Guangdong Investment (0270) AI Stock Analysis

• Market Cap: $46.03B
• Dividend Yield: 4.46%
• Average Volume (3M): 8.87M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.83
• Revenue Growth: -23.53%
• EPS Growth: 0.65%
• Country: HK
• Employees: 10,759
• Sector: Utilities
• Sector Strength: 87
• Industry: Regulated Water
• EPS (TTM): 0.26
• Shares Outstanding: 6,537,821,300
• 10 Day Avg. Volume: 6,354,678
• 30 Day Avg. Volume: 8,874,259
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $6.99
• Price Target Upside: -0.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: HK$7.00 ▼(-0.14% Downside)

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 Business Overview & Revenue Model

Company Description

Guangdong Investment Limited (0270) is a Hong Kong-based investment holding company primarily engaged in the operations of water resources, property investment and development, department stores, hotel operations, and energy projects. The company is known for its leadership in the water supply business in China and has diversified its portfolio to include real estate, infrastructure, and energy sectors.

How the Company Makes Money

Guangdong 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 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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.51B	24.20B	23.20B	29.72B	23.17B
Gross Profit	9.82B	10.08B	9.82B	11.64B	9.38B
EBITDA	9.28B	8.38B	10.12B	10.93B	9.89B
Net Income	3.14B	3.12B	4.76B	4.70B	4.51B
Balance Sheet
Total Assets	135.60B	139.97B	133.51B	130.03B	89.60B
Cash, Cash Equivalents and Short-Term Investments	12.15B	12.59B	9.52B	10.06B	10.48B
Total Debt	24.66B	43.03B	41.38B	29.77B	11.73B
Total Liabilities	78.92B	81.94B	75.01B	68.13B	33.64B
Stockholders Equity	41.66B	41.80B	43.33B	46.21B	44.23B
Cash Flow
Free Cash Flow	9.67B	9.93B	-5.58B	-9.34B	-640.92M
Operating Cash Flow	9.53B	10.71B	-2.68B	-5.37B	2.25B
Investing Cash Flow	-4.17B	-1.85B	-5.91B	-5.61B	-1.85B
Financing Cash Flow	-4.68B	-5.30B	9.54B	10.75B	-1.58B

Guangdong Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 7.01 is below the 20-day moving average (MA) of 7.03, above the 50-day MA of 6.79, and above the 200-day MA of 6.02, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 64.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0270.

Guangdong Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0855	76 Outperform	HK$10.19B	9.47	8.28%	6.57%	-9.36%	-29.90%
6136	72 Outperform	HK$834.50M	4.52	2.85%	―	0.08%	31.12%
0270	69 Neutral	$46.03B	14.65	9.81%	4.46%	-23.53%	0.65%
3768	68 Neutral	HK$730.67M	2.56	5.17%	―	-13.42%	-18.54%
Sector *	62 Neutral	HK$30.30B	9.31	5.05%	4.60%	-3.25%	1.36%
0371	61 Neutral	$27.04B	15.93	5.86%	6.08%	7.33%	-7.17%

Guangdong Investment Corporate Events

Guangdong Investment Signs 2025 Support Services Framework Agreement

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

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

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

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

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.