China Dredging Environment Protection Holdings Limited (0871) AI Stock Analysis

• Market Cap: HK$105.27M
• Dividend Yield: N/A
• Average Volume (3M): 570.12K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.14
• Revenue Growth: -3.86%
• EPS Growth: -21.65%
• Country: HK
• Employees: 415
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 1,503,881,500
• 10 Day Avg. Volume: 347,600
• 30 Day Avg. Volume: 570,116
• PEG Ratio: -0.03
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 3.39
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$0.07 ▼(-1.43% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, significant net losses, and high leverage. The technical analysis provides a slightly better outlook with some short-term bullish signals, but the extremely high RSI indicates potential overbought conditions. The valuation is unattractive due to a negative P/E ratio and no dividend yield.

Positive Factors

Technological Innovation

China Dredging's focus on technological innovation in sustainable development and ecological restoration positions it well to meet increasing regulatory demands and attract new contracts.

Market Position

By aligning with regulatory trends for ecological preservation, China Dredging strengthens its market position, making it more competitive in securing government contracts.

Long-term Contracts

Securing long-term projects through partnerships with local governments provides China Dredging with a stable revenue stream and reduces reliance on short-term contracts.

Negative Factors

Declining Revenues

A declining revenue trend and significant net losses highlight operational challenges, impacting the company's ability to sustain growth and profitability.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities or weather economic downturns.

Poor Cash Flow Management

Inconsistent cash generation and declining operating cash flow suggest poor cash management, which can hinder the company's ability to fund operations and invest in future growth.

China Dredging Environment Protection Holdings Limited Business Overview & Revenue Model

Company Description

China Dredging Environment Protection Holdings Limited, an investment holding company, provides dredging services in the People's Republic of China. The company operates through three segments: Capital and Reclamation Dredging Business (CRD Business), Environmental Protection Dredging and Water Management Business (EPD and Water Management Business), and Other Marine Business. The CRD Business segment offers capital and reclamation dredging services, as well as related consultation services. The EPD and Water Management Business segment provides dredging or water management services; and construction services for promoting environmental interests and water quality primarily for inland rivers. The Other Marine Business segment engages in installing marine wind power equipment, hoisting major parts of docks and bridges, laying underwater pipelines, and other works services; providing shopping mall and factory management and leasing services; and hotel construction services. It also manufactures and sells dredging machines; invests in, develops, and manages properties; and provides lending and venture capital financing business services in the technology sector. The company was formerly known as Xiangyu Dredging Holdings Limited and changed its name to China Dredging Environment Protection Holdings Limited in January 2014. China Dredging Environment Protection Holdings Limited was incorporated in 2011 and is headquartered in Yancheng, the People's Republic of China.

How the Company Makes Money

The company primarily generates revenue through its dredging and reclamation projects, which are often awarded through competitive bidding processes for government contracts. Key revenue streams include contracts for dredging services, land reclamation projects, and environmental remediation efforts. Additionally, China Dredging engages in partnerships with local governments and other stakeholders to secure long-term projects that ensure a steady flow of income. The company's focus on environmentally sustainable practices also aligns with increasing regulatory demands for ecological preservation, further enhancing its market position and ability to attract new contracts.

China Dredging Environment Protection Holdings Limited Financial Statement Overview

Summary

The company faces financial challenges with declining revenues, significant net losses, and high leverage. The income statement shows poor profitability, the balance sheet indicates potential financial instability, and cash flow management is weak.

Income Statement

The income statement shows a declining trend in revenue over recent years, with significant net losses indicating poor profitability. The gross profit margin is low, and the company has not achieved a positive EBIT margin recently. The revenue growth rate is negative, reflecting a downturn in business activities.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. Stockholder equity has been declining, and the equity ratio is low, suggesting potential financial instability. The return on equity is negative, further highlighting the lack of profitability and efficiency in utilizing equity capital.

Cash Flow

Cash flow analysis shows inconsistent cash generation, with operating cash flow significantly declining. The free cash flow to net income ratio is unfavorable, indicating challenges in converting profits into cash. The free cash flow growth rate is negative, reflecting poor cash management and investment returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	306.91M	325.23M	375.16M	385.47M	387.39M	286.34M
Gross Profit	35.62M	28.63M	45.75M	79.84M	34.93M	-43.55M
EBITDA	73.88M	61.14M	-77.26M	-34.46M	58.78M	-167.64M
Net Income	-311.81M	-322.05M	-230.66M	-340.41M	22.59M	-526.58M
Balance Sheet
Total Assets	1.23B	1.30B	1.63B	1.89B	2.27B	2.41B
Cash, Cash Equivalents and Short-Term Investments	21.26M	56.41M	45.85M	35.07M	44.93M	29.31M
Total Debt	372.87M	401.97M	369.77M	422.73M	536.48M	772.79M
Total Liabilities	937.75M	995.73M	1.02B	1.05B	1.11B	1.37B
Stockholders Equity	105.68M	126.96M	449.01M	679.67M	1.02B	908.13M
Cash Flow
Free Cash Flow	60.30M	96.33M	88.00M	101.43M	67.89M	15.69M
Operating Cash Flow	61.43M	97.46M	88.73M	104.28M	116.23M	36.43M
Investing Cash Flow	-1.07M	-968.00K	-43.00K	-2.61M	-27.43M	-9.79M
Financing Cash Flow	-36.43M	-80.13M	-91.25M	-98.68M	-86.04M	-9.94M

China Dredging Environment Protection Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0871, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 82.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0871.

China Dredging Environment Protection 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%
2017	60 Neutral	HK$120.61M	4.11	2.70%	―	-27.58%	-18.28%
1757	54 Neutral	HK$2.12B	1,830.00	1.30%	―	78.48%	-33.33%
1459	49 Neutral	HK$138.67M	-11.94	-0.68%	7.69%	-33.92%	-94.74%
6816	44 Neutral	HK$150.40M	-0.90	-98.05%	―	14.57%	13.79%
1707	41 Neutral	HK$57.12M	-3.70	-9.58%	―	3.97%	14.02%
0871	40 Underperform	HK$105.27M	-0.31	-119.79%	―	-3.86%	-21.65%

China Dredging Environment Protection Holdings Limited Corporate Events

China Dredging Reports Improved Interim Losses Amid Revenue Decline

China Dredging Environment Protection Holdings Limited reported its unaudited interim results for the first half of 2025, showing a decrease in revenue to RMB 145,766,000 from RMB 164,089,000 in the same period in 2024. Despite a reduction in operating costs, the company experienced a net loss of RMB 9,478,000, an improvement from the previous year’s loss of RMB 19,455,000, indicating ongoing challenges in profitability and financial performance.

China Dredging Expects Reduced Losses Amid Cost-Cutting Measures

China Dredging Environment Protection Holdings Limited has issued a profit warning, indicating an expected decrease in net loss for the six months ending June 2025 to approximately RMB9.5 million, compared to RMB19.5 million in the same period of 2024. This improvement is primarily due to the company’s efforts in reducing operating costs, administrative expenses, and finance costs, signaling a positive shift in financial management. The final results are pending further adjustments and will be announced on August 29, 2025.

China Dredging Announces Board Meeting for Interim Results

China Dredging Environment Protection Holdings Limited has announced a board meeting scheduled for August 29, 2025, to approve the interim results for the first half of 2025 and consider an interim dividend. This meeting is significant as it may impact the company’s financial strategy and shareholder returns.