China Water Industry Group Limited (1129) AI Stock Analysis

• Market Cap: HK$556.33M
• Dividend Yield: N/A
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: HK$1.00 ▲(16.28% Upside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining revenue, profitability issues, and high leverage. Technical analysis provides some short-term positive signals, but the overall sentiment remains bearish. Valuation metrics further highlight the company's financial struggles, with a negative P/E ratio and no dividend yield.

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 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 faces significant financial challenges, with declining revenue and profitability, 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: Neutral
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.86 is below the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.68, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, 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
2281	75 Outperform	HK$670.57M	3.36	6.36%	5.57%	6.42%	-4.80%
6136	68 Neutral	€1.13B	5.98	2.82%	―	3.04%	6.91%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
3768	64 Neutral	HK$771.83M	2.89	4.69%	―	-9.45%	-17.46%
1129	47 Neutral	HK$556.33M	―	-31.95%	―	-43.38%	-25.63%
1542	47 Neutral	HK$67.50M	―	-9.98%	―	-8.34%	-13.24%
6839	43 Neutral	HK$225.52M	―	-514.90%	―	-5.97%	-50.72%

China Water Industry Group Limited Corporate Events

China Water Industry Group Explores Strategic Acquisitions

China Water Industry Group Limited has announced its entry into two non-legally binding Memoranda of Understanding for potential acquisitions. These involve acquiring the entire limited partnership interest in a Target Limited Partnership and a 1% equity interest in a Target Company. If these acquisitions proceed, they may constitute a notifiable transaction under the Listing Rules, impacting the company’s market positioning and operations. The company will conduct due diligence and negotiate terms, but the acquisitions are not guaranteed to proceed.

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.

China Water Industry Group Reports Unusual Trading Activity Amid Potential Acquisition Talks

China Water Industry Group Limited has observed unusual movements in its share price and trading volume, but the company states that its operations remain normal with no significant changes in its business or financial position. The company is currently negotiating a potential acquisition of a Chinese firm specializing in intellectual property design and application services, though no final agreement has been reached. Stakeholders are advised to exercise caution as the potential memorandum of understanding may or may not proceed.

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 Reports Significant Revenue Decline in 2025 Interim Results

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

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

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.