Guangdong Investment (GGDVY) AI Stock Analysis

• Market Cap: $5.70B
• Dividend Yield: 0.93%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.04
• Revenue Growth: -23.34%
• EPS Growth: 0.94%
• Country: US
• Employees: 10,759
• Sector: Utilities
• Sector Strength: 75
• Industry: Regulated Water
• EPS (TTM): N/A
• Shares Outstanding: 130,756,420
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 392.94
• Price to Book (P/B): 60.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.20K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $46.00 ▲(4.36%Upside)

Guangdong Investment's stock score is supported by strong financial performance and robust cash flow, which sustain liquidity. However, the declining revenue and rising leverage pose significant risks. The technical indicators suggest caution due to overbought signals, despite the current bullish trend. The valuation is reasonable, with a balance of growth potential and shareholder returns.

Guangdong Investment Business Overview & Revenue Model

Company Description

Guangdong Investment Limited, an investment holding company, engages in water resources, property investment and development, department store operation, energy project operation, road and bridge operation, and hotel businesses. Its Water Resources segment provides water distribution, sewage treatment, infrastructure and water pipeline installation services, as well as constructs water supply and sewage treatment infrastructure in Mainland China and Hong Kong. The company's Property Investment and Development segment invests in various properties in Hong Kong and Mainland China; and develops and sells properties in Mainland China. This segment also provides property management services for various commercial properties. Its Department Stores segment operates department stores in Mainland China. The company's Electric Power Generation segment operates coal-fired power plants that supply electricity and steam in the Guangdong province, Mainland China. The company's Hotel Operation and Management segment operate hotels and provides hotel management services to third parties in Hong Kong and Mainland China. As of December 31, 2021, this segment managed 27 hotels, including 3 in Hong Kong, 1 in Macau, and 23 in Mainland China. Its Road and Bridge segment invests in various road and bridge projects, which engages in the toll road operation and road management in Mainland China. The company's Others segment provides treasury services in Hong Kong and Mainland China, as well as corporate and other related services. The company was formerly known as Union Globe Development Limited and changed its name to Guangdong Investment Limited in January 1987. The company was incorporated in 1973 and is based in Central, Hong Kong. Guangdong Investment Limited is a subsidiary of GDH Limited.

How the Company Makes Money

Guangdong Investment primarily generates revenue through its water distribution services, which involve supplying water to Hong Kong and other regions in Guangdong Province. The company holds a monopoly in the Dongjiang River water supply, which is a critical source of water for Hong Kong. This water supply service is a stable and significant revenue stream due to long-term contracts and agreements with local governments. Additionally, Guangdong Investment earns income from its property investment and development segment through the leasing and sale of commercial and residential properties. The company's department store operations and hotel management businesses also contribute to its revenue by providing retail and hospitality services, although these segments are relatively smaller in scale compared to its core water supply business. Partnerships with local governments and strategic investments in infrastructure projects further bolster the company's earnings.

Guangdong Investment Financial Statement Overview

Summary

Guangdong Investment shows strong profitability with a stable EBIT and EBITDA margin. However, challenges include declining revenue and increased leverage, which could affect stability if not addressed. Cash flow generation remains strong, supporting liquidity.

Income Statement

Guangdong Investment's income statement shows strong profitability with a consistently high Gross Profit Margin of approximately 50%. However, there is a noticeable decline in Total Revenue over the past year, which has impacted the Net Profit Margin. The company has maintained a stable EBIT and EBITDA Margin, reflecting efficient cost management despite revenue fluctuations.

Balance Sheet

The balance sheet presents a solid equity position with an Equity Ratio of over 30%, indicating strong capitalization. However, the Debt-to-Equity Ratio has increased, suggesting rising leverage which could pose risks if not managed carefully. The Return on Equity (ROE) has been stable, demonstrating consistent shareholder returns.

Cash Flow

Cash flow analysis reveals a positive Free Cash Flow, indicating good liquidity management. However, the Free Cash Flow has seen a decline compared to the previous year, which could affect future investments. The Operating Cash Flow to Net Income Ratio is strong, indicating good cash generation relative to profits.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.12B	18.51B	24.20B	23.20B	29.72B	23.17B
	Gross Profit
9.38B	9.82B	10.08B	9.82B	11.64B	9.38B
	EBIT
1.69B	6.80B	5.56B	8.10B	9.00B	8.42B
	EBITDA
8.22B	9.91B	8.38B	10.17B	10.89B	10.10B
	Net Income Common Stockholders
3.01B	3.14B	3.12B	4.76B	4.70B	4.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.14B	12.15B	12.59B	8.94B	9.60B	10.37B
	Total Assets
139.83B	135.60B	139.97B	133.51B	130.03B	89.60B
	Total Debt
42.71B	24.24B	43.03B	41.38B	29.77B	11.73B
	Net Debt
29.57B	12.09B	30.44B	32.44B	20.17B	1.36B
	Total Liabilities
80.56B	78.92B	81.94B	75.01B	68.13B	33.64B
	Stockholders Equity
43.12B	41.66B	41.80B	43.33B	46.21B	44.23B
Cash Flow		Free Cash Flow
4.80B	9.67B	9.93B	-2.16B	-5.80B	2.55B
	Operating Cash Flow
5.37B	11.09B	10.71B	-1.40B	-4.94B	3.41B
	Investing Cash Flow
-932.11M	-4.17B	-2.50B	-5.79B	-5.85B	-2.23B
	Financing Cash Flow
-6.83B	-4.68B	-5.30B	7.97B	10.21B	-1.46B

Guangdong Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GGDVY, the sentiment is Positive. The current price of 44.08 is above the 20-day moving average (MA) of 40.39, above the 50-day MA of 39.58, and above the 200-day MA of 36.49, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 96.32 is Negative, neither overbought nor oversold. The STOCH value of 99.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GGDVY.

Guangdong Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTRG	75 Outperform	$10.48B	16.78	9.78%	3.48%	16.41%	5.65%
AWK	74 Outperform	$27.48B	25.66	10.43%	2.35%	11.79%	11.69%
HTO	74 Outperform	$1.78B	17.47	7.49%	3.22%	12.34%	11.78%
AWR	65 Neutral	$2.98B	23.90	13.95%	2.39%	6.79%	5.96%
Sector *	64 Neutral	$8.53B	10.36	4.25%	5.86%	4.06%	-12.76%
CWT	63 Neutral	$2.73B	20.14	8.67%	2.61%	3.83%	-8.75%
GGDVY	62 Neutral	$5.70B	14.15	9.81%	0.93%	-23.34%	0.94%