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

• Market Cap: HK$94.86M
• Dividend Yield: N/A
• Average Volume (3M): 463.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• 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: 46 Neutral
• Price Target: HK$0.15 ▲(24.17% Upside)

The score is held down primarily by poor financial performance (persistent losses and negative operating/free cash flow). Technicals are comparatively strong with price above key moving averages and positive MACD, but valuation is not supportive given losses (negative P/E) and no dividend yield provided.

Positive Factors

Low leverage

Low leverage is a durable financial strength: limited debt reduces fixed interest burdens, preserves financial flexibility for multi-quarter investment in contracts or R&D, and lowers default risk. This supports resilience through cyclical downturns and funding needs over 2–6 months.

Diversified revenue streams and R&D focus

A business model with recurring service contracts, product sales and consultancy plus strategic partnerships and R&D creates structural revenue diversification. That mix supports cross-selling, customer stickiness and product pipeline development, improving medium-term revenue stability and competitiveness.

Stable equity ratio / solid asset base

A stable equity ratio indicates a tangible asset base that can support operations, secure contract performance and potentially provide collateral for financing. Over several months this underpins operational continuity and gives management optionality to restructure or invest without immediate solvency pressure.

Negative Factors

Persistent net losses and negative margins

Ongoing net losses and negative operating margins are a structural weakness: they erode equity, restrict retained earnings, and imply the core business is not yet self-sustaining. Unless margins improve, profitability may remain out of reach for several quarters, limiting reinvestment capacity.

Negative operating and free cash flow

Consistent negative operating and free cash flow signals cash burn and weak cash generation from core operations. This forces reliance on external funding or asset sales, constrains capital allocation for growth or maintenance, and elevates medium-term liquidity and execution risk.

Declining revenue and EPS trends

Material declines in revenue and EPS reflect weakening demand or execution and reduce economies of scale, making margin recovery harder. Over 2–6 months this trend can depress cash flow, investor confidence, and the company’s ability to fund R&D or win large contracts without operational fixes.

Denox Environmental & Technology Holdings Limited Business Overview & Revenue Model

Company Description

Denox Environmental & Technology Holdings Limited, an investment holding company, designs, develops, manufactures, and sells plate-type DeNOx catalysts, honey-comb DeNOx catalysts, and DeNOx catalysts in the People's Republic of China and internationally. The company sells its plate-type DeNOx catalysts to coal-fired power plants; engineering, procurement, and construction services providers; and boiler manufacturers. It also develops catalysts for diesel-powered vehicles and natural gas-powered vehicles. Denox Environmental & Technology Holdings Limited was founded in 2010 and is headquartered in Beijing, the People's Republic of China.

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

Financials are weak: persistent net losses, negative EBIT/EBITDA margins, and negative operating/free cash flow. Low leverage helps, but declining equity and poor cash generation materially reduce financial strength.

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: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.12 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.12, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.87 is Neutral, neither overbought nor oversold. The STOCH value of 52.17 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	75 Outperform	HK$732.60M	43.53	1.33%	―	9.77%	165.63%
1527	74 Outperform	HK$260.55M	2.81	9.21%	―	-11.01%	69.56%
2377	66 Neutral	HK$800.39M	3.11	8.32%	4.69%	8.09%	30.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1452	46 Neutral	HK$94.86M	-2.52	-24.77%	―	-0.22%	-22.16%
0646	46 Neutral	HK$52.43M	-0.94	―	―	4.13%	-5.11%

Denox Environmental & Technology Holdings Limited Corporate Events

Denox Environmental & Technology Grants Share Options Equal to 4.86% of Issued Shares

Denox Environmental & Technology Holdings has granted 28,826,468 share options to 42 grantees under its newly adopted share option scheme, representing about 4.86% of its issued share capital. The options, priced at HK$0.1154 per share and vesting in four tranches between 2027 and 2028 with an exercise period extending to 2033, are tied to vesting conditions and performance targets, signalling the company’s use of equity incentives to align management and employee interests with long-term shareholder value and to strengthen its competitiveness in the environmental technology sector.

The most recent analyst rating on (HK:1452) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Denox Environmental & Technology Holdings Limited stock, see the HK:1452 Stock Forecast page.

Denox Approves New Share Option Scheme at EGM

Denox Environmental & Technology Holdings Limited announced the results of its Extraordinary General Meeting held on December 11, 2025, where the new Share Option Scheme was approved by a majority vote. This approval signifies a strategic move to enhance shareholder value and align the interests of the company’s stakeholders, potentially impacting its market positioning positively.

The most recent analyst rating on (HK:1452) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Denox Environmental & Technology Holdings Limited stock, see the HK:1452 Stock Forecast page.

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.