Want to see HK:0855 full AI Analyst Report?
China Water Affairs Group (0855) AI Stock Analysis
China Water Affairs Group
(HKEX:0855)
The most significant factor is the company’s weakening financial performance driven by declining margins, rising leverage, and deteriorating cash flow. Valuation metrics support the score—low P/E and high dividend yield make the stock appear inexpensive and income-generating, but these are outweighed by core financial risks. Technical analysis indicates a lack of positive momentum, with recent price action and indicators failing to highlight a strong rebound or further downside.
China Water Affairs Group (0855) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 1.01B
- Dividend Yield
- 6.67%
- Average Volume (3M)
- 935.59K
- Price to Earnings (P/E)
- 6.5
- Beta (1Y)
- 0.57
- Revenue Growth
- -11.32%
- EPS Growth
- -8.06%
- Country
- Hong Kong
- Employees
- 9,800
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Regulated Water
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 Water...
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 from s...
China Water Affairs Group Financial Statement Overview
Summary
The company shows weakening profitability, high and rising leverage (debt-to-equity 1.95), and eroding cash flow strength. Gross and net margins are in decline, revenue growth is negative, and free cash flow has dropped sharply. While core operational efficiency provides some stability, these negatives significantly pressure the company's overall financial standing.
Income Statement
53NeutralBalance Sheet
45NeutralCash Flow
38Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.34B | 10.34B | 11.66B | 12.86B | 14.19B | 12.95B |
| Gross Profit | 3.56B | 3.56B | 4.40B | 4.78B | 5.35B | 4.96B |
| EBITDA | 3.94B | 3.83B | 4.72B | 5.15B | 5.51B | 5.03B |
| Net Income | 986.17M | 986.17M | 1.07B | 1.53B | 1.86B | 1.89B |
Balance Sheet | ||||||
| Total Assets | 70.70B | 70.70B | 65.89B | 63.24B | 61.16B | 57.06B |
| Cash, Cash Equivalents and Short-Term Investments | 4.62B | 4.62B | 4.78B | 5.30B | 7.64B | 7.17B |
| Total Debt | 26.63B | 26.63B | 25.64B | 25.22B | 25.24B | 23.54B |
| Total Liabilities | 45.20B | 45.20B | 44.02B | 41.79B | 39.79B | 36.58B |
| Stockholders Equity | 15.07B | 15.07B | 13.17B | 12.79B | 12.99B | 12.97B |
Cash Flow | ||||||
| Free Cash Flow | 390.61M | 0 | 149.70M | -2.36B | -948.69M | -166.82M |
| Operating Cash Flow | 390.61M | 0 | 3.39B | 2.78B | 3.68B | 3.88B |
| Investing Cash Flow | -1.26B | 0 | -2.87B | -5.43B | -4.11B | -4.21B |
| Financing Cash Flow | 112.31M | 0 | -438.20M | 605.35M | 1.87B | 2.58B |
China Water Affairs Group Technical Analysis
Price Trends
Market Momentum
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 3.90 is below the 20-day moving average (MA) of 4.03, below the 50-day MA of 4.15, and below the 200-day MA of 4.59, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 7.26 is Positive, 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
Overall Rating
HK:027066Neutral
HK:613664Neutral
HK:228163Neutral- HK:085553Neutral
HK:037152Neutral
HK:376848Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:0270 | 66Neutral | HKD 52.66B | 10.74 | 11.01% | 6.06% | 25.38% | 43.87% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| HK:6136 | 64Neutral | HKD 1.61B | 4.23 | 5.09% | 0.71% | 3.75% | 94.39% |
| HK:2281 | 63Neutral | HKD 502.93M | 4.00 | 3.42% | 7.86% | -6.72% | -41.93% |
| HK:0855 | 53Neutral | HKD 6.36B | 6.49 | 6.84% | 6.67% | -11.32% | -8.06% |
| HK:0371 | 52Neutral | HKD 14.27B | 10.13 | 5.29% | 10.35% | -5.30% | -2.36% |
| HK:3768 | 48Neutral | HKD 303.59M | 2.36 | 2.00% | ― | -6.02% | -54.26% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0855 | China Water Affairs Group | 3.90 | -2.13 | -35.33% | |
| HK:0371 | Beijing Enterprises Water Group | 1.43 | -0.93 | -39.49% | |
| HK:0270 | Guangdong Investment | 8.05 | 1.04 | 14.83% | |
| HK:6136 | Kangda International Environmental Co Ltd | 0.70 | 0.24 | 51.84% | |
| HK:2281 | Luzhou Xinglu Water (Group) Co., Ltd. Class H | 0.58 | -0.15 | -20.52% | |
| HK:3768 | Kunming Dianchi Water Treatment Co., Ltd. Class H | 0.29 | -0.51 | -63.13% |
China Water Affairs Group Corporate Events
China Water Affairs Shifts Bermuda Registered Office, Keeps Hong Kong Registrar
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 administrativ...
China Water Affairs grants major share options to chairman Duan
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 exercise...
China Water Affairs Extends Deadline for Non-Listed Warrant Placing
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 reflects...
China Water Affairs Declares HKD 0.13 Final Dividend for FY2026
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 ap...
China Water Affairs Profit Slips as Construction Revenue Falls, Dividend Trimmed
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 to...
China Water Affairs Wins Strong Shareholder Backing for Warrant Issue
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 passed...
China Water Affairs Sets June Board Meeting to Approve Annual Results
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 dividend...
China Water Affairs Fully Repays US$219.6 Million Senior Notes at Maturity
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
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$0.10...
China Water Affairs settles cash tender for 2026 notes under strict regulatory disclosure
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 rel...
China Water Affairs posts offering memo for additional notes as regulatory disclosure only
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 pos...
China Water Affairs Discloses Results of Cash Offer for 2026 Senior Notes
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 relat...
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.
Date of analysis: Oct 01, 2025