Weigang Environmental Technology Holding Group Ltd. (1845) AI Stock Analysis

• Market Cap: HK$213.33M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.26
• Revenue Growth: -9.79%
• EPS Growth: -1187.50%
• Country: HK
• Employees: 341
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): >-0.01
• Shares Outstanding: 1,333,335,100
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: <0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -4.98
• 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$0.14 ▲(5.38% Upside)

The overall stock score of 46 reflects significant financial challenges, including declining revenues and profitability, which are the most impactful factors. Technical analysis shows some positive momentum, but valuation remains unattractive due to ongoing losses. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Recurring long-term contracts and diversified services

Long-term municipal and industrial contracts, plus maintenance and consulting services, create recurring revenue and client stickiness. This diversified, contract-heavy model improves revenue visibility, lowers sales volatility, and supports multi-quarter project pipelines and stable service revenue.

Manageable leverage and balanced capital structure

Low debt-to-equity and a near-50% equity ratio indicate conservative leverage, giving the company financial flexibility to fund projects or weather downturns without heavy interest burden. This balance supports durable access to capital and resilience during multi-quarter recoveries.

Reasonable gross margin supporting unit economics

A 24% gross margin suggests the core products and services can cover direct costs and retain meaningful value per contract. With operational discipline and scale, this gross margin provides a structural foundation for restoring operating profitability over several quarters as fixed costs are absorbed.

Negative Factors

Sustained revenue decline and EPS collapse

Nearly 10% revenue decline and an extreme EPS contraction signal persistent demand or execution issues. Over months this erodes scale benefits, reduces internal funds for reinvestment, and weakens competitive position, making a durable recovery dependent on reversing topline trends.

Negative operating and net profitability

Persistent negative EBIT/EBITDA and a -20% net margin indicate core operations fail to generate profit. This structural unprofitability limits retained earnings, hampers investment in growth or R&D, and increases long-term reliance on external financing or cost reduction measures.

Weak and deteriorating cash flow

Negative free cash flow and falling operating cash flow create liquidity strain that affects project delivery and working capital. Over the coming months, this can force higher-cost financing, delay capex, or constrain bidding on new contracts, weakening the company's ability to execute strategy.

Weigang Environmental Technology Holding Group Ltd. Business Overview & Revenue Model

Company Description

Weigang Environmental Technology Holding Group Limited engages in the research, design, integration, and commissioning of solid waste treatment systems primarily for hazardous waste incineration projects in China. It also provides solutions for thermal desorption of oil sludge, pyrolysis treatment of solid waste, and cement plant parallel kiln co-treatment, as well as oilfield auxiliary services. The company was formerly known as WeiGang Environmental Protection Holdings Limited and changed its name to Weigang Environmental Technology Holding Group Limited in May 2017. The company was founded in 1998 and is headquartered in Guangzhou, China. Weigang Environmental Technology Holding Group Limited is a subsidiary of WeiGang Technology Limited.

How the Company Makes Money

Weigang Environmental Technology Holding Group Ltd. generates revenue through several key streams, including the sale of proprietary waste treatment equipment, water purification systems, and air quality management solutions. The company also earns income from providing maintenance services, consultancy, and project management for large-scale environmental projects. Significant partnerships with governmental bodies and private enterprises enhance its market reach and credibility, allowing for lucrative contracts in municipal waste management and industrial pollution control. Additionally, Weigang engages in research collaborations and joint ventures, which can result in shared revenue from innovative environmental solutions.

Weigang Environmental Technology Holding Group Ltd. Financial Statement Overview

Summary

Weigang Environmental Technology Holding Group Ltd. faces significant financial challenges, with declining revenues and profitability impacting its financial health. The balance sheet remains stable with manageable leverage, but cash flow issues could pose risks to liquidity. Strategic improvements are necessary to enhance financial performance and sustainability.

Income Statement

The company has been experiencing declining revenues and profitability over the years. The gross profit margin stands at 24% for 2024, indicating a reasonable ability to cover costs, but the net profit margin is negative at -20%, showing substantial losses. EBIT and EBITDA margins are also negative, highlighting operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.18, indicating manageable leverage levels. However, the equity ratio of 48% suggests a balanced capital structure. Despite financial struggles, the company maintains adequate equity relative to assets.

Cash Flow

Cash flow performance is concerning, with negative free cash flow and a free cash flow to net income ratio indicating cash burn. Operating cash flow has decreased significantly, highlighting liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.98M	241.62M	253.45M	348.93M	561.70M	536.81M
Gross Profit	47.80M	58.03M	60.73M	64.20M	76.91M	82.88M
EBITDA	-21.32M	-30.22M	12.95M	-55.63M	3.80M	7.88M
Net Income	-50.65M	-48.57M	1.75M	-72.35M	-12.41M	-10.93M
Balance Sheet
Total Assets	762.91M	773.67M	843.16M	743.98M	864.02M	938.72M
Cash, Cash Equivalents and Short-Term Investments	144.65M	49.77M	73.61M	69.04M	79.20M	87.35M
Total Debt	86.61M	65.87M	43.38M	53.23M	54.92M	59.67M
Total Liabilities	300.16M	301.64M	315.34M	250.74M	293.45M	343.64M
Stockholders Equity	365.00M	372.34M	421.13M	419.38M	491.42M	505.35M
Cash Flow
Free Cash Flow	-17.26M	-50.25M	578.00K	19.81M	-24.70M	-111.71M
Operating Cash Flow	66.37M	7.21M	34.18M	36.50M	22.57M	-55.04M
Investing Cash Flow	-82.75M	-53.98M	-18.13M	-21.09M	-34.07M	-27.71M
Financing Cash Flow	29.38M	22.93M	-11.48M	-15.54M	-6.68M	32.42M

Weigang Environmental Technology Holding Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1845, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and below the 200-day MA of 0.14, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 88.73 is Negative, neither overbought nor oversold. The STOCH value of 80.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1845.

Weigang Environmental Technology Holding Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1397	75 Outperform	HK$531.20M	6.00	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$520.00M	7.78	4.69%	―	17.22%	-21.23%
0436	52 Neutral	HK$203.39M	-12.00	-1.91%	2.46%	-5.95%	33.73%
1395	51 Neutral	HK$184.92M	16.00	4.68%	―	38.07%	―
1845	46 Neutral	HK$213.33M	-3.88	-12.96%	―	-9.79%	-1187.50%
0646	46 Neutral	HK$52.43M	-0.94	―	―	4.13%	-5.11%