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

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HK:1129

China Water Industry Group Limited

(1129)

Rating:51Neutral
Price Target:
HK$0.50
▲(56.25% Upside)
The overall stock score is primarily influenced by the company's weak financial performance and valuation, which are significant concerns. While technical analysis shows some positive momentum, it is overshadowed by the financial instability and lack of profitability.

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 (1129) is a Hong Kong-based investment holding company primarily engaged in water supply and sewage treatment. The company operates through two main segments: Water Supply and Sewage Treatment. Its core services include providing clean water supply, sewage treatment and management, and other related environmental protection services. China Water Industry Group aims to contribute to sustainable urban development and environmental preservation through its comprehensive water solutions.
How the Company Makes MoneyChina Water Industry Group Limited makes money primarily through its water supply and sewage treatment services. Revenue is generated from providing clean water to residential, commercial, and industrial customers and charging fees for sewage treatment services. The company operates water treatment plants and sewage processing facilities, ensuring efficient and reliable service delivery. Additionally, China Water Industry Group may engage in public-private partnerships, working with local governments to manage and improve water infrastructure, which can provide stable revenue streams through long-term service contracts. The company's focus on environmental protection and sustainability initiatives also opens opportunities for government subsidies and incentives, further contributing to its 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
Positive
Last Price0.32
Price Trends
50DMA
0.28
Positive
100DMA
0.27
Positive
200DMA
0.30
Positive
Market Momentum
MACD
<0.01
Positive
RSI
62.62
Neutral
STOCH
45.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1129, the sentiment is Positive. The current price of 0.32 is below the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.28, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1129.

China Water Industry Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$17.06B17.775.60%3.68%6.63%11.55%
51
Neutral
HK$199.14M-31.95%-43.38%-25.63%
€88.12M3.402.82%
€27.06M-514.90%
46
Neutral
HK$65.00M-9.98%5.16%-8.34%-13.24%
HK$636.19M3.196.37%5.95%
68
Neutral
HK$730.67M2.824.69%-9.45%-17.46%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1129
China Water Industry Group Limited
0.36
-0.47
-56.63%
DE:27K
Kangda International Environmental Co Ltd
0.03
<0.01
50.00%
DE:2WI
Yunnan Water Investment Co., Limited Class H
0.02
0.01
100.00%
HK:1542
Taizhou Water Group Co., Ltd. Class H
1.43
-1.27
-47.04%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.74
0.20
37.04%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.73
0.15
25.86%

China Water Industry Group Limited Corporate Events

China Water Industry Reports Significant Revenue Decline in 2025 Interim Results
Aug 28, 2025

China Water Industry Group Limited announced its unaudited interim results for the six months ending June 30, 2025, revealing a significant decline in revenue and gross profit compared to the previous year. Despite a reduction in losses and improved net asset value, the company faces challenges with a 62.65% drop in revenue and a 97.08% decrease in gross profit, impacting its financial positioning and potentially affecting stakeholder confidence.

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 Limited Issues Profit Warning with Improved Net Loss Forecast
Aug 15, 2025

China Water Industry Group Limited has issued a profit warning, indicating an expected improvement in net loss for the first half of 2025 compared to the same period in 2024. The reduction in net loss is attributed to stringent cost control measures, reduced finance costs, and a decrease in impairment losses, despite a decline in revenue from its renewable energy business due to fewer landfill sites in operation and reduced electricity generation. The company is finalizing its financial statements, with results expected to be published on August 28, 2025.

China Water Industry Group Schedules Board Meeting for Interim Results
Aug 15, 2025

China Water Industry Group Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year and consider the recommendation of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

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.

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: Sep 10, 2025