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Luzhou Xinglu Water (Group) Co., Ltd. Class H (HK:2281)
:2281
Hong Kong Market
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Luzhou Xinglu Water (Group) Co., Ltd. Class H (2281) AI Stock Analysis

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HK:2281

Luzhou Xinglu Water (Group) Co., Ltd. Class H

(2281)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
HK$0.67
â–¼(-8.08% Downside)
Action:Reiterated
Date:08/04/26
The score is supported primarily by attractive valuation (low P/E and high dividend yield). This is offset by weakening financial performance (declining revenue and margin compression) and neutral-to-soft technicals with limited positive momentum.
Positive Factors
Moderate Leverage
Leverage has improved substantially from earlier levels and remains moderate for infrastructure-style operations. A steadier equity base and manageable debt burden provide financial flexibility, reduce balance-sheet strain, and support the company’s ability to sustain essential utility investment.
Negative Factors
Revenue Decline
The reversal from modest growth to a 9.3% revenue decline signals weakening business momentum and reduces the scale available to absorb fixed operating costs. If this persists, it could constrain investment capacity and make recovery in absolute earnings more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Moderate Leverage
Leverage has improved substantially from earlier levels and remains moderate for infrastructure-style operations. A steadier equity base and manageable debt burden provide financial flexibility, reduce balance-sheet strain, and support the company’s ability to sustain essential utility investment.
Read all positive factors

Luzhou Xinglu Water (Group) Co., Ltd. Class H (2281) vs. iShares MSCI Hong Kong ETF (EWH)

Luzhou Xinglu Water (Group) Co., Ltd. Class H Business Overview & Revenue Model

Company Description
Luzhou Xinglu Water (Group) Co., Ltd. operates as a comprehensive municipal water services provider, active throughout Sichuan Province in the People's Republic of China. This company, a subsidiary of Luzhou City Xinglu Investment Group Co., Ltd.,...
How the Company Makes Money
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Luzhou Xinglu Water (Group) Co., Ltd. Class H Financial Statement Overview

Summary
Fundamentals are acceptable but weakening: revenue fell in 2025 (-9.3% YoY) and profitability compressed materially (net margin down to ~8.8% from ~13.3% in 2024). The balance sheet remains reasonably leveraged (debt-to-equity ~0.69–0.75x in 2023–2025), and cash flow is a relative bright spot with improved, positive free cash flow in 2024–2025, though cash-to-debt strength is only modest.
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.24B1.33B1.29B1.35B1.37B
Gross Profit413.51M462.82M444.33M494.02M568.59M
EBITDA595.73M322.28M670.95M695.89M721.51M
Net Income109.19M177.24M209.90M203.22M241.93M
Balance Sheet
Total Assets7.21B7.19B7.05B7.14B7.07B
Cash, Cash Equivalents and Short-Term Investments606.25M447.18M390.51M609.76M871.74M
Total Debt2.16B2.03B2.09B2.40B1.63B
Total Liabilities3.99B4.04B4.04B4.30B4.41B
Stockholders Equity3.00B2.93B2.80B2.64B2.48B
Cash Flow
Free Cash Flow286.86M183.72M86.54M-81.15M-217.16M
Operating Cash Flow563.20M536.25M609.19M597.24M537.20M
Investing Cash Flow-266.31M-344.01M-477.04M-678.33M-750.76M
Financing Cash Flow-138.08M-135.56M-351.40M-180.90M49.12M

Luzhou Xinglu Water (Group) Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.73
Price Trends
50DMA
0.62
Positive
100DMA
0.63
Negative
200DMA
0.66
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
56.62
Neutral
STOCH
66.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2281, the sentiment is Positive. The current price of 0.73 is above the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.62, and above the 200-day MA of 0.66, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 66.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2281.

Luzhou Xinglu Water (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
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
64
Neutral
HK$1.75B4.095.09%0.75%3.75%94.39%
63
Neutral
HK$511.53M4.243.42%7.48%-6.65%-41.93%
63
Neutral
HK$7.03B7.036.84%6.64%-11.32%-8.06%
56
Neutral
HK$15.82B11.165.29%9.39%-5.30%-2.36%
44
Neutral
HK$339.61M2.662.00%10.66%-6.02%-54.26%
40
Underperform
HK$100.23M-0.0592.48%5.98%-13.43%4.03%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.62
-0.10
-14.23%
HK:0371
Beijing Enterprises Water Group
1.57
-0.73
-31.71%
HK:0855
China Water Affairs Group
4.22
-1.50
-26.21%
HK:6136
Kangda International Environmental Co Ltd
0.67
0.29
77.72%
HK:6839
Yunnan Water Investment Co., Limited Class H
0.09
-0.13
-60.27%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.33
-0.37
-52.86%

Luzhou Xinglu Water (Group) Co., Ltd. Class H Corporate Events

Luzhou Xinglu Water Posts Lower Interim Revenue and Profit, Skips Dividend
Aug 26, 2026
Luzhou Xinglu Water (Group) Co., Ltd. reported interim unaudited operating revenue of about RMB575.4 million for the six months ended 30 June 2026, down 6.5% year on year, with net profit slipping 1.9% to roughly RMB70.8 million and profit attribu...
Luzhou Xinglu Water Schedules Board Meeting to Approve Interim Results and Dividend Plan
Aug 14, 2026
Luzhou Xinglu Water (Group) Co., Ltd. has scheduled a board meeting for 26 August 2026 to review and approve its interim results for the six months ended 30 June 2026, along with their planned publication. The board will also consider the payment ...
Luzhou Xinglu Water Shareholders Approve 2025 Results, Dividend and Sludge Service Deals at AGM
Jun 26, 2026
Luzhou Xinglu Water (Group) Co., Ltd. held its 2025 annual general meeting in Luzhou on 26 June 2026, with shareholders representing about 83% of voting shares in attendance and all eight directors present. All resolutions were decided by poll, wi...
Luzhou Xinglu Water Declares Final Dividend and Details Tax Treatment for H Shareholders
Jun 26, 2026
Luzhou Xinglu Water (Group) Co., Ltd. has announced a final ordinary cash dividend of RMB 0.04 per share for the financial year ended 31 December 2025, with shareholders approving the payout on 26 June 2026. The dividend for H-share investors will...
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: Aug 04, 2026