China Water Industry Group Limited (1129) AI Stock Analysis

• Market Cap: HK$189.66M
• Dividend Yield: N/A
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -43.38%
• EPS Growth: -25.63%
• Country: HK
• Employees: 376
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): -0.11
• Shares Outstanding: 632,193,900
• 10 Day Avg. Volume: 496,240
• 30 Day Avg. Volume: 2,747,000
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -14.79
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.35 ▲(25.36% Upside)

China Water Industry Group Limited faces significant financial and technical challenges. The most impactful factor is the weak financial performance, characterized by declining revenue, profitability issues, and high leverage. Technical analysis further indicates bearish momentum, while the valuation highlights concerns with a negative P/E ratio and no dividend yield. These factors collectively suggest a precarious investment outlook.

Positive Factors

Strategic Collaborations

Partnerships can enhance technological capabilities and expand market reach, providing a competitive edge in securing new contracts and projects.

Government Support

Government subsidies and partnerships provide financial support, reducing risk and enhancing the company's ability to undertake large infrastructure projects.

Industry Role

The company's focus on water scarcity and pollution positions it as a key player in a critical industry, ensuring long-term demand for its services.

Negative Factors

Declining Revenue

Declining revenue indicates reduced market demand or operational challenges, potentially impacting long-term financial stability and growth.

High Leverage

High leverage increases financial risk and may limit the company's ability to invest in growth opportunities or weather economic downturns.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and financial strain, potentially hindering the company's ability to reinvest or pay down debt.

China Water Industry Group Limited Business Overview & Revenue Model

Company Description

China Water Industry Group Limited, an investment holding company, provides water supply and sewage treatment services in the People's Republic of China. It operates through Provision of Water Supply, Sewage Treatment and Construction Services; Exploitation and Sale of Renewable Energy; and Property Investment and Development segments. The company also constructs water supply and sewage treatment infrastructure activities, including water meter installation, infrastructure and pipeline construction, and repair. In addition, it is involved in the installation of water supply facilities; and provision of information, environmental and product testing, renewable energy technology development, trading, water pipeline network design, glass recycling, and administrative services. Further, the company engages in the exploitation, production, generation, and sale of electricity and compressed natural gas from biogas power plants, as well as purified and drinking systems; and operation of landfill gas power generation plant. It develops and sells commercial and residential units. The company was formerly known as Sky Hawk Computer Group Limited and changed its name to China Water Industry Group Limited in November 2006. China Water Industry Group Limited is headquartered in Sheung Wan, Hong Kong.

How the Company Makes Money

China Water Industry Group generates revenue primarily through its water supply and wastewater treatment services. The company earns money by entering into contracts with local governments and industrial clients to build, operate, and maintain water treatment plants. Key revenue streams include fees for water supply, service contracts for wastewater treatment, and maintenance services. Additionally, the company may benefit from government subsidies and public-private partnerships, which provide financial support for infrastructure projects. Strategic collaborations with other firms in the industry also enhance its capabilities and market reach, further contributing to its earnings.

China Water Industry Group Limited Financial Statement Overview

Summary

The company faces substantial financial challenges with declining revenue, profitability issues, high leverage, and negative cash flows. These factors indicate financial instability and a need for strategic restructuring.

Income Statement

The company's income statement indicates significant challenges, with declining total revenue from 2020 through 2024. The gross profit margin has decreased, reaching 16.23% in 2024 from 39.76% in 2020. The company has been consistently unprofitable, as evidenced by negative net income and EBIT margins. Revenue growth has been negative, with a notable decline of 27% from 2023 to 2024. These factors suggest financial instability and profitability issues.

Balance Sheet

The balance sheet shows a mixed scenario. The debt-to-equity ratio increased to 1.01 in 2024, indicating higher leverage and financial risk. However, the equity ratio remains relatively stable at 34.34%, suggesting a reasonable proportion of assets financed by equity. Return on equity is negative due to continuous losses, which is a concern for investors. The company may face liquidity challenges given the substantial liabilities.

Cash Flow

The cash flow analysis reveals significant weaknesses. Free cash flow has been negative in recent years, highlighting liquidity issues. Operating cash flow has declined from positive figures in 2020 to zero in 2024, indicating potential operational inefficiencies. The absence of free cash flow growth further emphasizes financial strain, impacting the company’s ability to reinvest or distribute dividends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.49M	536.63M	733.79M	1.22B	1.10B	1.13B
Gross Profit	38.88M	87.13M	184.20M	357.61M	420.53M	449.26M
EBITDA	44.44M	-80.23M	27.64M	264.53M	300.42M	443.67M
Net Income	-303.08M	-322.28M	-243.45M	-89.20M	-44.02M	11.09M
Balance Sheet
Total Assets	2.28B	2.32B	3.37B	3.46B	3.86B	5.63B
Cash, Cash Equivalents and Short-Term Investments	56.24M	32.86M	144.92M	214.56M	308.05M	461.21M
Total Debt	725.08M	807.10M	982.23M	769.90M	849.86M	1.15B
Total Liabilities	1.17B	1.26B	1.73B	1.56B	1.94B	3.43B
Stockholders Equity	857.55M	796.20M	1.13B	1.40B	1.37B	1.41B
Cash Flow
Free Cash Flow	-40.85M	-82.60M	-171.67M	-50.59M	-103.05M	135.45M
Operating Cash Flow	-14.08M	3.42M	29.59M	297.56M	171.58M	490.48M
Investing Cash Flow	75.87M	98.96M	-228.84M	-489.67M	-69.95M	-486.35M
Financing Cash Flow	-106.91M	-212.85M	151.43M	98.55M	-270.88M	32.35M

China Water Industry Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1129, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.46, and below the 200-day MA of 0.43, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1129.

China Water Industry Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2281	75 Outperform	HK$627.59M	3.14	6.36%	6.03%	4.85%	-4.80%
3768	69 Neutral	HK$761.54M	2.86	4.69%	―	-9.45%	-17.46%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
6136	60 Neutral	HK$1.18B	6.34	2.82%	―	3.04%	6.91%
1542	43 Neutral	HK$58.00M	-2.71	-9.98%	―	-8.34%	-13.24%
1129	43 Neutral	HK$189.66M	-0.31	-31.95%	―	-43.38%	-25.63%
6839	42 Neutral	HK$178.98M	-0.09	-514.90%	―	-5.97%	-50.72%

China Water Industry Group Limited Corporate Events

China Water Industry Faces Financial Challenges Amid Loan Default and Bond Repayment Issues

China Water Industry Group Limited is facing a winding-up petition due to a loan default by its subsidiary NCW, which failed to repay a significant outstanding amount. The company has also been accused by bondholders of failing to repay bonds that recently matured. Despite these financial challenges, the board believes it has sufficient resources to settle these debts and is actively working on resolving the disputes with creditors, seeking legal advice, and planning to apply for a court validation order.

The most recent analyst rating on (HK:1129) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Water Industry Group Limited stock, see the HK:1129 Stock Forecast page.

China Water Industry Group Faces Winding-Up Petition and Loan Default Challenges

China Water Industry Group Limited is currently facing a winding-up petition filed by International Finance Corporation, with additional support from creditor Zhao Yuan, due to an outstanding bond debt. The company is actively seeking legal advice and negotiating with creditors to resolve the matter and prevent the winding-up. Additionally, the company is dealing with a loan default situation involving its subsidiary, China Water Industry (HK) Limited, which has been demanded to repay an outstanding loan of HK$50 million by Kingston Finance Limited. The company is exploring options to extend the repayment deadline and is seeking professional advice to address these financial challenges.

The most recent analyst rating on (HK:1129) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Water Industry Group Limited stock, see the HK:1129 Stock Forecast page.

China Water Industry Faces Winding-Up Petition Amidst Creditor Negotiations

China Water Industry Group Limited has received a Notice of Intention to Appear from a creditor, Gao Yuan, supporting a winding-up petition filed by the International Finance Corporation. The company is actively seeking legal advice and negotiating with creditors to resolve the matter and potentially withdraw the petition, while advising shareholders and investors to exercise caution.

The most recent analyst rating on (HK:1129) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Water Industry Group Limited stock, see the HK:1129 Stock Forecast page.

China Water Industry Faces Winding-Up Petition Amid Financial Dispute

China Water Industry Group Limited has received a winding-up petition filed by International Finance Corporation due to an outstanding loan amount. This legal action could impact the company’s operations, as any asset disposition or share transfer post-petition filing may be void without court validation, affecting shareholder transactions and market stability.

The most recent analyst rating on (HK:1129) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Water Industry Group Limited stock, see the HK:1129 Stock Forecast page.

China Water Industry Group Secures 30-Year Waste Processing Deal in Indonesia

China Water Industry Group Limited has entered into a 30-year cooperation agreement with the Semarang Regency Government in Indonesia to implement a waste processing system at the Blondo final processing site. This project will utilize methane gas for power generation, aiming to improve public services in the environmental sector and address waste management challenges in the region.

The most recent analyst rating on (HK:1129) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Water Industry Group Limited stock, see the HK:1129 Stock Forecast page.