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

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HK:0270

Guangdong Investment

(OTC:0270)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
HK$8.00
▲(5.68% 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.
Positive Factors
Operational Efficiency
The significant improvement in EBIT margin indicates enhanced operational efficiency, allowing the company to better manage costs and improve profitability over time.
Market Position
As a leader in the water supply sector, Guangdong Investment holds a strong market position, ensuring stable revenue streams from an essential service, which is critical for long-term growth.
Diversified Revenue Streams
The company's diversified revenue streams across essential services and sectors mitigate risks associated with dependency on a single market, supporting long-term stability and growth.
Negative Factors
Revenue Consistency
Inconsistent revenue growth can hinder long-term planning and investment, potentially impacting the company's ability to sustain its competitive edge and market position.
Cash Flow Challenges
Inconsistent cash flow can limit the company's ability to fund operations and growth initiatives, posing a risk to financial stability and long-term strategic execution.
Data Gaps
The absence of recent financial data hampers comprehensive analysis, making it difficult to accurately assess current performance and future prospects, potentially affecting investor confidence.

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

Guangdong Investment Business Overview & Revenue Model

Company DescriptionGuangdong Investment Limited (0270.HK) is a diversified investment holding company based in Hong Kong, primarily engaged in various sectors including water and utility services, property investment and development, and infrastructure. The company operates through its subsidiaries, which manage a range of businesses such as water supply, sewage treatment, and real estate projects, offering a comprehensive portfolio of products and services aimed at enhancing urban living and sustainability.
How the Company Makes MoneyGuangdong Investment generates revenue through several key streams. Its water and utility services segment earns income from the provision of water supply and sewage treatment, primarily through operations in Guangdong Province and other regions in China. The property investment and development segment contributes by leasing commercial and residential properties, as well as through sales of developed real estate projects. Additionally, the company engages in infrastructure investments that yield returns through tolls and service fees. Strategic partnerships with local governments and development agencies enhance its project pipeline and facilitate growth, while ongoing investments in expanding its operational capacity further bolster its revenue-generating potential.

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
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
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
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
Neutral
Last Price7.57
Price Trends
50DMA
7.27
Negative
100DMA
7.11
Negative
200DMA
6.65
Positive
Market Momentum
MACD
-0.11
Negative
RSI
48.34
Neutral
STOCH
83.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0270, the sentiment is Neutral. The current price of 7.57 is above the 20-day moving average (MA) of 6.90, above the 50-day MA of 7.27, and above the 200-day MA of 6.65, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$627.59M3.146.36%6.03%4.85%-4.80%
69
Neutral
HK$761.54M2.864.69%-9.45%-17.46%
69
Neutral
HK$45.44B13.3110.35%4.96%-37.73%13.53%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
63
Neutral
HK$8.65B9.696.51%5.22%-9.02%-39.00%
60
Neutral
HK$25.04B17.354.79%6.48%9.77%-0.62%
60
Neutral
HK$1.11B5.982.82%3.04%6.91%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0270
Guangdong Investment
6.99
1.43
25.79%
HK:0371
Beijing Enterprises Water Group
2.51
0.29
12.86%
HK:0855
China Water Affairs Group
5.33
0.90
20.18%
HK:6136
Kangda International Environmental Co Ltd
0.49
0.18
58.06%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.74
0.18
32.14%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.74
0.10
15.62%

Guangdong Investment Corporate Events

Guangdong Investment Secures Shareholder Approval for Key Resolutions
Dec 8, 2025

Guangdong Investment Limited held an Extraordinary General Meeting (EGM) on December 8, 2025, where shareholders approved several key resolutions. These included the Equity Transfer Agreements and Proposed Acquisitions for Yangjiang and Shantou, as well as the re-election of directors Mr. LI Wenchang and Mr. HE Zhifeng. The resolutions were passed with overwhelming support, indicating strong shareholder confidence in the company’s strategic direction.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Schedules EGM to Approve Strategic Resolutions
Nov 20, 2025

Guangdong Investment Limited has announced an extraordinary general meeting scheduled for December 8, 2025, to discuss and approve several key resolutions, including equity transfer agreements and proposed acquisitions in Yangjiang and Shantou. Additionally, the re-election of two directors, Mr. LI Wenchang and Mr. HE Zhifeng, will be considered. This meeting is significant for stakeholders as it involves strategic decisions that could impact the company’s investment portfolio and governance structure.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Secures HK$2.25 Billion Loan for Corporate Funding
Nov 19, 2025

Guangdong Investment Limited has secured a committed term loan facility of HK$2.25 billion to finance its general corporate funding needs, excluding real estate, toll roads, and electric power plants. The loan, with a term of 364 days, requires GDH Limited to maintain at least 51% ownership of the company, ensuring continued control by the Guangdong Provincial Government. Failure to comply with these conditions could lead to the cancellation of the facility, impacting the company’s financial operations.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Adjusts Acquisition Completion Date
Nov 18, 2025

Guangdong Investment Limited has announced supplemental agreements related to its proposed acquisitions of equity interests in two target companies. The completion date for these acquisitions has been adjusted to align with the satisfaction of relevant conditions, ensuring it does not fall on a public holiday. This move is expected to streamline the acquisition process and maintain the terms of the original agreements, potentially impacting the company’s strategic positioning and stakeholder interests.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Secures Future with New Electricity Service Agreement
Oct 31, 2025

Guangdong Investment has announced the signing of the 2025 Electricity Service Framework Agreement between its subsidiary, Zhongshan Energy Service, and Guangdong Yuehai Water, a subsidiary of Guangdong Holdings. This agreement, effective from January 2026 to December 2028, continues the electricity supply relationship between the two entities. The agreement is classified as a continuing connected transaction under Hong Kong’s Listing Rules, requiring reporting and annual review but exempt from independent shareholders’ approval due to its size. This move is expected to solidify Guangdong Investment’s position in the energy market, ensuring a stable supply chain and potentially enhancing stakeholder confidence.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Expands with Key Acquisitions in Water Sector
Oct 28, 2025

Guangdong Investment announced the acquisition of equity interests in two target companies, Yangjiang and Shantou, through its subsidiaries Guangdong Water Investment and Guangdong Water Holdings. The acquisitions, which involve purchasing 51% and 2% equity interests respectively, are subject to shareholder approval and will result in the target companies becoming non-wholly owned subsidiaries of Guangdong Investment. These transactions are classified as discloseable and connected transactions under the Hong Kong Listing Rules, necessitating reporting and shareholder approval. Post-acquisition, existing agreements with Guangdong Holdings Group will transition to continuing connected transactions, aligning with the company’s framework agreements.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Secures HK$1.75 Billion Loan Facility
Oct 28, 2025

Guangdong Investment Limited has secured a committed revolving loan facility of HK$1.75 billion for general working capital needs. The loan agreement stipulates that GDH Limited must maintain its majority ownership and control by the Guangdong Provincial Government, ensuring stability in the company’s governance structure.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 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 Changes
Oct 27, 2025

Guangdong Investment Limited has announced a change in its board of directors, effective from October 28, 2025. Mr. HE Zhifeng will be appointed as a Non-Executive Director, replacing Ms. WANG Surong who has resigned. This change may impact the company’s strategic direction and governance, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 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
Oct 27, 2025

Guangdong Investment Limited has announced changes to its board of directors and their roles, effective from October 28, 2025. The announcement includes the appointment of Ms. Bai Tao as Chairman and Mr. Kuang Hu as Managing Director, among others. These changes are expected to impact the company’s governance structure and may influence its strategic direction, potentially affecting stakeholders and the company’s market positioning.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

Guangdong Investment Reports Revenue Growth and Profit Increase in 2025
Oct 27, 2025

Guangdong Investment Limited reported a 1.3% increase in revenue to HK$14,281 million for the nine months ending September 30, 2025, driven mainly by growth in its water resources business. The company’s profit before tax rose by 9.5% to HK$6,241 million, attributed to savings on net finance costs and administrative expenses. Despite a decrease in total assets by 27.2%, the equity attributable to owners slightly increased by 0.3%. The company completed a special dividend distribution in January 2025, enhancing shareholder value.

The most recent analyst rating on (HK:0270) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guangdong Investment stock, see the HK:0270 Stock Forecast page.

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.

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