China Water Industry Group Limited (1129) AI Stock Analysis

• Market Cap: HK$158.05M
• Dividend Yield: N/A
• Average Volume (3M): 31.79K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -26.87%
• EPS Growth: -53.44%
• Country: HK
• Employees: 376
• Sector: Utilities
• Sector Strength: 82
• Industry: Regulated Water
• EPS (TTM): -1.07
• Shares Outstanding: 574,721,900
• 10 Day Avg. Volume: 50,740
• 30 Day Avg. Volume: 31,785
• PEG Ratio: <0.01
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.03
• 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

China Water Industry Group Limited's stock is currently facing significant challenges. The primary concern is the financial performance, with declining revenues, profitability issues, and high leverage creating a precarious situation. Technical analysis provides a slightly better outlook with some short-term improvements, but the overall trend remains uncertain. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, further reducing the stock's attractiveness. These factors culminate in a below-average stock score, emphasizing the need for the company to address its financial instability to improve its market position.

China Water Industry Group Limited Business Overview & Revenue Model

Company Description

China Water Industry Group Limited is a Hong Kong-based investment holding company that primarily operates in the water supply, sewage treatment, and environmental protection industries. The company engages in the construction and operation of water supply and sewage treatment facilities, as well as providing related technical and consultancy services. It aims to enhance the infrastructure for water and wastewater management to promote sustainable urban development.

How the Company Makes Money

China Water Industry Group Limited generates revenue through several key streams. The primary source of income is from the operation and management of water supply and sewage treatment facilities. The company charges local governments and private entities for the provision of clean water and for treating wastewater. Additionally, the company earns from construction contracts related to building new facilities and expanding existing infrastructure. Consultancy services offered in the environmental sector also contribute to its revenue. Strategic partnerships with local governments and other enterprises help secure long-term contracts and grants, which are significant factors in the company's earnings.

China Water Industry Group Limited Financial Statement Overview

Summary

Overall, China Water Industry Group Limited faces substantial financial challenges. The declining revenue and profitability, coupled with high leverage and negative cash flows, indicate a need for strategic restructuring to enhance financial health. The company's financial position is precarious, requiring careful management to mitigate risks and improve performance.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
536.63M	733.79M	1.22B	1.10B	1.13B
	Gross Profit
87.13M	184.20M	357.61M	420.53M	449.26M
	EBIT
-115.83M	-131.97M	31.45M	100.83M	196.39M
	EBITDA
-80.23M	27.42M	264.53M	300.42M	443.67M
	Net Income Common Stockholders
-322.28M	-243.45M	-89.20M	-44.02M	11.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.86M	144.92M	214.56M	308.05M	461.21M
	Total Assets
2.32B	3.37B	3.46B	3.86B	5.63B
	Total Debt
807.10M	982.23M	769.90M	849.86M	1.15B
	Net Debt
785.51M	849.41M	585.45M	558.50M	716.09M
	Total Liabilities
1.26B	1.73B	1.53B	1.90B	3.40B
	Stockholders Equity
796.20M	1.13B	1.40B	1.37B	1.41B
Cash Flow		Free Cash Flow
0.00	-171.67M	-50.59M	-103.05M	135.45M
	Operating Cash Flow
0.00	29.59M	297.56M	171.58M	490.48M
	Investing Cash Flow
0.00	-228.84M	-489.67M	-68.43M	-424.35M
	Financing Cash Flow
0.00	151.43M	98.55M	-224.32M	-3.97M

China Water Industry Group Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1129, the sentiment is Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.28, and below the 200-day MA of 0.50, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 95.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6823	77 Outperform	HK$85.65B	16.89	13.76%	8.07%	1.23%	1.58%
0855	76 Outperform	HK$9.60B	6.56	11.34%	4.77%	-16.07%	-14.55%
Sector *	63 Neutral	$8.43B	10.33	5.35%	4.38%	3.61%	-11.54%
3999	58 Neutral	€650.36M	30.33	0.92%	―	-8.33%	-69.38%
0636	58 Neutral	HK$12.72B	8.24	8.04%	3.68%	22.92%	27.65%
3718	56 Neutral	HK$1.19B	42.95		8.06%	―	―
1129	47 Neutral	HK$158.05M	―	-33.47%	―	-26.87%	-53.44%

China Water Industry Group Limited Corporate Events

China Water Industry Group Reports Significant Financial Decline in 2024

China Water Industry Group Limited reported a significant decline in its financial performance for the year ended December 31, 2024, with a 28.35% drop in revenue and a 52.27% decrease in gross profit compared to the previous year. The company also experienced a substantial increase in its net loss, which rose by 56.35% to HK$334,025,000. These results reflect challenges in the company’s operations, potentially impacting its market position and stakeholder confidence.

China Water Industry Group Expands Green Energy Initiatives in Indonesia

China Water Industry Group Limited has signed a memorandum of understanding with the Sidoarjo Regency Government in Indonesia for a potential cooperation on a Landfill Gas-To-Energy system project. This initiative aims to generate 3 megawatts of electricity, reduce greenhouse gas emissions, and promote sustainable resource use, marking a significant step in the company’s expansion in Indonesia and enhancing its financial performance.

China Water Industry Group Issues Profit Warning Amid Renewable Energy Challenges

China Water Industry Group Limited has issued a profit warning, indicating an expected increase in net loss for the fiscal year 2024 compared to 2023. The anticipated loss of up to HK$390 million is attributed to decreased revenue and gross profit from its renewable energy business, primarily due to fewer landfill sites in operation and reduced on-grid electricity generation. Despite these challenges, the company has implemented cost control measures and recognized other operating income, partially offsetting the losses. The final annual results are pending and will be disclosed in March 2025.

China Water Industry Group Explores Overseas Expansion with Indonesian Landfill Project

China Water Industry Group Limited has entered into a memorandum of understanding with the Semarang Regency Government in Indonesia to potentially manage a landfill site. This initiative aims to utilize landfill gas for power generation and improve waste management, marking the company’s first greenfield development project overseas, and is expected to contribute to sustainable environmental development and business growth.

China Water Industry Group Schedules Board Meeting for Annual Results and Dividend Decision

China Water Industry Group Limited has announced a Board meeting scheduled for March 28, 2025, to approve the audited annual results for the year ending December 31, 2024, and to consider the recommendation of a final dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and investor confidence.