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Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H (HK:1635)
:1635
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Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H (1635) AI Stock Analysis

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HK:1635

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H

(1635)

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Neutral 48 (OpenAI - Gpt-5.6Sol)
Rating:48Neutral
Price Target:
HK$2.50
â–²(9.17% Upside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by weaker cash flow quality (negative TTM free cash flow and low cash conversion) and compressed operating profitability despite strong revenue growth. Technicals are also soft with the price below key long-term moving averages and a slightly negative MACD. Valuation further weighs on the score due to a high P/E with only a moderate dividend yield.
Positive Factors
Revenue rebound
The strong TTM revenue rebound indicates renewed demand or activity across the company’s utility and infrastructure operations. If sustained, higher scale can support operating leverage, strengthen the customer base, and provide a broader foundation for future earnings generation.
Negative Factors
Weak cash generation
Negative TTM free cash flow and weak conversion of earnings into cash reduce financial flexibility. The company may have less internally generated funding available for investment, debt reduction, or shareholder returns, especially because cash flow has been inconsistent across years.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
The strong TTM revenue rebound indicates renewed demand or activity across the company’s utility and infrastructure operations. If sustained, higher scale can support operating leverage, strengthen the customer base, and provide a broader foundation for future earnings generation.
Read all positive factors

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H (1635) vs. iShares MSCI Hong Kong ETF (EWH)

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Business Overview & Revenue Model

Company Description
Shanghai Dazhong Public Utilities(Group) Co.,Ltd., an investment holding company, engages in pipeline gas supply and sewage treatment activities in the People's Republic of China. It operates through Gas and Energy, Wastewater Treatment, Public In...
How the Company Makes Money
The company primarily makes money by operating regulated/contracted utility and infrastructure services and earning returns from related investments. Key revenue streams include: (1) City gas and related services: revenue from selling gas to resid...

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Financial Statement Overview

Summary
Revenue rebounded strongly in the TTM (+35.8%), but profitability quality weakened with lower operating margin (~5.1% vs ~10–13% historically) and a softer net margin (~5.3% vs ~6.8% in 2025). Leverage has risen (debt-to-equity ~0.83) and ROE remains modest (~3.7%). The main drag is cash flow: free cash flow turned slightly negative (~-27.6M) and cash conversion is weak (~0.22x net income), indicating strained financial flexibility.
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.27B6.11B6.34B6.40B5.85B5.54B
Gross Profit953.12M945.19M963.91M1.01B838.79M935.95M
EBITDA550.27M1.19B1.07B1.05B378.08M1.18B
Net Income331.74M415.17M233.15M212.54M―303.36M
Balance Sheet
Total Assets23.74B23.26B22.99B22.83B23.58B24.07B
Cash, Cash Equivalents and Short-Term Investments6.39B3.11B3.52B3.33B3.21B2.53B
Total Debt7.45B5.63B5.93B8.19B9.00B8.72B
Total Liabilities13.19B12.82B12.95B13.10B14.01B14.06B
Stockholders Equity8.85B8.89B8.55B8.32B8.24B8.72B
Cash Flow
Free Cash Flow-27.62M354.48M-80.34M336.44M132.13M27.99M
Operating Cash Flow738.58M1.09B405.52M689.83M417.43M674.26M
Investing Cash Flow-1.28B-718.60M113.09M397.22M311.03M-493.93M
Financing Cash Flow-68.90M-760.98M-327.44M-866.52M136.41M-261.42M

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.29
Price Trends
50DMA
2.35
Negative
100DMA
2.60
Negative
200DMA
3.01
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
50.91
Neutral
STOCH
39.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1635, the sentiment is Neutral. The current price of 2.29 is below the 20-day moving average (MA) of 2.32, below the 50-day MA of 2.35, and below the 200-day MA of 3.01, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 39.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1635.

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$58.09B7.8312.80%6.17%5.69%8.67%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
61
Neutral
HK$39.40B10.997.90%5.87%0.94%17.12%
60
Neutral
HK$11.48B7.125.79%6.34%2.60%-11.05%
59
Neutral
HK$30.54B10.864.80%6.31%-7.13%-16.53%
59
Neutral
HK$136.78B20.8610.65%4.79%1.53%12.95%
48
Neutral
HK$14.77B42.623.71%2.49%6.15%-21.68%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1635
Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H
2.31
-0.17
-6.74%
HK:0384
China Gas Holdings
5.54
-1.96
-26.14%
HK:1193
China Resources Gas Group
17.14
-2.54
-12.90%
HK:0003
Hong Kong & China Gas Co
7.30
0.52
7.69%
HK:1083
Towngas China Co
2.99
-0.72
-19.52%
HK:2688
ENN Energy Holdings
50.50
-11.83
-18.98%

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Corporate Events

Shanghai Dazhong Public Utilities Sets September Release for 2026 Interim Report
Aug 28, 2026
Shanghai Dazhong Public Utilities (Group) Co., Ltd. has released its unaudited interim results for the six months ended 30 June 2026, fulfilling Hong Kong listing requirements for preliminary interim disclosures. The full 2026 interim report will ...
Shanghai Dazhong Sets Board Meeting to Approve 2026 Interim Results
Aug 18, 2026
Shanghai Dazhong Public Utilities (Group) Co., Ltd. will convene a board meeting on 28 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The meeting will also address the publication of these results and ...
Shanghai Dazhong Public Utilities Shareholders Approve All Resolutions at 2025 AGM
Jun 17, 2026
Shanghai Dazhong Public Utilities (Group) Co., Ltd. reported that all resolutions proposed at its 2025 annual general meeting held on 17 June 2026 in Shanghai were duly approved by shareholders by way of poll. The onsite meeting complied with rele...
Shanghai Dazhong Public Utilities Sets Final Dividend and Outlines Tax Rules for Cross-Border Investors
Jun 17, 2026
Shanghai Dazhong Public Utilities (Group) Co., Ltd. has approved a profit distribution plan for 2025 and will pay a final cash dividend of RMB0.5 for every 10 shares, with H-shareholders receiving payment in Hong Kong dollars based on a specified ...
Shanghai Dazhong Public Utilities Sets Out Board and Committee Structure
Jun 17, 2026
Shanghai Dazhong Public Utilities (Group) Co., Ltd. has announced the current composition of its board of directors, which includes executive, non-executive and independent non-executive directors, led by chairman Yang Guoping. The company also de...
Shanghai Dazhong Public Utilities Sets Final 2025 Dividend and Tax Terms for H Shareholders
Jun 17, 2026
Shanghai Dazhong Public Utilities (Group) Co., Ltd. has declared a final ordinary cash dividend of RMB 0.5 per 10 shares for the financial year ended 31 December 2025, with Hong Kong shareholders to receive HKD 0.575156 per 10 shares based on a sp...
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.Date of analysis: Sep 06, 2026