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Kunming Dianchi Water Treatment Co., Ltd. Class H
(3768)
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Rating:54Neutral
Price Target:
HK$0.37
â–¼(-51.71% Downside)
Action:Reiterated
Date:08/22/26
The score is held back primarily by weak cash flow durability (negative operating and free cash flow in 2025) and clear bearish technicals (price below all major moving averages with negative MACD and very low RSI). Offsetting these risks, the company retains solid operating margins and improved leverage trends, and the stock appears very inexpensive on earnings (P/E ~1.6).
Positive Factors
Essential municipal wastewater services
Contracted municipal wastewater services address essential public-health and environmental needs in the Dianchi basin. Long-term operating arrangements can support recurring demand and visibility, although earnings depend on volumes, tariffs and payment discipline.
Negative Factors
Persistent revenue contraction
Repeated annual revenue declines point to weakening volume, pricing or contracted activity rather than a single-period fluctuation. Continued contraction could limit scale benefits, reduce earnings growth and weaken the ability to absorb fixed operating costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Essential municipal wastewater services
Contracted municipal wastewater services address essential public-health and environmental needs in the Dianchi basin. Long-term operating arrangements can support recurring demand and visibility, although earnings depend on volumes, tariffs and payment discipline.
Read all positive factors
Kunming Dianchi Water Treatment Co., Ltd. Class H (3768) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$401.35M
Dividend Yield10.66%
Average Volume (3M)27.03K
Price to Earnings (P/E)3.4
Beta (1Y)0.47
Revenue Growth-6.02%
EPS Growth-54.26%
CountryHK
Employees1,073
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.11
Shares Outstanding340,023,000
10 Day Avg. Volume25,100
30 Day Avg. Volume27,033
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)0.14
Price to Sales (P/S)0.50
P/FCF Ratio-1.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kunming Dianchi Water Treatment Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Kunming Dianchi Water Treatment Co., Ltd., along with its various subsidiaries, is a comprehensive enterprise dedicated to water infrastructure development and management across the People's Republic of China. The company is involved in the entire...
How the Company Makes Money
The company makes money primarily by providing municipal wastewater treatment services and earning service fees under long-term operating arrangements for wastewater treatment plants and related infrastructure.
Key revenue streams typically inclu...
Kunming Dianchi Water Treatment Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.48B | 1.59B | 1.81B | 2.07B | 2.32B |
| Gross Profit | 636.47M | 706.89M | 713.65M | 798.24M | 857.27M | 724.78M |
| EBITDA | 643.36M | 718.13M | 807.54M | 918.92M | 873.40M | 915.83M |
| Net Income | 108.92M | 196.21M | 263.22M | 316.51M | 322.25M | 338.28M |
Balance Sheet | ||||||
| Total Assets | 13.50B | 13.44B | 12.38B | 12.06B | 11.70B | 12.07B |
| Cash, Cash Equivalents and Short-Term Investments | 45.50M | 96.57M | 130.58M | 353.89M | 371.49M | 1.80B |
| Total Debt | 5.07B | 5.19B | 4.59B | 5.27B | 5.89B | 6.41B |
| Total Liabilities | 8.02B | 8.00B | 7.14B | 7.09B | 7.04B | 7.63B |
| Stockholders Equity | 5.47B | 5.43B | 5.23B | 4.97B | 4.65B | 4.43B |
Cash Flow | ||||||
| Free Cash Flow | -408.08M | -527.23M | 132.63M | 135.22M | -671.96M | -776.48M |
| Operating Cash Flow | -418.22M | -524.16M | 293.82M | 220.95M | -302.63M | -716.96M |
| Investing Cash Flow | -49.59M | -66.83M | 75.67M | 303.83M | -96.54M | 230.91M |
| Financing Cash Flow | 410.88M | 613.65M | -532.84M | -480.55M | -973.54M | 1.24B |
Kunming Dianchi Water Treatment Co., Ltd. Class H Technical Analysis
Negative
0.76
Price Trends
0.47
Negative
0.54
Negative
0.63
Negative
Market Momentum
-0.03
Negative
31.42
Neutral
29.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3768, the sentiment is Negative. The current price of 0.76 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.47, and above the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 31.42 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3768.
Kunming Dianchi Water Treatment Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$1.81B | 4.67 | 5.09% | 0.65% | 3.75% | 94.39% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
58 Neutral | HK$524.42M | 4.14 | 3.42% | 7.67% | -6.65% | -41.93% | |
56 Neutral | HK$17.02B | 12.05 | 5.29% | 8.75% | -5.30% | -2.36% | |
54 Neutral | HK$401.35M | 3.40 | 2.00% | 10.66% | -6.02% | -54.26% | |
53 Neutral | HK$7.24B | 7.39 | 6.84% | 5.90% | -11.32% | -8.06% | |
42 Neutral | HK$101.42M | -0.05 | 92.48% | 5.98% | -13.43% | 4.03% |
* Utilities Sector Average
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.42
-0.31
-42.47%
HK:0371
Beijing Enterprises Water Group
1.70
-0.67
-28.33%
HK:0855
China Water Affairs Group
4.44
-1.43
-24.34%
HK:6136
Kangda International Environmental Co Ltd
0.77
0.40
108.45%
HK:6839
Yunnan Water Investment Co., Limited Class H
0.09
-0.12
-58.13%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.60
-0.12
-16.32%
Kunming Dianchi Water Treatment Co., Ltd. Class H Corporate Events
Kunming Dianchi Water Treatment Profit Plunges on Weaker Revenue and Higher Impairments
Aug 21, 2026
Kunming Dianchi Water Treatment reported interim revenue of RMB582.6 million for the six months to 30 June 2026, down 13.1 percent year on year, as weaker top-line performance and higher impairment losses weighed on results. Net profit attributabl...
Kunming Dianchi Water Treatment Warns of Earnings Hit from Lost VAT Break and Tax Surcharges
Aug 13, 2026
Kunming Dianchi Water Treatment Co., Ltd. has issued a supplemental announcement to its earlier profit warning, explaining that a downgrade of its 2025 tax credit rating to Grade C has caused it to lose eligibility for a key VAT exemption from 1 J...
Kunming Dianchi Water Treatment Sets Board Meeting to Review Interim Results and Dividend
Aug 11, 2026
Kunming Dianchi Water Treatment Co., Ltd. has scheduled a board meeting for 21 August 2026 to review and approve the unaudited consolidated interim results for the six months ended 30 June 2026. The board will also consider whether to recommend an...
Kunming Dianchi Water Treatment Issues Profit Warning on Loss of VAT Break
Jul 31, 2026
Kunming Dianchi Water Treatment Co., Ltd. has warned that its pre-tax profit for the six months ended 30 June 2026 will fall to about RMB61.9 million–69.8 million, down sharply from roughly RMB157.8 million a year earlier. Profit attributabl...
Kunming Dianchi Water Treatment extends RMB180m loan and appoints new authorised representative
Jul 31, 2026
Kunming Dianchi Water Treatment Co., Ltd. has reported that shareholders approved an ordinary resolution at its second extraordinary general meeting of 2026, held on 31 July in Kunming. The meeting, which complied with PRC company law and the firm...
Kunming Dianchi Water Treatment’s Judicial Auction Shifts Part of Control to State-Owned Kunming Water Group
Jul 27, 2026
Kunming Dianchi Water Treatment has announced a change in shareholding after a judicial auction of 58,000,000 shares, representing about 5.64% of its total share capital, previously held by controlling shareholder Kunming Dianchi Investment. The s...
Kunming Dianchi Water Treatment Seeks Shareholder Nod to Extend RMB180 Million Entrusted Loan
Jul 14, 2026
Kunming Dianchi Water Treatment Co., Ltd. has called a second extraordinary general meeting for 31 July 2026 in Kunming, where shareholders will vote by poll on extending an existing RMB180 million entrusted loan to Kunming Urban Investment. The p...
Kunming Dianchi Water Treatment Resolutions Passed, Board and Auditors Reshuffled
Jun 26, 2026
Kunming Dianchi Water Treatment Co., Ltd. reported that all resolutions at its 2025 annual general meeting were approved by poll, with shareholders representing about 89.45% of issued shares participating. The meeting, held in Kunming on 26 June 2...
Kunming Dianchi Water Treatment Delays Loan Circular and Sets EGM Timetable
Jun 25, 2026
Kunming Dianchi Water Treatment Co., Ltd. has postponed the publication of a shareholder circular relating to the extension of an entrusted loan to Kunming Urban Investment, citing the need for more time to finalize financial information and requi...
Kunming Dianchi Water Treatment Discloses Judicial Auction Sale of 5.64% Stake
Jun 16, 2026
Kunming Dianchi Water Treatment Co., Ltd. reported that 58,000,000 of its shares, representing about 5.64% of total share capital and previously held by controlling shareholder Kunming Dianchi Investment, were successfully bid for at a judicial au...
Kunming Dianchi Water Treatment Extends RMB72 Million Entrusted Loan to Kunming Anju Group
Jun 12, 2026
Kunming Dianchi Water Treatment Co., Ltd. has further extended an entrusted loan granted to Kunming Anju Group through a new extension agreement with Jinma Branch of Guandu Rural Cooperative Bank. The latest arrangement staggers repayment of the r...
Kunming Dianchi Water Treatment Extends RMB180 Million Entrusted Loan to 2029
Jun 8, 2026
Kunming Dianchi Water Treatment has agreed to further extend an existing entrusted loan arrangement with Kunming Urban Investment, keeping RMB180 million of principal outstanding but pushing the maturity date from June 2026 to June 2029, while lea...
Kunming Dianchi Water Treatment Sets 2025 AGM to Decide Governance, Profit Plan and Loan Extension
Jun 4, 2026
Kunming Dianchi Water Treatment Co., Ltd. has called its 2025 annual general meeting for 26 June 2026 in Kunming, where shareholders will vote on the 2025 board report, audited financial statements, and a profit distribution plan. The agenda also ...
Kunming Dianchi Water Treatment Unveils Management Changes After Executive Exit
May 27, 2026
Kunming Dianchi Water Treatment Co., Ltd. announced that executive director, general manager and authorised representative Chen Changyong resigned effective 27 May 2026 due to a work change, though he reported no disagreement with the board, and t...
Kunming Dianchi Water Treatment Details Board and Committee Structure
May 27, 2026
Kunming Dianchi Water Treatment Co., Ltd. has announced the current composition of its board of directors, comprising executive, non-executive, and independent non-executive directors, with Mr. Mu Yong serving as chairperson. The company also disc...
Judicial Auction to Trim Stake of Kunming Dianchi Water Treatment’s Controlling Shareholder
May 26, 2026
Kunming Dianchi Water Treatment Co., Ltd. has disclosed that the People’s Court of Sichuan Pilot Free Trade Zone plans a judicial auction of 58,000,000 of its shares, representing about 5.64% of its total share capital, currently held by con...
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.