Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H (1635) AI Stock Analysis

• Market Cap: HK$19.41B
• Dividend Yield: 1.12%
• Average Volume (3M): 89.49M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.13
• Revenue Growth: -6.02%
• EPS Growth: N/A
• Country: HK
• Employees: 2,803
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): N/A
• Shares Outstanding: 533,643,000
• 10 Day Avg. Volume: 84,469,429
• 30 Day Avg. Volume: 89,486,813
• PEG Ratio: 2.65
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -74.90
• 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: 59 Neutral
• Price Target: HK$4.00 ▲(16.28% Upside)

Shanghai Dazhong Public Utilities exhibits stable financial performance with consistent revenue and operational margins. However, moderate profitability and a high P/E ratio suggest potential overvaluation. Technical indicators show mixed signals, with some positive trends but short-term weaknesses. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Stable Financial Profile

The company's stable financial profile with consistent revenue and operational margins indicates a solid foundation for long-term operations and resilience against market fluctuations.

Cash Flow Generation

A strong cash flow conversion ratio indicates efficient operations and the ability to sustain business activities and invest in growth opportunities over the long term.

Effective Cost Management

Robust EBITDA margins reflect effective cost management, which supports profitability and competitive positioning in the regulated utilities sector.

Negative Factors

Low Profitability

Low net profit margins suggest limited profitability, which may hinder the company's ability to reinvest in growth and compete effectively in the long term.

Revenue Contraction

A slight contraction in revenue indicates challenges in market expansion and could impact the company's ability to scale and enhance shareholder value.

Limited Equity Utilization

Modest return on equity suggests inefficient use of shareholder funds, which could limit the company's attractiveness to investors and its ability to raise capital.

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shanghai Dazhong Public Utilities (Group) Co., Ltd., an investment holding company, engages in the piped gas supply and wastewater treatment activities in the People's Republic of China. The company operates four segments: Piped Gas Supply; Wastewater Treatment; Public Infrastructure Projects; and Transportation Services. It sells, distributes, and supplies piped natural gas; constructs and installs gas pipelines; treats wastewater and handles urban wastewater; rents cars, taxies, and tourist cars; and offers freight transport, relocation, liquefied petroleum gas delivery, and tourism services, as well as operates Dazhong Chuxing platform. The company also offers infrastructure investment, construction, operation maintenance, and protection services; public infrastructure project services; and transportation, storage and, postal services, as well as sells gas related products. In addition, it provides financial services, including financial leasing and pre-paid cards; and scientific research and technological services, as well as invests in venture capital enterprises. Further, the company engages in the municipal road operation; agriculture development; payment; assets management; and financial consultancy activities. It owns approximately 6,867 kilometers of natural gas pipeline; and 1,000 operating vehicles. The company was formerly known as Shanghai Pudong Dazhong Taxi Co., Ltd. and changed its name to Shanghai Dazhong Public Utilities (Group) Co., Ltd. in May 2003. Shanghai Dazhong Public Utilities (Group) Co., Ltd. was founded in 1991 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

Shanghai Dazhong Public Utilities generates revenue through multiple key streams. Primarily, the company earns income from the sale of water, natural gas, and sewage treatment services to residential, commercial, and industrial customers. Additionally, revenue is derived from infrastructure construction and maintenance projects related to its utility services. The company may also engage in joint ventures and partnerships with local governments or private entities to expand its service offerings and infrastructure. Regulatory frameworks and tariffs set by government authorities play a significant role in determining pricing, which directly impacts Dazhong's earnings. Furthermore, investments in technological advancements and efficiency improvements help reduce operational costs, contributing positively to its profit margins.

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Financial Statement Overview

Summary

Shanghai Dazhong Public Utilities maintains a stable financial profile with consistent revenue and operational margins. Debt levels are manageable, but profitability metrics suggest moderate returns on equity. Cash flow generation is robust, though the lack of free cash flow data limits full assessment of financial flexibility.

Income Statement

Shanghai Dazhong Public Utilities shows stable gross and EBIT margins with gross profit margin at 15.21% and EBIT margin at 6.77% for 2024. Net profit margin is relatively low at 3.68%, indicating potential cost pressures. Revenue has seen minimal fluctuation, with a slight contraction of 1.08% from 2023, reflecting a stable demand in the regulated utilities sector. However, the EBITDA margin maintains robustness at 16.93%, suggesting effective cost management at the operational level.

Balance Sheet

The company exhibits a moderate debt-to-equity ratio of 0.69 in 2024, indicating a balanced approach to leverage. Return on equity is modest at 2.73%, reflecting limited profitability on shareholder equity. Equity ratio stands at 37.19%, suggesting a stable financial foundation, though there is room for improvement in equity utilization.

Cash Flow

Operating cash flow to net income ratio is strong at 1.74 in 2024, showing efficient cash conversion from income. However, free cash flow growth is not calculable due to missing data, and this limits the assessment of cash flow health. The cash flow profile indicates stable operational cash generation but lacks visibility in cash reinvestment and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.12B	6.34B	6.40B	5.85B	5.54B	4.91B
Gross Profit	1.01B	963.91M	1.01B	838.79M	935.95M	894.65M
EBITDA	851.04M	1.07B	1.05B	378.08M	1.18B	1.47B
Net Income	444.01M	233.15M	212.54M	―	303.36M	515.23M
Balance Sheet
Total Assets	23.03B	22.99B	22.83B	23.58B	24.07B	23.62B
Cash, Cash Equivalents and Short-Term Investments	3.74B	3.52B	3.33B	3.21B	2.53B	2.77B
Total Debt	5.19B	5.93B	8.19B	9.00B	8.72B	7.02B
Total Liabilities	12.57B	12.95B	13.10B	14.01B	14.06B	13.75B
Stockholders Equity	8.90B	8.55B	8.32B	8.24B	8.72B	8.64B
Cash Flow
Free Cash Flow	500.93M	-80.34M	336.44M	132.13M	27.99M	―
Operating Cash Flow	760.64M	405.52M	689.83M	417.43M	674.26M	229.07M
Investing Cash Flow	269.29M	113.09M	397.22M	311.03M	―	―
Financing Cash Flow	-289.73M	-327.44M	-866.52M	136.41M	―	215.14M

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1635, the sentiment is Neutral. The current price of 3.44 is below the 20-day moving average (MA) of 4.00, below the 50-day MA of 4.05, and above the 200-day MA of 2.69, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.16 is Neutral, neither overbought nor oversold. The STOCH value of 0.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1635.

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2886	67 Neutral	HK$1.51B	7.34	8.96%	6.97%	-16.94%	-22.17%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1083	61 Neutral	HK$14.39B	8.39	6.98%	6.12%	3.86%	30.34%
1635	59 Neutral	HK$19.41B	21.74	5.32%	1.12%	-6.02%	―
1600	59 Neutral	HK$2.83B	8.94	4.88%	5.45%	7.55%	-32.06%
1265	49 Neutral	HK$331.08M	-5.68	-3.93%	―	-11.37%	65.17%
3633	48 Neutral	HK$7.67B	50.27	2.04%	0.72%	-7.82%	-38.06%

Shanghai Dazhong Public Utilities (Group) Co., Ltd. Class H Corporate Events

Shanghai Dazhong Public Utilities Releases Q3 2025 Financial Results

Shanghai Dazhong Public Utilities (Group) Co., Ltd. announced its unaudited financial results for the nine months ending September 30, 2025, prepared according to PRC Accounting Standards. The report ensures the accuracy and completeness of the disclosed information, reflecting the company’s commitment to transparency and accountability in its financial reporting.

Shanghai Dazhong Public Utilities Enhances Governance with Revised Nomination Committee Terms

Shanghai Dazhong Public Utilities has revised the terms of reference for its Nomination Committee to enhance the selection and appointment procedures for directors and senior executives. This move aims to strengthen the company’s governance structure and ensure a diverse and skilled board, aligning with its strategic goals and regulatory requirements.

Shanghai Dazhong Public Utilities Schedules Board Meeting for Quarterly Results

Shanghai Dazhong Public Utilities has announced a board meeting scheduled for October 30, 2025, to review and approve the company’s third quarterly results for the period ending September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction.