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Guangdong Investment
(0270)
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Rating:76Outperform
Price Target:
HK$9.50
â–²(14.46% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by improving profitability and a healthier leverage profile, balanced by historically uneven cash-flow consistency. Technicals add support via a clear uptrend, though momentum looks somewhat extended. Valuation and the ~5.47% dividend yield are additional positives.
Positive Factors
High profitability margins
Sustained gross (~53%) and net (~25%) margins reflect durable operating leverage from core regulated water operations. High margins boost cash conversion and support consistent earnings quality, enabling predictable funding for maintenance, dividends and targeted investment over the medium term.
Negative Factors
High absolute debt
Despite improved ratios, a large nominal debt stock (~21.9B) sustains interest and principal obligations. High absolute borrowings can limit management’s optionality, raise vulnerability to rate increases, and constrain growth or payout flexibility if cash flow weakens in upcoming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability margins
Sustained gross (~53%) and net (~25%) margins reflect durable operating leverage from core regulated water operations. High margins boost cash conversion and support consistent earnings quality, enabling predictable funding for maintenance, dividends and targeted investment over the medium term.
Read all positive factors
Guangdong Investment (0270) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$57.63B
Dividend Yield5.26%
Average Volume (3M)8.01M
Price to Earnings (P/E)11.8
Beta (1Y)0.57
Revenue Growth25.38%
EPS Growth43.87%
CountryHK
Employees10,681
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.75
Shares Outstanding6,537,821,300
10 Day Avg. Volume9,249,404
30 Day Avg. Volume8,006,845
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.03
Price to Sales (P/S)2.35
P/FCF Ratio6.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$9.32Price Target Upside12.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.75
Revenue Forecast (FY)HK$19.40B
Guangdong Investment Business Overview & Revenue Model
Company Description
Guangdong Investment Limited, an investment holding company founded in Central, Hong Kong in 1973 (and previously known as Union Globe Development Limited until its rebranding in January 1987), functions as a subsidiary of GDH Limited. The corpora...
How the Company Makes Money
Guangdong Investment makes money mainly through (1) water supply-related revenue and (2) income from other investments/operations. Its largest and most stable revenue stream is the supply of raw water to Hong Kong, where earnings are derived from ...
Guangdong Investment Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.61B | 18.82B | 18.51B | 24.20B | 23.20B | 29.72B |
| Gross Profit | 10.42B | 10.03B | 9.82B | 9.65B | 9.82B | 11.64B |
| EBITDA | 10.15B | 9.77B | 9.28B | 8.38B | 10.12B | 10.93B |
| Net Income | 4.91B | 4.66B | 3.14B | 3.12B | 4.76B | 4.70B |
Balance Sheet | ||||||
| Total Assets | 108.61B | 101.74B | 135.60B | 139.97B | 133.51B | 130.03B |
| Cash, Cash Equivalents and Short-Term Investments | 17.34B | 14.81B | 12.15B | 12.59B | 8.94B | 10.06B |
| Total Debt | 22.91B | 21.87B | 24.66B | 43.03B | 41.38B | 29.77B |
| Total Liabilities | 46.35B | 43.60B | 78.92B | 81.94B | 75.01B | 68.13B |
| Stockholders Equity | 46.25B | 42.92B | 41.66B | 41.80B | 43.33B | 46.21B |
Cash Flow | ||||||
| Free Cash Flow | 4.53B | 7.25B | 10.10B | 9.93B | -5.58B | -9.34B |
| Operating Cash Flow | 5.13B | 8.12B | 11.09B | 10.71B | -2.68B | -5.37B |
| Investing Cash Flow | -294.21M | -1.13B | -4.17B | -2.50B | -5.79B | -5.85B |
| Financing Cash Flow | -4.31B | -8.27B | -4.68B | -5.30B | 7.97B | 10.21B |
Guangdong Investment Technical Analysis
Positive
8.30
Price Trends
8.13
Positive
8.07
Positive
7.62
Positive
Market Momentum
0.17
Negative
68.76
Neutral
84.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0270, the sentiment is Positive. The current price of 8.3 is below the 20-day moving average (MA) of 8.39, above the 50-day MA of 8.13, and above the 200-day MA of 7.62, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 68.76 is Neutral, neither overbought nor oversold. The STOCH value of 84.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0270.
Guangdong Investment Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$57.63B | 11.75 | 11.01% | 5.49% | 25.38% | 43.87% | |
68 Neutral | HK$1.76B | 4.68 | 5.09% | 0.64% | 3.75% | 94.39% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | HK$7.22B | 7.38 | 6.84% | 5.86% | -11.32% | -8.06% | |
63 Neutral | HK$507.23M | 4.08 | 3.42% | 7.54% | -6.65% | -41.93% | |
56 Neutral | HK$17.37B | 12.33 | 5.29% | 8.86% | -5.30% | -2.36% | |
54 Neutral | HK$396.21M | 3.08 | 2.00% | 10.66% | -6.02% | -54.26% |
* Utilities Sector Average
HK:0270
Guangdong Investment
8.81
1.87
26.98%
HK:0371
Beijing Enterprises Water Group
1.74
-0.77
-30.88%
HK:0855
China Water Affairs Group
4.44
-1.41
-24.10%
HK:6136
Kangda International Environmental Co Ltd
0.78
0.42
118.49%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.61
-0.08
-11.47%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.39
-0.35
-47.26%
Guangdong Investment Corporate Events
Guangdong Investment Shareholders Approve All AGM Resolutions and Appoint New Auditor
Jun 29, 2026
Guangdong Investment shareholders approved all resolutions at the adjourned annual general meeting held on June 29, 2026, including the adoption of the 2025 audited financial statements, the declaration of a final dividend, and the re-election of ...
Guangdong Investment Reschedules AGM and Adjusts Dividend Record Date
Jun 18, 2026
Guangdong Investment has adjourned its annual general meeting originally set for 18 June 2026 after a Black Rainstorm Warning Signal disrupted proceedings, rescheduling the meeting to 29 June 2026 at the same venue with all previously proposed res...
Guangdong Investment Confirms Final 2025 Dividend and Revises Key Dates
Jun 18, 2026
Guangdong Investment Limited has confirmed a final ordinary cash dividend of HKD 0.1963 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars. The dividend was approved by shareholders on 29 June 2026 and will be pa...
Guangdong Investment Exits GD Aeon with RMB152 Million Stake Sale
Jun 12, 2026
Guangdong Investment has agreed to sell its entire 35% equity stake in GD Aeon to Aeon Stores for RMB152.18 million, following a completed public tender process at the Guangdong Equity Exchange. Under the equity transfer agreement signed on 12 Jun...
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.