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

• Market Cap: HK$108.28M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -15.33%
• EPS Growth: -40.02%
• Country: HK
• Employees: 415
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): -0.21
• Shares Outstanding: 1,503,881,500
• 10 Day Avg. Volume: 1,515,130
• 30 Day Avg. Volume: 1,336,430
• PEG Ratio: 0.01
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.74
• 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: 37 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

The stock's overall score is driven by severe financial instability, indicated by declining revenues, net losses, and high leverage. Technical indicators support the negative outlook, with bearish momentum and oversold conditions. The negative P/E ratio further highlights the company's financial distress. Immediate improvements in profitability and cash management are crucial to enhancing the stock's prospects.

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

China Dredging Environment Protection Holdings Limited generates revenue predominantly through its dredging and environmental protection services. The company undertakes contracts for dredging projects, which may include land reclamation, maintenance dredging, and the deepening of waterways. These projects are often funded by government bodies, municipal authorities, or private enterprises looking to enhance infrastructure and environmental conditions. Additionally, the company's environmental protection services, such as the treatment of contaminated sediments, contribute to its revenue. Strategic partnerships with government entities and private sector players may also play a significant role in securing contracts and projects that drive income.

China Dredging Environment Protection Holdings Limited Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues, net losses, and high leverage. Poor cash flow management and financial instability indicate operational inefficiencies and high risk.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	325.23M	375.16M	385.47M	387.39M	286.34M
Gross Profit	28.63M	45.75M	79.84M	34.93M	-43.55M
EBITDA	61.14M	-77.26M	-171.78M	12.64M	-122.32M
Net Income	-322.05M	-230.66M	-315.13M	41.26M	-537.36M
Balance Sheet
Total Assets	1.30B	1.63B	1.89B	2.27B	2.41B
Cash, Cash Equivalents and Short-Term Investments	56.41M	45.85M	35.07M	32.08M	29.31M
Total Debt	401.97M	369.77M	422.73M	536.48M	772.79M
Total Liabilities	995.73M	1.02B	1.05B	1.11B	1.37B
Stockholders Equity	126.96M	449.01M	679.67M	1.02B	908.13M
Cash Flow
Free Cash Flow	96.33M	88.00M	101.43M	67.89M	15.69M
Operating Cash Flow	97.46M	88.73M	104.28M	116.23M	36.43M
Investing Cash Flow	-968.00K	-43.00K	-2.61M	-27.43M	-9.79M
Financing Cash Flow	-80.13M	-91.25M	-98.68M	-86.04M	-9.94M

China Dredging Environment Protection Holdings Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0871, the sentiment is Neutral. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2017	71 Outperform	HK$182.46M	6.16	2.78%	―	-8.97%	-12.59%
Sector *	58 Neutral	HK$14.28B	4.69	-3.01%	5.60%	3.67%	-54.16%
1757	53 Neutral	HK$134.40M	126.67	1.19%	―	-34.92%	―
1707	51 Neutral	HK$179.76M	―	-9.34%	―	-40.18%	3.09%
1459	50 Neutral	HK$176.01M	32.35	0.31%	6.06%	-20.04%	-58.20%
0871	37 Underperform	HK$108.28M	―	-110.99%	―	-15.33%	-40.02%
6816	―	HK$103.20M	―	-69.16%	―	―	―

China Dredging Environment Protection Holdings Limited Corporate Events

China Dredging Announces Effective Date for Capital Reorganisation

China Dredging Environment Protection Holdings Limited announced the effective date of its Capital Reorganisation, which was confirmed by a court order and registered with the Cayman Islands Registrar of Companies. The reorganisation, which fulfills all necessary conditions, will allow dealing in new shares to commence on July 3, 2025, marking a significant step in the company’s financial restructuring.

China Dredging Enhances Governance with New Nomination Committee

China Dredging Environment Protection Holdings Limited has established a Nomination Committee as part of its governance structure. This committee, primarily composed of independent non-executive directors, is tasked with overseeing the nomination process for board members, ensuring a diverse and effective board composition. The establishment of this committee is a strategic move to enhance the company’s governance and operational efficiency, potentially impacting its industry positioning by promoting transparency and accountability.

China Dredging Environment Protection Secures Unanimous Approval at AGM

China Dredging Environment Protection Holdings Limited announced that all resolutions proposed at their Annual General Meeting on June 18, 2025, were passed with unanimous approval. This includes the re-election of executive directors, approval of financial statements, and granting mandates for share issuance and repurchase. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued operational stability and strategic flexibility.

China Dredging Updates Capital Reorganisation Timetable

China Dredging Environment Protection Holdings Limited has announced an update on its Capital Reorganisation, including a revised timetable. The hearing for the petition to confirm the Capital Reduction is scheduled for 26 June 2025, with the effective date of the reorganisation expected on 3 July 2025. This reorganisation is subject to court approval and other conditions, and any changes to the schedule will be communicated by the company.

China Dredging Announces AGM with Key Resolutions on Agenda

China Dredging Environment Protection Holdings Limited has announced its annual general meeting scheduled for June 18, 2025, where key agenda items include the approval of financial statements, re-election of executive directors, and re-appointment of auditors. The meeting will also address resolutions to authorize the board to issue additional shares, which could impact the company’s capital structure and stakeholder interests.

China Dredging Announces Closure of Register for AGM

China Dredging Environment Protection Holdings Limited has announced the closure of its register of members from June 13 to June 18, 2025, to determine the shareholders eligible to attend and vote at the upcoming annual general meeting. This move is significant for shareholders as it outlines the necessary steps and deadlines for participation in the AGM, impacting their ability to influence company decisions.