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

• Market Cap: HK$800.39M
• Dividend Yield: 4.69%
• Average Volume (3M): 56.70K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.68
• Revenue Growth: 8.09%
• EPS Growth: 30.76%
• Country: HK
• Employees: 1,592
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.18
• Shares Outstanding: 854,862,700
• 10 Day Avg. Volume: 51,200
• 30 Day Avg. Volume: 56,703
• PEG Ratio: 0.00
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 6.28
• 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: 66 Neutral
• Price Target: HK$1.00 ▼(-0.99% Downside)

The overall stock score of 66 reflects strong valuation metrics, with a low P/E ratio and high dividend yield, indicating potential undervaluation. However, bearish technical indicators and challenges in cash flow management weigh down the score. The company's financial stability is a positive factor, but improvement in cash flow is needed to enhance growth prospects.

Positive Factors

Revenue Growth

Stable revenue growth indicates a consistent demand for the company's services, reflecting its strong market position and ability to secure ongoing projects.

Balance Sheet Strength

A low debt-to-equity ratio signifies conservative financial management, providing the company with flexibility to invest in growth opportunities without excessive leverage.

Operational Efficiency

Improved EBIT and EBITDA margins demonstrate the company's effective cost management and operational efficiency, which are crucial for sustaining profitability.

Negative Factors

Cash Flow Challenges

Inability to generate free cash flow limits the company's capacity to reinvest in growth initiatives, potentially hindering long-term expansion and competitiveness.

Profit Margin Pressure

A decrease in net profit margin indicates pressure on profitability, which could affect the company's ability to maintain its competitive edge and invest in future growth.

Cash Conversion Concerns

Lack of clarity on cash conversion efficiency raises concerns about the company's ability to translate earnings into cash, affecting liquidity and investment potential.

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 generates revenue through multiple streams, primarily from the construction and operation of waste treatment and water purification projects. The company earns income by providing engineering, procurement, and construction (EPC) services for its facilities, along with ongoing operational management. Additionally, Boqi capitalizes on government grants and subsidies aimed at supporting green technologies and environmental initiatives. The company may also enter into long-term service agreements with municipalities and industrial clients, ensuring a steady revenue flow. Strategic partnerships with government entities and private sector companies further enhance its earning potential, enabling access to larger projects and funding opportunities.

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

Summary

China Boqi Environmental maintains stable revenue growth and operational efficiency with steady margins. The balance sheet is strong with low leverage and a high equity ratio, ensuring financial stability. However, cash flow management is a challenge, impacting reinvestment potential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.26B	2.15B	2.14B	1.90B	2.09B	1.65B
Gross Profit	478.49M	434.73M	436.10M	390.78M	387.56M	340.08M
EBITDA	401.62M	376.40M	359.78M	328.88M	334.54M	281.94M
Net Income	265.48M	236.44M	240.18M	151.75M	348.24M	207.61M
Balance Sheet
Total Assets	5.09B	5.41B	5.02B	4.73B	4.78B	3.87B
Cash, Cash Equivalents and Short-Term Investments	533.02M	812.89M	590.62M	714.69M	805.90M	764.23M
Total Debt	354.25M	455.23M	243.55M	212.76M	233.95M	117.04M
Total Liabilities	1.87B	2.12B	1.95B	1.88B	2.03B	1.41B
Stockholders Equity	3.19B	3.25B	3.05B	2.83B	2.74B	2.45B
Cash Flow
Free Cash Flow	186.74M	143.90M	-57.97M	26.74M	-123.25M	72.00M
Operating Cash Flow	302.41M	383.73M	86.40M	137.04M	-55.87M	230.49M
Investing Cash Flow	-128.34M	-229.52M	-118.68M	-22.91M	-129.20M	-129.85M
Financing Cash Flow	-197.71M	124.89M	-24.73M	-66.54M	15.86M	-31.62M

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

• Technical Analysis Sentiment: Negative
• Last Price: 1.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 1.01 is above the 20-day moving average (MA) of 0.98, above the 50-day MA of 0.99, and above the 200-day MA of 0.94, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.41 is Neutral, neither overbought nor oversold. The STOCH value of 49.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0556	75 Outperform	HK$732.60M	43.53	1.33%	―	9.77%	165.63%
1527	74 Outperform	HK$260.55M	2.81	9.21%	―	-11.01%	69.56%
2377	66 Neutral	HK$800.39M	3.11	8.32%	4.69%	8.09%	30.76%
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	-12.18	-1.91%	2.46%	-5.95%	33.73%
1452	46 Neutral	HK$94.86M	-2.52	-24.77%	―	-0.22%	-22.16%