Enviro Energy International Holdings Limited (1102) AI Stock Analysis

• Market Cap: HK$61.89M
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.15
• Revenue Growth: -14.01%
• EPS Growth: 96.60%
• Country: HK
• Employees: 28
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): <0.01
• Shares Outstanding: 1,439,385,700
• 10 Day Avg. Volume: 515,820
• 30 Day Avg. Volume: 1,146,631
• PEG Ratio: -0.08
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -26.63
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: HK$0.05 ▲(27.50% Upside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

The score is driven down primarily by weak financial performance (ongoing losses, revenue decline, high leverage, and negative operating/free cash flow). Technical indicators provide some support (positive trend vs. moving averages and positive MACD), but valuation remains constrained by a loss-making profile (negative P/E) and no dividend information.

Positive Factors

Renewable energy project focus (structural tailwind)

Enviro Energy’s core business of developing and operating solar and wind projects aligns with long-term global decarbonization and electrification trends. Project ownership and operating assets can generate multi-year contracted cash flows (eg, PPAs), supporting revenue durability independent of short-term market swings.

Multiple revenue streams (projects, trading, consultancy)

Having project income, commodity trading and consultancy diversifies cash flow sources and reduces reliance on any single market. Trading and advisory services can provide near-term revenue while projects scale, improving resilience across cycles and smoothing cash generation over the medium term.

Signs of operating margin improvement

Reported uptick in EBIT/EBITDA margins suggests management has begun extracting operational efficiencies or optimizing project economics. If sustained, margin improvement increases the chance of moving toward profitability and enhances cash generation potential even without large revenue increases.

Negative Factors

Persistent net losses and declining revenue

Consistent net losses coupled with a >13% revenue decline erode internal funding capacity and restrict reinvestment in projects. Continued losses weaken negotiating leverage with partners and lenders and increase the need for external capital, raising execution and dilution risk over the coming months.

Very thin gross margin limits resilience

A sub-8% gross margin leaves little buffer to cover fixed costs, SG&A, or to absorb commodity and supply-chain cost swings common in energy projects. Low underlying profitability makes it harder to convert revenue into sustainable operating cash flow or fund capital expenditures internally.

High leverage and negative operating/free cash flow

A thin equity base (~12% of assets historically) combined with negative operating and free cash flow constrains liquidity and increases refinancing risk. This reduces flexibility to fund project development or weather downturns, making the business dependent on external financing or dilutive capital raises.

Enviro Energy International Holdings Limited Business Overview & Revenue Model

Company Description

Enviro Energy International Holdings Limited, an investment holding company, engages in the sale of building materials in the People's Republic of China. The company sells aluminum, steel products, timber logs, base metals, scrap copper, etc., which are primarily used at the early stages of construction projects or for manufacturing of building or surfacing materials. It also provides finance leasing services; and engages in properties investment activities. The company was incorporated in 2002 and is headquartered in Sheung Wan, Hong Kong.

How the Company Makes Money

Enviro Energy International Holdings Limited generates revenue through multiple streams including the development and operation of renewable energy projects, which provide long-term income through energy sales and power purchase agreements. The company also earns revenue from the trading of energy commodities, capitalizing on market fluctuations and demand. Additionally, consultancy services aimed at improving energy efficiency for businesses contribute to its earnings. Strategic partnerships with other firms in the renewable sector can enhance project viability and open new markets, thereby supporting revenue growth.

Enviro Energy International Holdings Limited Financial Statement Overview

Summary

Very weak fundamentals: persistent net losses, declining revenue (-13.10%), thin gross margin (~7.44%), high leverage/low equity ratio (~12.06%) with prior negative equity, and deteriorating liquidity as operating and free cash flow turned negative.

Income Statement

The income statement reveals a challenging performance with consistent net losses over the years. The gross profit margin in the latest period was approximately 7.44%, showing limited profitability. Revenue has declined from 2023 to 2024, resulting in a negative revenue growth rate of -13.10%. The net profit margin remains negative, reflecting ongoing net losses. Although EBIT and EBITDA margins improved slightly in 2024, they are still relatively low, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows significant financial stress, with a low stockholders' equity compared to total liabilities, indicating high leverage. The debt-to-equity ratio is concerning, and stockholders' equity has been negative in previous years, reflecting financial instability. The equity ratio in 2024 is around 12.06%, highlighting a low proportion of equity financing. Return on equity is negative, driven by the consistent net losses.

Cash Flow

Cash flow analysis indicates a weak position, with operating cash flow turning negative in recent periods. Free cash flow is also negative, suggesting difficulties in generating cash from operations. The company has struggled to maintain positive cash flow, as shown by the absence of free cash flow growth and low cash flow ratios in relation to net income. This could impact future liquidity and investment capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	461.85M	531.50M	269.58M	321.84M	54.05M
Gross Profit	34.35M	41.24M	16.74M	15.92M	599.00K
EBITDA	18.71M	-2.76M	-238.00M	-350.18M	-1.34M
Net Income	-24.40M	-35.75M	-257.03M	-357.77M	-25.78M
Balance Sheet
Total Assets	105.65M	304.60M	394.13M	555.31M	879.23M
Cash, Cash Equivalents and Short-Term Investments	42.39M	28.03M	8.14M	8.90M	4.03M
Total Debt	13.89M	230.20M	240.41M	246.74M	210.30M
Total Liabilities	69.61M	368.49M	434.30M	334.19M	309.51M
Stockholders Equity	12.74M	-79.68M	-44.68M	221.12M	569.71M
Cash Flow
Free Cash Flow	-724.00K	7.22M	-8.15M	-5.07M	-18.06M
Operating Cash Flow	-724.00K	7.22M	-8.13M	-5.07M	-18.03M
Investing Cash Flow	244.00K	268.00K	-47.00K	7.00K	-31.00K
Financing Cash Flow	9.61M	12.07M	7.37M	9.75M	19.24M

Enviro Energy International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1102, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1102.

Enviro Energy International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2187	57 Neutral	HK$538.56M	-3.48	-31.95%	―	13.16%	-20233.33%
6193	53 Neutral	HK$122.00M	2.90	-0.22%	―	28.86%	98.11%
2212	51 Neutral	HK$228.77M	-3.24	-38.07%	―	-44.67%	18.67%
0058	46 Neutral	HK$102.59M	-0.77	-123.36%	―	9.80%	-10.81%
1847	44 Neutral	HK$58.91M	-2.34	-8.97%	―	-11.49%	-128.11%
1102	42 Neutral	HK$61.89M	22.86	―	―	-14.01%	96.60%

Enviro Energy International Holdings Limited Corporate Events

Enviro Energy Extends Deadline for Completion of Sapphire Asia Acquisition

Enviro Energy International Holdings Limited has agreed with the vendors of Sapphire Asia Limited to extend the deadline for fulfilling the conditions precedent of its planned acquisition of 60% of Sapphire Asia’s issued share capital. The long stop date for satisfying these conditions under the sale and purchase agreement has been moved from 31 December 2025 to 31 March 2026, with the rest of the agreement’s terms remaining unchanged. The company cautions that completion of the transaction is still subject to these conditions being met, so the acquisition may or may not proceed, and advises shareholders and potential investors to exercise caution when dealing in its shares.

The most recent analyst rating on (HK:1102) stock is a Sell with a HK$0.04 price target. To see the full list of analyst forecasts on Enviro Energy International Holdings Limited stock, see the HK:1102 Stock Forecast page.

Enviro Energy Clarifies Executive Compensation in Annual Reports

Enviro Energy International Holdings Limited has issued a clarification announcement regarding the emoluments of its Chief Executive, Mr. Wei Junqing, as reported in the 2020 and 2021 Annual Reports. The company identified clerical errors in the previously disclosed information and has provided corrected figures for Mr. Wei’s compensation, which remains unchanged except for the clarification. This announcement is part of the company’s effort to maintain transparency and accuracy in its financial disclosures.

Enviro Energy Clarifies Executive Remuneration in Supplemental Announcement

Enviro Energy International Holdings Limited has issued a supplemental announcement concerning the emoluments of its Chief Executive for the years 2020 and 2021. The announcement clarifies that the Chief Executive, Mr. Wei Junqing, who is not a director, received a total remuneration of HK$1,069,462 in 2020, with no additional benefits or significant transactions involving the company. For 2021, no remuneration was reported for Mr. Wei. This disclosure ensures transparency in the company’s financial reporting and may impact stakeholders’ perception of governance practices.