China Boqi Environmental (Holding) Co., Ltd. (2377) AI Stock Analysis

• Market Cap: HK$683.67M
• Dividend Yield: 44.03%
• Average Volume (3M): 88.43K
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.65
• Revenue Growth: -1.20%
• EPS Growth: -4.16%
• Country: HK
• Employees: 1,592
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.13
• Shares Outstanding: 854,862,700
• 10 Day Avg. Volume: 14,000
• 30 Day Avg. Volume: 88,433
• PEG Ratio: -0.09
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.29
• 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

• Rating: 74 Outperform
• Price Target: ―

China Boqi Environmental's stock is primarily supported by its strong balance sheet and attractive valuation, with low leverage and a high equity ratio contributing to financial stability. The technical analysis indicates some short-term stability but longer-term caution. Additionally, the stock's low P/E ratio and high dividend yield make it an appealing investment opportunity. Challenges in cash flow management and bearish momentum are notable risks. Overall, the stock is solid with potential for improvement, especially in cash flow generation.

China Boqi Environmental (Holding) Co., Ltd. Business Overview & Revenue Model

Company Description

China Boqi Environmental (Holding) Co., Ltd., an investment holding company, provides flue gas treatment services and environmental protection solutions in the People's Republic of China and internationally. The company operates through four segments: Environmental Protection Facility Engineering (EPC); Operation and Maintenance (O&M); Concession Operation; and Others. The EPC segment is involved in project engineering and design, procurement of equipment and materials, project construction, equipment installation, and commissioning services in relation to desulfurization and denitrification, and dust removal for coal-fired power plants. The O&M segment provides operation and maintenance services for desulfurization and denitrification facilities, and dust removal facilities. This segment offers operation, testing and repairing, upgrading, and maintenance of flue gas treatment system/facilities. The Concession Operation segment constructs and acquires infrastructure from grantor; operates and maintains flue gas treatment project through concession contract; and transfers ownership of the infrastructure to the grantor at the end of the contract. The Others segment sells by-products and others. The company also sells coal and chemicals; offers technology and exploration services; and provides hazardous and solid waste treatment/disposal service, as well as engages in the water treatment business. China Boqi Environmental (Holding) Co., Ltd., was incorporated in 2015 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Boqi Environmental (Holding) Co., Ltd. generates revenue through a combination of engineering, procurement, and construction (EPC) contracts, as well as from the operation and maintenance (O&M) services it provides for its pollution control systems. The company partners with power generation companies, industrial enterprises, and government entities to implement its air pollution control solutions. By ensuring long-term contracts for the maintenance and operation of its systems, Boqi Environmental secures a steady stream of income alongside its initial project-based revenue. Additionally, the company may engage in technology licensing and consulting services, further diversifying its income sources.

China Boqi Environmental (Holding) Co., Ltd. Financial Statement Overview

Summary

China Boqi Environmental maintains a stable growth trajectory in revenue and operational efficiency, evident from steady margins. The balance sheet remains strong with low leverage and a high equity ratio, ensuring financial stability. However, cash flow management poses a challenge, impacting its potential for reinvestment and expansion. Overall, the company is financially solid with room for improvement in cash flow generation.

Income Statement

The company has demonstrated stable revenue growth, with a 0.6% increase in total revenue from 2023 to 2024. The gross profit margin remained steady at approximately 20.2%, indicating consistent cost management. However, the net profit margin slightly decreased from 11.2% to 11.0%, reflecting marginal pressure on profits. Despite this, the EBIT and EBITDA margins improved, showing enhanced operational efficiency.

Balance Sheet

China Boqi Environmental exhibits a strong balance sheet with a low debt-to-equity ratio of 0.14, suggesting conservative leverage. The return on equity improved from 7.9% to 7.3% year-over-year, highlighting effective utilization of equity. The equity ratio of 60.1% underscores robust financial stability and a solid asset base.

Cash Flow

The cash flow statement indicates challenges with free cash flow generation, which was zero in 2024. The operating cash flow to net income ratio is unavailable for 2024, raising concerns about cash conversion. Historically, the company has faced fluctuations in cash flow, impacting its ability to invest in growth initiatives.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.15B	2.14B	1.90B	2.09B	1.65B
	Gross Profit
434.73M	436.10M	390.78M	387.56M	340.08M
	EBIT
246.08M	229.45M	33.66M	282.75M	257.20M
	EBITDA
376.40M	359.78M	148.98M	376.34M	358.40M
	Net Income Common Stockholders
236.44M	240.18M	151.75M	348.24M	207.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
812.89M	590.62M	714.69M	805.90M	764.23M
	Total Assets
5.41B	5.02B	4.73B	4.78B	3.87B
	Total Debt
455.23M	243.55M	218.86M	233.95M	117.04M
	Net Debt
-173.79M	-105.01M	-183.63M	-109.01M	-402.09M
	Total Liabilities
2.12B	1.95B	1.88B	2.03B	1.41B
	Stockholders Equity
3.25B	3.05B	2.83B	2.74B	2.45B
Cash Flow		Free Cash Flow
0.00	-57.97M	26.74M	-123.25M	72.00M
	Operating Cash Flow
0.00	86.40M	137.04M	-55.87M	230.49M
	Investing Cash Flow
0.00	-118.68M	-22.91M	-129.20M	-129.85M
	Financing Cash Flow
0.00	-24.73M	-66.54M	15.86M	-31.62M

China Boqi Environmental (Holding) Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.82
• 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:2377, the sentiment is Positive. The current price of 0.82 is above the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.71, and above the 200-day MA of 0.76, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.84 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2377.

China Boqi Environmental (Holding) Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2377	74 Outperform	HK$683.67M	3.21	7.52%	44.03%	-1.20%	-4.16%
1527	66 Neutral	HK$195.75M	2.13	9.30%	5.33%	17.99%	97.50%
Sector *	64 Neutral	$10.24B	15.15	4.04%	2.02%	2.54%	-26.43%
1790	63 Neutral	HK$550.00M	8.31	4.83%	―	27.83%	-9.69%
0556	63 Neutral	HK$331.65M	17.63	1.50%	―	11.97%	804.76%
0436	57 Neutral	HK$200.36M	―	-2.96%	2.42%	-13.85%	30.40%
1452	45 Neutral	HK$52.17M	―	-25.29%	―	-15.12%	-22.08%

China Boqi Environmental (Holding) Co., Ltd. Corporate Events

China Boqi Environmental Announces Annual General Meeting and Key Resolutions

China Boqi Environmental (Holding) Co., Ltd. has announced its annual general meeting to be held on May 30, 2025, in Beijing. Key resolutions include the adoption of financial statements, declaration of a final dividend, re-election of directors, re-appointment of auditors, and authorization for the board to manage share allotments. These decisions are crucial for the company’s governance and financial strategy, potentially impacting shareholder value and corporate operations.

China Boqi Environmental Announces Board Composition and Roles

China Boqi Environmental (Holding) Co., Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. This update provides clarity on the governance structure of the company, which may impact its strategic direction and decision-making processes, potentially affecting stakeholders’ interests.

China Boqi Environmental Updates Nomination Committee Terms

China Boqi Environmental (Holding) Co., Ltd. has announced amendments to the terms of reference for its Nomination Committee, effective March 28, 2025. The changes include provisions for the appointment and revocation of committee members, ensuring diversity with at least one member of a different gender, and a majority of independent non-executive directors. This move is aimed at enhancing governance and operational oversight, potentially impacting the company’s strategic direction and stakeholder confidence.

China Boqi Environmental Reports Stable Financial Performance for 2024

China Boqi Environmental (Holding) Co., Ltd. announced its annual results for the year ended December 31, 2024, reporting a slight increase in revenue to RMB2,151 million, up 0.6% from the previous year. The company’s net profit rose by 1.3% to RMB240 million, with a stable net profit margin of 11.2%. The board recommended a final dividend of HK$4.60 cents per ordinary share, reflecting the company’s steady financial performance and commitment to shareholder returns.

China Boqi Environmental Announces Final Dividend for 2024

China Boqi Environmental (Holding) Co., Ltd. announced a final cash dividend of HKD 0.046 per share for the financial year ending December 31, 2024. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its financial strategy and stakeholder relations positively.

China Boqi Environmental Enhances Governance with New Strategy Committee and Board Changes

China Boqi Environmental (Holding) Co., Ltd. has announced the establishment of a new Strategy Committee to enhance its strategic development and investment decision-making processes. Additionally, changes in the composition of the Audit and Nomination Committees have been made to align with updated corporate governance codes, and Dr. Xie Guozhong has been designated as the lead independent non-executive director. These changes aim to strengthen the company’s governance and improve its operational effectiveness.

China Boqi Environmental Schedules Board Meeting for Year-End Results

China Boqi Environmental (Holding) Co., Ltd. has announced that its board of directors will meet on March 28, 2025, to consider and approve the company’s final results for the year ended December 31, 2024. The meeting will also discuss the potential payment of a final dividend. This announcement is significant for stakeholders as it indicates the company’s commitment to transparency and shareholder value, potentially impacting its market positioning and investor confidence.

Resignation Announcement of Non-Executive Director at China Boqi Environmental

China Boqi Environmental (Holding) Co., Ltd. has announced the resignation of Mr. Cheng Liquan Richard from his role as a non-executive director, effective February 14, 2025, to dedicate more time to other professional and personal commitments. The company expressed gratitude for Mr. Cheng’s contributions during his tenure.

China Boqi Environmental Announces Board Roles and Functions Update

China Boqi Environmental (Holding) Co., Ltd. has released an updated list of its board of directors and their roles within the company. The board comprises executive, non-executive, and independent non-executive directors, reflecting the company’s governance structure. The announcement outlines the composition of three key board committees: Audit, Remuneration, and Nomination, indicating the leadership and membership details for each. This update may affect the company’s strategic decisions and operational focus, potentially impacting stakeholders.