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China Water Industry Group Limited (HK:1129)
:1129
Hong Kong Market

China Water Industry Group Limited (1129) AI Stock Analysis

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HK

China Water Industry Group Limited

(1129)

Rating:41Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall stock score reflects significant financial and technical challenges. Weak financial performance, bearish technical indicators, and poor valuation metrics are the primary concerns. The absence of positive guidance or corporate events further emphasizes the need for strategic improvements.

China Water Industry Group Limited (1129) vs. iShares MSCI Hong Kong ETF (EWH)

China Water Industry Group Limited Business Overview & Revenue Model

Company DescriptionChina 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 MoneyChina 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
The company's financial performance is weak, with declining revenue, profitability issues, high leverage, and negative cash flows. These factors indicate significant financial challenges and risks.
Income Statement
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue536.63M733.79M1.22B1.10B1.13B
Gross Profit87.13M184.20M357.61M420.53M449.26M
EBITDA-80.23M27.42M264.53M300.42M443.67M
Net Income-322.28M-243.45M-89.20M-44.02M11.09M
Balance Sheet
Total Assets2.32B3.37B3.46B3.86B5.63B
Cash, Cash Equivalents and Short-Term Investments32.86M144.92M214.56M308.05M461.21M
Total Debt807.10M982.23M769.90M849.86M1.15B
Total Liabilities1.26B1.73B1.53B1.90B3.40B
Stockholders Equity796.20M1.13B1.40B1.37B1.41B
Cash Flow
Free Cash Flow-82.60M-171.67M-50.59M-103.05M135.45M
Operating Cash Flow3.42M29.59M297.56M171.58M490.48M
Investing Cash Flow98.96M-228.84M-489.67M-68.43M-424.35M
Financing Cash Flow-212.85M151.43M98.55M-224.32M-3.97M

China Water Industry Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.22
Price Trends
50DMA
0.26
Negative
100DMA
0.27
Negative
200DMA
0.38
Negative
Market Momentum
MACD
-0.01
Positive
RSI
42.49
Neutral
STOCH
58.11
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 0.22 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.26, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 58.11 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€802.40M4.412.85%0.08%31.12%
63
Neutral
HK$30.58B8.235.37%5.32%-3.09%4.51%
61
Neutral
HK$627.76M2.205.17%-13.42%-18.54%
46
Neutral
HK$71.00M-11.64%5.16%-2.67%-11.08%
44
Neutral
€212.39M-151.78%-11.84%-150.45%
41
Neutral
HK$135.92M-33.47%-26.87%-53.44%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1129
China Water Industry Group Limited
0.22
-0.84
-79.25%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.61
-0.05
-7.58%
HK:1542
Taizhou Water Group Co., Ltd. Class H
1.42
-1.42
-50.00%
HK:6136
Kangda International Environmental Co Ltd
0.38
0.14
60.26%
HK:6839
Yunnan Water Investment Co., Limited Class H
0.18
>-0.01
-2.20%

China Water Industry Group Limited Corporate Events

China Water Industry Group Limited Announces Changes to Nomination Committee
Jun 26, 2025

China Water Industry Group Limited announced changes to its Nomination Committee, effective June 26, 2025. Mr. Zhu Yongjun has stepped down as chairman, with Mr. Wong Siu Keung, Joe taking over the role, and Ms. Chu Yin Yin, Georgiana joining as a member. These changes comply with upcoming amendments to Hong Kong’s Listing Rules and aim to improve the committee’s diversity and effectiveness, reflecting the company’s dedication to sound corporate governance.

China Water Industry Group Announces Board Composition
Jun 26, 2025

China Water Industry Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement underscores the company’s commitment to strong governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

China Water Industry Group Limited Forms Nomination Committee
Jun 26, 2025

China Water Industry Group Limited has established a Nomination Committee to oversee the nomination process for board members. This move aims to ensure a structured and transparent approach to board appointments, potentially enhancing corporate governance and aligning with best practices in the industry.

China Water Industry Group Secures Unanimous Shareholder Approval at AGM
Jun 20, 2025

China Water Industry Group Limited announced that all resolutions proposed at their Annual General Meeting on June 20, 2025, were approved by shareholders. This includes the re-election of directors, reappointment of auditors, and granting of mandates for share issuance and repurchase. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

China Water Industry Group Expands Renewable Energy Efforts in Indonesia
Jun 17, 2025

China Water Industry Group Limited has entered into a memorandum of understanding with the government of Pekanbaru City, Indonesia, to collaborate on a Landfill Gas-To-Energy management project. This initiative aims to address environmental issues, reduce greenhouse gas emissions, and provide a stable power supply in the region. The project marks the company’s third collaboration in Indonesia, enhancing its international presence and offering valuable overseas experience, which could improve its financial performance and shareholder returns.

China Water Industry Group Completes Successful Share Placement
Jun 16, 2025

China Water Industry Group Limited has successfully completed the placing of 57,472,000 new shares under a general mandate, raising approximately HK$12.6 million in net proceeds. The company plans to use the majority of these funds for debt repayment and the remainder for general working capital. This strategic move slightly alters the company’s shareholding structure, with new placees now holding 9.09% of the total shares, while ensuring that no new substantial shareholders emerge.

China Water Industry Group Announces New Share Placement for Debt Repayment
Jun 5, 2025

China Water Industry Group Limited has entered into a Placing Agreement to issue new shares, aiming to raise approximately HK$13.1 million. The proceeds will be used primarily for debt repayment and general working capital, reflecting the company’s strategic financial management and market adaptation.

China Water Industry Group Redirects Rights Issue Proceeds to Address Debt
Jun 5, 2025

China Water Industry Group Limited has announced a change in the use of proceeds from its recent rights issue. Initially, the funds were allocated for debt repayment, investment in a biomass gas project, and general working capital. However, due to an increase in outstanding liabilities, the company has decided to redirect the remaining proceeds towards debt repayment. This strategic shift aims to better manage the company’s financial resources and is expected to benefit shareholders without adversely affecting current operations.

China Water Industry Group Updates Share Option Scheme Details
May 27, 2025

China Water Industry Group Limited has issued a supplemental announcement regarding its annual report for the year ended December 31, 2024. The announcement provides additional information about the company’s share option scheme, revealing that 15,965,397 shares are available for issue, representing approximately 2.78% of the issued shares. This update does not alter any other information in the annual report, and the company’s operations and strategic direction remain unchanged.

China Water Industry Group Schedules AGM to Discuss Key Resolutions
May 6, 2025

China Water Industry Group Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 20, 2025, in Hong Kong. The AGM will address several key resolutions, including the adoption of the company’s financial statements for 2024, re-election of directors, re-appointment of auditors, and authorization for the board to fix remuneration. Additionally, the meeting will consider granting the board the power to issue and deal with unissued shares, which could impact the company’s capital structure and shareholder value.

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 24, 2025