Guangdong Investment (GGDVY) AI Stock Analysis

• Market Cap: $5.94B
• Dividend Yield: 4.84%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 13.6
• Beta (1Y): -0.05
• Revenue Growth: -37.50%
• EPS Growth: 13.93%
• Country: US
• Employees: 10,759
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 2.63
• Shares Outstanding: 130,756,420
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.00
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 3.64
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: 0.88
• 1Y Price Target: $46.00
• Price Target Upside: -0.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $46.00 ▼(-0.56% Downside)

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 generates revenue through multiple channels, primarily from its water supply and sewage treatment operations, which provide stable cash flows due to long-term service contracts and regulatory support. Additionally, the company's property development segment contributes significantly to its earnings by selling residential and commercial units, benefiting from the demand for real estate in urbanized areas. Rental income from its property investments also provides a steady revenue stream. The company has established strategic partnerships with local governments and other entities to enhance its infrastructure projects, further solidifying its market position and revenue generation capabilities.

Guangdong Investment Financial Statement Overview

Summary

Guangdong Investment shows strong profitability with a high Gross Profit Margin and stable EBIT and EBITDA Margins. However, declining revenue and increasing leverage pose risks. The company maintains robust cash flow generation, supporting liquidity and operational needs.

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	15.64B	18.51B	24.20B	23.20B	29.72B	23.17B
Gross Profit	9.60B	9.82B	9.65B	9.82B	11.64B	9.38B
EBITDA	9.58B	9.28B	8.38B	10.12B	10.93B	8.50B
Net Income	3.41B	3.14B	3.12B	4.76B	4.70B	4.51B
Balance Sheet
Total Assets	97.10B	135.60B	139.97B	133.51B	130.03B	89.60B
Cash, Cash Equivalents and Short-Term Investments	12.04B	12.15B	12.59B	8.94B	10.06B	10.48B
Total Debt	21.93B	24.66B	43.03B	41.38B	29.77B	11.73B
Total Liabilities	41.25B	78.92B	81.94B	75.01B	68.13B	33.64B
Stockholders Equity	42.18B	41.66B	41.80B	43.33B	46.21B	44.23B
Cash Flow
Free Cash Flow	7.88B	10.10B	9.93B	-5.58B	-9.34B	-640.92M
Operating Cash Flow	8.79B	11.09B	10.71B	-2.68B	-5.37B	2.25B
Investing Cash Flow	-2.68B	-4.17B	-2.50B	-5.79B	-5.85B	-2.23B
Financing Cash Flow	-5.07B	-4.68B	-5.30B	7.97B	10.21B	-1.46B

Guangdong Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GGDVY, the sentiment is Neutral. The current price of 46.26 is below the 20-day moving average (MA) of 46.57, above the 50-day MA of 45.63, and above the 200-day MA of 41.14, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 0.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GGDVY.

Guangdong Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTRG	73 Outperform	$10.89B	16.61	9.61%	3.42%	20.70%	14.59%
MSEX	73 Outperform	$950.92M	21.90	9.92%	2.58%	11.91%	16.88%
AWK	67 Neutral	$27.51B	24.50	10.14%	2.35%	13.37%	13.29%
CWT	66 Neutral	$2.66B	19.45	8.20%	2.73%	0.62%	-24.24%
AWR	66 Neutral	$2.73B	21.75	12.82%	2.70%	8.55%	13.57%
GGDVY	62 Neutral	$5.94B	13.56	10.35%	4.84%	-37.50%	13.93%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%