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China Water Affairs Group
(0855)
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Rating:63Neutral
Price Target:
HK$5.00
â–²(11.11% Upside)
Action:Reiterated
Date:10/01/25
The overall stock score of 63 reflects the company's stable operational efficiency but highlights concerns about declining revenue growth and high leverage. The technical indicators suggest a bearish trend, although the stock might be undervalued based on its P/E ratio and offers an attractive dividend yield. The lack of earnings call data and corporate events means these factors did not influence the score.
Positive Factors
Regulated concessions & recurring revenue
Operating under long-term municipal concessions creates predictable, tariff-guided revenue streams and stable demand for treated water. This durable business model supports visibility for cashflows and capital planning, making revenue and service obligations more resilient over 2–6 months.
Negative Factors
High leverage
Significant leverage raises interest and refinancing risk for a company facing revenue pressure. High debt limits financial flexibility to invest, handle tariff timing or absorb shocks; it increases covenant and liquidity vulnerability over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated concessions & recurring revenue
Operating under long-term municipal concessions creates predictable, tariff-guided revenue streams and stable demand for treated water. This durable business model supports visibility for cashflows and capital planning, making revenue and service obligations more resilient over 2–6 months.
Read all positive factors
China Water Affairs Group (0855) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$7.24B
Dividend Yield6.31%
Average Volume (3M)983.31K
Price to Earnings (P/E)7.4
Beta (1Y)0.64
Revenue Growth-11.32%
EPS Growth-8.06%
CountryHK
Employees9,800
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.60
Shares Outstanding1,632,322,400
10 Day Avg. Volume1,153,361
30 Day Avg. Volume983,312
Financial Highlights & Ratios
PEG Ratio-1.06
Price to Book (P/B)0.53
Price to Sales (P/S)0.77
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.67
Revenue Forecast (FY)HK$9.89B
China Water Affairs Group Business Overview & Revenue Model
Company Description
China Water Affairs Group Limited, an investment holding company, engages in the water supply, environmental protection, and property businesses in the People's Republic of China. It operates through City Water Supply, Pipeline Direct Drinking Wat...
How the Company Makes Money
The company primarily makes money by operating water supply businesses and charging users for water delivered through its distribution networks. Key revenue streams generally include: (1) Water supply and distribution revenue: recurring income fro...
China Water Affairs Group Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.34B | 11.66B | 12.86B | 14.19B | 12.95B |
| Gross Profit | 3.56B | 4.40B | 4.78B | 5.35B | 4.96B |
| EBITDA | 3.83B | 4.72B | 5.15B | 5.51B | 5.03B |
| Net Income | 986.17M | 1.07B | 1.53B | 1.86B | 1.89B |
Balance Sheet | |||||
| Total Assets | 70.70B | 65.89B | 63.24B | 61.16B | 57.06B |
| Cash, Cash Equivalents and Short-Term Investments | 4.62B | 4.78B | 5.30B | 7.64B | 7.17B |
| Total Debt | 26.63B | 25.64B | 25.22B | 25.24B | 23.54B |
| Total Liabilities | 45.20B | 44.02B | 41.79B | 39.79B | 36.58B |
| Stockholders Equity | 15.07B | 13.17B | 12.79B | 12.99B | 12.97B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 149.70M | -2.36B | -948.69M | -166.82M |
| Operating Cash Flow | 0.00 | 3.39B | 2.78B | 3.68B | 3.88B |
| Investing Cash Flow | 0.00 | -2.87B | -5.43B | -4.11B | -4.21B |
| Financing Cash Flow | 0.00 | -438.20M | 605.35M | 1.87B | 2.58B |
China Water Affairs Group Technical Analysis
Negative
4.50
Price Trends
4.54
Negative
4.64
Negative
4.96
Negative
Market Momentum
-0.05
Positive
40.62
Neutral
22.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0855, the sentiment is Negative. The current price of 4.5 is below the 20-day moving average (MA) of 4.52, below the 50-day MA of 4.54, and below the 200-day MA of 4.96, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 22.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0855.
China Water Affairs Group Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$57.57B | 11.89 | 11.01% | 5.44% | 25.38% | 43.87% | |
68 Neutral | HK$1.80B | 4.80 | 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$7.24B | 7.39 | 6.84% | 5.86% | -11.32% | -8.06% | |
63 Neutral | HK$524.42M | 4.21 | 3.42% | 7.54% | -6.65% | -41.93% | |
56 Neutral | HK$16.67B | 12.08 | 5.29% | 8.67% | -5.30% | -2.36% | |
54 Neutral | HK$396.21M | 3.15 | 2.00% | 10.66% | -6.02% | -54.26% |
* Utilities Sector Average
HK:0855
China Water Affairs Group
4.44
-1.45
-24.59%
HK:0371
Beijing Enterprises Water Group
1.70
-0.67
-28.39%
HK:0270
Guangdong Investment
8.92
1.95
28.05%
HK:6136
Kangda International Environmental Co Ltd
0.79
0.42
113.90%
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
-0.34
-46.58%
China Water Affairs Group Corporate Events
China Water Affairs Shifts Bermuda Registered Office, Keeps Hong Kong Registrar
Jul 24, 2026
China Water Affairs Group has announced that, effective 3 August 2026, its registered office, principal share registrar and transfer agent in Bermuda will relocate to Richmond House on Par-la-Ville Road in Hamilton. The move reflects an administra...
China Water Affairs grants major share options to chairman Duan
Jun 30, 2026
China Water Affairs Group has proposed a significant equity-based incentive for its chairman and executive director, Mr. Duan, under its existing share option scheme. The board approved the conditional grant of 78,800,000 share options at an exerc...
China Water Affairs Extends Deadline for Non-Listed Warrant Placing
Jun 30, 2026
China Water Affairs Group Limited has announced a change to the timetable for a proposed placing of non-listed warrants under a specific mandate, a transaction intended to raise capital through the issuance of derivative securities. The move refle...
China Water Affairs Declares HKD 0.13 Final Dividend for FY2026
Jun 29, 2026
China Water Affairs Group Limited has proposed a final ordinary dividend of HKD 0.13 per share for the financial year ended 31 March 2026, underlining its continued commitment to returning cash to shareholders. The dividend, subject to shareholder...
China Water Affairs Profit Slips as Construction Revenue Falls, Dividend Trimmed
Jun 29, 2026
China Water Affairs Group reported a decline in annual revenue to HK$10.34 billion for the year ended 31 March 2026, down 11.3% amid weaker construction activity in its city water and pipeline direct drinking water businesses. Profit attributable ...
China Water Affairs Wins Strong Shareholder Backing for Warrant Issue
Jun 18, 2026
China Water Affairs Group Limited secured strong shareholder backing at its special general meeting, where investors approved a warrant placing agreement, the issuance of warrants and the granting of a specific mandate. The ordinary resolution pas...
China Water Affairs Sets June Board Meeting to Approve Annual Results
Jun 8, 2026
China Water Affairs Group has scheduled a board meeting for 29 June 2026 to review and approve the annual results for the year ended 31 March 2026, along with the related public announcement. The board will also consider recommending a final divid...
China Water Affairs Fully Repays US$219.6 Million Senior Notes at Maturity
May 18, 2026
China Water Affairs Group Limited has fully repaid its 4.85% senior notes, which carried an outstanding principal of US$219.57 million and matured on 18 May 2026. The repayment covered both principal and accrued interest, reflecting the company...
China Water Affairs Group Seeks Shareholder Approval for Warrant Placing to Fund Growth
May 12, 2026
China Water Affairs Group has called a special general meeting in Hong Kong on 18 June 2026 to seek shareholder approval for a warrant placing agreement with First Shanghai Securities, under which up to 130 million warrants will be issued at HK$0....
China Water Affairs settles cash tender for 2026 notes under strict regulatory disclosure
May 12, 2026
China Water Affairs Group has announced the settlement of its offer to purchase for cash its 4.85% senior notes due 2026, a move that forms part of its ongoing management of offshore debt securities. The company emphasized that the posting of the ...
China Water Affairs posts offering memo for additional notes as regulatory disclosure only
May 11, 2026
China Water Affairs Group has issued an overseas regulatory announcement regarding the publication of an offering memorandum for an additional notes issue, in line with Hong Kong listing rules on equal information dissemination. The memorandum is ...
China Water Affairs Discloses Results of Cash Offer for 2026 Senior Notes
May 7, 2026
China Water Affairs Group has announced the results of its cash tender offer for its 4.85% senior notes due 2026, identified by ISIN XS2320779213 and Common Code 232077921, as part of an overseas regulatory communication. The company posted the re...
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.