Capital Environment Holdings Limited (HK:3989)
:3989
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Capital Environment Holdings Limited
(3989)
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Rating:50Neutral
Price Target:
HK$0.10
▲(27.50% Upside)
Action:ReiteratedDate:04/24/26
The score is mainly held back by weak financial quality—particularly negative/volatile operating and free cash flow alongside elevated leverage and a multi-year revenue decline—despite improving margins. Technicals are mildly bearish in the near term, while valuation looks attractive on a low P/E but is tempered by the lack of dividend data.
Positive Factors
Improving margins
Sustained margin expansion across gross, operating and net lines indicates rising operational efficiency and pricing ability. Over the medium term, stronger margins can preserve earnings even with weak top-line trends, funding reinvestment and cushioning cyclical revenue pressure.
Negative Factors
Multi-year revenue decline
A persistent top-line contraction erodes growth optionality and the ability to leverage fixed costs. Over months to years, falling revenue can shrink addressable scale, limit margin carry-through, and reduce future cash flow potential even if margins improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving margins
Sustained margin expansion across gross, operating and net lines indicates rising operational efficiency and pricing ability. Over the medium term, stronger margins can preserve earnings even with weak top-line trends, funding reinvestment and cushioning cyclical revenue pressure.
Read all positive factors
Capital Environment Holdings Limited (3989) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.40B
Dividend YieldN/A
Average Volume (3M)7.75M
Price to Earnings (P/E)3.3
Beta (1Y)0.34
Revenue Growth1.03%
EPS Growth16.29%
CountryHK
Employees3,559
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)<0.01
Shares Outstanding14,294,732,000
10 Day Avg. Volume4,842,400
30 Day Avg. Volume7,749,066
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.13
Price to Sales (P/S)0.25
P/FCF Ratio-3.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
How the Company Makes Money
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Capital Environment Holdings Limited Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
46
Neutral
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.61B | 3.67B | 4.08B | 4.59B | 5.40B |
| Gross Profit | 1.32B | 1.31B | 1.39B | 1.39B | 1.64B |
| EBITDA | 1.18B | 1.03B | 1.02B | 1.15B | 1.63B |
| Net Income | 267.40M | 234.12M | 285.38M | 1.69B | 510.75M |
Balance Sheet | |||||
| Total Assets | 21.21B | 20.88B | 20.29B | 20.14B | 26.17B |
| Cash, Cash Equivalents and Short-Term Investments | 493.36M | 659.30M | 2.29B | 2.95B | 2.81B |
| Total Debt | 10.95B | 10.65B | 10.52B | 10.14B | 14.05B |
| Total Liabilities | 13.92B | 13.89B | 13.59B | 13.45B | 18.46B |
| Stockholders Equity | 6.95B | 6.66B | 6.43B | 6.49B | 6.21B |
Cash Flow | |||||
| Free Cash Flow | -269.66M | 55.54M | -675.47M | -520.63M | -876.66M |
| Operating Cash Flow | -255.48M | 297.55M | -385.22M | -231.99M | -445.07M |
| Investing Cash Flow | -187.51M | -214.60M | -237.41M | 7.60B | -1.33B |
| Financing Cash Flow | 273.43M | -81.85M | -219.55M | -7.50B | 764.84M |
Capital Environment Holdings Limited Technical Analysis
Neutral
0.08
Price Trends
0.11
Negative
0.09
Positive
0.09
Positive
Market Momentum
>-0.01
Positive
42.78
Neutral
21.05
Neutral
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 below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$520.00M | 1.93 | 4.69% | ― | -0.24% | -24.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | HK$795.19M | 3.38 | 6.03% | ― | -14.62% | -19.99% | |
56 Neutral | HK$1.60B | 5.86 | 6.98% | 7.75% | 4.46% | 770.51% | |
51 Neutral | HK$393.33M | -19.12 | -36.78% | ― | -0.67% | 18.40% | |
50 Neutral | HK$1.40B | 3.31 | 3.96% | ― | 1.03% | 16.29% | |
46 Neutral | HK$885.98M | -4.13 | -7.92% | 5.36% | -2.70% | -3800.00% |
* Industrials Sector Average
HK:3989
Capital Environment Holdings Limited
0.10
0.02
28.95%
HK:0979
Green Energy Group Limited
0.29
0.11
65.71%
HK:0154
Beijing Enterprises Environment Group Limited
0.53
0.14
34.18%
HK:1790
TIL Enviro Limited
0.52
0.05
10.64%
HK:3718
Beijing Enterprises Urban Resources Group Ltd.
0.45
0.15
48.51%
HK:0587
China Conch Environment Protection Holdings Ltd.
0.49
-0.06
-10.19%
Capital Environment Holdings Limited Corporate Events
Capital Environment Posts Higher 2025 Profit on Stable Environmental Services Revenue
Mar 18, 2026
Capital Environment Holdings Limited reported audited consolidated revenue of RMB3.70 billion for the year ended 31 December 2025, slightly up from RMB3.67 billion a year earlier, driven by income from customer contracts and concession financial a...
Capital Environment Eases Impairment Policy, Boosting 2025 Profit Outlook
Mar 12, 2026
Capital Environment Holdings Limited has revised its expected credit loss model for trade receivables, extending the period before applying a 100% loss rate from more than three years to more than five years for all customers except the PRC Minist...
Capital Environment Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 4, 2026
Capital Environment Holdings Limited has scheduled a board meeting for 18 March 2026 to review and approve the annual results of the company and its subsidiaries for the financial year ended 31 December 2025. The board will also consider whether t...
Capital Environment Clarifies Pricing of AI R&D Connected Deals
Mar 2, 2026
Capital Environment Holdings Limited has issued a supplemental announcement detailing how it priced two connected transactions related to AI research and development projects, clarifying that the contract sums under Agreement 1 and Agreement 2 wer...
Capital Environment Steps Up AI Push With Connected R&D Deals
Feb 12, 2026
Capital Environment Holdings Limited has embarked on new artificial intelligence research and development projects with controlling shareholder Capital Eco Group and several technology partners, including Alibaba Cloud. The initiatives will build ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.