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China Conch Environment Protection Holdings Ltd. (HK:0587)
:0587
Hong Kong Market
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China Conch Environment Protection Holdings Ltd. (0587) AI Stock Analysis

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HK:0587

China Conch Environment Protection Holdings Ltd.

(0587)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
HK$0.50
▼(-23.08% Downside)
The overall stock score reflects financial stability and strong operating cash flows, but is weighed down by declining profitability, bearish technical indicators, and a negative P/E ratio. The high dividend yield is a positive aspect, but it is overshadowed by the company's current financial challenges.

China Conch Environment Protection Holdings Ltd. (0587) vs. iShares MSCI Hong Kong ETF (EWH)

China Conch Environment Protection Holdings Ltd. Business Overview & Revenue Model

Company DescriptionChina Conch Environment Protection Holdings Limited, an investment holding company, provides treatment solutions for industrial solid and hazardous waste primarily utilizing cement kiln waste treatment technologies in the People's Republic of China. It also provides resource recycling and technical consultation services. The company was incorporated in 2020 and is headquartered in Wuhu, China. China Conch Environment Protection Holdings Limited is a subsidiary of China Conch Venture Holdings Limited.
How the Company Makes MoneyChina Conch Environment Protection Holdings Ltd. generates revenue primarily through the provision of waste management services, including the treatment and recycling of solid and hazardous waste. The company operates waste-to-energy plants, which process waste materials to generate renewable energy, contributing to its income. Additionally, the sale of environmental protection equipment and technology solutions forms a significant part of its revenue streams. Strategic partnerships with local governments and industries facilitate the company's access to contracts and projects, ensuring a stable flow of income. These collaborations often involve long-term arrangements that provide a consistent revenue base while supporting regional environmental initiatives.

China Conch Environment Protection Holdings Ltd. Financial Statement Overview

Summary
China Conch Environment Protection Holdings Ltd. shows financial stability with a solid capital structure, but faces challenges in profitability and revenue growth. Strong operating cash flows are offset by declining profit margins and leverage management issues.
Income Statement
60
Neutral
The company's revenue has shown fluctuations, with a recent decline from 2023 to 2024. Gross Profit Margin in 2024 was approximately 37.3%, with a significant drop in net profit margin to 0.4%, indicating pressure on profitability. EBIT and EBITDA margins have also decreased, highlighting challenges in maintaining operational efficiency.
Balance Sheet
70
Positive
The debt-to-equity ratio in 2024 was approximately 1.58, suggesting a moderate level of leverage. Return on equity has significantly decreased to 0.2% in 2024, reflecting reduced profitability on equity capital. The equity ratio stands at 30.2%, indicating a stable capital structure with reliance on equity.
Cash Flow
65
Positive
Operating cash flow remains strong, though free cash flow has improved from negative in previous years to positive in 2024. The operating cash flow to net income ratio is robust, but the free cash flow to net income ratio shows volatility, indicating potential instability in cash generation relative to profits.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.69B1.88B1.73B1.70B1.14B
Gross Profit629.27M893.57M910.14M1.02B749.65M
EBITDA445.82M711.03M724.85M894.90M677.69M
Net Income6.28M264.13M328.66M578.61M468.99M
Balance Sheet
Total Assets9.75B9.41B8.54B7.51B4.89B
Cash, Cash Equivalents and Short-Term Investments345.62M295.30M273.06M612.79M670.48M
Total Debt4.66B4.27B3.78B3.05B1.17B
Total Liabilities6.09B5.70B5.15B4.42B3.09B
Stockholders Equity2.95B2.99B2.73B2.42B1.05B
Cash Flow
Free Cash Flow-154.96M-196.82M-946.76M-1.49B-1.03B
Operating Cash Flow434.08M631.11M542.99M767.72M453.46M
Investing Cash Flow-540.18M-973.72M-1.41B-2.18B-1.63B
Financing Cash Flow205.46M315.81M541.32M1.37B1.57B

China Conch Environment Protection Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.65
Price Trends
50DMA
0.70
Negative
100DMA
0.65
Negative
200DMA
0.64
Positive
Market Momentum
MACD
-0.01
Positive
RSI
39.57
Neutral
STOCH
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0587, the sentiment is Negative. The current price of 0.65 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.70, and above the 200-day MA of 0.64, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0587.

China Conch Environment Protection Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$460.65M5.203.42%6.12%78.64%
67
Neutral
HK$450.00M6.744.80%17.22%-21.23%
57
Neutral
HK$870.21M2.88
56
Neutral
HK$1.42B-18.607.75%
55
Neutral
HK$1.17B194.59-2.39%4.62%-3.37%-149.08%
54
Neutral
HK$1.26B4.63-5.24%-17.75%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0587
China Conch Environment Protection Holdings Ltd.
0.65
-0.36
-35.64%
HK:1397
Baguio Green Group Ltd
1.08
0.46
74.19%
HK:0154
Beijing Enterprises Environment Group Limited
0.57
0.19
50.00%
HK:1790
TIL Enviro Limited
0.45
-0.12
-21.05%
HK:3718
Beijing Enterprises Urban Resources Group Ltd.
0.41
-0.06
-12.77%
HK:3989
Capital Environment Holdings Limited
0.09
<0.01
12.50%

China Conch Environment Protection Holdings Ltd. Corporate Events

China Conch Reports Sharp Decline in 2025 Interim Profits
Aug 26, 2025

China Conch Environment Protection Holdings Ltd. reported a revenue of approximately RMB777.18 million for the first half of 2025, marking a 3.34% decrease compared to the previous year. The net profit attributable to equity shareholders plummeted by 94.73% to RMB4.33 million, leading the Board to decide against declaring an interim dividend. This significant decline in profitability, despite stable revenue, could impact the company’s market position and stakeholder confidence.

The most recent analyst rating on (HK:0587) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Conch Environment Protection Holdings Ltd. stock, see the HK:0587 Stock Forecast page.

China Conch Schedules Board Meeting to Review Interim Results
Aug 13, 2025

China Conch Environment Protection Holdings Limited has announced a board meeting scheduled for August 26, 2025, to review and approve the interim results for the first half of 2025. The meeting will also consider the possibility of an interim dividend payment, which could impact the company’s financial strategy and shareholder returns.

China Conch Issues Profit Warning Amid Market Challenges
Jul 21, 2025

China Conch Environment Protection Holdings Ltd. has issued a profit warning for the first half of 2025, expecting a significant decrease in net profit compared to the same period in 2024. The decline is attributed to increased market competition, insufficient capacity utilization, and higher depreciation costs. The company plans to improve its performance by raising treatment prices, expanding market reach, and enhancing operational efficiencies.

China Conch Establishes Governance Committee to Enhance Transparency
Jun 27, 2025

China Conch Environment Protection Holdings Ltd. has established a Remuneration and Nomination Committee to oversee the compensation and appointment of directors. The committee, consisting of at least three members, emphasizes the importance of independent non-executive directors and gender diversity. This initiative reflects the company’s commitment to transparent governance and aims to enhance its operational efficiency and industry positioning.

China Conch Establishes Governance Committee to Enhance Operational Efficiency
Jun 27, 2025

China Conch Environment Protection Holdings Ltd. has established a Remuneration and Nomination Committee to oversee the remuneration and nomination processes within the company. The committee, primarily composed of independent non-executive directors, aims to ensure fair remuneration practices and effective governance, which could enhance the company’s operational efficiency and stakeholder confidence.

China Conch Environment Protection Holdings Ltd. Successfully Passes All Resolutions at 2025 AGM
Jun 26, 2025

China Conch Environment Protection Holdings Ltd. announced that all proposed resolutions were passed at its 2025 Annual General Meeting. Key resolutions included the adoption of financial statements, re-election of directors, appointment of auditors, and granting mandates for share buybacks and issuance. This successful meeting reflects strong shareholder support and positions the company for continued strategic growth and operational stability.

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.Date of analysis: Sep 23, 2025