	470.00K	5.89M	33.84M	47.89M	45.36M	47.40M
Total Liabilities	132.95M	151.02M	155.23M	131.98M	100.44M	145.93M
Stockholders Equity	1.17B	1.16B	1.14B	1.12B	1.13B	1.12B
Cash Flow
Free Cash Flow	27.85M	32.31M	22.85M	-32.16M	-9.94M	17.71M
Operating Cash Flow	27.72M	32.38M	22.98M	-32.14M	-9.94M	17.81M
Investing Cash Flow	2.88M	3.94M	2.28M	4.30M	4.43M	3.98M
Financing Cash Flow	-22.20M	-15.24M	7.85M	8.44M	7.80M	13.10M

Pan Asia Environmental Protection Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0556, the sentiment is Positive. The current price of 0.56 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.42, and above the 200-day MA of 0.41, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 70.71 is Negative, neither overbought nor oversold. The STOCH value of 77.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0556	69 Neutral	HK$693.00M	36.47	1.33%	―	9.77%	165.63%
1527	66 Neutral	HK$264.60M	2.85	9.21%	―	-11.01%	69.56%
2377	66 Neutral	HK$817.07M	3.14	8.32%	4.69%	8.09%	30.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0436	52 Neutral	HK$197.32M	-11.82	-1.91%	2.46%	-5.95%	33.73%
1845	46 Neutral	HK$178.67M	-3.25	-12.96%	―	-9.79%	-1187.50%
1452	43 Neutral	HK$65.81M	-1.74	-24.77%	―	-0.22%	-22.16%

Pan Asia Environmental Protection Group Ltd. Corporate Events

Pan Asia Environmental Protection Group Enhances Internal Control Procedures

Pan Asia Environmental Protection Group Ltd. engaged Zhonghui Enterprise Consulting Co., Ltd. to conduct an independent internal control review concerning a discloseable and connected transaction related to a loan agreement. The review identified a lack of engagement with external professional parties for assessing material transactions. Recommendations included involving external experts for complex transactions and improving communication mechanisms. The company has updated its internal reporting procedures and established better communication channels to ensure timely reviews and compliance with disclosure requirements.

The most recent analyst rating on (HK:0556) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Pan Asia Environmental Protection Group Ltd. stock, see the HK:0556 Stock Forecast page.

Pan Asia Environmental Protection Reports Decline in H1 2025 Earnings

Pan Asia Environmental Protection Group Ltd. reported a slight decline in revenue and a significant drop in gross profit and earnings per share for the first half of 2025 compared to the same period in 2024. The company’s financial performance was impacted by reduced other income and increased general and administrative expenses, though it managed to achieve a fair value gain on financial liabilities.

The most recent analyst rating on (HK:0556) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Pan Asia Environmental Protection Group Ltd. stock, see the HK:0556 Stock Forecast page.

Pan Asia Environmental Protection Group Schedules Board Meeting for Interim Results

Pan Asia Environmental Protection Group Ltd. has announced that its board of directors will meet on August 27, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could have implications for shareholders and reflect the company’s financial health and strategic direction.