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Zonqing Environmental Limited (HK:1855)
:1855
Hong Kong Market
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Zonqing Environmental Limited (1855) AI Stock Analysis

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HK:1855

Zonqing Environmental Limited

(1855)

Rating:42Neutral
Price Target:
HK$6.00
▼(-5.21%Downside)
The most significant factor impacting the score is the challenging financial performance with declining revenues and negative cash flows. Technical analysis further indicates a strong bearish trend, and valuation metrics show the stock is overvalued. These factors suggest a high-risk investment with limited upside potential.

Zonqing Environmental Limited (1855) vs. iShares MSCI Hong Kong ETF (EWH)

Zonqing Environmental Limited Business Overview & Revenue Model

Company DescriptionZonqing Environmental Limited (1855) is a company focused on providing environmental protection services and solutions. Operating within the environmental sector, the company offers a range of services including waste management, environmental consulting, and pollution control. Their core services are aimed at helping businesses and government entities meet regulatory standards and improve their environmental impact.
How the Company Makes MoneyZonqing Environmental Limited generates revenue through a combination of service contracts, consulting fees, and partnerships. The company secures contracts with both public and private sector clients to provide waste management and pollution control services, which constitute a significant portion of its revenue. Additionally, Zonqing offers consulting services to help organizations comply with environmental regulations, further enhancing its revenue streams. The company may also engage in strategic partnerships with other environmental firms to expand its service offerings and market reach, thereby contributing to its financial performance.

Zonqing Environmental Limited Financial Statement Overview

Summary
Zonqing Environmental Limited shows declining revenues and net income, high leverage, and negative cash flows. Despite stable gross margins, the company's financial health is strained with significant risks tied to its debt levels and cash flow generation capabilities.
Income Statement
45
Neutral
The income statement shows a declining trend in revenues and net income over the past year, with total revenue dropping from 2.36 billion to 1.74 billion and net income significantly decreasing from 135.2 million to 39.97 million. However, the gross profit margin remains relatively stable at around 18%, and there is a positive trend in EBITDA margin at approximately 8.7% indicating some operational efficiency. The company faces challenges in revenue growth and profitability, which affects its score.
Balance Sheet
55
Neutral
The balance sheet reveals a stable equity position with stockholders' equity increasing slightly to 668.97 million. The debt-to-equity ratio remains high at 1.33, indicating significant leverage, which is a risk factor. However, the equity ratio is stable at about 15.3%, showing a moderate reliance on equity financing. Overall, the balance sheet presents a mixed picture with potential risks due to high debt levels.
Cash Flow
40
Negative
The cash flow statement indicates a concerning trend with negative operating cash flow of 42.25 million. The free cash flow also turned negative, highlighting liquidity issues. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies. This negative cash flow generation significantly impacts the overall cash flow score.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.74B2.36B1.12B896.75M1.00B
Gross Profit314.03M450.85M193.75M191.80M238.43M
EBITDA151.03M250.89M-35.92M73.53M142.44M
Net Income39.97M135.21M-96.34M28.53M68.50M
Balance Sheet
Total Assets4.38B3.85B4.18B2.25B2.07B
Cash, Cash Equivalents and Short-Term Investments122.78M210.41M220.23M46.67M144.00M
Total Debt891.75M809.48M1.06B509.23M480.90M
Total Liabilities3.59B3.08B3.26B1.66B1.58B
Stockholders Equity668.97M649.60M867.75M585.31M474.24M
Cash Flow
Free Cash Flow-42.26M209.37M86.30M-104.76M137.59M
Operating Cash Flow-42.26M221.53M99.35M-101.22M139.90M
Investing Cash Flow-79.65M164.98M-84.02M-6.67M17.27M
Financing Cash Flow34.27M-396.33M116.04M10.56M-86.77M

Zonqing Environmental Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.33
Price Trends
50DMA
7.37
Negative
100DMA
7.72
Negative
200DMA
7.24
Negative
Market Momentum
MACD
-0.26
Negative
RSI
35.37
Neutral
STOCH
19.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1855, the sentiment is Negative. The current price of 6.33 is above the 20-day moving average (MA) of 6.31, below the 50-day MA of 7.37, and below the 200-day MA of 7.24, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 19.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1855.

Zonqing Environmental Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$525.00M4.1316.58%5.71%17.12%5.48%
62
Neutral
HK$1.69B11.015.53%44.19%
58
Neutral
HK$14.89B4.77-2.78%5.38%3.80%-54.55%
51
Neutral
HK$179.76M-9.34%-40.18%3.09%
42
Neutral
HK$5.11B117.906.07%0.42%-27.05%-70.72%
38
Underperform
HK$84.76M-8.07%17.86%-12.81%-224.37%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1855
Zonqing Environmental Limited
6.19
-2.59
-29.50%
HK:2236
Wison Engineering Services Co., Ltd.
0.42
0.23
121.05%
HK:2193
Man King Holdings Limited
0.20
0.01
5.26%
HK:1707
Geotech Holdings Ltd.
0.11
0.03
37.50%
HK:1556
Chinney Kin Wing Holdings Limited
0.35
0.13
59.09%

Zonqing Environmental Limited Corporate Events

Zonqing Environmental Limited Strengthens Governance with New Appointment
Jun 27, 2025

Zonqing Environmental Limited has announced the appointment of Ms. Lyu Hongyan as a member of its nomination committee, effective June 27, 2025. This appointment is part of the company’s ongoing efforts to strengthen its governance structure, potentially enhancing its strategic decision-making and industry positioning.

Zonqing Environmental Limited Announces Board Composition and Roles
Jun 27, 2025

Zonqing Environmental Limited has announced the composition of its board of directors and the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, with specific members serving on the audit, remuneration, and nomination committees. This announcement outlines the leadership structure and governance framework, which is crucial for stakeholders to understand the company’s strategic direction and decision-making processes.

Zonqing Environmental Limited Updates Nomination Committee Terms
Jun 27, 2025

Zonqing Environmental Limited has revised the terms of reference for its Nomination Committee, which was initially established in December 2020. The committee’s main role is to ensure a fair and transparent process for appointing directors by assessing the board’s balance and effectiveness, and identifying suitable candidates. The revised terms emphasize the importance of diversity and independent non-executive directors in the committee’s composition, aiming to enhance the company’s governance and operational efficiency.

Zonqing Environmental Limited Successfully Concludes AGM with Unanimous Support for Resolutions
May 27, 2025

Zonqing Environmental Limited held its Annual General Meeting on May 27, 2025, where all proposed resolutions were passed with overwhelming support. Key resolutions included the adoption of the company’s financial statements, reappointment of KPMG as auditors, re-election of directors, and granting mandates for share issuance and repurchase. These decisions reflect strong shareholder confidence and provide the company with flexibility for future growth and operational strategies.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025