Capital Environment Holdings Limited (3989) AI Stock Analysis

• Market Cap: HK$1.09B
• Dividend Yield: N/A
• Average Volume (3M): 5.89M
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.39
• Revenue Growth: -11.67%
• EPS Growth: -19.46%
• Country: HK
• Employees: 3,559
• Sector: Industrials
• Sector Strength: 83
• Industry: Waste Management
• EPS (TTM): 0.02
• Shares Outstanding: 14,294,732,000
• 10 Day Avg. Volume: 3,648,400
• 30 Day Avg. Volume: 5,889,860
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

Capital Environment Holdings Limited faces significant financial challenges, notably in revenue decline and liquidity issues, which weigh heavily on its stock score. Despite this, the company's valuation appears attractive with a low P/E ratio, suggesting potential for future appreciation if financial performance improves. Technical analysis provides mixed signals, indicating caution. Overall, the stock presents a moderate risk-reward profile.

Capital Environment Holdings Limited Business Overview & Revenue Model

Company Description

Capital Environment Holdings Limited, an investment holding company, engages in the waste treatment and waste-to-energy businesses in the People's Republic of China and New Zealand. The company is involved in technology development, design, system integration, project investment, consultancy, operation, and maintenance of waste treatment facilities for waste-to-energy projects. It also offers kitchen and hazardous waste treatment, waste collection and transportation, waste sweep and management, technical, and municipal solid waste treatment services; and recycles and disassembles waste electrical and electronic equipment. In addition, the company is involved in the restoration and operation of waste accumulation sites; and biomass incineration power generation activities. Its operation and trial operation projects include 26 waste-to-energy projects; 7 waste landfill projects; 6 anaerobic digestion treatment projects; 17 waste collection and transportation projects; 9 hazardous waste treatment projects; 2 waste electrical appliances dismantling projects; and 2 biomass electricity generation projects. The company was formerly known as New Environmental Energy Holdings Limited and changed its name to Capital Environment Holdings Limited in May 2014. Capital Environment Holdings Limited was incorporated in 2004 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Capital Environment Holdings Limited makes money through multiple revenue streams centered around its environmental services. The company earns revenue from waste treatment services, including fees for the collection, transportation, and disposal of municipal, industrial, and hazardous waste. Moreover, it generates income from operating waste-to-energy facilities where waste is converted into renewable energy, which is then sold to power grids. Additionally, the company might benefit from government contracts and incentives related to environmental protection and clean energy initiatives, further bolstering its financial performance. Strategic partnerships with local governments and industrial clients also play a crucial role in sustaining its revenue growth.

Capital Environment Holdings Limited Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.08B	4.59B	5.40B	7.65B	5.94B
	Gross Profit
1.39B	1.39B	1.64B	1.93B	1.57B
	EBIT
868.03M	874.83M	1.20B	1.26B	928.76M
	EBITDA
1.02B	1.15B	1.63B	1.78B	1.24B
	Net Income Common Stockholders
285.38M	-1.31B	510.75M	465.04M	302.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.29B	1.51B	1.68B	2.77B	1.54B
	Total Assets
20.29B	20.14B	26.17B	24.06B	18.64B
	Total Debt
10.52B	10.14B	14.05B	13.04B	10.66B
	Net Debt
9.85B	8.63B	12.36B	10.28B	9.12B
	Total Liabilities
13.59B	13.45B	18.46B	16.87B	13.39B
	Stockholders Equity
6.43B	6.49B	6.21B	5.62B	3.62B
Cash Flow		Free Cash Flow
-675.47M	-520.63M	-876.66M	-475.06M	-1.21B
	Operating Cash Flow
-385.22M	-231.99M	-445.07M	102.78M	-706.94M
	Investing Cash Flow
-237.41M	7.60B	-1.33B	-1.98B	-1.04B
	Financing Cash Flow
-219.55M	-7.50B	764.84M	3.01B	941.56M

Capital Environment Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3989, the sentiment is Neutral. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 142.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3989.

Capital Environment Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1330	74 Outperform	HK$9.44B	9.10	7.85%	6.59%	-9.43%	4.26%
2883	71 Outperform	$54.45B	8.71	7.81%	3.83%	7.72%	2.35%
6866	68 Neutral	HK$342.20M	8.10	1.97%	7.55%	-21.32%	-63.98%
1458	68 Neutral	HK$5.52B	52.99	2.60%	6.61%	-12.46%	-13.70%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
3989	54 Neutral	HK$1.09B	4.27	3.58%	―	-11.67%	-19.46%
1545	51 Neutral	HK$136.00M	75.56	0.60%	5.59%	-30.83%	-89.29%

Capital Environment Holdings Limited Corporate Events

Capital Environment Holdings Limited Reports 2024 Financial Results

Capital Environment Holdings Limited announced its audited consolidated results for the year ending December 31, 2024. The company reported a decrease in revenue from RMB 4,076,596,000 in 2023 to RMB 3,666,591,000 in 2024, with a corresponding drop in gross profit. Despite the decline in revenue, the company achieved a profit before tax of RMB 338,785,000, an increase from the previous year. The profit for the year attributable to owners of the parent was RMB 234,123,000, reflecting a decrease in earnings per share. The results indicate a challenging year with reduced revenues but maintained profitability, impacting stakeholders’ expectations and the company’s market positioning.

Capital Environment Holdings Schedules Board Meeting for Annual Results

Capital Environment Holdings Limited has announced a board meeting scheduled for March 21, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and address other business matters, potentially impacting the company’s financial outlook and shareholder returns.