ELL Environmental Holdings Limited (1395) AI Stock Analysis

• Market Cap: HK$188.24M
• Dividend Yield: N/A
• Average Volume (3M): 75.17K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.09
• 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: 51 Neutral
• Price Target: HK$0.17 ▲(6.88% Upside)

The score is held back primarily by weak financial performance—ongoing losses and negative operating/free cash flow. Technicals are a partial offset with moderately positive price momentum, while valuation appears neutral with a mid-range P/E and no dividend data.

Positive Factors

High gross margin

A 51% gross margin signals strong unit economics in core waste processing and recycling activities. This level of gross profitability provides a structural buffer to absorb operating variability, fund incremental investment in processing capacity, and support margin recovery initiatives over the medium term.

Diversified revenue streams

Multiple revenue lines—collection services, recycled-material sales and consultancy—plus strategic partnerships with governments and businesses create recurring contract potential and cross‑sell opportunities. This diversification reduces customer concentration risk and supports steadier cash generation over months to years.

Manageable leverage

A debt-to-equity around 0.78 indicates the company is not overlevered for a capital‑intensive sector, preserving capacity to fund working capital and targeted capex. Manageable leverage lowers refinancing strain and helps sustain operations while pursuing growth or efficiency improvements.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows undermine the firm's ability to self‑fund operations, capital expenditures and debt service. Over a multi‑month horizon, this elevates liquidity and funding risk, potentially forcing dilution or costly external financing that weakens strategic flexibility.

Negative net profit margins

Conversion from gross profit to net loss points to high SG&A, depreciation, or other operating costs that erode profitability. Sustained negative net margins limit retained earnings, constrain reinvestment, and make long‑term value creation dependent on durable cost structure improvement.

Revenue volatility and recent decline

Volatile and recently declining revenue complicates capacity planning and weakens predictability of contract renewals or pricing power. Over the medium term this impairs scale benefits, stresses margins and cash flow, and makes securing long‑term contracts or financing more difficult.

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: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1395, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$2.77B	19.44	12.28%	9.96%	16.00%	32.03%
1397	75 Outperform	HK$493.85M	5.58	21.36%	3.17%	6.12%	78.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1790	60 Neutral	HK$570.00M	8.53	4.69%	―	17.22%	-21.23%
0587	54 Neutral	HK$1.02B	-13.18	-2.39%	5.36%	-3.37%	-149.08%
0436	52 Neutral	HK$206.43M	-12.36	-1.91%	2.46%	-5.95%	33.73%
1395	51 Neutral	HK$188.24M	15.45	4.68%	―	38.07%	―