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Kunming Dianchi Water Treatment Co., Ltd. Class H
(3768)
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Rating:54Neutral
Price Target:
HK$0.30
â–¼(-60.39% Downside)
Action:Reiterated
Date:09/11/26
The score is most constrained by financial quality risks—especially highly volatile and recently negative operating/free cash flow—alongside declining revenue and softer net profitability. Technicals also remain weak with the stock trading below major moving averages and negative MACD. Offsetting these risks, the valuation is supportive due to a very low P/E.
Positive Factors
Strong Operating Margins
High and improving gross margins, together with a resilient EBIT margin, indicate that the operating platform retains meaningful profitability despite recent revenue pressure. This margin base can support ongoing facility operations and provide capacity to absorb some cost or volume volatility over the next several quarters.
Negative Factors
Sustained Revenue Decline
Several consecutive years of revenue contraction indicate that the company is facing a persistent growth challenge rather than a single-period fluctuation. Continued top-line weakness can limit operating leverage, reduce funds available for infrastructure investment, and make future profit recovery more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Operating Margins
High and improving gross margins, together with a resilient EBIT margin, indicate that the operating platform retains meaningful profitability despite recent revenue pressure. This margin base can support ongoing facility operations and provide capacity to absorb some cost or volume volatility over the next several quarters.
Read all positive factors
Kunming Dianchi Water Treatment Co., Ltd. Class H (3768) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$303.59M
Dividend Yield10.66%
Average Volume (3M)10.50K
Price to Earnings (P/E)2.4
Beta (1Y)0.34
Revenue Growth-6.02%
EPS Growth-54.26%
CountryHK
Employees981
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.11
Shares Outstanding340,023,000
10 Day Avg. Volume12,000
30 Day Avg. Volume10,500
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...
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 | 649.17M | 729.31M | 817.36M | 918.92M | 890.23M | 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
0.35
Negative
0.43
Negative
0.55
Negative
Market Momentum
-0.02
Positive
33.76
Neutral
16.67
Positive
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 0.32, above the 50-day MA of 0.35, and above the 200-day MA of 0.55, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 33.76 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: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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$1.61B | 4.24 | 5.09% | 0.71% | 3.75% | 94.39% | |
63 Neutral | HK$502.93M | 4.01 | 3.42% | 7.86% | -6.72% | -41.93% | |
56 Neutral | HK$14.27B | 10.13 | 5.29% | 10.35% | -5.30% | -2.36% | |
54 Neutral | HK$303.59M | 2.37 | 2.00% | 10.66% | -6.02% | -54.26% | |
53 Neutral | HK$6.36B | 6.49 | 6.84% | 6.67% | -11.32% | -8.06% | |
39 Underperform | HK$90.68M | -0.04 | 92.48% | 5.98% | -13.43% | 4.03% |
* Utilities Sector Average
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.30
-0.51
-63.13%
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
-0.11
-58.01%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.59
-0.15
-20.52%
Kunming Dianchi Water Treatment Co., Ltd. Class H Corporate Events
Kunming Dianchi Water Treatment’s Controlling Shareholder Faces Extended Judicial Share Freeze
Sep 9, 2026
Kunming Dianchi Water Treatment has disclosed that the People’s Court of Panlong District in Kunming ordered the company to assist in enforcing a judicial freeze on shares held by its controlling shareholder, Kunming Dianchi Investment, rela...
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...
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.