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Luzhou Xinglu Water (Group) Co., Ltd. Class H (HK:2281)
:2281
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Luzhou Xinglu Water (Group) Co., Ltd. Class H
(2281)
Select Model
Select Model
Rating:75Outperform
Price Target:
HK$1.00
▲(26.58% Upside)
The stock of Luzhou Xinglu Water (Group) Co., Ltd. scores well due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest it is undervalued. Technical indicators show a positive trend, supporting a bullish outlook. Financial performance is solid, though there are areas for improvement in cash flow conversion and cost management.
Luzhou Xinglu Water (Group) Co., Ltd. Class H (2281) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$679.17M
Dividend Yield5.57%
Average Volume (3M)206.13K
Price to Earnings (P/E)3.4
Beta (1Y)0.40
Revenue Growth6.42%
EPS Growth-4.80%
CountryHK
Employees867
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.09
Shares Outstanding214,940,000
10 Day Avg. Volume168,700
30 Day Avg. Volume206,133
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.17
Price to Sales (P/S)0.36
P/FCF Ratio2.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$1.00Price Target Upside26.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Luzhou Xinglu Water (Group) Co., Ltd. Class H Business Overview & Revenue Model
Company DescriptionLuzhou Xinglu Water (Group) Co., Ltd., together with its subsidiaries, operates as an integrated municipal water service provider in in Sichuan Province, the People's Republic of China. The company operates in two segments, Tap Water Supply and Wastewater Treatment. It is involved in the water supply; trading; construction; software research, development, and sale; and pipeline installation activities, as well as provision of technology services. As of December 31, 2021, the company owned and operated twelve tap water plants with a daily supply capacity of approximately 774,000 tons; and 9 wastewater treatment plants with an daily treatment capacity of 397,000 tons per day. It serves urban and rural residents, industrial and commercial users, local governments, and other institutions. The company was founded in 1958 and is headquartered in Luzhou, the People's Republic of China. Luzhou Xinglu Water (Group) Co., Ltd. is a subsidiary of Luzhou City Xinglu Investment Group Co., Ltd.
How the Company Makes MoneyThe company generates revenue primarily through the sale of bottled water products, which includes both retail and bulk sales to distributors and retailers. Key revenue streams also include water treatment services and environmental management solutions offered to municipal and industrial clients. Additionally, Luzhou Xinglu Water has established significant partnerships with local governments and organizations, allowing them to secure long-term contracts for water supply and management services, thus ensuring a steady flow of income. The company also invests in marketing and brand development to enhance its market presence and expand its customer base.
Luzhou Xinglu Water (Group) Co., Ltd. Class H Financial Statement Overview
Summary
Luzhou Xinglu Water (Group) Co., Ltd. demonstrates a solid financial position with improving revenue growth and leverage management. While profitability margins are generally healthy, there are signs of cost pressures. Cash flow generation is improving, but further enhancements in cash conversion are needed to strengthen financial resilience.Income Statement
The company shows a stable revenue growth rate of 5.32% in the latest year, recovering from a previous decline. Gross profit margin remains healthy at 34.79%, and net profit margin is solid at 13.32%. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, indicating potential cost pressures.72
Positive
Balance Sheet
The debt-to-equity ratio has improved to 0.69, indicating better leverage management. Return on equity is moderate at 6.05%, showing room for improvement. The equity ratio is stable, reflecting a balanced asset structure.68
Positive
Cash Flow
Free cash flow growth is strong at 48.57%, indicating improved cash generation. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting income to cash. The free cash flow to net income ratio is improving but still indicates room for enhancement.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.33B | 1.29B | 1.35B | 1.37B | 1.21B |
| Gross Profit | 464.60M | 462.82M | 444.33M | 494.02M | 568.59M | 528.75M |
| EBITDA | 343.54M | 322.28M | 670.95M | 695.89M | 721.51M | 619.83M |
| Net Income | 184.81M | 177.24M | 209.90M | 203.22M | 241.93M | 247.22M |
Balance Sheet | ||||||
| Total Assets | 7.29B | 7.19B | 7.05B | 7.14B | 7.07B | 7.22B |
| Cash, Cash Equivalents and Short-Term Investments | 634.03M | 447.18M | 390.51M | 609.76M | 871.74M | 1.04B |
| Total Debt | 3.00B | 2.03B | 2.09B | 2.39B | 1.63B | 2.88B |
| Total Liabilities | 4.10B | 4.04B | 4.04B | 4.30B | 4.41B | 4.89B |
| Stockholders Equity | 2.97B | 2.93B | 2.80B | 2.64B | 2.48B | 2.18B |
Cash Flow | ||||||
| Free Cash Flow | 93.12M | 183.72M | 86.54M | -81.15M | -217.16M | -640.44M |
| Operating Cash Flow | 233.83M | 536.25M | 609.19M | 597.24M | 537.20M | -42.86M |
| Investing Cash Flow | -132.20M | -344.01M | -477.04M | -678.33M | -750.76M | -563.33M |
| Financing Cash Flow | -152.68M | -135.56M | -351.40M | -180.90M | 49.12M | 567.41M |
Luzhou Xinglu Water (Group) Co., Ltd. Class H Technical Analysis
Positive
0.79
Price Trends
0.76
Positive
0.68
Positive
0.62
Positive
Market Momentum
<0.01
Negative
57.87
Neutral
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2281, the sentiment is Positive. The current price of 0.79 is above the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.76, and above the 200-day MA of 0.62, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2281.
Luzhou Xinglu Water (Group) Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$679.17M | 3.40 | 6.36% | 5.57% | 6.42% | -4.80% | |
70 Outperform | HK$876.66M | 5.00 | 2.83% | ― | 3.04% | 6.91% | |
64 Neutral | HK$740.96M | 2.78 | 5.03% | ― | -9.45% | -17.46% | |
49 Neutral | HK$72.50M | -3.38 | -12.40% | ― | -8.34% | -13.24% | |
48 Neutral | HK$676.45M | -1.06 | -40.48% | ― | -43.38% | -25.63% | |
39 Underperform | HK$230.29M | -0.11 | -17.05% | ― | -5.97% | -50.72% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.79
0.16
25.40%
DE:27K
Kangda International Environmental Co Ltd
0.04
0.02
100.00%
DE:2WI
Yunnan Water Investment Co., Limited Class H
0.02
0.01
100.00%
HK:1129
China Water Industry Group Limited
1.02
0.28
37.84%
HK:1542
Taizhou Water Group Co., Ltd. Class H
1.45
-1.29
-47.08%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.72
0.06
9.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.