China Water Affairs Group Limited (HK:0855)
:0855
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China Water Affairs Group
(0855)
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Rating:63Neutral
Price Target:
HK$5.50
▲(3.19% Upside)
Action:ReiteratedDate:10/01/25
The overall stock score of 63 reflects the company's stable operational efficiency but highlights concerns about declining revenue growth and high leverage. The technical indicators suggest a bearish trend, although the stock might be undervalued based on its P/E ratio and offers an attractive dividend yield. The lack of earnings call data and corporate events means these factors did not influence the score.
Positive Factors
Concession-style, regulated revenue
Long-term concession/BOO/BOT arrangements with municipal counterparts create predictable, recurring revenue and embed regulatory tariff frameworks. This durable contract structure reduces demand volatility risk, supports long-term planning, and underpins stable cash flow visibility over multiple years.
Negative Factors
Declining revenue trend
A persistent decline in reported revenue (-9% growth) signals structural demand or pricing pressures in key service areas. Over months this reduces cash flow available for maintenance and expansion, undermines scale benefits, and complicates debt servicing and long-term investment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Concession-style, regulated revenue
Long-term concession/BOO/BOT arrangements with municipal counterparts create predictable, recurring revenue and embed regulatory tariff frameworks. This durable contract structure reduces demand volatility risk, supports long-term planning, and underpins stable cash flow visibility over multiple years.
Read all positive factors
China Water Affairs Group (0855) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$8.16B
Dividend Yield5.22%
Average Volume (3M)1.69M
Price to Earnings (P/E)4.2
Beta (1Y)0.66
Revenue Growth-9.02%
EPS Growth-39.00%
CountryHK
Employees11,400
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.35
Shares Outstanding1,632,322,400
10 Day Avg. Volume2,145,065
30 Day Avg. Volume1,693,888
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)0.83
Price to Sales (P/S)0.94
P/FCF Ratio73.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.72
Revenue Forecast (FY)HK$9.69B
China Water Affairs Group Business Overview & Revenue Model
Company Description
China Water Affairs Group Limited, an investment holding company, engages in the water supply, environmental protection, and property businesses in the People's Republic of China. It operates through City Water Supply Operation and Construction, E...
How the Company Makes Money
The company primarily makes money by operating water supply businesses and charging users for water delivered through its distribution networks. Key revenue streams generally include: (1) Water supply and distribution revenue: recurring income fro...
China Water Affairs Group Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.66B | 12.86B | 14.19B | 12.95B | 10.35B |
| Gross Profit | 4.40B | 4.78B | 5.35B | 4.96B | 4.34B |
| EBITDA | 4.72B | 5.15B | 5.51B | 5.03B | 4.42B |
| Net Income | 1.07B | 1.53B | 1.86B | 1.89B | 1.69B |
Balance Sheet | |||||
| Total Assets | 65.89B | 63.24B | 61.16B | 57.06B | 47.04B |
| Cash, Cash Equivalents and Short-Term Investments | 4.78B | 5.30B | 7.64B | 7.17B | 4.94B |
| Total Debt | 25.64B | 25.22B | 25.24B | 23.54B | 19.14B |
| Total Liabilities | 44.02B | 41.79B | 39.79B | 36.58B | 30.13B |
| Stockholders Equity | 13.17B | 12.79B | 12.99B | 12.97B | 10.51B |
Cash Flow | |||||
| Free Cash Flow | 149.70M | -2.36B | -948.69M | -166.82M | -1.02B |
| Operating Cash Flow | 3.39B | 2.78B | 3.68B | 3.88B | 2.84B |
| Investing Cash Flow | -2.87B | -5.43B | -4.11B | -4.21B | -3.98B |
| Financing Cash Flow | -438.20M | 605.35M | 1.87B | 2.58B | -518.06M |
China Water Affairs Group Technical Analysis
Negative
5.33
Price Trends
5.34
Negative
5.50
Negative
5.79
Negative
Market Momentum
-0.13
Positive
40.94
Neutral
35.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0855, the sentiment is Negative. The current price of 5.33 is above the 20-day moving average (MA) of 5.20, below the 50-day MA of 5.34, and below the 200-day MA of 5.79, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 35.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0855.
China Water Affairs Group Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$576.01M | 1.91 | 6.27% | 6.03% | 4.85% | -4.80% | |
70 Outperform | HK$1.73B | 1.83 | 2.82% | ― | 3.04% | 6.91% | |
69 Neutral | HK$648.34M | 3.87 | 3.62% | ― | -9.45% | -17.46% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$52.17B | 3.97 | 8.14% | 4.96% | -37.73% | 13.53% | |
63 Neutral | HK$8.16B | 4.22 | 6.61% | 5.22% | -9.02% | -39.00% | |
60 Neutral | HK$27.84B | 13.49 | 5.58% | 6.48% | 9.77% | -0.62% |
* Utilities Sector Average
HK:0855
China Water Affairs Group
5.00
-0.67
-11.86%
HK:0371
Beijing Enterprises Water Group
2.78
0.61
28.23%
HK:0270
Guangdong Investment
7.98
2.56
47.26%
HK:6136
Kangda International Environmental Co Ltd
0.75
0.45
150.00%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.67
0.17
34.00%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.63
0.09
16.67%
China Water Affairs Group Corporate Events
China Water Affairs Plans HK$925 Million Warrant-Linked Fundraising for Debt Repayment
Apr 1, 2026
China Water Affairs Group has entered into a placing agreement with First Shanghai Securities to issue up to 130 million non-listed warrants at HK$0.10 each, exercisable over 36 months into an equal number of new shares at an initial exercise pric...
China Water Affairs posts overseas notice on partial 2026 note repurchase
Mar 25, 2026
China Water Affairs Group has issued an overseas regulatory announcement in Hong Kong to mirror an earlier disclosure in Singapore regarding the partial repurchase and cancellation of its 4.85% senior notes due 2026. The move aims to ensure equal ...
China Water Affairs Cuts Utilisation but Maintains Headroom in Direct Drinking Water JV Caps
Feb 27, 2026
China Water Affairs Group has issued a supplemental announcement explaining revisions to its annual transaction caps for continuing connected transactions with a joint venture that supplies pipeline direct drinking water products. The group notes ...
China Water Affairs Renews Connected Supply Deal With Water Technology JV
Feb 9, 2026
China Water Affairs Group has renewed its arrangements for sourcing water-related equipment and services from a key joint venture subsidiary, as Silver Dragon and the JV Company signed a new framework agreement. The JV Company, backed by partners ...
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.