China Environmental Technology Holdings Limited (0646) AI Stock Analysis

• Market Cap: HK$51.75M
• Dividend Yield: N/A
• Average Volume (3M): 39.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 4.13%
• EPS Growth: -5.11%
• Country: HK
• Employees: 67
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.08
• Shares Outstanding: 342,697,940
• 10 Day Avg. Volume: 35,120
• 30 Day Avg. Volume: 39,040
• PEG Ratio: 0.05
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 2.14
• P/FCF Ratio: -6.57
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.15 ▼(-12.94% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by persistent losses and negative equity. Technical analysis provides a neutral outlook, while valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

A significant revenue increase indicates strong demand for the company's products and services, suggesting potential for future growth and market expansion.

Market Position

Operating in essential sectors like waste management and renewable energy positions the company well for long-term demand, driven by sustainability trends.

Government Partnerships

Partnerships with governments provide stable revenue streams and enhance credibility, supporting long-term business sustainability and growth.

Negative Factors

Negative Equity

Negative equity indicates financial distress, limiting the company's ability to raise capital and invest in growth opportunities, posing a risk to long-term viability.

Cash Flow Challenges

Zero operating cash flow suggests difficulties in generating cash from core operations, impacting the ability to reinvest or reduce debt, threatening financial stability.

High Leverage Risk

High leverage risk due to negative equity can lead to financial instability, increasing the company's vulnerability to economic downturns and interest rate hikes.

China Environmental Technology Holdings Limited Business Overview & Revenue Model

Company Description

China Environmental Technology Holdings Limited, an investment holding company, provides wastewater treatment plants construction and operation services, and trades in machinery and equipment in the People's Republic of China. The company operates through two segments, Wastewater Treatment and Healthcare. It is involved in the development of water purification technology and wastewater treatment equipment trading. The company also develops environmental protection related projects; provides environmental protection technology and equipment system integration, as well as offers environmental consultancy services. In addition, it develops medical information systems; and provides healthcare related products and healthcare management consulting services. The company was incorporated in 2001 and is headquartered in Kowloon, Hong Kong. China Environmental Technology Holdings Limited is a subsidiary of Gentle International Holdings Limited.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale and installation of its waste management and water treatment systems, as well as ongoing maintenance and consulting services. Key revenue streams include contracts for large-scale waste treatment projects, government and municipal partnerships for public waste management initiatives, and sales of proprietary technology solutions. Additionally, China Environmental Technology may benefit from government subsidies and incentives aimed at promoting environmental sustainability, which can enhance its profitability. Collaborations with local governments and private enterprises further contribute to its earnings through long-term service agreements and project financing.

China Environmental Technology Holdings Limited Financial Statement Overview

Summary

The company is experiencing severe financial challenges. Despite a significant revenue increase, persistent losses and negative equity highlight financial instability. High leverage and negative cash flow position pose risks to sustainability.

Income Statement

The company experienced a revenue increase of 79.54% from 2023 to 2024, a positive sign. However, the net profit margin remained negative at -108.91% in 2024, showing ongoing losses. Gross profit margin improved slightly from 41.5% in 2023 to 27.57% in 2024, but EBIT and EBITDA margins were negative, indicating operational challenges.

Balance Sheet

The company's balance sheet shows a concerning negative stockholders' equity of -576.18 million in 2024. The debt-to-equity ratio is negative due to this, indicating high leverage risk. The equity ratio is also negative, reflecting financial instability.

Cash Flow

Operating cash flow was zero in 2024, indicating a lack of cash generation from operations. Free cash flow was also zero, showing no improvement in available cash for reinvestment or debt reduction. The company faces significant cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.62M	28.23M	15.72M	38.40M	44.61M	53.50M
Gross Profit	3.53M	7.78M	6.53M	13.61M	16.30M	17.38M
EBITDA	-21.62M	-6.06M	-14.38M	4.12M	-24.81M	-30.54M
Net Income	-37.23M	-30.74M	-43.16M	-25.01M	-53.64M	-68.05M
Balance Sheet
Total Assets	31.92M	37.23M	40.57M	34.88M	50.74M	75.57M
Cash, Cash Equivalents and Short-Term Investments	1.71M	892.00K	2.06M	790.00K	1.11M	1.19M
Total Debt	166.31M	162.92M	217.52M	215.52M	214.23M	205.58M
Total Liabilities	637.43M	610.17M	652.20M	610.79M	615.82M	613.25M
Stockholders Equity	-610.53M	-576.18M	-616.99M	-581.58M	-571.16M	-541.53M
Cash Flow
Free Cash Flow	-5.13M	-9.18M	-2.11M	-14.38M	-8.99M	-13.96M
Operating Cash Flow	-4.89M	-8.93M	-2.11M	-14.38M	-8.99M	-13.74M
Investing Cash Flow	-242.00K	-240.00K	1.00K	5.00K	-313.00K	-104.00K
Financing Cash Flow	-249.00K	8.10M	-241.00K	1.43M	8.67M	9.10M

China Environmental Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 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:0646, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.23 is Neutral, neither overbought nor oversold. The STOCH value of 6.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0646.

China Environmental Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8201	57 Neutral	HK$63.72M	-7.80	-3.59%	―	2.94%	-56.79%
8472	52 Neutral	HK$77.18M	-9.33	-4.22%	―	-72.66%	-127.43%
8309	48 Neutral	HK$39.00M	-3.01	-9.31%	―	-57.27%	-190.00%
0923	47 Neutral	HK$101.28M	-0.20	-107.25%	―	-2.08%	-647.01%
0646	46 Neutral	HK$51.75M	-0.94	―	―	4.13%	-5.11%
8320	44 Neutral	HK$73.90M	-29.74	-4.04%	―	12.29%	51.28%

China Environmental Technology Holdings Limited Corporate Events

China Environmental Technology Tightens Governance With Updated Nomination Committee Mandate

China Environmental Technology Holdings Limited has updated the terms of reference for its Nomination Committee as of 31 December 2025, formalising the committee’s role in overseeing director nomination policy, succession planning, and the structure, size and composition of the board. The revised framework reinforces the committee’s authority to obtain information from employees, seek independent professional advice at the company’s expense, and periodically review its own performance and terms to align with Hong Kong Listing Rules, underlining the company’s ongoing efforts to strengthen corporate governance and board oversight for the benefit of shareholders and other stakeholders.

The most recent analyst rating on (HK:0646) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on China Environmental Technology Holdings Limited stock, see the HK:0646 Stock Forecast page.