China Environmental Technology Holdings Limited (0646) AI Stock Analysis

• Market Cap: HK$54.15M
• Dividend Yield: N/A
• Average Volume (3M): 2.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 79.56%
• EPS Growth: 43.36%
• Country: HK
• Employees: 67
• Sector: Industrials
• Sector Strength: 85
• Industry: Waste Management
• EPS (TTM): -0.11
• Shares Outstanding: 342,697,940
• 10 Day Avg. Volume: 320
• 30 Day Avg. Volume: 2,640
• PEG Ratio: 0.10
• Price to Book (P/B): -0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.35
• 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

• Rating: 30 Underperform
• Price Target: ―

The company's stock score is heavily impacted by its poor financial health, marked by significant losses and negative equity. Technical indicators suggest bearish sentiment, though the stock appears oversold. Valuation metrics are unfavourable with a negative P/E ratio and no dividends.

China Environmental Technology Holdings Limited Business Overview & Revenue Model

Company Description

China Environmental Technology Holdings Limited (0646) is a company engaged in the environmental protection industry. It focuses on water treatment, environmental restoration, and environmental protection solutions. The company's core services include providing water purification and wastewater treatment solutions, which are critical in managing industrial and municipal water resources sustainably.

How the Company Makes Money

The company generates revenue primarily through the provision of its environmental protection services. It earns money by offering water treatment solutions such as designing, constructing, and operating wastewater treatment plants. Additionally, it might engage in selling related equipment and technology solutions to industrial and municipal clients. These services and products are often delivered through long-term contracts, providing the company with a stable revenue stream. Key partnerships with government bodies or industrial enterprises could also significantly enhance its business opportunities and contribute to its earnings.

China Environmental Technology Holdings Limited Financial Statement Overview

Summary

Despite a significant revenue increase, the company faces severe financial challenges with ongoing losses, negative equity, and poor cash flow. Strategic financial restructuring is essential for improving financial health.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.23M	15.72M	38.40M	44.61M	53.50M
	Gross Profit
7.78M	6.53M	13.61M	16.30M	17.38M
	EBIT
-6.78M	-15.19M	2.88M	-21.49M	-43.07M
	EBITDA
-20.53M	-14.38M	4.12M	-24.81M	-30.54M
	Net Income Common Stockholders
-30.74M	-43.16M	-25.01M	-53.64M	-94.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
892.00K	2.06M	790.00K	1.11M	1.19M
	Total Assets
37.23M	40.57M	34.88M	50.74M	75.57M
	Total Debt
162.92M	217.52M	215.52M	214.23M	205.58M
	Net Debt
162.03M	215.46M	214.73M	213.12M	204.38M
	Total Liabilities
610.17M	652.20M	610.79M	615.82M	613.25M
	Stockholders Equity
-576.18M	-616.99M	-581.58M	-571.16M	-541.53M
Cash Flow		Free Cash Flow
0.00	-2.11M	-14.38M	-8.99M	-13.96M
	Operating Cash Flow
-8.93M	-2.11M	-14.38M	-8.99M	-13.74M
	Investing Cash Flow
0.00	1.00K	5.00K	-313.00K	-104.00K
	Financing Cash Flow
0.00	299.00K	1.43M	8.67M	9.10M

China Environmental Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Negative

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 0.16 is above the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.18, and below the 200-day MA of 0.22, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 15.65 is Positive, neither overbought nor oversold. The STOCH value of 85.16 is Negative, 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
1658	77 Outperform	HK$558.10B	5.63	10.41%	9.45%	-1.43%	5.12%
1618	75 Outperform	€61.91B	5.34	5.56%	5.00%	-19.10%	-30.15%
1330	74 Outperform	€9.59B	9.02	7.85%	4.98%	-9.43%	4.26%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
1193	59 Neutral	$49.67B	12.15	9.94%	6.39%	1.39%	-21.74%
1108	55 Neutral	€5.00B	―	-17.32%	―	-31.64%	-253.13%
0646	30 Underperform	HK$54.15M	―		―	79.56%	43.36%

China Environmental Technology Holdings Limited Corporate Events

China Environmental Technology Holdings Announces AGM with Key Resolutions

China Environmental Technology Holdings Limited has announced its upcoming annual general meeting scheduled for May 30, 2025. Key agenda items include the adoption of financial statements, re-election of directors, and authorization of board powers to issue shares. This meeting is crucial for the company’s governance and strategic planning, potentially impacting its market operations and shareholder interests.

China Environmental Technology Holdings Sees Revenue Surge Despite Continued Losses

China Environmental Technology Holdings Limited reported a significant increase in revenue for the year ended December 31, 2024, with a 79.56% rise compared to the previous year. Despite the revenue growth, the company still faced a loss, although it was reduced by 28.78% from the prior year. The financial results indicate a positive trend in revenue generation, but the company continues to work on improving its profitability. This announcement may impact the company’s market positioning as it shows potential growth in revenue while highlighting ongoing challenges in achieving profitability.

China Environmental Technology Holdings to Review 2024 Financial Results

China Environmental Technology Holdings Limited has announced that its board of directors will meet on March 28, 2025, to review and approve the company’s final results for the year ending December 31, 2024. This meeting will also consider the recommendation of a final dividend, which could impact the company’s financial strategy and shareholder returns.