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

• Market Cap: HK$65.00M
• Dividend Yield: N/A
• Average Volume (3M): 2.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• 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: 700
• 30 Day Avg. Volume: 2,233
• 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 enterprise in the water supply and sewage treatment sectors in China. The company specializes in providing comprehensive water management solutions, including the production and distribution of potable water, wastewater treatment services, and the development of related infrastructure projects. With a commitment to sustainable practices, Taizhou Water Group aims to improve water quality and promote environmental protection in urban and rural areas.

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 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: Negative
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.34, and below the 200-day MA of 1.45, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 24.52 is Positive, neither overbought nor oversold. The STOCH value of 50.00 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$679.17M	3.40	6.36%	5.87%	6.42%	-4.80%
3768	69 Neutral	HK$926.20M	3.47	4.69%	―	-9.45%	-17.46%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
6136	60 Neutral	€1.06B	5.61	2.82%	―	3.04%	6.91%
1542	43 Neutral	HK$65.00M	―	-9.98%	―	-8.34%	-13.24%
1129	43 Neutral	HK$505.76M	-0.83	-31.95%	―	-43.38%	-25.63%
6839	40 Underperform	€215.97M	―	-514.90%	―	-5.97%	-50.72%

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

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.

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.