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

HK:1635

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

(HKEX:1635)

Select Model
Rating:58Neutral
Price Target:HKD 2.00â–²(10.50% Upside)
Action:reiterated
Date:09/06/26

The mid‑range overall score reflects solid revenue recovery, stable margins, and improving leverage, offset by low returns on equity, volatile and currently weak free cash flow, a neutral technical setup, and an expensive valuation with only modest dividend yield.

Positive Factors
Revenue ReboundThe strong TTM revenue rebound indicates that the company is retaining or expanding demand across its utility and infrastructure activities. If this higher revenue base persists, it can support operating scale, broader asset utilization, and greater capacity to fund ongoing business needs.
Negative Factors
Operating Margin CompressionThe sharp decline in operating margin shows that additional revenue is converting into substantially less operating profit than in recent annual periods. Unless the company reverses this compression, weaker earnings conversion could limit reinvestment, reduce resilience, and constrain sustainable returns over coming quarters.

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

-60%-40%-20%0%20%40%HK:1635-54.28%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 12.31B
Dividend Yield
3.18%
Average Volume (3M)
4.35M
Price to Earnings (P/E)
35.4
Beta (1Y)
1.39
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...

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 resident...

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

Summary

Solid revenue recovery and stable margins with reduced leverage, but low returns on equity and volatile, currently weak free cash flow limit overall financial strength.

Income Statement

64Positive

Balance Sheet

68Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.27B6.11B6.34B6.40B5.85B5.54B
Gross Profit953.12M945.19M963.91M1.01B838.79M935.95M
EBITDA866.68M1.19B1.07B1.05B378.08M1.18B
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 Equity8.91B8.89B8.55B8.32B8.24B8.72B
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 SentimentNegative
Last Price1.81

Price Trends

50DMA2.15Negative
100DMA2.28Negative
200DMA2.73Negative

Market Momentum

MACD-0.09Positive
RSI26.18Positive
STOCH27.61Neutral

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 1.81 is below the 20-day moving average (MA) of 1.97, below the 50-day MA of 2.15, and below the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 26.18 is Positive, neither overbought nor oversold. The STOCH value of 27.61 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
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2688HK:268868NeutralHKD 55.06B7.4812.80%6.21%5.69%8.67%
Sector *66Neutral$17.65B18.105.60%3.62%6.62%11.55%
HK:1193HK:119363NeutralHKD 37.02B10.467.90%5.82%0.94%17.12%
HK:0003HK:000359NeutralHKD 135.66B20.7710.65%4.81%1.53%12.95%
HK:1635HK:163558NeutralHKD 12.31B35.413.71%3.18%6.15%-21.68%
HK:0384HK:038456NeutralHKD 27.02B9.724.80%7.05%-7.13%-16.53%
HK:1083HK:108348NeutralHKD 11.14B7.015.79%6.44%2.60%-11.05%

* Utilities Sector Average

Performance Comparison

-40%-20%0%HK:1635HK:0384HK:1193HK:0003HK:1083HK:2688Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1635 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1635Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H1.81-2.35-56.53%
HK:0384China Gas Holdings 4.96-2.65-34.78%
HK:1193China Resources Gas Group 16.32-3.68-18.39%
HK:0003Hong Kong & China Gas Co 7.270.405.76%
HK:1083Towngas China Co 2.94-0.74-20.12%
HK:2688ENN Energy Holdings 48.76-14.52-22.94%

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: Sep 06, 2026