Zonqing Environmental Limited (1855) AI Stock Analysis

• Market Cap: HK$276.38M
• Dividend Yield: 2.02%
• Average Volume (3M): 18.03M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.35
• Revenue Growth: -22.25%
• EPS Growth: -73.66%
• Country: HK
• Employees: 799
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 825,000,000
• 10 Day Avg. Volume: 27,868,000
• 30 Day Avg. Volume: 18,032,266
• PEG Ratio: -1.91
• Price to Book (P/B): 7.95
• Price to Sales (P/S): 3.05
• P/FCF Ratio: -125.80
• 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$1.50 ▲(16.28% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is held down primarily by declining revenue and earnings, negative operating/free cash flow, and elevated leverage. Technical indicators show only modest near-term stabilization while the longer-term trend remains weak, and valuation looks demanding given recent profitability deterioration despite a modest dividend yield.

Positive Factors

Stable contractual revenue base

A business model built on long-term contracts provides predictable revenue visibility and underpins cash flow stability over quarters. This durability supports project financing, contract renewals and operational planning, reducing revenue volatility and helping withstand cyclical demand swings.

Negative Factors

Declining revenue and profitability

A sharp multi-hundred-million decline in revenue and a steep drop in net income indicate structural demand or execution issues. Sustained top-line contraction erodes scale economics, reduces pricing leverage and limits reinvestment capacity, impairing the company's ability to compete and grow over the medium term.

Zonqing Environmental Limited Business Overview & Revenue Model

Company Description

ZONQING Environmental Limited, together with its subsidiaries, engages in landscaping, ecological restoration, and other related activities in the People's Republic of China. It is also involved in the projects include landscape designing, gardeni...

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ZONQING Environmental Limited, together with its subsidiaries, engages in landscaping, ecological restoration, and other related activities in the People's Republic of China. It is also involved in the projects include landscape designing, gardeni...

How the Company Makes Money

Zonqing Environmental generates revenue through multiple streams, including service fees for waste treatment and disposal, contracts for waste-to-energy solutions, and sales from processed materials. The company's primary revenue model is based on...

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Zonqing Environmental generates revenue through multiple streams, including service fees for waste treatment and disposal, contracts for waste-to-energy solutions, and sales from processed materials. The company's primary revenue model is based on...

Zonqing Environmental Limited Financial Statement Overview

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73B	1.74B	2.36B	1.12B	936.60M	1.00B
Gross Profit	289.67M	314.03M	450.85M	193.75M	211.23M	238.43M
EBITDA	153.06M	151.03M	250.89M	-31.09M	66.03M	142.44M
Net Income	35.05M	39.97M	135.21M	-96.34M	28.53M	68.50M
Balance Sheet
Total Assets	4.51B	4.38B	3.85B	4.18B	2.25B	2.07B
Cash, Cash Equivalents and Short-Term Investments	47.16M	122.78M	210.41M	220.23M	51.53M	144.00M
Total Debt	896.57M	891.75M	809.48M	1.06B	509.23M	480.90M
Total Liabilities	3.69B	3.59B	3.08B	3.26B	1.66B	1.58B
Stockholders Equity	700.73M	668.97M	649.60M	867.75M	585.31M	474.24M
Cash Flow
Free Cash Flow	147.72M	-42.26M	209.37M	86.30M	-104.76M	137.59M
Operating Cash Flow	159.26M	-42.26M	221.53M	99.35M	-101.22M	139.90M
Investing Cash Flow	-81.88M	-79.65M	164.98M	-84.02M	-6.67M	17.27M
Financing Cash Flow	-91.41M	34.27M	-396.33M	116.04M	10.56M	-86.77M

Zonqing Environmental Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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 1.29 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.93, and below the 200-day MA of 3.05, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 26.04 is Positive, neither overbought nor oversold. The STOCH value of 8.97 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1556	78 Outperform	HK$465.00M	3.94	15.79%	5.71%	17.51%	1.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2193	54 Neutral	HK$119.58M	2.34	-7.26%	―	-1.91%	18.30%
2236	52 Neutral	HK$2.12B	9.10	4.98%	―	96.63%	―
1707	47 Neutral	HK$70.56M	-5.35	-9.80%	―	3.97%	14.02%
1855	46 Neutral	HK$276.38M	40.09	5.12%	2.02%	-22.25%	-73.66%

Zonqing Environmental Limited Corporate Events