China Conch Environment Protection Holdings Ltd. (0587) AI Stock Analysis

• Market Cap: HK$986.45M
• Dividend Yield: 5.36%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 60.7
• Beta (1Y): 0.97
• Revenue Growth: -3.37%
• EPS Growth: -149.08%
• Country: HK
• Employees: 3,288
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): <0.01
• Shares Outstanding: 1,826,765,000
• 10 Day Avg. Volume: 1,187,500
• 30 Day Avg. Volume: 1,639,023
• PEG Ratio: -2.02
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.73
• P/FCF Ratio: -7.97
• 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): 0.1
• Revenue Forecast (FY): HK$2.97B

• Rating: 54 Neutral
• Price Target: HK$0.52 ▼(-7.14% Downside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

The overall stock score of 54 reflects financial stability but is weighed down by poor technical indicators and valuation concerns. The company's strong operating cash flow and high dividend yield are positive, but challenges in profitability and bearish market momentum are significant risks.

Positive Factors

Diversified environmental services

A broad service mix across municipal/industrial waste, waste-to-energy and green building materials gives durable revenue diversification. This reduces single-segment risk, allows cross-selling, benefits from multiple regulatory tailwinds in China, and supports scale economics for multi-year project pipelines.

Strong operating cash flow

Robust operating cash flow and a shift to positive free cash flow indicate improving cash conversion and internal funding ability. For capital-intensive waste-to-energy projects this supports capex, lowers reliance on immediate external financing, and enhances resilience for project execution over the next several quarters.

Manageable leverage and equity base

Moderate leverage and a ~30% equity ratio reflect a stable capital structure for an infrastructure-heavy operator. This balance preserves borrowing capacity for long-term projects, limits short-term refinancing pressure, and supports capital deployment for development while maintaining financial flexibility.

Negative Factors

Revenue contraction

A shrinking top line signals demand weakness, project timing issues, or competitive pressure. Persistent revenue decline undermines operating leverage in fixed-cost waste and WtE assets, constrains margin recovery, and limits ability to scale projects or sustain dividend commitments over the medium term.

Compressed profitability margins

Very low net margins and falling EBITDA indicate material pressure on pricing, cost structure, or operational efficiency. For a capital- and energy-intensive operator, compressed margins reduce retained earnings, weaken project returns, and make long-term reinvestment or debt servicing more challenging without structural improvement.

Volatile free cash flow conversion

Inconsistent FCF relative to reported earnings increases financing risk for growth projects. Volatility in cash conversion can force greater reliance on external funding for capex or working capital, elevating execution risk on multi-year WtE projects and limiting predictable cash available for strategic initiatives.

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

Company Description

China 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 Money

China Conch Environment Protection Holdings Ltd. generates revenue through multiple streams, primarily from its waste management and recycling operations, which include the collection, treatment, and disposal of municipal and industrial waste. The company also profits from its waste-to-energy projects, where it converts waste into renewable energy, thus providing a dual benefit of waste reduction and energy generation. Additionally, the production and sale of green building materials contribute to its earnings, tapping into the growing demand for sustainable construction solutions. Key partnerships with government agencies and private sector companies bolster its project financing and execution capabilities, enhancing the company's revenue potential. Furthermore, the increasing regulatory focus on environmental protection and sustainability in China creates a favorable market environment for the company’s services, contributing to its overall financial performance.

China Conch Environment Protection Holdings Ltd. Financial Statement Overview

Summary

China Conch Environment Protection Holdings Ltd. shows financial stability with a solid capital structure. However, it faces challenges in profitability and revenue growth, with declining profit margins and operational efficiency.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.66B	1.69B	1.88B	1.73B	1.70B	1.14B
Gross Profit	515.88M	629.27M	893.57M	910.14M	1.02B	749.65M
EBITDA	386.43M	445.82M	711.03M	724.85M	871.28M	677.69M
Net Income	-71.54M	6.28M	264.13M	328.66M	578.61M	468.99M
Balance Sheet
Total Assets	9.81B	9.75B	9.41B	8.54B	7.51B	4.89B
Cash, Cash Equivalents and Short-Term Investments	641.79M	362.16M	295.30M	288.07M	612.79M	670.48M
Total Debt	4.88B	4.66B	4.27B	3.78B	3.05B	1.17B
Total Liabilities	6.16B	6.09B	5.70B	5.15B	4.42B	3.09B
Stockholders Equity	2.95B	2.95B	2.99B	2.73B	2.42B	1.05B
Cash Flow
Free Cash Flow	647.29M	-154.96M	-196.82M	-897.62M	-1.49B	-1.03B
Operating Cash Flow	456.76M	434.08M	631.11M	542.99M	767.72M	453.46M
Investing Cash Flow	-386.52M	-540.18M	-973.72M	-1.41B	-2.18B	-1.63B
Financing Cash Flow	197.26M	205.46M	315.81M	541.32M	1.37B	1.57B

China Conch Environment Protection Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.56 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.55, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1397	75 Outperform	HK$510.45M	1.16	21.36%	3.17%	6.12%	78.64%
3718	66 Neutral	HK$1.39B	8.86	-2.24%	7.75%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0154	60 Neutral	HK$945.23M	1.59	7.62%	―	―	―
1790	60 Neutral	HK$530.00M	1.93	4.69%	―	17.22%	-21.23%
0587	54 Neutral	HK$986.45M	60.72	-2.39%	5.36%	-3.37%	-149.08%
3989	52 Neutral	HK$1.63B	1.28	3.71%	―	-5.24%	-17.75%

China Conch Environment Protection Holdings Ltd. Corporate Events

China Conch Environment Protection Further Delays Dispatch of Circular on Connected Transactions

China Conch Environment Protection Holdings Limited has announced a further delay in sending a shareholder circular and related proxy form concerning its continuing connected transactions. Having previously postponed the dispatch to on or before 19 January 2026 to allow more time to finalize the information, the company now expects the documents will be distributed on or before 9 February 2026, signaling an extended timetable for shareholders to review and vote on the proposed arrangements.

The most recent analyst rating on (HK:0587) stock is a Hold with a HK$0.50 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 Environment Protection Delays Circular on 2026 Connected Transaction Frameworks

China Conch Environment Protection Holdings has announced a delay in sending to shareholders a circular related to its continuing connected transactions under the 2026 Industrial Solid and Hazardous Waste Treatment Comprehensive Framework Agreement and the 2026 Engineering Design Services Framework Agreement. Originally scheduled for despatch by 30 December 2025, the circular—together with the associated proxy form and recommendations from the independent board committee and financial adviser—will now be issued on or before 19 January 2026 to allow additional time to finalize certain information, potentially extending the timetable for shareholder review and approval of these framework arrangements.

The most recent analyst rating on (HK:0587) stock is a Hold with a HK$0.50 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 Expands Waste Treatment Cooperation with New Agreements

China Conch Environment Protection Holdings Ltd. has entered into new agreements with Conch Cement and Conch Design Institute to expand their cooperation in industrial solid and hazardous waste treatment projects. These agreements, effective from 2026, aim to enhance the scope of services and include project equipment procurement and operation management services. The transactions are categorized as continuing connected transactions due to the relationship between the involved parties, requiring shareholder approval under Hong Kong’s Listing Rules.

The most recent analyst rating on (HK:0587) stock is a Hold with a HK$0.50 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.