Capital Environment Holdings Limited (HK:3989)
:3989
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Capital Environment Holdings Limited
(3989)
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Rating:52Neutral
Price Target:
HK$0.10
▲(18.75% Upside)
Action:ReiteratedDate:01/24/26
The score is held back primarily by weak financial performance, especially consistently negative operating/free cash flow alongside declining revenue and high leverage. Technicals are supportive due to positive momentum and price above key averages, but extremely overbought RSI/Stoch signals add near-term risk. Valuation looks inexpensive on P/E, but fundamentals reduce confidence in that discount.
Positive Factors
Balance Sheet Cushion
A stable or slightly rising equity base provides a durable capital cushion that helps absorb operational losses and supports access to financing. This bolsters long-term solvency and gives management flexibility to navigate cash flow volatility and refinance needs.
Negative Factors
Negative Operating and Free Cash Flow
Persistent negative operating and free cash flows erode liquidity and limit the firm's ability to fund capex, service debt, or invest for growth without external financing. Over months, this raises refinancing, covenant, and solvency risks if cash conversion doesn't improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Cushion
A stable or slightly rising equity base provides a durable capital cushion that helps absorb operational losses and supports access to financing. This bolsters long-term solvency and gives management flexibility to navigate cash flow volatility and refinance needs.
Read all positive factors
Capital Environment Holdings Limited (3989) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.43B
Dividend YieldN/A
Average Volume (3M)7.75M
Price to Earnings (P/E)3.3
Beta (1Y)0.29
Revenue Growth-5.24%
EPS Growth-17.75%
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 Ratio-0.30
Price to Book (P/B)0.19
Price to Sales (P/S)0.34
P/FCF Ratio22.48
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
The company generates revenue primarily through contracts for waste management and treatment services offered to municipalities and industrial clients. Key revenue streams include fees for waste collection and disposal, sale of recycled materials,...
Capital Environment Holdings Limited Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.76B | 3.67B | 4.08B | 4.59B | 5.40B | 7.65B |
| Gross Profit | 1.37B | 1.31B | 1.39B | 1.39B | 1.64B | 1.93B |
| EBITDA | 1.05B | 1.03B | 1.02B | 1.15B | 1.63B | 1.78B |
| Net Income | 251.65M | 234.12M | 285.38M | 1.69B | 510.75M | 465.04M |
Balance Sheet | ||||||
| Total Assets | 21.08B | 20.88B | 20.29B | 20.14B | 26.17B | 24.06B |
| Cash, Cash Equivalents and Short-Term Investments | 2.22B | 659.30M | 2.29B | 2.95B | 2.81B | 2.77B |
| Total Debt | 10.95B | 10.65B | 10.52B | 10.14B | 14.05B | 13.04B |
| Total Liabilities | 13.89B | 13.89B | 13.59B | 13.45B | 18.46B | 16.87B |
| Stockholders Equity | 6.85B | 6.66B | 6.43B | 6.49B | 6.21B | 5.62B |
Cash Flow | ||||||
| Free Cash Flow | 528.23M | 55.54M | -675.47M | -520.63M | -876.66M | -475.06M |
| Operating Cash Flow | 578.91M | 297.55M | -385.22M | -231.99M | -445.07M | 102.78M |
| Investing Cash Flow | -347.32M | -214.60M | -237.41M | 7.60B | -1.33B | -1.98B |
| Financing Cash Flow | -280.14M | -81.85M | -219.55M | -7.50B | 764.84M | 3.01B |
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
41.71
Neutral
11.22
Positive
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 0.12, 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 41.71 is Neutral, neither overbought nor oversold. The STOCH value of 11.22 is Positive, 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% | ― | 17.22% | -21.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | HK$795.19M | 3.38 | 6.03% | ― | ― | ― | |
56 Neutral | HK$1.49B | 5.86 | 6.98% | 7.75% | ― | ― | |
54 Neutral | HK$904.25M | -4.13 | -7.92% | 5.36% | -3.37% | -149.08% | |
52 Neutral | HK$1.43B | 3.31 | 3.96% | ― | -5.24% | -17.75% | |
51 Neutral | HK$366.20M | -19.12 | -36.78% | ― | -3.00% | -7.27% |
* Industrials Sector Average
HK:3989
Capital Environment Holdings Limited
0.10
0.02
31.58%
HK:0979
Green Energy Group Limited
0.27
0.08
39.90%
HK:0154
Beijing Enterprises Environment Group Limited
0.53
0.15
37.66%
HK:1790
TIL Enviro Limited
0.52
0.00
0.00%
HK:3718
Beijing Enterprises Urban Resources Group Ltd.
0.42
0.10
32.49%
HK:0587
China Conch Environment Protection Holdings Ltd.
0.50
-0.04
-6.60%
Capital Environment Holdings Limited Corporate Events
Capital Environment Subsidiary Signs Connected Equipment Deal for Wastewater Project
Jan 15, 2026
Capital Environment Holdings Limited has announced that its indirect wholly owned subsidiary, Xinjiang Tianfu Company, has entered into a new equipment procurement agreement with Capital Aihua Company to purchase monitoring room equipment for a wa...
Capital Environment Lends RMB61.7 Million to Xiongan Wastewater Venture
Dec 28, 2025
Capital Environment Holdings Limited has arranged for its wholly owned subsidiary Capital Investment to extend a RMB61.74 million unsecured one-year loan at 4.55% interest to Xiongan Pioneer, a wastewater treatment and recycling business in which ...
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.