Kimou Environmental Holding Limited (6805) AI Stock Analysis

• Market Cap: HK$2.77B
• Dividend Yield: 9.96%
• Average Volume (3M): 89.53K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.25
• Revenue Growth: 16.00%
• EPS Growth: 32.03%
• Country: HK
• Employees: 1,030
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.06
• Shares Outstanding: 1,107,750,000
• 10 Day Avg. Volume: 129,800
• 30 Day Avg. Volume: 89,533
• PEG Ratio: 0.32
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -6.59
• 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: 79 Outperform
• Price Target: HK$2.50 ▲(0.00% Upside)

Kimou Environmental Holding Limited's stock is supported by strong technical indicators and a compelling valuation with a high dividend yield. While financial performance shows robust revenue growth, attention is needed on leverage and cash flow management. The absence of earnings call and corporate events data does not impact the overall positive outlook.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates an expanding market presence and effective business strategies, supporting long-term sustainability.

Gross Profit Margin

A consistently high gross profit margin suggests strong cost control and pricing power, contributing to long-term profitability.

Equity Growth

Growth in stockholders' equity reflects a solid financial base, enhancing the company's ability to invest in future growth opportunities.

Negative Factors

High Debt-to-Equity Ratio

A high debt-to-equity ratio can increase financial risk, limiting flexibility and potentially impacting long-term financial stability.

Negative Free Cash Flow

Consistently negative free cash flow may strain liquidity, affecting the company's ability to fund operations and growth without additional financing.

Net Profit Margin Variability

Variability in net profit margins suggests inconsistent operational efficiency, which could hinder long-term profitability and stability.

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 generates revenue through multiple key streams, including waste treatment services, recycling operations, and consulting services related to environmental management. The company charges fees for its waste processing and disposal services, which are often structured on a contractual basis with municipalities and large enterprises. Additionally, Kimou benefits from the sale of recycled materials, which can fluctuate based on market demand. Strategic partnerships with local governments and private firms enhance its service offerings and provide a stable customer base, contributing significantly to its overall earnings. The company may also engage in projects funded by governmental environmental initiatives, further diversifying its revenue sources.

Kimou Environmental Holding Limited Financial Statement Overview

Summary

Kimou Environmental Holding Limited shows strong revenue growth and profitability with a high gross profit margin. However, variability in net profit margins and a high debt-to-equity ratio suggest areas for improvement. Negative free cash flow due to aggressive reinvestment strategies indicates potential liquidity challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.39B	1.18B	1.10B	927.75M	724.72M
Gross Profit	1.49B	920.92M	818.38M	753.60M	618.37M	724.72M
EBITDA	0.00	571.04M	518.53M	472.88M	373.80M	341.77M
Net Income	131.88M	122.61M	91.17M	111.23M	55.91M	102.61M
Balance Sheet
Total Assets	5.56B	5.22B	4.93B	4.37B	3.54B	2.99B
Cash, Cash Equivalents and Short-Term Investments	0.00	219.41M	276.75M	190.31M	112.16M	72.77M
Total Debt	2.68B	3.09B	2.77B	2.23B	1.66B	1.25B
Total Liabilities	4.27B	3.85B	3.69B	3.01B	2.29B	1.83B
Stockholders Equity	1.06B	1.15B	1.13B	1.14B	1.04B	982.66M
Cash Flow
Free Cash Flow	342.78M	-203.29M	-266.27M	-329.25M	-304.39M	-319.96M
Operating Cash Flow	342.78M	488.08M	375.31M	455.95M	357.36M	260.55M
Investing Cash Flow	-390.07M	-763.35M	-450.64M	-828.07M	-660.70M	-578.25M
Financing Cash Flow	45.45M	220.97M	161.95M	450.90M	342.67M	285.56M

Kimou Environmental Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 2.5 is above the 20-day moving average (MA) of 2.49, above the 50-day MA of 2.36, and above the 200-day MA of 1.91, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 84.62 is Negative, 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	79 Outperform	HK$2.77B	19.44	12.28%	9.96%	16.00%	32.03%
1065	78 Outperform	HK$9.74B	7.43	8.29%	4.37%	1.66%	-6.08%
3718	66 Neutral	HK$1.39B	-18.14	-2.24%	7.75%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1330	62 Neutral	HK$10.04B	9.63	8.62%	6.19%	-0.91%	18.25%
3989	50 Neutral	HK$1.11B	4.11	3.71%	―	-5.24%	-17.75%
0895	38 Underperform	HK$5.11B	-2.32	-27.89%	―	-3.21%	-34.90%

Kimou Environmental Holding Limited Corporate Events

Kimou Environmental Expands Eco-Industrial Park Construction

Kimou Environmental Holding Limited announced that its subsidiary, Taizhou Jincheng Environmental Technology Co., Ltd., has entered into a construction contract with Guangdong Jinjunda Construction Engineering Co., Ltd. for further development of its four eco-industrial parks. This transaction, valued at RMB47,660,000, marks a continuation of previous agreements with the same contractor and is classified as a discloseable transaction under Hong Kong’s Listing Rules, reflecting the company’s ongoing efforts to upgrade its park facilities.

The most recent analyst rating on (HK:6805) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Kimou Environmental Holding Limited stock, see the HK:6805 Stock Forecast page.