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olivLaw · US equity research

Euro Tech Holdings Company Limited CLWT

Wholesale-Professional & Commercial Equipment & Supplies · SIC 5040 · Vertical: Wholesale — durable goods (SIC 504x)

1.35USD−2.17% · 1 dayClose 04 Nov 2026

Euro Tech Holdings distributes water treatment equipment, laboratory instruments and analyzers, and through its subsidiary Pact-Yixing develops engineering projects and ballast water treatment systems for ships. Revenue fell to 13.265 million USD in fiscal 2025, showing the company's dependence on a regional market sensitive to economic slowdown and trade tensions.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Euro Tech Holdings Company Limited (CLWT) stock was 1.35 USD (−2.17% on the day), with market capitalisation 10.1 m USD, P/E 67.5 on diluted EPS of 0.02 USD over the last 12 months, dividend yield 0.00%, beta 0.07, 52-week range 1.03–2.15 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
10.1 m USD
shares as of 31 Dec 2025
P/E (TTM)
67.5
Diluted EPS TTM 0.02 · TTM to 31 Dec 2025
E/P (TTM)
1.48%
TTM to 31 Dec 2025
Dividend yield
0.00%
DPS 12m 0.00
Beta (2y)
0.07
Volatility (1y) 89%
52-week range
1.032.15

Price history

Loading chart…

Technical reading

RSI (14)
47.3
neutral
Bollinger (20, 2)
1.04 – 1.77
in the lower half of the band · %B 0.42 · band width 51.9%
SMA 50 / 200
1.47 / 1.38
mixed trend
MACD (12, 26, 9)
-0.04 / -0.04
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+1.5%−1.1%+2.6 pp—
3 months−9.4%−0.5%−8.9 pp—
6 months+10.7%+4.4%+6.3 pp—
Year to date+12.5%+12.3%+0.2 pp—
1 year+14.4%+13.5%+0.9 pp+18.3%
3 years−7.5%+76.4%−83.9 pp+44.9%
5 years−58.2%+63.7%−121.9 pp—
Max drawdown (1y)
−39.5%
12 Oct 2026 → 28 Oct 2026
Max drawdown (5y)
−72.8%
24 Nov 2021 → 07 Apr 2025
Compound annual growth (5y)
−16.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 89 percentile of its own 9-quarter history (min 6.8, median 28.6, max 71.3; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue20.1 m17.4 m13.4 m21.4 m14.9 m17.9 m15.4 m13.3 m
Revenue YoY+15.9%−13.5%−23.2%+60.1%−30.1%+20.0%−14.3%−13.8%
Net income88.0 k-146.0 k769.0 k989.0 k539.0 k1.7 m845.0 k167.0 k
Net income YoY−81.4%−265.9%unavailable+28.6%−45.5%+206.1%−48.8%−80.2%
Diluted EPS0.04-0.020.100.130.050.240.100.02
Diluted EPS YoY−82.6%−150.0%unavailable+30.0%−61.5%+380.0%−58.3%−80.0%
net %0.4%-0.8%5.8%4.6%3.6%9.2%5.5%1.3%
Free cash flow-1.4 m-287.0 k-2.0 m2.2 m454.0 k-85.0 k776.0 k-1.4 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
4.3 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
16.6 m USD
Total assets
21.3 m USD
Debt / equity
unavailable
Current ratio
2.01x
ROE
1.0%
ROA
0.8%
FCF margin
-10.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
17.9 m
2024
15.4 m
2025
13.3 m

SEC (XBRL)· 30 Apr 2026verified

Cost of revenue
2023
14.1 m
2024
10.9 m
2025
9.6 m

SEC (XBRL)· 30 Apr 2026verified

Gross profit
2023
3.9 m
2024
4.5 m
2025
3.7 m

SEC (XBRL)· 30 Apr 2026verified

Research & development
2023
0
2024
0
2025
0

SEC (XBRL)· 30 Apr 2026verified

Operating income
2023
-249.0 k
2024
386.0 k
2025
-236.0 k

SEC (XBRL)· 30 Apr 2026verified

Depreciation & amortisation
2023
15.0 k
2024
14.0 k
2025
12.0 k

SEC (XBRL)· 30 Apr 2026verified

EBITDA
2023
-234.0 k ≈
2024
400.0 k ≈
2025
-224.0 k ≈

SEC (XBRL)· 30 Apr 2026derived

Pre-tax income
2023
1.7 m
2024
917.0 k
2025
194.0 k

SEC (XBRL)· 30 Apr 2026verified

Income tax
2023
-45.0 k
2024
-72.0 k
2025
—

SEC (XBRL)· 30 Apr 2025verified

Net income
2023
1.7 m
2024
845.0 k
2025
167.0 k

SEC (XBRL)· 30 Apr 2026verified

Diluted EPS
2023
0.24
2024
0.10
2025
0.02

SEC (XBRL)· 30 Apr 2026verified

Weighted average diluted shares
2023
7.7 m
2024
7.7 m
2025
7.6 m

SEC (XBRL)· 30 Apr 2026verified

Dividend per share
2023
0.00
2024
0.08
2025
0.00

SEC (XBRL)· 30 Apr 2026derived

Balance sheet · USD

Cash
2023
5.5 m
2024
5.8 m
2025
4.3 m

SEC (XBRL)· 30 Apr 2026verified

Inventories
2023
723.0 k
2024
500.0 k
2025
344.0 k

SEC (XBRL)· 30 Apr 2026verified

Current assets
2023
10.5 m
2024
9.2 m
2025
9.3 m

SEC (XBRL)· 30 Apr 2026verified

Property, plant & equipment, net
2023
168.0 k
2024
159.0 k
2025
151.0 k

SEC (XBRL)· 30 Apr 2026verified

Goodwill
2023
1.1 m
2024
1.1 m
2025
1.1 m

SEC (XBRL)· 30 Apr 2026verified

Total assets
2023
22.1 m
2024
20.7 m
2025
21.3 m

SEC (XBRL)· 30 Apr 2026verified

Accounts payable
2023
3.5 m
2024
2.3 m
2025
2.7 m

SEC (XBRL)· 30 Apr 2026verified

Short-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 16 May 2022verified

Current liabilities
2023
5.6 m
2024
4.0 m
2025
4.6 m

SEC (XBRL)· 30 Apr 2026verified

Total liabilities
2023
5.6 m
2024
4.0 m
2025
4.8 m

SEC (XBRL)· 30 Apr 2026verified

Equity
2023
16.5 m
2024
16.7 m
2025
16.6 m

SEC (XBRL)· 30 Apr 2026verified

Shares outstanding at year end
2023
7.7 m
2024
7.7 m
2025
7.4 m

SEC (XBRL)· 30 Apr 2026verified

Cash flow · USD

Operating cash flow
2023
-80.0 k
2024
781.0 k
2025
-1.4 m

SEC (XBRL)· 30 Apr 2026verified

Capex
2023
5.0 k
2024
5.0 k
2025
7.0 k

SEC (XBRL)· 30 Apr 2026verified

Free cash flow
2023
-85.0 k ≈
2024
776.0 k ≈
2025
-1.4 m ≈

SEC (XBRL)· 30 Apr 2026derived

Investing cash flow
2023
317.0 k
2024
302.0 k
2025
314.0 k

SEC (XBRL)· 30 Apr 2026verified

Financing cash flow
2023
-82.0 k
2024
-778.0 k
2025
-317.0 k

SEC (XBRL)· 30 Apr 2026verified

Dividends paid
2023
0
2024
617.0 k
2025
0

SEC (XBRL)· 30 Apr 2026verified

Share repurchases
2023
14.0 k
2024
7.0 k
2025
319.0 k

SEC (XBRL)· 30 Apr 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-13.8%
computed by olivLawFY 2025
Revenue CAGR 3Y
-3.9%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
-0.1%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
-161.1%
computed by olivLawFY 2025
Net income growth (YoY)
-80.2%
computed by olivLawFY 2025
Net income CAGR 3Y
-32.3%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
-26.3%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
-80.0%
computed by olivLawFY 2025
EPS CAGR 3Y
-26.3%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
-27.5%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
-283.2%
computed by olivLawFY 2025

Profitability

Gross margin
27.7%
computed by olivLawFY 2025
EBITDA margin
-1.7%
computed by olivLawFY 2025
EBIT margin
-1.8%
computed by olivLawFY 2025
Net margin
1.3%
computed by olivLawFY 2025
FCF margin
-10.7%
computed by olivLawFY 2025

Returns

ROE
1.1%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
0.8%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
unavailable
input data missing
ROCE
-1.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
0.0%
computed by olivLawFY 2025
Payout ratio (FCF)
unavailable
the base of the ratio is not positive

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
2.0x
computed by olivLawbalance sheet at 31 Dec 2025
Quick ratio
1.9x
computed by olivLawbalance sheet at 31 Dec 2025
Cash ratio
0.9x
computed by olivLawbalance sheet at 31 Dec 2025

Cash

Operating cash flow
-1.4 m USD
computed by olivLawFY 2025
Capital expenditure
7.0 k USD
computed by olivLawFY 2025
Free cash flow
-1.4 m USD
computed by olivLawFY 2025
FCF conversion
-851.5%
computed by olivLawFY 2025
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
16 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Days payables outstanding
95 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
10.1 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Enterprise value
unavailable
input data missing
Market cap / net income TTM
60.2x
computed by olivLawFY 2025
P/E (TTM)
67.5x
computed by olivLawFY 2025
Earnings yield
1.5%
computed by olivLawFY 2025
P/B
0.6x
computed by olivLawbalance sheet at 31 Dec 2025
P/S
0.8x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-14.1%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Dividend yield
0.0%
computed by olivLawFY 2025
Shareholder yield (distributions)
3.2%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 58.3% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

1.35 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 10.1 m USD

Key indicators

Market capitalisation
10.1 m USD
computed by olivLawbalance sheet at 31 Dec 2025
P/E (TTM)
67.5x
computed by olivLawFY 2025
P/B
0.6x
computed by olivLawbalance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
ROE
1.1%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
1.3%
computed by olivLawFY 2025
Revenue growth (YoY)
-13.8%
computed by olivLawFY 2025
Dividend yield
0.0%
computed by olivLawFY 2025

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Share count (cover of the latest filing), as of: 31 Dec 2025
Source: SEC (XBRL)published 30 Apr 2026
verified 529derived 10

Score by group

58% · Insufficient data

Estimated value range

Low
0.30
USD per share
Mid
0.41
USD per share
High
0.52
USD per share
Price: 1.35 USD
The price is above the range
Potential to the central value: -69.9% (value / price − 1)
Margin of safety: -231.7% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.30 – 0.52 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E0.30 – 0.52 (Mid 0.41)
    8 companies used · median multiple 20.3x · quartiles 15.2x – 26.1x
    CLMB, CNXN, HSIC, INGM, PLUS, SCSC, SITE, SNX
  • Dividend discount (DDM)unavailable · the base of the ratio is not positive
Multiple comparisons use the SIC vertical: Wholesale — durable goods (SIC 504x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 58.3% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality1.3%36 (vs peers)11%
FCF conversion · Quality-851.5%0 (on a fixed band)11%
Revenue CAGR 3Y · Growth-3.9%0 (on a fixed band)14%
EPS CAGR 3Y · Growth-26.3%0 (on a fixed band)14%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet2.0x100 (on a fixed band)7%
P/E (TTM) · Valuation67.5x0 (vs peers)18%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation-14.1%0 (on a fixed band)14%
Shareholder yield (distributions) · Returns3.2%45 (on a fixed band)11%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/3 factors with a value
  • Growth0/100 · 2/2 factors with a value
  • Quality18/100 · 2/3 factors with a value
  • Returns· partial45/100 · 1/2 factors with a value
  • Valuation0/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

EURO TECH HOLDINGS COMPANY LIMITED (CLWT). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: revenue 13.3 m USD in 2025; YoY growth -13.8%; net margin 1.3%; ROE 1.1%.

The estimated value range is 0.30–0.52 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 0.41 USD, the price of 1.35 USD leaves a potential of -69.9% (value / price − 1) and a margin of safety of -231.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 2.0x

What contradicts it

  • FCF conversion: -851.5%
  • Revenue CAGR 3Y: -3.9%
  • EPS CAGR 3Y: -26.3%
  • P/E (TTM): 67.5x
  • FCF yield: -14.1%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Wholesale — durable goods (SIC 504x) · same industry group (3-digit SIC) · compared with 11 companies

Multiples and returns vs the median

P/E
67.5x
vertical median 20.3x
above median (+231.7%)
EV/EBITDA
—
vertical median 8.7x
P/S
0.8x
vertical median 0.7x
above median (+7.2%)
P/B
0.6x
vertical median 2.3x
below median (−71.5%)
ROE
1.1%
vertical median 10.9%
below median (−90.2%)
Net margin
1.3%
vertical median 2.4%
below median (−48.5%)
EBIT margin
-1.8%
vertical median 3.1%
below median (−158.2%)
Revenue YoY
-13.8%
vertical median 6.1%
below median (−326.0%)
Net debt/EBITDA
—
vertical median 0.3x
Dividend yield
0.0%
vertical median 1.1%
below median (−100.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SNXTd Synnex Corporation18.4 bn14.014.9%1.8%+6.9%+51% / +134%
HSICHenry Schein, Inc.9.8 bn24.212.9%3.1%+4.0%+18% / +32%
INGMIngram Micro Holding Corp6.0 bn13.210.9%0.8%+9.5%+22% / unavailable
SITESiteOne Landscape Supply, Inc.5.1 bn31.99.6%3.4%+3.6%−12% / −16%
PLUSePlus inc.2.4 bn19.012.0%5.1%+22.1%+1% / +43%
CNXNPc Connection, Inc.2.2 bn21.710.9%3.3%+2.5%+51% / +47%
SCSCScanSource, Inc.1.1 bn15.78.7%2.4%+6.1%+39% / +70%
CLMBClimb Global Solutions, Inc.803.2 m33.819.5%3.1%+40.1%+70% / +261%
CGTLCreative Global Technology Holdings Limited56.2 m—-84.9%-63.2%−40.6%−79% / unavailable
ACHAccendra Health, Inc.21.2 m——-11.4%+3.1%−90% / −99%
CLWTEuro Tech Holdings Company Limited10.1 m67.51.1%1.3%−13.8%+14% / −8%
PNSkycorp Solar Group Limited——-14.9%-4.3%+27.0%−85% / unavailable

1- and 3-year price returns: for CLWT from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
0.82
Total return -39% · Per year -39%
1.45
Total return 8% · Per year 8%
2.20
Total return 63% · Per year 63%
3 years
0.67
Total return -51% · Per year -21%
1.34
Total return -1% · Per year -0%
2.25
Total return 67% · Per year 19%
5 years
0.54
Total return -60% · Per year -17%
1.24
Total return -8% · Per year -2%
2.30
Total return 70% · Per year 11%
What moves the 3-year price the most
  • Exit P/E± 0.34
  • Net margin± 0.24
  • Annual revenue growth± 0.21
  • Annual dilution± 0.02

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Apr 2026; since then the company filed 6-K (26 Oct 2026).

In brief

Euro Tech Holdings distributes water treatment equipment, laboratory instruments and analyzers, and through its subsidiary Pact-Yixing develops engineering projects and ballast water treatment systems for ships. Revenue fell to 13.265 million USD in fiscal 2025, showing the company's dependence on a regional market sensitive to economic slowdown and trade tensions.

SWOT

Strengths

  • The company has long experience as a distributor and a broad range of laboratory and water treatment equipment, backed by relationships with well-known manufacturers 1.
  • The ballast water system holds several type approvals from classification societies, and the company has completed several commercial port projects 1.
  • Stakes in Pact-Yixing and Blue Sky give the company access to engineering capabilities and projects in the Chinese industrial market 1.

Weaknesses

  • Revenue has declined in recent years and margins have narrowed, showing dependence on trading activity that faces local competition 1.
  • The company is heavily concentrated in a few markets and, in some categories, a small number of customers, which makes revenue vulnerable 1.
  • The company has no hedging program for currency risk, and renminbi fluctuations affect its results reported in dollars 1.

Opportunities

  • Expanding ballast systems into ports in China and other regions, including the Middle East, could offset lower vessel sales 1.
  • Chinese environmental and emissions policies could increase demand for the company's engineering services and technologies 1.
  • Obtaining further approvals from European and Asian societies could open new markets for ballast products 1.

Threats

  • US-China trade tensions and tariffs could affect sales, supply chains and the cost of imported products 1.
  • A slowdown in the Chinese or Hong Kong economy could reduce environmental investment and demand for equipment 1.
  • Legislative and policy changes in China or Hong Kong could affect the company's operations, including new rules for overseas-listed companies 1.

Risks

  • Dependence on China and Hong Konghigh

    Operations and revenue are concentrated in China and Hong Kong, making the company sensitive to political and economic changes in these territories 1.

  • Chinese government policyhigh

    Chinese authorities have broad powers of intervention, including regulation and expropriation, which could seriously affect the company's operations 1.

  • Trade tensionsmedium

    The trade conflict between the US and China could reduce demand and disrupt the supply of imported products 1.

  • Instability in the Middle Eastmedium

    Disruption of shipping routes in the region could reduce demand from the energy shipping sector, an important source of ballast revenue 1.

  • Currency risklow

    The renminbi has depreciated against the dollar and the company does not hedge this exposure, which could reduce reported revenue 1.

Investment thesis

What would need to be true (bull case)

  • If China's environmental policies and port requirements grow, the engineering and ballast segment could become the main driver of growth 1.
  • The stakes in Pact-Yixing and Blue Sky provide access to engineering projects that could support revenue even as trading declines 1.
  • Ballast system certifications and completed port projects could ease expansion into new markets in Asia and Europe 1.

What would break the thesis

  • If trading revenue keeps falling under local competition and tariffs, the company's profitability could remain weak 1.
  • Concentration in China and Hong Kong exposes the company to political and regulatory risks that could quickly affect its operations 1.
  • Lower vessel system sales and uncertainty in the Middle East could mean the ballast segment does not offset the decline in trading 1.

What to watch

  • Trend in trading revenue and gross marginQ1 2027
  • New port ballast projects and Middle East orders2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Apr 2026; since then the company filed 6-K (26 Oct 2026).

The business

The company, organized in the British Virgin Islands, is primarily a distributor of advanced water treatment equipment, laboratory instruments, analyzers, test kits and power generation equipment, sold mainly to commercial customers and government agencies in Hong Kong and mainland China 1. It operates mainly through Far East, and says it is shifting its emphasis from distribution toward engineering, manufacturing and technology 1. Fiscal 2025 revenue was 13.265 million USD, down 13.8% 1.

The main markets are mainland China and Hong Kong: in fiscal 2025 customers in mainland China accounted for 50% of revenue and those in Hong Kong for 45% 1. This geographic concentration makes the company sensitive to political, legal and economic changes in both jurisdictions, including Hong Kong's National Security Law 1.

The company holds 58% of Pact-Yixing, which provides industrial water and wastewater treatment and develops ballast water treatment technology, and 19.42% of Blue Sky, a Chinese partner in industrial emissions control 1. Blue Sky contributed 334 thousand USD to the company's income in fiscal 2025, down from the prior year 1.

Segments

Engineering and ballast water systems

Pact-Yixing designs and builds industrial and wastewater treatment systems for multinational clients in China, and its ballast water treatment system was launched commercially in 2020 1. Engineering revenue rose slightly in fiscal 2025, while sales of systems for ships declined as the medium and large vessel retrofit market approaches equilibrium, and the company has completed eight commercial port projects 1.

Trends

  • China's environmental policytailwind

    China's Fourteenth Five-Year Plan emphasizes a cleaner economy, emissions control and green industries, which could increase demand for the company's and Blue Sky's environmental technologies 1.

  • Slowdown in the Chinese economyheadwind

    China's economic growth has slowed in recent years, and a further slowdown could reduce industrial investment in water treatment and laboratory equipment 1.

  • US-China trade tensionsheadwind

    US tariffs and Chinese retaliatory measures reduced sales of US products into China; the company says supply chains and the cost of imported products could also be affected 1.

  • Fleet retrofits and portsmixed

    The IMO requirement for ballast system retrofits boosted sales, and the company wants to expand in ports; if demand for ships stabilizes, the ballast segment could become more mixed 1.

Competitive position

The supplied sources do not identify direct competitors of the company. The company says many suppliers now sell directly into China or through lower-cost local distributors, which has reduced its trading revenue 1.

In ballast water treatment, the company says it holds type approvals from several classification societies, including CCS, RS, LR and Bureau Veritas, which supports its market position 1. The exact competitive landscape in these segments is not detailed in the source.

  • Local Chinese distributors

    Local companies that sell foreign products in China with lower overheads, described in the source as pressure on trading revenue 1.

  • Suppliers selling directly into China

    Foreign manufacturers that sell their products directly into the Chinese market, reducing the role of the distributor 1.

  • Maritime classification societies

    Bodies such as CCS, RS, LR and Bureau Veritas that grant the type approvals needed to sell ballast water systems 1.

  • Other ballast water treatment providers

    The source does not identify direct competitors in this segment; the company seeks further approvals from European and Asian societies to widen its market 1.

News & filings

Sources

  1. [1] Form 20-F, fiscal year ended 2025-12-31 · SEC / Euro Tech Holdings Company Limited · 30 Apr 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.