Taizhou Water Group Co., Ltd. Class H (1542) AI Stock Analysis

• Market Cap: HK$67.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -8.34%
• EPS Growth: -13.24%
• Country: HK
• Employees: 255
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): -0.11
• Shares Outstanding: 50,000,000
• 10 Day Avg. Volume: 1,100
• 30 Day Avg. Volume: 1,033
• PEG Ratio: -0.22
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -2.58
• 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: HK$1.50
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$1.50 ▲(11.11% Upside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining profitability and high leverage. Technical indicators suggest a bearish trend, though there may be a short-term rebound opportunity. Valuation metrics are unfavorable due to negative earnings and lack of dividends, further impacting the stock's attractiveness.

Taizhou Water Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Taizhou Water Group Co., Ltd. engages in supplying municipal, tap, and raw water to end-users in Mainland China. It is also involved in installation of water pipelines. The company was founded in 1993 and is headquartered in Taizhou, China.

How the Company Makes Money

Taizhou Water Group generates revenue primarily through its water supply and sewage treatment operations. Key revenue streams include the sale of treated potable water to residential, commercial, and industrial customers, as well as charges for wastewater treatment services provided to municipalities and industries. The company also benefits from government contracts and partnerships for infrastructure development projects, which can provide significant funding and support for expansion efforts. Additionally, ongoing investments in technology and efficiency improvements help reduce operational costs, further enhancing profitability.

Taizhou Water Group Co., Ltd. Class H Financial Statement Overview

Summary

Taizhou Water Group Co., Ltd. Class H faces several financial challenges. The company's income statement reflects declining profitability and stagnating revenue, while the balance sheet shows high leverage, increasing financial risk. Cash flow difficulties are evident, with persistent negative free cash flow and the inability to generate net profits. These factors suggest the need for strategic improvements to enhance financial health and ensure sustainability.

Income Statement

The company has experienced a decline in gross profit margin and net income, resulting in negative net profit margins for the past two years. Revenue growth is stagnating, which may impact future profitability. A key concern is the consistent decline in EBIT and EBITDA margins, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a substantial debt-to-equity ratio, indicating high leverage, which poses a financial risk. Despite this, the equity ratio is moderate, suggesting some level of stability. However, the declining ROE signals challenges in generating profits for shareholders.

Cash Flow

The cash flow situation is concerning, with negative free cash flows due to high capital expenditures. While operating cash flow remains positive, the company struggles to convert this into net income consistently, as evidenced by a low operating cash flow to net income ratio. This indicates potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	600.80M	606.35M	542.66M	520.28M	483.80M
Gross Profit	124.48M	144.77M	211.28M	226.60M	204.19M
EBITDA	242.49M	265.19M	236.18M	255.20M	230.07M
Net Income	-95.58M	-84.00M	55.92M	120.31M	103.07M
Balance Sheet
Total Assets	5.70B	5.90B	5.74B	4.86B	3.50B
Cash, Cash Equivalents and Short-Term Investments	321.26M	450.91M	271.53M	194.63M	230.37M
Total Debt	3.67B	3.56B	3.21B	2.76B	1.98B
Total Liabilities	4.72B	4.83B	4.57B	3.73B	2.48B
Stockholders Equity	770.66M	872.27M	943.90M	923.17M	835.63M
Cash Flow
Free Cash Flow	-116.70M	-56.06M	-139.48M	-527.63M	-546.48M
Operating Cash Flow	232.06M	212.92M	244.85M	245.43M	154.50M
Investing Cash Flow	-340.63M	-259.07M	-457.59M	-934.49M	-701.47M
Financing Cash Flow	-18.00M	224.26M	291.79M	649.40M	512.99M

Taizhou Water Group Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1542, the sentiment is Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.37, and below the 200-day MA of 1.49, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1542.

Taizhou Water Group Co., Ltd. Class H 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%
1542	47 Neutral	HK$67.50M	―	-9.98%	―	-8.34%	-13.24%
1129	47 Neutral	HK$556.33M	―	-31.95%	―	-43.38%	-25.63%
6839	43 Neutral	HK$225.52M	―	-514.90%	―	-5.97%	-50.72%

Taizhou Water Group Co., Ltd. Class H Corporate Events

Taizhou Water Group Reports Interim Financial Results with Reduced Losses

Taizhou Water Group Co., Ltd. reported its interim results for the six months ended June 30, 2025, showing a revenue decrease of 8.5% to approximately RMB274.9 million compared to the same period last year. Despite a reduction in losses compared to the previous year, the company still recorded a loss of RMB24.0 million, with no interim dividend recommended. The financial results reflect ongoing challenges in the company’s operations, impacting its market position and stakeholder interests.

The most recent analyst rating on (HK:1542) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Taizhou Water Group Co., Ltd. Class H stock, see the HK:1542 Stock Forecast page.

Taizhou Water Group Schedules Board Meeting to Discuss Interim Results

Taizhou Water Group Co., Ltd. has announced a forthcoming board meeting scheduled for August 29, 2025. The meeting will focus on approving the interim results for the first half of 2025 and discussing the potential payment of an interim dividend. This announcement indicates the company’s ongoing efforts to maintain transparency with its stakeholders and could have implications for its financial strategy and shareholder returns.