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Guangdong Investment
(0270)
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Rating:66Neutral
Price Target:
HK$8.50
â–²(2.41% Upside)
Action:Downgraded
Date:10/29/26
The score is supported primarily by solid financial fundamentals (improving margins, earnings rebound, and healthier leverage) and favorable valuation (low P/E and strong dividend yield). Offsetting these positives, technical indicators are weak, with the stock trading below key moving averages and negative MACD despite oversold readings.
Positive Factors
Profitability improvement
Higher gross and net margins indicate stronger profitability and improved earnings conversion across the business. The 2025 earnings rebound provides greater internal capacity to support infrastructure investment, strengthen resilience, and sustain shareholder returns over the coming quarters.
Negative Factors
Revenue volatility
Although revenue grew strongly in 2025, the prior declines show that top-line performance has not been consistently steady. This volatility can make planning and capital allocation less predictable and may cause earnings momentum to fluctuate if growth moderates again.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability improvement
Higher gross and net margins indicate stronger profitability and improved earnings conversion across the business. The 2025 earnings rebound provides greater internal capacity to support infrastructure investment, strengthen resilience, and sustain shareholder returns over the coming quarters.
Read all positive factors
Guangdong Investment (0270) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$51.58B
Dividend Yield6.18%
Average Volume (3M)9.34M
Price to Earnings (P/E)10.5
Beta (1Y)0.36
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. Volume9,803,458
30 Day Avg. Volume9,338,412
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$9.79Price Target Upside17.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.75
Revenue Forecast (FY)HK$19.50B
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...
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 | 10.17B | 9.85B | 9.36B | 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 | 7.53B | 7.25B | 10.10B | 9.93B | -5.58B | -9.34B |
| Operating Cash Flow | 8.27B | 8.12B | 11.09B | 10.71B | -2.68B | -5.37B |
| Investing Cash Flow | -3.61B | -1.13B | -4.17B | -2.50B | -5.79B | -5.85B |
| Financing Cash Flow | -4.43B | -8.27B | -4.68B | -5.30B | 7.97B | 10.21B |
Guangdong Investment Technical Analysis
Negative
8.30
Price Trends
8.59
Negative
8.14
Negative
7.72
Positive
Market Momentum
-0.05
Positive
28.29
Positive
22.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0270, the sentiment is Negative. The current price of 8.3 is below the 20-day moving average (MA) of 8.76, below the 50-day MA of 8.59, and above the 200-day MA of 7.72, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 28.29 is Positive, neither overbought nor oversold. The STOCH value of 22.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$51.58B | 10.52 | 11.01% | 6.18% | 25.38% | 43.87% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$1.67B | 4.40 | 5.09% | 0.69% | 3.75% | 94.39% | |
63 Neutral | HK$490.03M | 3.91 | 3.42% | 8.07% | -6.72% | -41.93% | |
56 Neutral | HK$14.22B | 10.09 | 5.29% | 10.38% | -5.30% | -2.36% | |
54 Neutral | HK$298.44M | 2.33 | 2.00% | 10.66% | -6.02% | -54.26% | |
53 Neutral | HK$6.41B | 6.54 | 6.84% | 6.62% | -11.32% | -8.06% |
* Utilities Sector Average
HK:0270
Guangdong Investment
7.89
0.84
11.87%
HK:0371
Beijing Enterprises Water Group
1.42
-0.96
-40.44%
HK:0855
China Water Affairs Group
3.93
-2.01
-33.90%
HK:6136
Kangda International Environmental Co Ltd
0.73
0.26
55.58%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.57
-0.18
-23.49%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.29
-0.52
-64.20%
Guangdong Investment Corporate Events
Guangdong Investment Reshapes Board Leadership With New Acting Chairman
Oct 27, 2026
Guangdong Investment Limited has reshaped its board leadership, appointing Guangdong Holdings and GDH deputy general manager Tan Qifeng as non-executive director, acting chairman of the board and acting chairman and member of the nomination commit...
Guangdong Investment Updates Board and Committee Roles Effective Late October 2026
Oct 27, 2026
Guangdong Investment Limited, a Hong Kong–incorporated and exchange-listed investment group, operates through a tiered governance model featuring executive, non-executive and independent non-executive directors. Its committee system, encompa...
Guangdong Investment Posts Strong Nine-Month Results on Water Business Growth
Oct 27, 2026
Guangdong Investment reported unaudited consolidated revenue from continuing operations of HK$15.71 billion for the nine months to 30 September 2026, up 10% year on year, driven mainly by growth in its water resources business. Profit before tax f...
Guangdong Investment Secures HK$3 Billion Short-Term Loan Tied to State Control Covenants
Oct 21, 2026
Guangdong Investment has accepted a committed term loan facility of HK$3 billion from a bank, with a 364-day tenor from first drawdown, to refinance existing indebtedness and support short-term working capital needs. The facility underscores the c...
Guangdong Investment Secures HK$1.75 Billion Revolving Loan Tied to State Ownership
Oct 15, 2026
Guangdong Investment Limited has secured a committed revolving loan facility of HK$1.75 billion from a bank, with a 364-day term from first drawdown, to fund its general working capital needs. The financing bolsters the company’s short-term ...
Guangdong Investment Sets Board Meeting to Approve Nine-Month Unaudited Results
Oct 13, 2026
Guangdong Investment Limited has scheduled a board meeting for 27 October 2026 to review and approve the announcement of its unaudited financial information for the nine months ended 30 September 2026. The forthcoming disclosure will provide inves...
Guangdong Investment Secures New Connected Water Supply Deal for Nansha
Sep 23, 2026
Guangdong Investment’s non-wholly owned subsidiary Nansha Water has entered into a new water supply agreement with Pearl River Delta Water Supply to secure raw water for processing into tap water for end users in Nansha District from 1 Octob...
Guangdong Investment Updates Terms for 2026 Interim Dividend
Sep 21, 2026
Guangdong Investment Limited has updated its interim dividend terms for the six months ended 30 June 2026, confirming a cash payout of HKD 0.2919 per share payable in Hong Kong dollars or, at shareholders’ election, in renminbi at a fixed ex...
Guangdong Investment Raises Procurement Caps with New Connected-Party Framework
Sep 1, 2026
Guangdong Investment has entered into a new 2026 Procurement Framework Agreement with connected party Guangdong Yuehai Water to replace its existing 2023 procurement arrangement, after utilisation of the current annual cap reached nearly 80% by th...
Guangdong Investment lifts interim profit and dividend on stronger core operations
Aug 28, 2026
Guangdong Investment Limited reported unaudited interim results for the six months ended 30 June 2026 showing solid growth in its core operations, with revenue from continuing businesses rising 8.4% year-on-year to HK$10.2 billion and profit befor...
Guangdong Investment Declares Interim Dividend with HKD/RMB Option
Aug 28, 2026
Guangdong Investment Limited has declared an interim ordinary dividend of HKD 0.2919 per share for the six months ended 30 June 2026, payable by default in Hong Kong dollars with an option for shareholders to receive the payout in renminbi at an e...
Guangdong Investment Subsidiary Raises RMB500 Million in Strongly Subscribed Bond Issue
Aug 27, 2026
Guangdong Yuehai Water Investment, an indirect wholly owned subsidiary of Guangdong Investment, has completed the issuance of its first tranche of corporate bonds in mainland China. The bonds, issued to professional institutional investors, have a...
Guangdong Investment Sets 1.49% Coupon for RMB500 Million PRC Bond Tranche
Aug 21, 2026
Guangdong Investment’s indirect wholly-owned subsidiary, Guangdong Yuehai Water Investment, has confirmed the final coupon rate for the first tranche of its corporate bonds to be issued in the PRC to professional institutional investors. The...
Guangdong Investment Subsidiary Plans AAA-Rated RMB500 Million Bond Issue
Aug 20, 2026
Guangdong Yuehai Water Investment, an indirect wholly owned subsidiary of Guangdong Investment, plans to issue a first tranche of three-year corporate bonds of up to RMB500 million to professional institutional investors. The bonds, rated AAA alon...
Guangdong Investment Sets Board Meeting to Review Interim Results and Dividend
Aug 17, 2026
Guangdong Investment Limited has scheduled a board meeting for 28 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend, a decisio...
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.