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Dongjiang Environmental Company Class H (HK:0895)
:0895

Dongjiang Environmental Company (0895) AI Stock Analysis

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HK

Dongjiang Environmental Company

(OTC:0895)

Rating:47Neutral
Price Target:
The overall stock score for Dongjiang Environmental Company is driven by financial challenges such as declining revenue, negative profitability, and high leverage. While technical indicators show a neutral outlook, the negative P/E ratio and absence of dividend yield highlight valuation concerns. Improvements in operational efficiency and cash flow generation are critical for enhancing the company's financial stability.

Dongjiang Environmental Company (0895) vs. iShares MSCI Hong Kong ETF (EWH)

Dongjiang Environmental Company Business Overview & Revenue Model

Company DescriptionDongjiang Environmental Company (0895) is a leading provider in the environmental protection industry, focusing on the treatment and disposal of industrial waste. The company operates in sectors such as waste management, environmental engineering, and renewable energy. Its core services include hazardous waste treatment, industrial waste recycling, and environmental consultancy.
How the Company Makes MoneyDongjiang Environmental Company generates revenue primarily through the provision of waste management services, including the collection, treatment, and disposal of hazardous and industrial waste. Key revenue streams include fees charged for waste treatment services, recycling of materials, and consultancy services. The company may also benefit from government contracts and partnerships with industrial firms seeking to manage waste sustainably. Regulatory compliance and environmental policies often drive demand for its services, contributing to its earnings.

Dongjiang Environmental Company Financial Statement Overview

Summary
Dongjiang Environmental Company faces significant financial challenges, such as declining revenue, negative profitability, and high leverage. The negative cash flow and net income reflect liquidity issues, necessitating improvements in operational efficiency and cash generation to stabilize its financial position.
Income Statement
45
Neutral
Dongjiang Environmental Company experienced a significant revenue decline of approximately 13% from 2023 to 2024. The company reported a negative net income for 2024, leading to a negative net profit margin. The gross profit margin decreased over the years, indicating declining profitability. EBIT and EBITDA margins are negative, highlighting operational challenges.
Balance Sheet
55
Neutral
The company has a high debt-to-equity ratio, suggesting high leverage, which could pose risks. Stockholders' equity decreased significantly from 2023 to 2024, reducing the equity ratio. The return on equity is negative due to the net loss, indicating poor returns for shareholders.
Cash Flow
40
Negative
Operating cash flow increased from 2023 to 2024, but free cash flow remains negative, indicating cash constraints. The operating cash flow to net income ratio is not meaningful due to negative net income. The free cash flow growth rate is negative, reflecting cash flow challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.49B4.01B3.88B4.02B3.32B
Gross Profit195.02M161.74M610.38M1.10B1.13B
EBITDA238.73M223.53M875.18M1.01B
Net Income-804.19M160.75M304.92M
Balance Sheet
Total Assets11.28B12.16B11.71B11.81B10.42B
Cash, Cash Equivalents and Short-Term Investments1.07B1.30B622.72M550.42M661.66M
Total Debt5.59B5.59B4.61B4.48B3.26B
Total Liabilities7.13B7.12B6.93B6.37B5.05B
Stockholders Equity3.60B4.50B4.06B4.60B4.54B
Cash Flow
Free Cash Flow-81.23M44.75M
Operating Cash Flow125.42M1.03M283.54M390.96M974.14M
Investing Cash Flow-124.37M-493.55M
Financing Cash Flow-223.57M1.11B366.81M809.71M

Dongjiang Environmental Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.57
Price Trends
50DMA
2.15
Positive
100DMA
1.98
Positive
200DMA
1.95
Positive
Market Momentum
MACD
0.08
Positive
RSI
64.36
Neutral
STOCH
52.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0895, the sentiment is Positive. The current price of 2.57 is above the 20-day moving average (MA) of 2.36, above the 50-day MA of 2.15, and above the 200-day MA of 1.95, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 52.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0895.

Dongjiang Environmental Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$178.90B4.8026.08%2.18%-43.77%
74
Outperform
€10.30B10.377.85%4.33%-9.43%4.26%
69
Neutral
HK$577.34M11.612.42%9.68%-46.76%
58
Neutral
$1.33B4.20-2.93%7.45%3.67%-51.13%
50
Neutral
HK$50.68M-8.28%-1.73%-42.35%
47
Neutral
HK$4.78B-20.47%-16.08%-0.19%
40
Underperform
HK$873.60M-2.26%34.69%41.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0895
Dongjiang Environmental Company
2.57
0.99
62.66%
HK:3928
S&T Holdings Ltd.
1.74
0.43
32.82%
HK:1336
New China Life Insurance Co., Ltd. Class H
42.75
28.38
197.49%
HK:1085
Hengxin Technology Ltd.
1.24
0.13
11.71%
HK:1259
Prosperous Future Holdings
0.02
-0.05
-68.92%
HK:1330
Dynagreen Environmental Protection Group Co., Ltd. Class H
5.18
2.35
83.36%

Dongjiang Environmental Company Corporate Events

Dongjiang Environmental Announces Leadership Changes
Apr 25, 2025

Dongjiang Environmental Company Limited has announced significant changes in its leadership, with the resignation of Mr. Yu Fan as an executive Director and Mr. Siu Chi Hung as an independent non-executive Director, due to other work arrangements. The company has proposed the appointment of Mr. Zhu Lintao as a non-independent Director and Mr. Lee Kwok Tung Louis as an independent Director, pending shareholder approval. Additionally, Ms. Chen Peihuan has resigned as a Supervisor, with Mr. Ma Xujian nominated as her replacement, also subject to shareholder approval. These changes reflect a strategic shift in the company’s governance structure, potentially impacting its operational and strategic direction.

Dongjiang Environmental Announces Board Composition and Committee Roles
Apr 25, 2025

Dongjiang Environmental Company Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The announcement also details the membership of the board’s four committees: Audit and Risk Management, Remuneration and Appraisal, Nomination, and Strategic Development. This organizational update may influence the company’s strategic direction and governance, potentially impacting stakeholders and its market positioning.

Dongjiang Environmental Reports Q1 2025 Financial Results Amid Revenue Decline
Apr 25, 2025

Dongjiang Environmental Company Limited released its unaudited financial results for the first quarter of 2025, showing a decline in revenue by 11.92% compared to the same period last year, amounting to RMB 695.9 million. Despite the decrease in revenue, the company reported an improvement in net profit attributable to shareholders, which increased by 6.12% to a loss of RMB 146.3 million. Additionally, the net cash flow from operating activities showed a significant positive turnaround, increasing by 100.98% from the previous year’s negative figures. These financial results indicate a challenging period for the company, yet they also highlight some operational improvements, particularly in cash flow management, which could positively impact stakeholders and the company’s future performance.

Dongjiang Environmental’s 2025 EGM Resolutions Passed
Apr 23, 2025

Dongjiang Environmental Company Limited announced the results of its first extraordinary general meeting in 2025, where all proposed resolutions were passed by shareholders. The resolutions included a shareholders’ return plan for 2024-2026, amendments to the Board’s Rules of Procedures, the signing of a New Financial Service Agreement, and the adoption of estimates on routine related party transactions for 2025. The approval of these resolutions is expected to impact the company’s operations positively by enhancing governance and financial service agreements, potentially strengthening its market position and stakeholder relations.

Dongjiang Environmental Schedules Board Meeting for Q1 Financial Review
Apr 10, 2025

Dongjiang Environmental Company Limited announced a board meeting scheduled for April 25, 2025, to consider and approve the unaudited consolidated financial statements for the first quarter of 2025. This meeting could impact the company’s financial transparency and stakeholder confidence as it involves key financial disclosures.

Dongjiang Environmental Reports Decrease in 2024 Revenue
Mar 28, 2025

Dongjiang Environmental Company Limited announced its audited consolidated results for the year ended December 31, 2024. The company reported a decrease in total operating revenue from RMB 4.02 billion in 2023 to RMB 3.49 billion in 2024, alongside a reduction in total operating costs. This financial performance reflects a challenging year for the company, impacting its market positioning and potentially affecting stakeholder confidence.

Dongjiang Environmental Announces First Extraordinary General Meeting in 2025
Mar 28, 2025

Dongjiang Environmental Company Limited has announced the convening of its first extraordinary general meeting in 2025, scheduled for April 23. Key resolutions to be discussed include a shareholder return plan for 2024 to 2026, amendments to the board’s rules of procedures, a new financial service agreement, and an estimate on routine related party transactions for 2025. These resolutions are significant as they may impact the company’s financial strategies and governance structure, potentially influencing its market positioning and stakeholder relations.

Dongjiang Environmental Announces Significant Asset Impairment Provision for 2024
Mar 28, 2025

Dongjiang Environmental Company Limited announced a provision for asset impairment amounting to RMB251,991,500 for the year 2024. This decision, approved by the board of directors and supervisory committee, reflects the company’s financial strategy to address expected credit losses and asset valuation adjustments, impacting various asset categories including accounts receivable, inventories, and goodwill. The move is likely to influence the company’s financial health and its positioning within the environmental sector.

Dongjiang Environmental to Fulfill Guarantee for Subsidiary Amid Financial Struggles
Mar 28, 2025

Dongjiang Environmental Company Limited announced its obligation to fulfill a guarantee for its subsidiary, Tangshan Wandesi, due to the latter’s financial difficulties in repaying a loan to HSBC. The company will recognize the receivables from Tangshan Wandesi and plans to enhance the subsidiary’s operations to improve financial performance. Additionally, Dongjiang Environmental will enforce counter-security measures with other shareholders and may pursue legal action to protect its interests.

Dongjiang Environmental Successfully Issues RMB400 Million Medium-Term Notes
Mar 28, 2025

Dongjiang Environmental Company Limited has successfully issued the first tranche of its Medium-Term Notes for 2025, amounting to RMB400 million. This issuance, with an interest rate of 2.66%, reflects the company’s strategic financial planning and positions it to leverage favorable inter-bank market conditions, potentially enhancing its financial stability and operational capacity.

Dongjiang Environmental Schedules Board Meeting to Approve 2024 Results
Mar 19, 2025

Dongjiang Environmental Company Limited has announced a board meeting scheduled for March 28, 2025, to approve the audited consolidated annual results for 2024 and consider a final dividend. This meeting is significant for stakeholders as it will address key financial outcomes and potential shareholder returns.

Dongjiang Environmental Reinforces Support Amid Subsidiary’s Financial Struggles
Mar 14, 2025

Dongjiang Environmental Company Limited announced its ongoing financial support for its subsidiary, Mianyang Dongjiang Environmental Technology Co., Ltd., which is struggling due to intense competition and liquidity issues in the hazardous waste industry. The company has fulfilled its guarantee obligations by covering Mianyang Dongjiang’s outstanding loans and is taking steps to improve its subsidiary’s operational performance and recover the receivables. Additionally, Dongjiang Environmental is pursuing counter-guarantors for compensation and may consider legal action to protect its interests.

Dongjiang Environmental Delays Circular Dispatch for New Financial Services Agreement
Feb 21, 2025

Dongjiang Environmental Company Limited has announced a delay in the dispatch of a circular related to its New Financial Services Agreement, which includes discloseable and continuing connected transactions such as Deposit Services. The company now expects to dispatch the circular by the end of March 2025, allowing additional time for the preparation and finalization of necessary information.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025