Kimou Environmental Holding Limited (6805) AI Stock Analysis

• Market Cap: HK$2.10B
• Dividend Yield: 7.89%
• Average Volume (3M): 115.40K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.25
• Revenue Growth: 16.17%
• EPS Growth: 32.45%
• Country: HK
• Employees: 1,030
• Sector: Industrials
• Sector Strength: 85
• Industry: Waste Management
• EPS (TTM): 0.12
• Shares Outstanding: 1,107,750,000
• 10 Day Avg. Volume: 74,200
• 30 Day Avg. Volume: 115,400
• PEG Ratio: 0.08
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.81
• 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: 71 Outperform
• Price Target: ―

Kimou Environmental Holding Limited demonstrates strong financial performance with robust revenue growth and profitability. However, challenges such as high leverage and negative free cash flow require attention. The technical analysis is mixed, indicating potential but uncertain short-term movements. Valuation metrics are favorable, showcasing a fair price and attractive dividend yield. Overall, the stock offers a solid investment opportunity but requires careful monitoring of leverage and cash flows.

Kimou Environmental Holding Limited Business Overview & Revenue Model

Company Description

Kimou Environmental Holding Limited develops and operates surface treatment recycling eco-industrial parks in the People's Republic of China. The company operates through three segments: Rental and Facilities Usage; Wastewater Treatment and Utilities; and Sales of Goods and Ancillary Business. The Rental and Facilities Usage segment conducts industrial park property development and management business. The Wastewater Treatment and Utilities Business segment operates electroplating wastewater treatment plants and provides utilities services. The Sales of Goods and Ancillary Business segment sells raw materials and consumables; and offers other related environmental services. It operates three surface treatment recycling eco-industrial parks, which include Guangdong Huizhou Park, Tianjin Bingang Park, and Huazhong Park. The company was founded in 2004 and is headquartered in Cheung Sha Wan, Hong Kong.

How the Company Makes Money

Kimou Environmental Holding Limited generates revenue through the leasing of space and provision of essential services within its electroplating industrial parks. Tenants, who are primarily engaged in electroplating and related industries, pay for space rental, as well as for additional services such as wastewater treatment and utilities. The company's revenue model is bolstered by long-term tenancy agreements and the mandatory nature of environmental compliance, which ensures a steady demand for its services. Additionally, strategic partnerships with local governments and adherence to environmental regulations contribute to its earnings by ensuring operational stability and client retention.

Kimou Environmental Holding Limited Financial Statement Overview

Summary

Kimou Environmental Holding Limited displays strong revenue growth and profitability in its core operations, with a high gross profit margin reflecting effective cost control. However, the variability in net profit margins and a high debt-to-equity ratio indicate areas for improvement. While the company is investing heavily in growth, as evidenced by negative free cash flow, this strategy may impact liquidity if not carefully managed. Overall, the financial health is solid but requires attention to leverage and cash flow management.

Income Statement

Kimou Environmental Holding Limited has demonstrated a robust growth trajectory with total revenue increasing from 640 million in 2019 to 1.39 billion in 2024. The company's gross profit margin has consistently remained high, reflecting effective cost management. The net profit margin, while positive, shows variability, indicating room for improvement in operational efficiency. Strong EBIT figures underscore solid core operations, but the absence of recent EBITDA data limits a full view of operating performance.

Balance Sheet

The company maintains a stable equity base, with stockholders' equity growing from 879.9 million in 2019 to 1.15 billion in 2024, indicating a sound financial foundation. However, the debt-to-equity ratio is relatively high, suggesting significant leverage which could pose risks in volatile market conditions. The equity ratio has remained stable, but improvements in reducing liabilities would enhance financial resilience.

Cash Flow

Despite positive trends in operating cash flow, the company's free cash flow has been consistently negative, primarily due to substantial capital expenditures. This suggests aggressive reinvestment strategies, but it also indicates potential liquidity challenges. The lack of recent data on operating cash flow to net income ratio limits a detailed assessment of cash conversion efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.39B	1.18B	1.10B	927.75M	724.72M
	Gross Profit
920.92M	818.38M	753.60M	618.37M	534.36M
	EBIT
305.05M	254.26M	254.40M	169.73M	176.21M
	EBITDA
0.00	518.53M	472.88M	373.80M	341.77M
	Net Income Common Stockholders
122.61M	91.17M	111.23M	55.91M	102.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
219.41M	276.75M	190.31M	112.16M	72.77M
	Total Assets
5.22B	4.93B	4.37B	3.54B	2.99B
	Total Debt
3.09B	2.77B	2.23B	1.66B	1.25B
	Net Debt
2.87B	2.49B	2.04B	1.55B	1.18B
	Total Liabilities
3.85B	3.69B	3.01B	2.29B	1.83B
	Stockholders Equity
1.15B	1.13B	1.14B	1.04B	982.66M
Cash Flow		Free Cash Flow
0.00	-266.27M	-329.25M	-304.39M	-319.96M
	Operating Cash Flow
0.00	375.31M	455.95M	357.36M	260.55M
	Investing Cash Flow
0.00	-450.64M	-828.07M	-660.70M	-578.25M
	Financing Cash Flow
0.00	161.95M	450.90M	342.67M	285.56M

Kimou Environmental Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6805, the sentiment is Positive. The current price of 1.9 is above the 20-day moving average (MA) of 1.75, above the 50-day MA of 1.44, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 77.42 is Negative, neither overbought nor oversold. The STOCH value of 67.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6805.

Kimou Environmental Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6805	71 Outperform	HK$2.10B	15.83	10.76%	7.89%	16.17%	32.45%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
DYN		€1.06B	8.08	7.85%	6.93%	―	―
1809	78 Outperform	HK$4.91B	3.45	21.97%	12.99%	8.48%	25.41%
1415	66 Neutral	HK$20.79B	22.37	25.73%	―	168.87%	150.80%
3683	43 Neutral	HK$112.41M	―	-55.43%	―	30.16%	68.71%
8196	40 Underperform	HK$27.69M	―	-9.50%	―	-58.07%	-331.12%

Kimou Environmental Holding Limited Corporate Events

Kimou Environmental Holding Limited Announces 2025 Annual General Meeting

Kimou Environmental Holding Limited has announced its upcoming Annual General Meeting scheduled for May 23, 2025, in Hong Kong. Key agenda items include the adoption of financial statements, re-election of directors, approval of director remuneration, re-appointment of auditors, and declaration of a final dividend of HK15 cents per share. The meeting will also address resolutions on the issuance of shares, reflecting the company’s strategic focus on capital management and shareholder value enhancement.

Kimou Environmental Reports Strong 2024 Financial Results

Kimou Environmental Holding Limited announced its annual results for the year ended December 31, 2024, reporting a significant increase in revenue and profit compared to the previous year. The company’s revenue rose to RMB 1,394,084,000, and profit attributable to equity shareholders increased to RMB 122,611,000. The board recommended a final dividend of HK15 cents per share, reflecting the company’s strong financial performance and commitment to shareholder returns.

Kimou Environmental Announces Final Dividend for 2024

Kimou Environmental Holding Limited announced a final ordinary dividend of HKD 0.15 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, with the dividend payment scheduled for June 27, 2025. The decision to declare a dividend may enhance the company’s attractiveness to investors and strengthen its position in the environmental sector.

Kimou Environmental Holding to Review Annual Results and Dividend Proposal

Kimou Environmental Holding Limited has announced a board meeting scheduled for March 28, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for the payment of a final dividend and other matters concerning the group, potentially impacting its financial strategies and shareholder returns.

Kimou Environmental Projects Over 30% Profit Increase for 2024

Kimou Environmental Holding Limited has announced a positive profit alert, expecting a more than 30% increase in profit attributable to equity shareholders for the year ended December 31, 2024, compared to the previous year. This growth is primarily driven by increased revenue from leasing, facility usage, and wastewater treatment, as well as higher goods sales due to rising tenant demand and adjustments in credit policy. The final audited results are expected in late March 2025, and stakeholders are advised to exercise caution when dealing with the company’s securities.