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Kunming Dianchi Water Treatment Co., Ltd. Class H (HK:3768)
:3768
Hong Kong Market
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Kunming Dianchi Water Treatment Co., Ltd. Class H (3768) AI Stock Analysis

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HK:3768

Kunming Dianchi Water Treatment Co., Ltd. Class H

(3768)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
HK$0.50
▼(-27.54% Downside)
The overall stock score of 60 reflects moderate financial performance with challenges in revenue and profitability, coupled with a bearish technical outlook. The stock appears undervalued based on its low P/E ratio, which is a positive factor. However, the lack of earnings call data and corporate events limits further insights.

Kunming Dianchi Water Treatment Co., Ltd. Class H (3768) vs. iShares MSCI Hong Kong ETF (EWH)

Kunming Dianchi Water Treatment Co., Ltd. Class H Business Overview & Revenue Model

Company DescriptionKunming Dianchi Water Treatment Co., Ltd., together with its subsidiaries, designs, develops, constructs, operates, and maintains water supply and wastewater treatment facilities in the People's Republic of China. The company operates through Wastewater Treatment, Water Supply, and Others segments. It designs, constructs, operates, and maintains wastewater treatment or water supply facilities under the transfer-operate-transfer and build-operate-transfer concession agreements. The company is also involved in the reclaimed water supply and running water supply; municipal wastewater treatment; water quality testing; provision of logistics and leasing services, and professional training; and manufacture and sale of chemical products. In addition, it provides management, transportation, watershed management, sludge recycling, mine restoration, and solid waste treatment and disposal services, as well as engages in the thermal production activities. The company was founded in 1989 and is headquartered in Kunming, the People's Republic of China. Kunming Dianchi Water Treatment Co., Ltd. is a subsidiary of Kunming Dianchi Investment Co., Ltd.
How the Company Makes MoneyKunming Dianchi Water Treatment Co., Ltd. generates revenue primarily through the provision of water treatment services and environmental solutions. The company's key revenue streams include fees from wastewater treatment services, charges for water purification processes, and income from environmental consulting services. Additionally, the company may engage in strategic partnerships with municipal governments and industries to implement large-scale water treatment projects, which can significantly boost its earnings. By offering a range of services tailored to meet regulatory and environmental standards, Kunming Dianchi Water Treatment Co., Ltd. ensures a steady flow of revenue while contributing to the ecological well-being of the communities it serves.

Kunming Dianchi Water Treatment Co., Ltd. Class H Financial Statement Overview

Summary
Kunming Dianchi Water Treatment Co., Ltd. Class H faces challenges with declining revenue and profitability, coupled with a reliance on debt financing. While operational efficiency remains relatively stable, there is a need for strategic measures to enhance revenue growth and manage leverage. The company's financial health is moderate, with potential risks associated with leverage and cash flow volatility.
Income Statement
62
Positive
The company shows declining revenue over the past years, with a significant drop from 2021 to 2024. Gross profit margin has remained relatively stable, indicating efficiency in managing production costs. Net profit margin has seen a decline, reflecting potential challenges in managing operational expenses. EBIT and EBITDA margins are solid, though they have decreased slightly over time, indicating a potential reduction in operational efficiency.
Balance Sheet
58
Neutral
The company's debt-to-equity ratio is relatively high, suggesting a higher reliance on debt financing. However, the equity ratio reflects a reasonable proportion of equity financing. Return on equity has been decreasing, indicating a declining effectiveness in generating profits from shareholders' equity. Overall, the balance sheet shows moderate financial stability but with heightened leverage risks.
Cash Flow
55
Neutral
Operating cash flow has been volatile, with negative figures in past years turning positive in recent periods, indicating some improvement in operational efficiency. The free cash flow growth rate is inconsistent, reflecting challenges in maintaining consistent cash flow generation. The cash flow ratios indicate moderate efficiency in converting income into cash, although improvements are needed to ensure sustainability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.59B1.81B2.07B2.32B1.92B
Gross Profit713.65M798.24M857.27M724.78M679.18M
EBITDA807.54M918.92M931.61M915.83M886.78M
Net Income263.22M316.51M322.25M338.28M348.55M
Balance Sheet
Total Assets12.38B12.06B11.70B12.07B10.50B
Cash, Cash Equivalents and Short-Term Investments130.58M174.09M371.49M1.80B1.05B
Total Debt4.59B5.27B5.89B6.41B4.97B
Total Liabilities7.14B7.09B7.04B7.63B6.22B
Stockholders Equity5.23B4.97B4.65B4.43B4.27B
Cash Flow
Free Cash Flow132.63M135.22M-671.96M-776.48M-802.33M
Operating Cash Flow293.82M220.95M-302.63M-716.96M-613.47M
Investing Cash Flow75.67M303.83M-96.54M230.91M-290.73M
Financing Cash Flow-532.84M-480.55M-973.54M1.24B387.55M

Kunming Dianchi Water Treatment Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.69
Price Trends
50DMA
0.70
Negative
100DMA
0.65
Positive
200DMA
0.64
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
49.35
Neutral
STOCH
62.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3768, the sentiment is Positive. The current price of 0.69 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.70, and above the 200-day MA of 0.64, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3768.

Kunming Dianchi Water Treatment 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
65
Neutral
922.80M4.882.83%3.04%6.91%
60
Neutral
HK$710.09M2.664.69%-9.45%-17.46%
49
Neutral
619.55M-1.02-40.48%-43.38%-25.63%
45
Neutral
72.50M-3.38-12.40%-8.34%-13.24%
41
Neutral
242.22M-0.12-17.05%-5.97%-50.72%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.69
0.12
21.05%
DE:27K
Kangda International Environmental Co Ltd
0.03
<0.01
50.00%
DE:2WI
Yunnan Water Investment Co., Limited Class H
0.02
0.01
100.00%
HK:1129
China Water Industry Group Limited
0.98
0.25
34.25%
HK:1542
Taizhou Water Group Co., Ltd. Class H
1.45
-1.25
-46.30%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.77
0.20
35.09%

Kunming Dianchi Water Treatment Co., Ltd. Class H Corporate Events

Kunming Dianchi Water Treatment Schedules 2025 Extraordinary General Meeting
Sep 9, 2025

Kunming Dianchi Water Treatment Co., Ltd. has announced its 2025 first extraordinary general meeting scheduled for September 26, 2025. The meeting will address several key resolutions, including the appointment of new directors and amendments to the company’s board committee rules, which could impact its governance structure and operational strategies.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Co. Proposes New Independent Director Appointment
Sep 2, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced the proposed appointment of Dr. Chan Ho Wah Terence as an independent non-executive director following the resignation of Mr. Ong King Keung. Dr. Chan, a seasoned professional with over 30 years of experience in real estate and infrastructure investment, is set to bring his extensive expertise to the company. His appointment, subject to shareholder approval, is expected to strengthen the company’s governance and strategic direction.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Co. Reports Decline in 2025 Interim Results
Aug 22, 2025

Kunming Dianchi Water Treatment Co., Ltd. reported its interim results for the first half of 2025, showing a decline in financial performance compared to the same period last year. The company’s revenue decreased by 9.2% to approximately RMB670.8 million, and its net profit attributable to equity holders fell by 10.9% to approximately RMB131.9 million. This decline reflects challenges in the water treatment industry, impacting the company’s market position and stakeholder interests.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Announces Director Resignation and Upcoming EGM
Aug 22, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced the resignation of Mr. Zhang Yang from his position as a non-executive director due to changes in work arrangements, effective August 22, 2025. The company expressed gratitude for his contributions. Additionally, the company will hold its first extraordinary general meeting on September 26, 2025, to consider the appointments of Ms. Lian Zhaoju as an executive director and Ms. Gao Yuan as a non-executive director. The register of members will be closed from September 6 to September 26, 2025, to determine shareholders eligible to vote at the meeting.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Faces Board Compliance Challenge After Director Resignation
Aug 20, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced the resignation of Mr. Ong King Keung as an independent non-executive director and member of several committees due to his decision to focus on other business endeavors. His departure leaves the company non-compliant with certain Hong Kong Stock Exchange listing rules regarding the composition of its board and committees. The company is actively seeking suitable candidates to fill these vacancies within three months to restore compliance.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Co., Ltd. Announces Board Composition and Governance Structure
Aug 20, 2025

Kunming Dianchi Water Treatment Co., Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement highlights the company’s governance structure, which includes a mix of executive, non-executive, and independent non-executive directors, as well as the establishment of four specialized board committees to enhance strategic decision-making and oversight.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Schedules Board Meeting for Interim Results
Aug 12, 2025

Kunming Dianchi Water Treatment Co., Ltd. has scheduled a board meeting on August 22, 2025, to approve the unaudited consolidated interim results for the first half of 2025 and consider the recommendation for an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Kunming Dianchi Water Treatment Issues Profit Warning for H1 2025
Jul 31, 2025

Kunming Dianchi Water Treatment Co., Ltd. has issued a profit warning, indicating a decrease in its pre-tax profit and profit attributable to equity holders for the first half of 2025 compared to the same period last year. The decline is attributed to the absence of investment income from the sale of subsidiaries, which was recorded in the previous year, and the overall reduction in profit following the sale of these subsidiaries. The company is in the process of finalizing its unaudited financial results, and stakeholders are advised to exercise caution when trading shares.

Kunming Dianchi Water Treatment Co., Ltd. Announces Director Changes
Jul 25, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced the intended resignation of Mr. Zhang Yang as a non-executive director due to changes in work arrangements. The company has proposed the appointment of Ms. Gao Yuan as a non-executive director and Ms. Lian Zhaoju as an executive director, both subject to approval by relevant authorities and shareholders. These appointments are aimed at ensuring a smooth transition and maintaining effective governance within the company.

Kunming Dianchi Water Treatment Co., Ltd. Invests in Major Plant Expansion
Jul 8, 2025

Kunming Dianchi Water Treatment Co., Ltd. has announced an investment of RMB69.3059 million for the expansion and renovation of its Kunming No. 7 and No. 8 Water Purification Plants. The project, which involves increasing the treatment capacity of biological ponds and constructing additional facilities, is being executed through an EPC contract with China Railway No.10 Engineering and Beijing General Municipal Engineering Design & Research Institute. This strategic move is expected to bolster the company’s operational capabilities and maintain effluent standards, potentially strengthening its position in the water treatment industry.

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 23, 2025