ELL Environmental Holdings Limited (1395) AI Stock Analysis

• Market Cap: €166.10M
• Dividend Yield: N/A
• Average Volume (3M): 75.17K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.06
• Revenue Growth: 38.07%
• EPS Growth: N/A
• Country: HK
• Employees: 302
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.01
• Shares Outstanding: 1,107,299,900
• 10 Day Avg. Volume: 93,500
• 30 Day Avg. Volume: 75,166
• PEG Ratio: -3.84
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.47
• P/FCF Ratio: 160.38
• 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: 50 Neutral
• Price Target: HK$0.15 ▲(0.00% Upside)

The overall stock score reflects significant financial challenges, including negative net income and cash flow issues, which are the most impactful factors. Technical indicators suggest a neutral to bearish trend, while the valuation is moderate. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Stable Revenue Stream

The company's reliance on long-term service agreements with municipal and industrial clients ensures a predictable and stable revenue stream, which is a strong fundamental factor for long-term financial health and planning.

Industry Position

As a specialist in wastewater treatment, ELL Environmental Holdings Limited benefits from a focused business model in a critical industry, supporting its competitive position and long-term demand for its services.

Revenue Growth

The company has achieved significant revenue growth, indicating successful market penetration and increased demand for its services, which bodes well for future financial performance.

Negative Factors

Profitability Challenges

The company's ongoing profitability challenges, marked by negative net income and cash flow issues, highlight a need for operational improvements to ensure long-term financial stability and investor confidence.

Cash Flow Concerns

Negative cash flow performance poses risks to liquidity and operational sustainability, suggesting the company may struggle to fund growth initiatives or weather financial downturns without significant changes.

Declining Equity Ratio

A declining equity ratio suggests weakening financial stability, which could impact the company's ability to leverage new opportunities or manage financial obligations effectively in the long term.

ELL Environmental Holdings Limited Business Overview & Revenue Model

Company Description

ELL Environmental Holdings Limited, an investment holding company, designs, constructs, operates, and maintains wastewater treatment facilities in the People's Republic of China, Hong Kong, and Indonesia. The company owns and operates two wastewater treatment facilities for treating municipal and industrial wastewater in Jiangsu Province. It also engages in biofuel pellet production; the construction biomass power plant; and generation of electricity from biomass power plants. The company serves local government authorities. ELL Environmental Holdings Limited was founded in 2002 and is headquartered in Rugao, the People's Republic of China.

How the Company Makes Money

ELL Environmental Holdings Limited generates revenue through several key streams, primarily from its waste management and recycling services. The company charges clients for waste collection and disposal, leveraging contracts with both commercial and residential customers. Additionally, revenues are derived from the sale of recycled materials, which are processed and sold to manufacturers and other businesses. ELL also offers consultancy services that help organizations develop and implement effective waste management strategies, contributing to its earnings. Strategic partnerships with local governments and businesses further enhance its revenue potential, as these collaborations often lead to long-term contracts and increased service demand.

ELL Environmental Holdings Limited Financial Statement Overview

Summary

ELL Environmental Holdings Limited faces significant profitability challenges, evidenced by negative net income and cash flow issues. While the company maintains a reasonable debt profile, its revenue volatility and inability to generate positive cash flow highlight financial instability that needs addressing.

Income Statement

The company has experienced volatile revenue growth, with a recent decline. Despite a gross profit margin of 51% in 2024, net profit margins are negative, indicating profitability issues. EBITDA and EBIT margins have improved but remain modest, reflecting operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.78, suggesting manageable leverage, but a declining equity ratio indicates weakening financial stability. Negative net income impacts the return on equity, highlighting profitability concerns.

Cash Flow

Cash flow performance is concerning, with negative free cash flow and operating cash flow over recent periods. The company struggles to convert revenue into cash, posing risks to liquidity and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	156.72M	121.62M	113.28M	203.66M	103.14M	59.02M
Gross Profit	80.17M	62.02M	40.67M	52.06M	53.64M	29.62M
EBITDA	42.51M	23.63M	20.31M	17.27M	32.65M	11.55M
Net Income	12.14M	-8.73M	-8.27M	-16.26M	6.14M	-4.96M
Balance Sheet
Total Assets	547.64M	516.71M	526.10M	531.06M	528.77M	477.38M
Cash, Cash Equivalents and Short-Term Investments	87.33M	35.17M	30.16M	34.61M	77.33M	58.87M
Total Debt	212.62M	202.64M	184.87M	168.41M	74.79M	23.50M
Total Liabilities	272.92M	263.91M	247.20M	228.16M	145.71M	102.22M
Stockholders Equity	280.10M	258.80M	284.38M	295.53M	352.87M	345.14M
Cash Flow
Free Cash Flow	5.41M	1.12M	-30.66M	-84.49M	-11.31M	-497.00K
Operating Cash Flow	10.54M	1.93M	-24.75M	-80.55M	-7.65M	6.23M
Investing Cash Flow	-11.96M	-4.50M	17.02M	-28.85M	-1.41M	-81.00K
Financing Cash Flow	27.84M	5.62M	4.32M	84.36M	21.91M	-17.14M

ELL Environmental Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1395, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 13.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1395.

ELL Environmental Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6805	79 Outperform	HK$2.47B	17.34	12.28%	11.26%	16.00%	32.03%
1397	75 Outperform	HK$531.20M	6.00	21.36%	2.95%	6.12%	78.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1790	63 Neutral	HK$370.00M	5.54	4.69%	―	17.22%	-21.23%
0587	54 Neutral	HK$1.04B	-13.41	-2.39%	5.26%	-3.37%	-149.08%
0436	52 Neutral	HK$224.64M	-13.45	-1.91%	2.42%	-5.95%	33.73%
1395	50 Neutral	€166.10M	13.64	4.68%	―	38.07%	―

ELL Environmental Holdings Limited Corporate Events

ELL Environmental Announces Extension of Arbitral Award Date

ELL Environmental Holdings Limited announced an extension of the arbitral award date to 2 March 2026 for its subsidiary, Everbest Water Treatment Development Company Limited, due to the complexity of the case. The company is currently unable to predict the arbitration’s outcome or its financial impact, advising shareholders and potential investors to exercise caution.

ELL Environmental Announces Director Re-designations to Enhance Strategic Operations

ELL Environmental Holdings Limited has announced a re-designation of directors effective from August 25, 2025. Mr. Chan Pak Lam Brian will transition from a non-executive to an executive director, overseeing daily operations, while Mr. Radius Suhendra will move from an executive to a non-executive director role, focusing on strategic advice and board performance monitoring. This re-designation aligns with their experience and past contributions, potentially enhancing the company’s operational efficiency and strategic direction.

ELL Environmental Holdings Announces Board Composition

ELL Environmental Holdings Limited has announced the composition of its board of directors and their roles within the company. This announcement provides clarity on the leadership structure, which could influence the company’s strategic direction and operational focus, impacting stakeholders’ interests and confidence.

ELL Environmental Holdings Reports Strong Financial Turnaround in H1 2025

ELL Environmental Holdings Limited reported a significant financial turnaround for the first half of 2025, with revenue increasing by 76.8% to HK$80.8 million and a net profit of HK$12.5 million, compared to a net loss in the previous year. Despite the improved financial performance, the company decided not to declare any dividend for the period, indicating a strategic focus on reinvestment or debt management, which may impact shareholder expectations.

ELL Environmental Holdings Enhances Governance with New Nomination Committee

ELL Environmental Holdings Limited has established a Nomination Committee to enhance its corporate governance structure. This committee, formed by the board of directors, is tasked with ensuring board diversity and maintaining compliance with the Hong Kong Stock Exchange’s listing rules. The committee’s formation underscores the company’s commitment to diversity and governance, potentially strengthening its industry position and stakeholder trust.