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

• Market Cap: HK$58.00M
• Dividend Yield: N/A
• Average Volume (3M): 6.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• 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: 6,033
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$1.00 ▼(-25.93% Downside)

Taizhou Water Group Co., Ltd. Class H faces significant financial and technical challenges. The company's declining profitability, high leverage, and negative cash flows are major concerns. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Government Contracts

Government contracts provide stable revenue streams and support for expansion, enhancing long-term growth prospects and financial stability.

Sustainable Practices

Commitment to sustainability aligns with global environmental trends, potentially attracting eco-conscious investors and partners, supporting long-term growth.

Technological Investments

Investments in technology enhance operational efficiency, reducing costs and potentially improving margins, supporting long-term profitability.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term financial health.

Declining Profitability

Declining profitability indicates operational inefficiencies, which could hinder future growth and shareholder returns if not addressed.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to invest in growth opportunities and meet financial obligations, affecting long-term viability.

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

Company Description

Taizhou Water Group Co., Ltd. Class H (1542) is a leading provider in the water supply and wastewater treatment sectors in China. The company specializes in the production, distribution, and management of water resources, including municipal water supply, industrial water supply, and sewage treatment services. With a focus on sustainable water management solutions, Taizhou Water Group aims to enhance the quality of water services while promoting environmental protection and resource conservation.

How the Company Makes Money

The company generates revenue primarily through its water supply and wastewater treatment services. Key revenue streams include fees charged for municipal water supply to residential and commercial customers, as well as charges for the treatment and disposal of wastewater from various industries. Additionally, Taizhou Water Group may engage in infrastructure projects, receiving funding or contracts from government entities for the construction and maintenance of water treatment facilities and pipelines. Strategic partnerships with local governments and private enterprises also play a significant role in securing contracts and expanding its market reach, further contributing to its overall earnings.

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

Summary

Taizhou Water Group Co., Ltd. Class H faces several financial challenges. The 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	575.36M	600.80M	606.35M	542.66M	520.28M	483.80M
Gross Profit	108.75M	124.48M	144.77M	211.28M	226.60M	204.19M
EBITDA	228.87M	242.49M	265.19M	236.18M	255.20M	230.07M
Net Income	-79.18M	-95.58M	-84.00M	55.92M	120.31M	103.07M
Balance Sheet
Total Assets	5.64B	5.70B	5.90B	5.74B	4.86B	3.50B
Cash, Cash Equivalents and Short-Term Investments	291.36M	321.26M	450.91M	271.53M	194.63M	230.37M
Total Debt	3.84B	3.67B	3.56B	3.21B	2.76B	1.98B
Total Liabilities	4.69B	4.72B	4.83B	4.57B	3.73B	2.48B
Stockholders Equity	748.61M	770.66M	872.27M	943.90M	923.17M	835.63M
Cash Flow
Free Cash Flow	-14.72M	-116.70M	-56.06M	-139.48M	-527.63M	-546.48M
Operating Cash Flow	149.48M	232.06M	212.92M	244.85M	245.43M	154.50M
Investing Cash Flow	-148.54M	-340.63M	-259.07M	-457.59M	-934.49M	-701.47M
Financing Cash Flow	-28.84M	-18.00M	224.26M	291.79M	649.40M	512.99M

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

• Technical Analysis Sentiment: Neutral
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 1.35 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.24, and below the 200-day MA of 1.40, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 35.90 is Neutral, neither overbought nor oversold. The STOCH value of 29.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$627.59M	3.14	6.36%	6.03%	4.85%	-4.80%
3768	69 Neutral	HK$761.54M	2.86	4.69%	―	-9.45%	-17.46%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
6136	60 Neutral	HK$1.18B	6.34	2.82%	―	3.04%	6.91%
1542	43 Neutral	HK$58.00M	-2.71	-9.98%	―	-8.34%	-13.24%
1129	43 Neutral	HK$189.66M	-0.31	-31.95%	―	-43.38%	-25.63%
6839	42 Neutral	HK$178.98M	-0.09	-514.90%	―	-5.97%	-50.72%

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

Taizhou Water Group Drops Plan for Proposed Investment Fund

Taizhou Water Group Co., Ltd. has decided not to proceed with a previously proposed major and connected transaction involving the establishment of an investment fund, confirming that no binding agreements had been signed in relation to the plan. The board stated that terminating the proposed fund partnership will not have any material adverse impact on the group’s business operations or financial position, suggesting that the withdrawal should not significantly alter its current strategic or financial outlook for stakeholders.

The most recent analyst rating on (HK:1542) stock is a Hold with a HK$1.00 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 Delays Shareholder Circular on Debt Issue, Capital Increase and Fund Investment

Taizhou Water Group Co., Ltd. has announced a delay in sending to shareholders a circular that was originally scheduled for dispatch on 30 December 2025, relating to several key corporate actions including the proposed appointment of a non-executive director to the board and nomination committee, the private placement of 2025 debt financing notes, authorisation for the board to handle matters connected to that issuance, an increase in the registered capital of its subsidiary Binhai Water, and a major and connected transaction involving the establishment of an investment fund. The company said additional time is needed to prepare and finalise information to be included in the circular, and now expects to dispatch the document on or before 31 January 2026, indicating a short procedural delay in securing shareholder approval for these financing, governance and investment initiatives but no change in their underlying strategic direction.

The most recent analyst rating on (HK:1542) stock is a Hold with a HK$1.00 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 Announces Strategic Initiatives to Strengthen Financial Position

Taizhou Water Group Co., Ltd. has announced several strategic initiatives, including the proposed appointment of Mr. Yang as a non-executive director and member of the nomination committee. Additionally, the company plans to issue debt financing notes through private placement and increase the registered capital of its subsidiary, Binhai Water, by RMB300 million. Furthermore, the company intends to establish a fund in partnership with several investment entities, with a proposed size of RMB1.01 billion, where Taizhou Water Group will contribute approximately 19.8% of the total capital. These moves are aimed at strengthening the company’s financial position and expanding its market presence.

The most recent analyst rating on (HK:1542) stock is a Hold with a HK$1.00 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 Announces Passing of Non-Executive Director

Taizhou Water Group Co., Ltd. announced the passing of Mr. Yang Yide, a non-executive director, on October 23, 2025. Mr. Yang, who served as a director since March 2011, was recognized for his dedication and contributions to the company. His passing reduces the board’s size from fifteen to fourteen members and the nomination committee from seven to six members. The company plans to announce a replacement for the vacancy in due course.

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 Announces Board Composition and Committee Assignments

Taizhou Water Group Co., Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has also established four committees: Remuneration, Nomination, Audit, and Strategy, with specific directors assigned to each committee. This announcement provides clarity on the governance structure of the company, which could impact its strategic direction and operational efficiency.

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.