Denox Environmental & Technology Holdings Limited (1452) AI Stock Analysis

• Market Cap: HK$65.81M
• Dividend Yield: N/A
• Average Volume (3M): 463.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: -0.22%
• EPS Growth: -22.16%
• Country: HK
• Employees: 184
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.01
• Shares Outstanding: 592,844,400
• 10 Day Avg. Volume: 179,300
• 30 Day Avg. Volume: 463,966
• PEG Ratio: -0.04
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -1.95
• 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: 43 Neutral
• Price Target: HK$0.11 ▼(-3.64% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by consistent net losses and negative cash flows. Technical analysis shows some short-term bullish signals, but the lack of strong momentum and negative MACD limit optimism. Valuation is challenging due to a negative P/E ratio and no dividend yield, further weighing down the score.

Positive Factors

Low Debt Profile

A low debt profile provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without significant financial strain.

Stable Asset Base

A stable asset base indicates resilience and the ability to support operations and potential expansion, contributing to long-term business sustainability.

Strategic Partnerships

Partnerships with key stakeholders can drive revenue growth and market penetration, providing a competitive edge and fostering innovation in environmental solutions.

Negative Factors

Consistent Net Losses

Ongoing net losses indicate operational inefficiencies and challenge the company's ability to achieve profitability, impacting long-term viability.

Negative Cash Flow

Negative cash flow suggests difficulties in sustaining operations and funding growth, potentially leading to liquidity issues and limiting strategic investments.

Declining Revenue Growth

A decline in revenue growth can signal weakening demand or competitive pressures, threatening market position and future earnings potential.

Denox Environmental & Technology Holdings Limited Business Overview & Revenue Model

Company Description

Denox Environmental & Technology Holdings Limited (1452) is a leading provider of environmental solutions and technological services, focusing on sustainable practices and innovative products. The company operates primarily in the environmental sector, offering a range of services including waste management, air pollution control, and water treatment solutions. Denox also engages in the development of advanced technologies aimed at enhancing environmental efficiency and compliance for various industries.

How the Company Makes Money

Denox Environmental & Technology Holdings Limited generates revenue through multiple streams, primarily from the sale of its environmental management services and technology solutions. Key revenue streams include contracts for waste management services, sales of air purification systems, and water treatment solutions. The company also earns income through consulting services related to environmental compliance and sustainability practices. Strategic partnerships with governmental bodies and private sector clients enhance its market reach, while ongoing investments in research and development allow Denox to innovate and introduce new products, further driving its revenue growth.

Denox Environmental & Technology Holdings Limited Financial Statement Overview

Summary

Denox Environmental & Technology Holdings Limited faces significant financial challenges, with consistent net losses and negative cash flows. While the company has a low debt profile, its inability to generate positive operating income or cash flow raises concerns about long-term sustainability. The company's asset base is stable, but declining equity and profitability metrics suggest a need for strategic improvements.

Income Statement

The company has shown mixed revenue growth over the years, with a recent decline from 2023 to 2024. Gross profit margin has been relatively stable but low, with consistent net losses indicating challenges in achieving profitability. The EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is low, indicating limited leverage, which is a positive sign. However, stockholders' equity has been declining, and the return on equity is negative due to net losses. The equity ratio remains stable, suggesting a solid asset base, but overall financial health is weakened by consistent losses.

Cash Flow

The company has struggled with negative operating and free cash flows, indicating difficulties in generating cash from operations. The free cash flow growth rate is negative, further emphasizing cash flow challenges. The operating and free cash flow to net income ratios are not meaningful due to negative values.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.41M	108.96M	126.39M	62.79M	71.46M	64.78M
Gross Profit	25.94M	27.46M	24.53M	13.39M	12.22M	15.69M
EBITDA	-28.79M	-30.68M	-17.29M	-19.26M	-23.83M	-11.10M
Net Income	-34.73M	-37.33M	-25.43M	-23.53M	-12.30M	-21.03M
Balance Sheet
Total Assets	446.02M	436.92M	371.13M	314.40M	325.79M	315.73M
Cash, Cash Equivalents and Short-Term Investments	48.04M	59.80M	72.49M	72.75M	74.34M	86.02M
Total Debt	17.38M	19.67M	6.27M	2.94M	5.93M	3.79M
Total Liabilities	324.19M	305.77M	207.16M	125.72M	118.27M	80.29M
Stockholders Equity	121.83M	131.16M	163.97M	188.68M	207.52M	221.45M
Cash Flow
Free Cash Flow	-3.11M	-19.78M	-4.15M	-8.20M	-32.05M	-27.63M
Operating Cash Flow	-1.09M	-11.28M	-3.81M	-5.76M	-27.59M	-2.27M
Investing Cash Flow	-1.67M	-23.20M	26.14M	-45.41M	13.61M	-32.85M
Financing Cash Flow	-2.35M	8.59M	-2.30M	-856.00K	1.97M	-1.65M

Denox Environmental & Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1452, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 72.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1452.

Denox Environmental & Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0556	69 Neutral	HK$693.00M	36.47	1.33%	―	9.77%	165.63%
1527	66 Neutral	HK$264.60M	2.85	9.21%	―	-11.01%	69.56%
2377	66 Neutral	HK$817.07M	3.14	8.32%	4.69%	8.09%	30.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8169	52 Neutral	HK$28.58M	-7.86	-3.39%	―	-20.90%	-165.12%
0646	46 Neutral	HK$55.52M	-1.00	―	―	4.13%	-5.11%
1452	43 Neutral	HK$65.81M	-1.74	-24.77%	―	-0.22%	-22.16%

Denox Environmental & Technology Holdings Limited Corporate Events

Denox Environmental & Technology Holdings Announces Extraordinary General Meeting for New Share Option Scheme

Denox Environmental & Technology Holdings Limited has announced an extraordinary general meeting to discuss and potentially approve a new share option scheme. This scheme, contingent on approval from the Hong Kong Stock Exchange, would allow the issuance of shares up to 10% of the current shares in issue, potentially impacting the company’s market position and offering new opportunities for stakeholders.

Denox Proposes New Share Option Scheme to Drive Growth

Denox Environmental & Technology Holdings Limited has announced the proposal of a new Share Option Scheme following the expiration of its 2015 scheme. This initiative aims to provide equity incentives to eligible participants, including directors and employees, to motivate and retain high-caliber personnel crucial for the company’s long-term growth and profitability. The new scheme is designed to attract and retain talent by offering them a personal stake in the company, thereby aligning their interests with the company’s success.

Denox Enters Finance Lease Agreement to Enhance Asset Management

Denox Environmental & Technology Holdings Limited has entered into a finance lease agreement with Maxwealth Financial Leasing Co., Ltd., a subsidiary of Bank of Ningbo Co., Ltd. Under the agreement, Denox will sell assets worth RMB10,000,000 to Maxwealth and lease them back for 36 months, with a total lease payment of RMB10,886,768. This transaction, classified as disclosable under Hong Kong’s listing rules, allows Denox to optimize its asset management while maintaining operational control, potentially enhancing its financial flexibility and market positioning.