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

• Market Cap: HK$1.33B
• Dividend Yield: 4.17%
• Average Volume (3M): 2.73M
• Price to Earnings (P/E): 197.3
• Beta (1Y): 1.05
• Revenue Growth: -12.14%
• EPS Growth: -97.71%
• Country: HK
• Employees: 3,288
• Sector: Industrials
• Sector Strength: 75
• Industry: Waste Management
• EPS (TTM): -0.04
• Shares Outstanding: 1,826,765,000
• 10 Day Avg. Volume: 1,829,372
• 30 Day Avg. Volume: 2,729,844
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$1.00
• Price Target Upside: 36.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: HK$1.00 ▲(36.99% Upside)

The stock's overall score is driven by strong technical momentum and stable financial performance, despite challenges in profitability and high valuation concerns. The lack of earnings call data and corporate events limits additional insights.

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

Company Description

China Conch Environment Protection Holdings Ltd. (0587) is a prominent player in the environmental protection sector, primarily focusing on sustainable development and innovative solutions for waste management and pollution control. The company is committed to advancing eco-friendly technologies and services that cater to the needs of industrial and municipal clients across China. Its core offerings include the treatment and disposal of solid waste, hazardous waste management, and the development of environmental protection equipment.

How the Company Makes Money

China 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 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.69B	1.88B	1.73B	1.70B	1.14B
Gross Profit	629.27M	893.57M	910.14M	1.02B	749.65M
EBITDA	445.82M	711.03M	724.85M	894.90M	677.69M
Net Income	6.28M	264.13M	328.66M	578.61M	468.99M
Balance Sheet
Total Assets	9.75B	9.41B	8.54B	7.51B	4.89B
Cash, Cash Equivalents and Short-Term Investments	345.62M	295.30M	273.06M	612.79M	670.48M
Total Debt	4.66B	4.27B	3.78B	3.05B	1.17B
Total Liabilities	6.09B	5.70B	5.15B	4.42B	3.09B
Stockholders Equity	2.95B	2.99B	2.73B	2.42B	1.05B
Cash Flow
Free Cash Flow	-154.96M	-196.82M	-946.76M	-1.49B	-1.03B
Operating Cash Flow	434.08M	631.11M	542.99M	767.72M	453.46M
Investing Cash Flow	-540.18M	-973.72M	-1.41B	-2.18B	-1.63B
Financing Cash Flow	205.46M	315.81M	541.32M	1.37B	1.57B

China Conch Environment Protection Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 0.73 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.66, and above the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 51.48 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1397	68 Neutral	HK$377.65M	7.01	13.78%	4.18%	11.84%	14.36%
1790	64 Neutral	HK$450.00M	6.80	4.83%	―	27.83%	-9.69%
0587	64 Neutral	HK$1.33B	197.30	0.21%	4.17%	-12.14%	-97.71%
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.71%	2.29%	-57.50%
0154	57 Neutral	HK$945.23M	3.01		―	―	―
3718	56 Neutral	HK$1.30B	46.79		6.94%	―	―
3989	54 Neutral	HK$1.22B	5.00	3.58%	―	-11.67%	-19.46%

China Conch Environment Protection Holdings Ltd. Corporate Events

China Conch Issues Profit Warning Amid Market Challenges

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

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

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

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

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

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.