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

• Market Cap: HK$742.03M
• Dividend Yield: 5.05%
• Average Volume (3M): 95.28K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.63
• Revenue Growth: -1.20%
• EPS Growth: -3.75%
• Country: HK
• Employees: 1,592
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.13
• Shares Outstanding: 854,862,700
• 10 Day Avg. Volume: 251,800
• 30 Day Avg. Volume: 95,283
• PEG Ratio: 0.76
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.79
• 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: HK$1.00 ▲(9.89%Upside)

China Boqi Environmental receives a solid score due to its strong financial position, particularly its low leverage and stable growth trajectory. Valuation metrics highlight the stock's attractiveness with a low P/E ratio and a high dividend yield. While technical indicators suggest a potential overbought condition, the fundamental strengths and attractive valuation provide substantial support.

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
EBITDA	376.40M	359.78M	148.98M	376.34M	358.40M
Net Income	236.44M	240.18M	151.75M	348.24M	207.61M
Balance Sheet
Total Assets	5.41B	5.02B	4.73B	4.78B	3.87B
Cash, Cash Equivalents and Short-Term Investments	812.89M	590.62M	714.69M	805.90M	764.23M
Total Debt	455.23M	243.55M	218.86M	233.95M	117.04M
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	143.90M	-57.97M	26.74M	-123.25M	72.00M
Operating Cash Flow	383.73M	86.40M	137.04M	-55.87M	230.49M
Investing Cash Flow	-229.52M	-118.68M	-22.91M	-129.20M	-129.85M
Financing Cash Flow	124.89M	-24.73M	-66.54M	15.86M	-31.62M

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

• Technical Analysis Sentiment: Positive
• Last Price: 0.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.91 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.78, and above the 200-day MA of 0.78, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 69.13 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 is Negative, 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$742.03M	3.48	7.52%	5.05%	-1.20%	-3.75%
0556	67 Neutral	HK$371.25M	20.26	1.50%	―	11.97%	804.76%
Sector *	67 Neutral	€8.20B	20.71	6.46%	2.87%	1.89%	-38.99%
1527	66 Neutral	HK$295.65M	3.26	9.30%	5.33%	17.99%	97.50%
1790	64 Neutral	HK$430.00M	6.80	4.83%	―	27.83%	-9.69%
0436	57 Neutral	HK$173.03M	―	-2.96%	2.81%	-13.85%	30.40%
1452	51 Neutral	HK$55.13M	―	-25.29%	―	-15.12%	-20.67%

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

China Boqi Announces Key Connected Transactions for Yangxi Facilities

China Boqi Environmental (Holding) Co., Ltd. announced a series of continuing connected transactions related to the Yangxi Facilities, including an EPC contract and various operation and maintenance agreements. These transactions, which require approval from independent shareholders, are significant due to their scale and the need to comply with Hong Kong’s Listing Rules, impacting the company’s financial and operational strategies.

China Boqi Enters Finance Lease Agreement with Jiangsu Financial Leasing

China Boqi Environmental (Holding) Co., Ltd. has entered into a finance lease agreement with Jiangsu Financial Leasing, involving the purchase and leaseback of Lubao Equipment for RMB50 million. This transaction, classified as a discloseable transaction under Hong Kong’s Listing Rules, is expected to impact the company’s financial strategy by leveraging equipment for liquidity, potentially influencing its market positioning and stakeholder relations.

China Boqi Environmental Announces Successful AGM Results

China Boqi Environmental (Holding) Co., Ltd. announced the results of its Annual General Meeting held on May 30, 2025. All resolutions, including the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors, were passed by shareholders. The AGM also authorized the board to manage director remuneration and share transactions, reflecting strong shareholder support and strategic continuity.

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.