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

• Market Cap: HK$71.00M
• Dividend Yield: 5.16%
• Average Volume (3M): 66.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -2.67%
• EPS Growth: -11.08%
• Country: HK
• Employees: 255
• Sector: Utilities
• Sector Strength: 69
• Industry: Regulated Water
• EPS (TTM): -0.32
• Shares Outstanding: 50,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 66
• PEG Ratio: -0.16
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.32
• 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: 5.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: HK$1.50 ▲(5.63%Upside)

The overall stock score reflects significant financial challenges, including declining profitability and high financial risk. Technical indicators show weak momentum, reinforcing a bearish outlook. The negative P/E ratio further emphasizes financial difficulties, resulting in a low valuation score.

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 Co., Ltd. generates revenue through the provision of water supply services to various customer segments, including households, businesses, and industrial entities. The company charges customers for water usage based on metered consumption, applying tiered pricing structures depending on the volume consumed. It also earns money through infrastructure management services, such as the maintenance and operation of water treatment plants and distribution networks. Strategic partnerships with local governments and investments in infrastructure projects contribute to their revenue streams, as do potential ancillary services related to wastewater treatment and environmental management.

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. 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.

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	269.76M	190.70M	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: 1.42
• 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 Negative. The current price of 1.42 is below the 20-day moving average (MA) of 1.43, below the 50-day MA of 1.47, and below the 200-day MA of 1.81, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 30.58 is Neutral, neither overbought nor oversold. The STOCH value of 51.06 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
Sector *	63 Neutral	HK$30.47B	8.37	5.37%	5.31%	-3.09%	4.51%
1542	46 Neutral	HK$71.00M	―	-11.64%	5.16%	-2.67%	-11.08%
27K		€81.25M	3.17	2.85%	―	―	―
2WI		€23.82M	―	-151.78%	―	―	―
1129	41 Neutral	HK$139.08M	―	-33.47%	―	-26.87%	-53.44%
2281		HK$576.01M	3.00	6.20%	6.57%	―	―
3768	61 Neutral	HK$648.34M	2.24	5.17%	―	-13.42%	-18.54%

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

Taizhou Water Group Announces AGM Results and Strategic Appointments

Taizhou Water Group Co., Ltd. announced the results of its Annual General Meeting (AGM) held on June 27, 2025, where all proposed resolutions were passed unanimously. The AGM also saw the appointment of Mr. Ye Xiaofeng as a non-executive director and a change in the composition of the strategy committee, indicating a strategic shift in the company’s governance structure.

Taizhou Water Group Announces Board Composition and Committee Roles

Taizhou Water Group Co., Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, and has established four committees to oversee various aspects of the company’s governance, including remuneration, nomination, audit, and strategy. This announcement reflects the company’s commitment to structured governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

Taizhou Water Group Proposes New Auditor Appointments

Taizhou Water Group Co., Ltd. has announced the proposed appointment of new auditors following the expiration of the terms of its previous auditors, Pan-China Certified Public Accountants LLP and Ernst & Young (EY). Due to regulatory requirements and the maximum permissible term of cooperation, Pan-China did not participate in the new bidding process. Grant Thornton International Ltd. has been selected as the new domestic auditor, while EY will continue as the international auditor. The appointments are subject to shareholder approval and are intended to ensure audit quality and compliance with market standards.

Taizhou Water Group Schedules EGM to Appoint Auditors

Taizhou Water Group Co., Ltd. has announced an extraordinary general meeting (EGM) scheduled for July 18, 2025, to consider key resolutions including the re-appointment of Ernst & Young as the international auditor and the appointment of Grant Thornton International Ltd. as the domestic auditor. These appointments are significant for maintaining the company’s financial oversight and ensuring compliance with international and domestic auditing standards, which could impact stakeholder confidence and the company’s operational integrity.

Taizhou Water Group Faces Delay in Auditor Appointment

Taizhou Water Group Co., Ltd. announced a delay in the appointment of its international auditors due to unforeseen circumstances during the bidding process. The disqualification of one of the bidding firms led to an insufficient number of qualified bidders, necessitating a relaunch of the tender process. This delay means that the appointment of auditors cannot be finalized in time for the upcoming annual general meeting, impacting the company’s compliance with regulatory requirements.

Taizhou Water Group Announces AGM with Key Resolutions

Taizhou Water Group Co., Ltd. has announced its upcoming annual general meeting (AGM) scheduled for June 27, 2025, where key resolutions will be discussed and approved. These include the approval of the company’s financial statements for 2024, a decision not to distribute a final dividend for the year, and the appointment of Mr. Ye Xiaofeng as a non-executive director. The AGM will provide shareholders with the opportunity to vote on these matters, impacting the company’s financial planning and governance structure.