Luzhou Xinglu Water (Group) Co., Ltd. Class H (2281) AI Stock Analysis

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

(HKEX:2281)

Select Model

Rating:62Neutral

Price Target:HKD 0.60▲(3.25% Upside)

Action:reiterated

Date:08/07/26

Score driven by strong valuation from low P/E and high yield, tempered by mixed financial performance with profitability headwinds and weak technical trends; stability from low beta provides some support.

Positive Factors

Essential regulated water servicesMunicipal water supply is an essential service with recurring local demand, giving the business a durable operating role in its region. Its regulated utility profile can support resilience across economic cycles, although future performance still depends on maintaining profitable operations.

Negative Factors

Declining revenue and earnings powerThe reversal from modest revenue growth to a 9.3% decline indicates weaker recent business momentum, while the sharp EPS contraction shows that pressure is reaching shareholders’ earnings. If sustained, this trend could reduce reinvestment capacity and weaken the company’s financial flexibility.

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

Market Cap: HKD 502.93M
Dividend Yield: 7.86%
Average Volume (3M): 82.55K
Price to Earnings (P/E): 4.0
Beta (1Y): 0.34
Revenue Growth: -6.72%
EPS Growth: -41.93%
Country: Hong Kong
Employees: 829
Sector: Utilities
Sector Strength: 66
Industry: Regulated Water

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., wa...

How the Company Makes Money

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

Summary

Mixed financials with declining revenue and margins (income score 35) offset by stable equity growth and improving cash flows (balance sheet 65, cash flow 70), indicating resilience but profitability challenges.

Income Statement

35Negative

Balance Sheet

65Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.20B	1.24B	1.33B	1.29B	1.35B	1.37B
Gross Profit	415.32M	413.51M	462.82M	444.33M	494.02M	568.59M
EBITDA	581.99M	626.12M	687.93M	670.95M	695.89M	721.51M
Net Income	103.35M	109.19M	177.24M	209.90M	203.22M	241.93M
Balance Sheet
Total Assets	6.92B	7.21B	7.19B	7.05B	7.14B	7.07B
Cash, Cash Equivalents and Short-Term Investments	449.00M	606.25M	447.18M	390.51M	609.76M	871.74M
Total Debt	1.92B	2.16B	2.03B	2.09B	2.40B	1.63B
Total Liabilities	3.68B	3.99B	4.04B	4.04B	4.30B	4.41B
Stockholders Equity	3.03B	3.00B	2.93B	2.80B	2.64B	2.48B
Cash Flow
Free Cash Flow	248.35M	286.86M	183.72M	86.54M	-81.15M	-217.16M
Operating Cash Flow	536.64M	563.20M	536.25M	609.19M	597.24M	537.20M
Investing Cash Flow	-285.61M	-266.31M	-344.01M	-477.04M	-678.33M	-750.76M
Financing Cash Flow	-432.22M	-138.08M	-135.56M	-351.40M	-180.90M	49.12M

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

Technical Analysis SentimentNegative

Last Price0.58

Price Trends

50DMA0.59Negative

100DMA0.61Negative

200DMA0.65Negative

Market Momentum

MACD-0.00Negative

RSI47.85Neutral

STOCH16.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2281, the sentiment is Negative. The current price of 0.58 is above the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.59, and below the 200-day MA of 0.65, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2281.

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

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

HK:2281 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
HK:6136	64Neutral	HKD 1.61B	4.24	5.09%	0.71%	3.75%	94.39%
HK:2281	62Neutral	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%
HK:6839	37Underperform	HKD 90.68M	-0.04	92.48%	―	-13.43%	4.03%

* Utilities Sector Average

Performance Comparison

HK:2281 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2281	Luzhou Xinglu Water (Group) Co., Ltd. Class H	0.58	-0.15	-20.52%
HK:0371	Beijing Enterprises Water Group	1.43	-0.93	-39.49%
HK:0855	China Water Affairs Group	3.90	-2.13	-35.33%
HK:6136	Kangda International Environmental Co Ltd	0.70	0.24	51.84%
HK:6839	Yunnan Water Investment Co., Limited Class H	0.08	-0.10	-58.01%
HK:3768	Kunming Dianchi Water Treatment Co., Ltd. Class H	0.29	-0.51	-63.13%

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 attributab...

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 of...

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

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