Zhejiang Tengy Environmental Technology Co., Ltd. Class H (1527) AI Stock Analysis

• Market Cap: HK$260.55M
• Dividend Yield: N/A
• Average Volume (3M): 11.17K
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.26
• Revenue Growth: -11.01%
• EPS Growth: 69.56%
• Country: HK
• Employees: 434
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.13
• Shares Outstanding: 35,000,000
• 10 Day Avg. Volume: 2,680
• 30 Day Avg. Volume: 11,173
• PEG Ratio: 0.02
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 0.55
• 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: 74 Outperform
• Price Target: HK$2.00 ▲(2.04% Upside)

The score is driven primarily by solid recent financial performance (better margins/profitability and low leverage) and an attractive valuation (very low P/E). These positives are tempered by mixed technical signals (below key moving averages with slightly negative MACD) and the company’s history of volatility in results and cash flow.

Positive Factors

Improved Profitability

Improved profitability with strong net and gross margins indicates efficient operations and potential for sustained earnings growth.

Conservative Balance Sheet

Low leverage suggests financial stability and flexibility, allowing the company to invest in growth without significant financial risk.

Board Strengthening

New board appointment with extensive experience enhances governance and strategic oversight, potentially improving long-term decision-making.

Negative Factors

Revenue Volatility

Past revenue volatility raises concerns about the company's ability to maintain stable growth, impacting long-term financial predictability.

Cash Flow Variability

Inconsistent cash flow generation over the years suggests potential challenges in sustaining operations and funding future growth initiatives.

Moderate Returns on Equity

While improving, moderate returns on equity may limit valuation upside and indicate that the company is not fully capitalizing on its equity base.

Zhejiang Tengy Environmental Technology Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Zhejiang Tengy Environmental Technology Co., Ltd, together with its subsidiaries, designs, develops, manufactures, installs, and sells environmental pollution prevention equipment and electronic products in Mainland China and internationally. The company offers electrostatic, electrostatic-bag composite, and SO2 and NOx emission reduction precipitators. Its precipitators are installed at coal-fired power plants, metallurgical plants, paper mills, and other industrial production plants. The company also offers installation services. Its customers include project owners of power plants and industrial production plants, or contractors who undertake the construction work of power plants and industrial production plants. The company was incorporated in 2009 and is headquartered in Zhuji, China.

How the Company Makes Money

Zhejiang Tengy Environmental Technology Co., Ltd. makes money primarily through the sale of its environmental protection equipment and systems. The company generates revenue by designing and manufacturing customized solutions tailored to meet the specific needs of its industrial clients. Key revenue streams include the sales of FGD systems, SCR denitrification systems, and other air pollution control equipment. Additionally, the company may earn income from providing related services such as installation, maintenance, and technical support. Significant partnerships with industry players and adherence to environmental regulations contribute to its earnings by fostering demand for its products in sectors aiming to reduce pollution and comply with regulatory standards.

Zhejiang Tengy Environmental Technology Co., Ltd. Class H Financial Statement Overview

Summary

Strong recent fundamentals supported by improved profitability and margins (2024 net margin ~11.4%, gross margin ~29.3%) and a conservatively financed balance sheet (2024 debt-to-equity ~0.09). The main constraint is historical volatility in revenue, margins, and cash flow (including a 2022 contraction and negative operating/free cash flow in 2021), which lowers confidence in consistency through a cycle.

Income Statement

Revenue rebounded strongly over the last two years (2024 up 8.3% after 2023 growth), and profitability improved materially versus 2020–2021, with 2024 net margin at ~11.4% and solid operating profitability. Gross margin also strengthened to ~29.3% in 2024 (up from ~22.7% in 2023). Key weakness: results have been volatile historically (notably the sharp revenue contraction in 2022), and margins were much lower earlier in the period, suggesting earnings are not yet fully consistent across cycles.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage (2024 debt-to-equity ~0.09, improved from ~0.16 in 2019–2020) and a growing equity base. Returns on equity have also improved (to ~8.9% in 2024 from very low levels in 2020–2021), indicating better profitability on shareholder capital. Main watch-out: returns are still moderate rather than high, which may limit valuation upside if growth slows.

Cash Flow

Cash generation is a clear positive in the most recent year: 2024 free cash flow was ~HK$226M and roughly matched net income (free cash flow to net income ~0.99), indicating good earnings quality. However, free cash flow declined in 2024 (down ~16% vs. 2023), and cash flow performance has not been uniform historically (including negative operating and free cash flow in 2021). This variability reduces confidence in durability of cash conversion through a full cycle.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	613.02M	744.94M	620.13M	472.47M	763.16M	607.08M
Gross Profit	213.09M	218.18M	140.82M	67.44M	110.99M	110.95M
EBITDA	119.87M	123.51M	74.93M	91.16M	40.07M	15.62M
Net Income	85.70M	84.64M	42.71M	53.60M	20.61M	4.49M
Balance Sheet
Total Assets	2.17B	2.05B	1.80B	1.54B	1.59B	1.50B
Cash, Cash Equivalents and Short-Term Investments	698.57M	660.12M	458.59M	241.04M	18.21M	118.01M
Total Debt	114.00M	85.00M	89.50M	55.00M	115.16M	122.81M
Total Liabilities	1.20B	1.09B	926.68M	701.50M	807.73M	740.57M
Stockholders Equity	970.66M	954.82M	870.18M	834.22M	780.62M	760.00M
Cash Flow
Free Cash Flow	148.29M	225.61M	197.79M	61.68M	-32.82M	128.83M
Operating Cash Flow	150.50M	227.61M	252.97M	67.21M	-13.04M	129.52M
Investing Cash Flow	-16.44M	-20.84M	-64.94M	215.28M	-82.00M	-44.95M
Financing Cash Flow	29.00M	0.00	23.25M	-51.50M	-106.50M	-18.55M

Zhejiang Tengy Environmental Technology Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.96
• 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:1527, the sentiment is Negative. The current price of 1.96 is below the 20-day moving average (MA) of 2.00, below the 50-day MA of 1.97, and above the 200-day MA of 1.86, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 3.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1527.

Zhejiang Tengy Environmental Technology Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1397	75 Outperform	HK$531.20M	5.91	21.36%	3.17%	6.12%	78.64%
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%
1845	46 Neutral	HK$213.33M	-3.88	-12.96%	―	-9.79%	-1187.50%

Zhejiang Tengy Environmental Technology Co., Ltd. Class H Corporate Events

Zhejiang Tengy Environmental Technology Announces Board Changes at EGM

Zhejiang Tengy Environmental Technology Co., Ltd announced the results of its Extraordinary General Meeting held on November 28, 2025, where the shareholders approved the appointment of Mr. Yu Chi Wing as an independent non-executive director, following the resignation of Dr. Zheng Jian Peng. This change in the board’s composition could impact the company’s strategic direction and governance, potentially influencing its market positioning and stakeholder relations.

Zhejiang Tengy Environmental Technology Announces Board Composition

Zhejiang Tengy Environmental Technology Co., Ltd has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The announcement also details the members of the audit, remuneration, and nomination committees, indicating a structured governance approach to enhance operational oversight and strategic decision-making.

Zhejiang Tengy Environmental Clarifies EGM Record Date

Zhejiang Tengy Environmental Technology Co., Ltd issued a clarification announcement regarding the record date for shareholders eligible to attend and vote at the upcoming Extraordinary General Meeting (EGM), which is set for November 28, 2025. The company emphasized that aside from this clarification, all other information in the previous circular and notice remains unchanged, ensuring stakeholders are informed about the procedural details of the EGM.

Zhejiang Tengy Environmental Technology Schedules EGM for Director Appointment

Zhejiang Tengy Environmental Technology Co., Ltd has announced an extraordinary general meeting scheduled for November 28, 2025, to consider the appointment of Mr. Yu Chi Wing as an independent non-executive director. This meeting reflects the company’s ongoing efforts to strengthen its board of directors, potentially impacting its strategic direction and governance.

Zhejiang Tengy Environmental Technology Proposes New Board Appointment

Zhejiang Tengy Environmental Technology Co., Ltd announced the resignation of Dr. Zheng Jian Peng from his roles as an independent non-executive director, chairman of the audit committee, and member of the nomination committee. The company has proposed Mr. Yu Chi Wing as his replacement, pending shareholder approval at an upcoming extraordinary general meeting. Mr. Yu brings over 20 years of experience in advisory, accounting, taxation, and auditing, which is expected to strengthen the company’s governance and strategic direction.