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

• Market Cap: HK$1.02B
• Dividend Yield: 5.36%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.50 ▼(-10.71% Downside)

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

Strong Operating Cash Flow

Strong operating cash flow indicates effective core business operations, providing liquidity and financial stability for future investments and obligations.

Stable Capital Structure

A stable capital structure with a healthy equity ratio suggests financial resilience and the ability to sustain operations and growth without excessive debt reliance.

High Dividend Yield

A high dividend yield can appeal to investors seeking income, providing a steady return and indicating confidence in cash flow sustainability.

Negative Factors

Declining Profit Margins

Declining profit margins reflect challenges in cost management and pricing power, potentially affecting long-term profitability and competitive positioning.

Revenue Decline

A decline in revenue growth can signal weakening demand or competitive pressures, impacting the company's ability to scale and maintain market share.

Reduced Return on Equity

A reduced return on equity indicates inefficiencies in generating profit from shareholders' investments, which can deter investor confidence and affect capital raising.

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

Company Description

China Conch Environment Protection Holdings Ltd. (0587) is a leading player in the environmental protection industry, primarily engaged in waste management and recycling, waste-to-energy projects, and the production of environmentally friendly building materials. The company operates across various sectors, including solid waste treatment, water treatment, and air pollution control, providing comprehensive solutions aimed at promoting sustainable development and environmental conservation in China and beyond.

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: Negative
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.58, and below the 200-day MA of 0.62, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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$493.85M	5.58	21.36%	3.19%	6.12%	78.64%
3718	66 Neutral	HK$1.44B	-18.60	-2.24%	7.65%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0154	60 Neutral	HK$795.19M	2.63	7.62%	―	―	―
1790	60 Neutral	HK$570.00M	8.53	4.69%	―	17.22%	-21.23%
0587	54 Neutral	HK$1.02B	-13.18	-2.39%	5.36%	-3.37%	-149.08%
3989	50 Neutral	HK$972.04M	3.63	3.71%	―	-5.24%	-17.75%

China Conch Environment Protection Holdings Ltd. Corporate Events

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.

China Conch Environment Protection Reports Subsidiary’s Q3 Financials

China Conch Environment Protection Holdings Ltd. announced the unaudited financial results of its subsidiary, Anhui Conch Environment Group, for the nine months ending September 30, 2025. The subsidiary reported total assets of RMB 8,235.50 million and a net profit of RMB 33.16 million. This financial disclosure highlights the company’s ongoing commitment to transparency and its strategic focus on green financing, which may influence its market positioning and stakeholder perceptions.

China Conch Announces Change in Company Secretary Role

China Conch Environment Protection Holdings Limited announced that Ms. LIAO Dan has been confirmed by the Stock Exchange of Hong Kong Limited to meet the qualifications to act as the sole company secretary, effective from October 17, 2025. Mr. LEE, who previously served as a joint company secretary, has resigned with no disagreements with the board, and the company expressed gratitude for his contributions.