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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)

Rating:67Neutral
Price Target:
HK$1.00
▲(42.86%Upside)
The overall stock score is driven mainly by financial performance and technical analysis. The company shows financial stability but faces challenges in profitability. Technical indicators suggest bullish momentum, although caution is warranted due to near overbought conditions. The high P/E ratio indicates potential overvaluation despite the attractive dividend yield.

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 Ltd. (0587) is a Chinese company primarily engaged in the environmental protection industry. The company focuses on providing comprehensive environmental solutions, including waste management, pollution control, and resource recycling. It aims to reduce environmental impact through innovative technologies and sustainable practices.
How the Company Makes MoneyChina Conch Environment Protection Holdings Ltd. generates revenue by offering various environmental protection services such as waste treatment, resource recycling, and pollution control. The company leverages advanced technologies to efficiently manage and recycle waste materials, converting them into usable resources. Revenue streams include service fees from waste management, sales of recycled materials, and potentially government subsidies or incentives for environmental initiatives. The company may also engage in strategic partnerships with local governments and businesses to expand its reach and effectiveness, contributing to its earnings.

China Conch Environment Protection Holdings Ltd. Financial Statement Overview

Summary
China Conch Environment Protection Holdings Ltd. shows financial stability with a stable capital structure but faces profitability and revenue growth challenges. 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
Positive
Last Price0.70
Price Trends
50DMA
0.61
Positive
100DMA
0.59
Positive
200DMA
0.67
Positive
Market Momentum
MACD
0.03
Negative
RSI
61.26
Neutral
STOCH
71.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0587, the sentiment is Positive. The current price of 0.7 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.61, and above the 200-day MA of 0.67, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0587.

China Conch Environment Protection Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$298.80M5.4713.78%5.28%11.84%14.36%
67
Neutral
HK$1.26B189.190.21%4.29%-12.14%-97.71%
64
Neutral
HK$450.00M6.804.83%27.83%-9.69%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
57
Neutral
HK$1.04B3.29
56
Neutral
HK$1.32B48.08
6.76%
54
Neutral
HK$1.10B4.333.58%-11.67%-19.46%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0587
China Conch Environment Protection Holdings Ltd.
0.69
-0.08
-10.39%
HK:3989
Capital Environment Holdings Limited
0.08
>-0.01
-11.11%
HK:3718
Beijing Enterprises Urban Resources Group Ltd.
0.37
-0.10
-21.28%
HK:1790
TIL Enviro Limited
0.45
-0.11
-19.64%
HK:0154
Beijing Enterprises Environment Group Limited
0.69
0.36
109.09%
HK:1397
Baguio Green Group Ltd
0.71
0.11
18.33%

China Conch Environment Protection Holdings Ltd. Corporate Events

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.

China Conch Environment Protection Holdings Ltd. Announces AGM and Strategic Resolutions
May 29, 2025

China Conch Environment Protection Holdings Ltd. has announced its upcoming annual general meeting, scheduled for June 26, 2025. Key agenda items include the adoption of financial statements, re-election of directors, appointment of auditors, and the approval of mandates for share buybacks and issuance, reflecting strategic governance and operational planning.

China Conch Proposes Auditor Change to Ernst & Young
May 22, 2025

China Conch Environment Protection Holdings Limited has announced a proposed change of auditor, with KPMG set to retire following the 2025 annual general meeting. The company plans to appoint Ernst & Young as the new auditor, citing enhanced independence and good corporate governance as reasons for the change. This transition is expected to be in the best interest of the company and its shareholders, pending approval at the 2025 meeting.

China Conch Environment Protection Releases Q1 2025 Financials for Subsidiary
Apr 30, 2025

China Conch Environment Protection Holdings Limited announced the unaudited financial results for the first quarter of 2025 for its subsidiary, Anhui Conch Environment Group. The subsidiary reported total assets of RMB 8,288.04 million, total liabilities of RMB 5,210.87 million, and a net profit of RMB 14.47 million. The release of this financial information follows the issuance of green medium-term notes, highlighting the company’s commitment to sustainable finance. Stakeholders are advised to exercise caution as these figures have not been audited.

China Conch Environment Protection Completes Issuance of 2025 Green Notes
Apr 25, 2025

China Conch Environment Protection Holdings Ltd. announced the successful issuance of its 2025 first tranche green medium-term notes, amounting to RMB1.0 billion, with a coupon rate of 1.8%. This issuance, led by China Minsheng Banking Corp., Ltd., reflects the company’s commitment to sustainable financing and strengthens its position in the green finance market, providing potential growth opportunities for stakeholders.

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: Jul 15, 2025