China Environmental Technology Holdings Limited (0646) AI Stock Analysis

• Market Cap: HK$58.26M
• Dividend Yield: N/A
• Average Volume (3M): 65.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• 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: 98,600
• 30 Day Avg. Volume: 65,080
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% 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.

China Environmental Technology Holdings Limited Business Overview & Revenue Model

Company Description

China Environmental Technology Holdings Limited (0646) is a Hong Kong-based environmental technology company focused on providing comprehensive solutions for waste treatment and resource recovery. The company operates primarily in the sectors of waste management, water treatment, and renewable energy. Its core products and services include waste-to-energy technologies, wastewater treatment systems, and environmental consulting, aimed at promoting sustainable development and minimizing environmental impact.

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

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	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: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0646, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	60 Neutral	HK$37.26M	―	-3.59%	―	2.94%	-56.79%
8472	52 Neutral	HK$61.06M	9.61	-4.22%	―	-72.66%	-127.43%
0923	49 Neutral	HK$106.11M	―	-105.24%	―	5.60%	-658.21%
8320	49 Neutral	HK$71.73M	―	-14.20%	―	-8.52%	-1812.50%
8309	48 Neutral	HK$36.00M	2.67	-5.33%	―	-33.92%	-144.78%
0646	46 Neutral	HK$58.26M	―	―	―	4.13%	-5.11%

China Environmental Technology Holdings Limited Corporate Events

China Environmental Technology Holdings Reports Increased Losses in H1 2025

China Environmental Technology Holdings Limited reported a significant financial downturn for the first half of 2025, with a total comprehensive loss of HK$35.847 million compared to a loss of HK$9.321 million in the same period of 2024. The company’s revenue slightly decreased while costs increased, leading to a substantial operational loss, impacting its financial stability and market positioning.

China Environmental Technology Holdings to Review Interim Results and Dividend

China Environmental Technology Holdings Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the unaudited interim results for the first half of 2025 and consider an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.