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

2 Followers

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

(HKEX:1635)

Select Model

Rating:50Neutral

Price Target:HKD 2.00▲(15.61% Upside)

Action:reiterated

Date:11/05/26

The score is primarily constrained by weak earnings quality and cash generation, including negative free cash flow and declining margins. Bearish technical positioning and a high P/E ratio add further pressure, while lower debt and the dividend yield provide limited support.

Positive Factors

Revenue growthStrong TTM revenue growth indicates expanding activity across the company’s utility and energy operations. If sustained, this creates a larger base from which to absorb fixed costs, support infrastructure investment, and build operating scale over the next several quarters.

Negative Factors

Weak free cash flowNegative and inconsistent free cash flow shows that reinvestment and capital needs are currently exceeding internally generated cash. Persistent weak conversion can constrain funding flexibility, increase reliance on external financing, and limit the company’s ability to compound growth organically.

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

Market Cap: HKD 12.45B
Dividend Yield: 3.32%
Average Volume (3M): 4.24M
Price to Earnings (P/E): 58.5
Beta (1Y): 1.31
Revenue Growth: 6.15%
EPS Growth: -21.68%
Country: Hong Kong
Employees: 2,721
Sector: Utilities
Sector Strength: 66
Industry: Regulated Gas

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 Infra...

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

Summary

Revenue growth and reduced debt support the score, but declining profitability, low return on equity, weaker operating cash flow, and negative free cash flow indicate a mixed financial profile.

Income Statement

55Neutral

Balance Sheet

62Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.37B	6.11B	6.34B	6.40B	5.85B	5.54B
Gross Profit	960.27M	945.19M	963.91M	1.01B	838.79M	935.95M
EBITDA	855.08M	1.19B	1.07B	1.05B	378.08M	1.18B
Net Income	198.79M	415.17M	233.15M	212.54M	―	303.36M
Balance Sheet
Total Assets	23.63B	23.26B	22.99B	22.83B	23.58B	24.07B
Cash, Cash Equivalents and Short-Term Investments	3.29B	3.11B	3.52B	3.33B	3.21B	2.53B
Total Debt	5.44B	5.63B	5.93B	8.19B	9.00B	8.72B
Total Liabilities	13.06B	12.82B	12.95B	13.10B	14.01B	14.06B
Stockholders Equity	8.92B	8.89B	8.55B	8.32B	8.24B	8.72B
Cash Flow
Free Cash Flow	-77.10M	354.48M	-80.34M	336.44M	132.13M	27.99M
Operating Cash Flow	703.96M	1.09B	405.52M	689.83M	417.43M	674.26M
Investing Cash Flow	-1.29B	-718.60M	113.09M	397.22M	311.03M	-493.93M
Financing Cash Flow	18.51M	-760.98M	-327.44M	-866.52M	136.41M	-261.42M

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

Technical Analysis SentimentNegative

Last Price1.73

Price Trends

50DMA2.05Negative

100DMA2.20Negative

200DMA2.65Negative

Market Momentum

MACD-0.07Negative

RSI27.94Positive

STOCH26.92Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1635, the sentiment is Negative. The current price of 1.73 is below the 20-day moving average (MA) of 1.85, below the 50-day MA of 2.05, and below the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 27.94 is Positive, neither overbought nor oversold. The STOCH value of 26.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1635.

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

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

HK:1635 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1193	72Outperform	HKD 37.38B	10.54	7.90%	5.78%	0.94%	17.12%
HK:2688	68Neutral	HKD 55.42B	7.53	12.80%	6.19%	5.69%	8.67%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
HK:1083	63Neutral	HKD 11.42B	7.15	5.79%	6.31%	2.60%	-11.05%
HK:0003	59Neutral	HKD 137.99B	21.11	10.65%	4.74%	1.53%	12.95%
HK:0384	56Neutral	HKD 26.64B	9.55	4.80%	7.18%	-7.13%	-16.53%
HK:1635	50Neutral	HKD 12.45B	58.46	2.23%	3.32%	6.15%	-21.68%

* Utilities Sector Average

Performance Comparison

HK:1635 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1635	Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H	1.73	-2.10	-54.85%
HK:0384	China Gas Holdings	4.87	-3.36	-40.83%
HK:1193	China Resources Gas Group	16.45	-4.31	-20.75%
HK:0003	Hong Kong & China Gas Co	7.39	0.33	4.75%
HK:1083	Towngas China Co	3.00	-0.67	-18.30%
HK:2688	ENN Energy Holdings	48.92	-17.09	-25.89%

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

Shanghai Dazhong Public Utilities Releases Unaudited Q3 2026 Results

Oct 30, 2026

Shanghai Dazhong Public Utilities (Group) Co., Ltd., a Hong Kong-listed Chinese public utilities provider, has released its unaudited financial results for the nine months ended September 30, 2026, prepared under PRC Accounting Standards for Business...

Shanghai Dazhong Public Utilities Sets Date to Approve Third-Quarter Results

Oct 16, 2026

Shanghai Dazhong Public Utilities (Group) Co., Ltd., a Hong Kong-listed public utilities provider incorporated in mainland China, manages a range of utility businesses through its subsidiaries and is overseen by a diversified board of executive, non-...

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 be...

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 any...

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: Nov 05, 2026

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