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Guangdong Investment Limited (HK:0270)
:0270
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Guangdong Investment (0270) AI Stock Analysis

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HK:0270

Guangdong Investment

(0270)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
HK$8.00
▲(4.85% Upside)
The overall stock score is driven by strong technical indicators and a solid valuation profile. Financial performance is stable but hampered by inconsistent revenue and cash flow challenges. The absence of recent earnings call data and corporate events limits further insights.

Guangdong Investment (0270) vs. iShares MSCI Hong Kong ETF (EWH)

Guangdong Investment Business Overview & Revenue Model

Company DescriptionGuangdong 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 MoneyGuangdong Investment Limited generates revenue through multiple streams. The primary source is its water resources segment, which involves the supply of water to cities in the Guangdong-Hong Kong-Macao Greater Bay Area, making it a critical player in this essential service. The property investment and development segment contributes to its income through the development, leasing, and sale of real estate properties. Additionally, the company's department store operations and hotel services offer retail and hospitality revenues. The energy segment, although not the largest, provides income through energy-related projects. Strategic partnerships with local governments and enterprises, along with its diversified investment approach, significantly bolster its earnings.

Guangdong Investment Financial Statement Overview

Summary
Guangdong Investment shows strengths in operational efficiency and profitability with stable margins and a strong equity base. However, challenges exist in revenue consistency and cash flow management, particularly due to missing recent data.
Income Statement
65
Positive
The company shows a mixed performance. Although total revenue decreased in the last year, the gross profit margin improved slightly from 41.65% to 53.08%. The net profit margin remained stable at around 16.98%. Revenue growth has been inconsistent, with fluctuations observed over the past few years. The EBIT margin improved from 22.96% to 36.83%, indicating better operational efficiency. However, the EBITDA margin slightly decreased from 34.63% to 50.12%.
Balance Sheet
70
Positive
The company's balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.59, indicating a relatively low leverage. The return on equity (ROE) remained stable at 7.54%, showing consistent profitability. The equity ratio of 30.72% suggests a balanced capital structure, though the equity has decreased over time.
Cash Flow
50
Neutral
Cash flow metrics are weak due to missing data for the most recent year. Previously, free cash flow showed growth, but operating cash flow to net income was inconsistent. The lack of current data restricts a detailed assessment, although the company had previously faced challenges in maintaining positive free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.64B18.51B24.20B23.20B29.72B23.17B
Gross Profit9.60B9.82B9.65B9.82B11.64B9.38B
EBITDA9.64B9.28B8.38B10.12B10.93B9.89B
Net Income3.41B3.14B3.12B4.76B4.70B4.51B
Balance Sheet
Total Assets97.10B135.60B139.97B133.51B130.03B89.60B
Cash, Cash Equivalents and Short-Term Investments12.04B12.15B12.59B8.94B10.06B10.48B
Total Debt21.93B24.66B43.03B41.38B29.77B11.73B
Total Liabilities41.25B78.92B81.94B75.01B68.13B33.64B
Stockholders Equity42.18B41.66B41.80B43.33B46.21B44.23B
Cash Flow
Free Cash Flow7.52B10.10B9.93B-5.58B-9.34B-640.92M
Operating Cash Flow8.44B11.09B10.71B-2.68B-5.37B2.25B
Investing Cash Flow-2.68B-4.17B-2.50B-5.79B-5.85B-2.23B
Financing Cash Flow-4.73B-4.68B-5.30B7.97B10.21B-1.46B

Guangdong Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.63
Price Trends
50DMA
7.13
Positive
100DMA
6.87
Positive
200DMA
6.36
Positive
Market Momentum
MACD
0.15
Negative
RSI
70.23
Negative
STOCH
71.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0270, the sentiment is Positive. The current price of 7.63 is above the 20-day moving average (MA) of 7.35, above the 50-day MA of 7.13, and above the 200-day MA of 6.36, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 70.23 is Negative, neither overbought nor oversold. The STOCH value of 71.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0270.

Guangdong Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$679.17M3.406.36%5.71%6.42%-4.80%
69
Neutral
HK$926.20M3.474.69%-9.45%-17.46%
69
Neutral
$48.64B14.2510.35%4.45%-37.73%13.53%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
63
Neutral
$10.22B9.518.28%4.38%-9.36%-29.90%
60
Neutral
HK$25.34B17.564.79%6.28%9.77%-0.62%
60
Neutral
€1.06B5.612.82%3.04%6.91%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0270
Guangdong Investment
7.63
3.03
65.73%
HK:0371
Beijing Enterprises Water Group
2.62
0.53
25.18%
HK:0855
China Water Affairs Group
6.38
2.04
47.00%
HK:6136
Kangda International Environmental Co Ltd
0.44
0.10
31.34%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.77
0.19
32.76%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.82
0.16
24.24%

Guangdong Investment Corporate Events

Guangdong Investment Secures HK$2 Billion Loan for Refinancing and Capital Needs
Oct 21, 2025

Guangdong Investment Limited has secured a HK$2 billion committed term loan facility to refinance existing debt and support short-term working capital needs. The loan is contingent on maintaining its current ownership structure, with GDH Limited holding at least 51% of the company’s shares. This financial maneuver is expected to stabilize the company’s financial operations and ensure compliance with the Hong Kong Stock Exchange’s listing rules.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment to Review Q3 Financials
Oct 15, 2025

Guangdong Investment Limited has announced that its Board of Directors will hold a meeting on October 27, 2025, to review and approve the unaudited financial results for the nine months ending September 30, 2025. This announcement indicates the company’s commitment to transparency and timely financial reporting, which could impact investor confidence and market perception.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Reports Strong Profit Growth for 2025
Aug 27, 2025

Guangdong Investment Limited is a Hong Kong-based company operating in sectors such as water resources, property investment, and electric power generation, among others. In its latest earnings report for the first half of 2025, Guangdong Investment Limited reported a slight decrease in revenue by 0.6% to HK$9.43 billion compared to the previous year. However, the company saw a significant increase in profit before tax by 6.7%, reaching HK$4.1 billion, and an 11.2% rise in profit attributable to owners, amounting to HK$2.68 billion. The earnings per share also increased by 11.2% to HK 41.02 cents, and the interim dividend per share was raised to HK 26.66 cents. The company completed a special dividend distribution of Guangdong Land Holdings Limited shares earlier in the year. Looking ahead, Guangdong Investment Limited remains focused on maintaining its growth trajectory and optimizing its diverse portfolio, as reflected in the management’s positive outlook for the remainder of the year.

Guangdong Investment Limited Reports Strong Interim Results for 2025
Aug 25, 2025

Guangdong Investment Limited reported its unaudited interim results for the first half of 2025, showing a slight decrease in revenue by 0.6% compared to the previous year. However, the company achieved a 6.7% increase in profit before tax and an 11.2% rise in profit attributable to owners, reflecting strong operational performance despite challenging market conditions. The interim dividend per share also increased by 11.2%, indicating a positive return to shareholders.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Limited Declares Interim Dividend for 2025
Aug 25, 2025

Guangdong Investment Limited announced an interim dividend of HKD 0.2666 per share for the six months ended 30 June 2025. The dividend will be paid on 23 October 2025, with an ex-dividend date of 08 October 2025. This announcement reflects the company’s financial health and commitment to providing returns to its shareholders, potentially strengthening its position in the investment sector.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Appoints New Non-Executive Director
Aug 25, 2025

Guangdong Investment Limited has announced the appointment of Mr. LI Wenchang as a Non-Executive Director, effective from August 26, 2025. Mr. Li brings extensive experience in investment and capital operations, having held significant roles at Guangzhou R&F Properties Co., Ltd. and Guangdong Holdings Limited. His appointment is expected to enhance the company’s strategic direction and strengthen its leadership team, potentially impacting its market positioning positively.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Announces Board Restructuring
Aug 25, 2025

Guangdong Investment Limited, a company incorporated in Hong Kong, has announced changes to its board of directors and their respective roles and functions, effective from August 26, 2025. The announcement details the composition of the board, including executive, non-executive, and independent non-executive directors, along with their committee roles. This restructuring is likely to impact the company’s governance and strategic direction, potentially influencing its market position and stakeholder relations.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Sets Terms for Nomination Committee
Aug 25, 2025

Guangdong Investment Limited has outlined the terms of reference for its Nomination Committee, which is responsible for reviewing the board’s structure, size, and composition, identifying qualified individuals for board membership, and planning for director succession. The committee will consist of at least five members, primarily independent non-executive directors, and will meet at least once a year to ensure effective governance and strategic oversight.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment to Review Interim Results and Dividend
Aug 13, 2025

Guangdong Investment Limited has announced a board meeting scheduled for August 25, 2025, to discuss and approve the unaudited interim results for the first half of the year and to consider the payment of an interim dividend. This meeting could impact the company’s financial strategy and shareholder returns, reflecting its ongoing commitment to transparency and investor engagement.

The most recent analyst rating on (HK:0270) stock is a Buy with a HK$6.59 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

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: Oct 23, 2025