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Guangdong Investment (HK:0270)
:0270

Guangdong Investment (0270) AI Stock Analysis

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HK

Guangdong Investment

(OTC:0270)

Rating:69Neutral
Price Target:
HK$7.00
▲(9.03%Upside)
Guangdong Investment has a solid financial foundation with operational efficiency and profitability, contributing significantly to its score. The stock's positive technical indicators suggest strong market momentum. Valuation metrics reinforce a balanced view, with a fair P/E ratio and an attractive dividend yield. Lack of recent cash flow data and inconsistent revenue growth slightly dampen the score.

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

Guangdong Investment Business Overview & Revenue Model

Company DescriptionGuangdong Investment Limited (0270) is a leading Hong Kong-based investment holding company with diversified operations primarily in the utilities, infrastructure, and real estate sectors. The company is prominently known for its water resources management, property investment and development, and hotel operations. It serves a wide range of customers through its comprehensive portfolio of services and aims to deliver sustainable growth and value creation.
How the Company Makes MoneyGuangdong Investment makes money through several key revenue streams. The primary source of revenue is its water resources business, which includes the supply of raw water to Hong Kong and other regions in the Guangdong province. This segment benefits from long-term water supply agreements that ensure stable cash flows. Additionally, the company generates income from its property investment and development activities, where it owns and operates a portfolio of commercial and residential properties. Hotel operations also contribute to its revenue, particularly through occupancy rates and associated services. Moreover, the company benefits from strategic partnerships and investments that enhance its operational capabilities and financial performance. These diversified revenue streams allow Guangdong Investment to maintain a resilient financial position and capitalize on growth opportunities in its core markets.

Guangdong Investment Financial Statement Overview

Summary
Guangdong Investment exhibits strengths in operational efficiency and profitability, with stable margins and a strong equity base. However, the company faces challenges with revenue consistency and cash flow management, particularly in the latest period where data is lacking.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.51B24.20B23.20B29.72B23.17B
Gross Profit9.82B10.08B9.82B11.64B9.38B
EBITDA9.28B8.38B10.12B10.93B9.89B
Net Income3.14B3.12B4.76B4.70B4.51B
Balance Sheet
Total Assets135.60B139.97B133.51B130.03B89.60B
Cash, Cash Equivalents and Short-Term Investments12.15B12.59B9.52B10.06B10.48B
Total Debt24.66B43.03B41.38B29.77B11.73B
Total Liabilities78.92B81.94B75.01B68.13B33.64B
Stockholders Equity41.66B41.80B43.33B46.21B44.23B
Cash Flow
Free Cash Flow9.67B9.93B-5.58B-9.34B-640.92M
Operating Cash Flow9.53B10.71B-2.68B-5.37B2.25B
Investing Cash Flow-4.17B-1.85B-5.91B-5.61B-1.85B
Financing Cash Flow-4.68B-5.30B9.54B10.75B-1.58B

Guangdong Investment Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.42
Price Trends
50DMA
6.41
Positive
100DMA
6.17
Positive
200DMA
5.73
Positive
Market Momentum
MACD
0.02
Positive
RSI
43.15
Neutral
STOCH
11.82
Positive
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 6.42 is below the 20-day moving average (MA) of 6.63, above the 50-day MA of 6.41, and above the 200-day MA of 5.73, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 11.82 is Positive, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$9.70B9.028.28%8.75%-16.07%-14.55%
71
Outperform
HK$802.40M4.112.85%0.08%31.12%
69
Neutral
HK$41.97B13.369.81%2.26%-23.53%0.65%
61
Neutral
HK$638.05M2.245.17%-13.42%-18.54%
61
Neutral
C$4.83B-11.13-17.85%4.44%11.13%-68.91%
57
Neutral
$24.54B14.455.86%7.43%7.33%-7.17%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0270
Guangdong Investment
6.44
2.43
60.40%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.63
-0.02
-3.08%
HK:0855
China Water Affairs Group
5.99
1.64
37.67%
HK:6136
Kangda International Environmental Co Ltd
0.35
0.11
48.31%
HK:0371
Beijing Enterprises Water Group
2.42
0.34
16.63%

Guangdong Investment Corporate Events

Guangdong Investment Signs 2025 Support Services Framework Agreement
Jun 26, 2025

Guangdong Investment has announced the signing of the 2025 Support Services Framework Agreement, effective from June 29, 2025, to December 31, 2027. This agreement, which involves Guangdong Water, Yue Gang Water Supply, and Guangdong Water Technology, aims to centralize management and enhance oversight of framework agreements within the company. The agreement is part of a corporate exercise to streamline operations and involves continuing connected transactions under Hong Kong’s Listing Rules, with implications for reporting and review requirements.

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.

Guangdong Investment Renews Water Project Design Agreement
Jun 26, 2025

Guangdong Investment has announced the renewal of its Water Project Design and Survey Services Framework Agreement with the Water Conservancy Design Institute, extending the partnership from June 2025 to December 2027. This agreement, which involves connected transactions under the Listing Rules, aims to continue providing essential design and survey services to the GDI Water Supply Group, reflecting the company’s ongoing commitment to maintaining its operational capabilities and industry positioning.

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.

Guangdong Investment AGM: All Resolutions Passed with Strong Shareholder Support
Jun 17, 2025

Guangdong Investment Limited, a company incorporated in Hong Kong, held its Annual General Meeting on June 17, 2025, where all proposed resolutions were passed by shareholders through a poll. Key resolutions included the approval of the audited financial statements for 2024, the declaration of a final dividend, the re-election of several directors, and the re-appointment of KPMG as the independent auditor. The meeting also granted the board mandates to issue and repurchase up to 10% of the company’s issued shares, reflecting strong shareholder support for the company’s strategic decisions.

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.

Guangdong Investment Announces Director Resignation and AGM Resolution Withdrawal
Jun 13, 2025

Guangdong Investment Limited announced the resignation of Mr. Fan Fan as a Non-Executive Director, effective June 13, 2025, as he pursues further career development. The company expressed gratitude for his contributions and confirmed no disagreements or issues related to his departure. Consequently, the proposed re-election resolution for Mr. Fan at the upcoming AGM will be withdrawn, but all other details of the meeting remain unchanged.

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.

Guangdong Investment Announces Board Restructuring
Jun 13, 2025

Guangdong Investment Limited, a company incorporated in Hong Kong, has announced changes to its board of directors and their roles, effective from June 13, 2025. The announcement outlines the composition of the board and its committees, which include executive, non-executive, and independent non-executive directors. This restructuring is likely aimed at enhancing governance and strategic oversight, potentially impacting the company’s operational efficiency and stakeholder confidence.

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.

Guangdong Investment Expands Service Scope with New Framework Agreement
Apr 29, 2025

Guangdong Investment has announced the signing of the 2025 Construction and Other Services Framework Agreement with GDH Water Co, effective from April 29, 2025, to December 31, 2027. This agreement, which replaces the previous 2022 agreement, aims to expand the scope of services to include project maintenance and technical services, enhancing the company’s operational capabilities and industry positioning. The transactions under this agreement are classified as continuing connected transactions, subject to specific reporting and review requirements under the Listing Rules.

Guangdong Investment Limited Announces 2025 Annual General Meeting
Apr 28, 2025

Guangdong Investment Limited has announced its upcoming annual general meeting scheduled for June 17, 2025, in Hong Kong. The meeting will address several key agenda items, including the review of the company’s financial statements for the year ending December 31, 2024, the declaration of a final dividend, the re-election of retiring directors, and the re-appointment of KPMG as the independent auditor. Additionally, the meeting will consider resolutions to authorize the company’s directors to exercise powers related to the issuance of shares and other securities.

Guangdong Investment Limited Reports Q1 2025 Financial Results
Apr 28, 2025

Guangdong Investment Limited reported a slight decrease in revenue by 0.7% for the first quarter of 2025 compared to the same period last year, mainly due to reduced income from its department store, road and bridge, and electric power generation operations. Despite this, the company’s profit before tax increased by 2.0%, and profit attributable to owners rose by 2.5%. The total assets decreased significantly by 29.4%, primarily due to the disposal of Guangdong Land Holdings Limited. The company continues to emphasize corporate governance and transparency by voluntarily releasing quarterly financial information.

Guangdong Investment Schedules Board Meeting for Q1 Financial Review
Apr 14, 2025

Guangdong Investment Limited has announced that its board of directors will meet on April 28, 2025, to review and approve the unaudited financial results for the first quarter of 2025. This meeting is crucial as it will provide insights into the company’s financial health and performance, potentially impacting stakeholders’ decisions and the company’s market positioning.

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: Jun 11, 2025