Luzhou Xinglu Water (Group) Co., Ltd. Class H (HK:2281)
:2281
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Luzhou Xinglu Water (Group) Co., Ltd. Class H
(2281)
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Rating:62Neutral
Price Target:
HK$0.73
▲(0.14% Upside)
Action:Downgraded
Date:05/02/26
The score is supported mainly by very attractive valuation (low P/E and high dividend yield) and a stable, moderately leveraged balance sheet with improved free cash flow. Offsetting this are weakening financial performance (declining revenue and margins) and bearish technical signals with the stock trading below key moving averages and negative MACD.
Positive Factors
Improved leverage
Lower debt-to-equity versus 2020 indicates materially reduced financial risk and stronger capital structure. For a utility, moderate leverage around 0.7x supports steady interest coverage, dividend policy and capital spending without acute refinancing stress over the next 2–6 months.
Negative Factors
Falling revenue
A near-term 9% revenue decline signals weakening underlying volume or pricing trends in core operations. For a regulated utility, sustained top-line pressure can translate into lower allowed returns or tightened cash flow, pressuring long-term earnings power and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage
Lower debt-to-equity versus 2020 indicates materially reduced financial risk and stronger capital structure. For a utility, moderate leverage around 0.7x supports steady interest coverage, dividend policy and capital spending without acute refinancing stress over the next 2–6 months.
Read all positive factors
Luzhou Xinglu Water (Group) Co., Ltd. Class H (2281) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$601.80M
Dividend Yield6.03%
Average Volume (3M)155.27K
Price to Earnings (P/E)5.1
Beta (1Y)0.49
Revenue Growth-7.01%
EPS Growth-38.60%
CountryHK
Employees867
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.13
Shares Outstanding214,940,000
10 Day Avg. Volume85,100
30 Day Avg. Volume155,266
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.19
Price to Sales (P/S)0.45
P/FCF Ratio1.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Luzhou Xinglu Water (Group) Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Luzhou 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 Wa...
Luzhou Xinglu Water (Group) Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.24B | 1.33B | 1.29B | 1.35B | 1.37B |
| Gross Profit | 413.51M | 462.82M | 444.33M | 494.02M | 568.59M |
| EBITDA | 595.73M | 322.28M | 670.95M | 695.89M | 721.51M |
| Net Income | 109.19M | 177.24M | 209.90M | 203.22M | 241.93M |
Balance Sheet | |||||
| Total Assets | 7.21B | 7.19B | 7.05B | 7.14B | 7.07B |
| Cash, Cash Equivalents and Short-Term Investments | 606.25M | 447.18M | 390.51M | 609.76M | 871.74M |
| Total Debt | 2.16B | 2.03B | 2.09B | 2.40B | 1.63B |
| Total Liabilities | 3.99B | 4.04B | 4.04B | 4.30B | 4.41B |
| Stockholders Equity | 3.00B | 2.93B | 2.80B | 2.64B | 2.48B |
Cash Flow | |||||
| Free Cash Flow | 286.86M | 183.72M | 86.54M | -81.15M | -217.16M |
| Operating Cash Flow | 563.20M | 536.25M | 609.19M | 597.24M | 537.20M |
| Investing Cash Flow | -266.31M | -344.01M | -477.04M | -678.33M | -750.76M |
| Financing Cash Flow | -138.08M | -135.56M | -351.40M | -180.90M | 49.12M |
Luzhou Xinglu Water (Group) Co., Ltd. Class H Technical Analysis
Negative
0.73
Price Trends
0.72
Negative
0.74
Negative
0.75
Negative
Market Momentum
>-0.01
Negative
46.35
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2281, the sentiment is Negative. The current price of 0.73 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.72, and below the 200-day MA of 0.75, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.35 is Neutral, 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: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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | HK$601.80M | 5.11 | 3.64% | 6.03% | -7.01% | -38.60% | |
55 Neutral | HK$658.63M | 3.77 | 3.64% | ― | -7.09% | -25.68% | |
41 Neutral | HK$118.22M | -0.22 | -36.69% | ― | -56.43% | 57.59% | |
41 Neutral | HK$50.00M | -1.01 | -9.98% | ― | 1.04% | 23.64% |
* Utilities Sector Average
HK:2281
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0.69
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Yunnan Water Investment Co., Limited Class H
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0.26
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Kunming Dianchi Water Treatment Co., Ltd. Class H
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13.79%
Luzhou Xinglu Water (Group) Co., Ltd. Class H Corporate Events
Luzhou Xinglu Water Seeks Shareholder Nod for Connected Sludge Disposal Deal
Mar 31, 2026
Luzhou Xinglu Water’s subsidiary Xinglu Wastewater Treatment has signed a one-year sludge disposal service contract with connected party Xinglu Environmental Protection, which will handle sludge generated during the wastewater treatment proc...
Luzhou Xinglu Water Profit Drops Nearly 40% in 2025 but Dividend Maintained
Mar 27, 2026
Luzhou Xinglu Water (Group) Co., Ltd. reported 2025 revenue of about RMB1.24 billion, down roughly 7% year-on-year, reflecting softer operating performance in its water services business. Net profit fell about 38.8% to RMB116.3 million, with profi...
Luzhou Xinglu Water Proposes Final 2025 Dividend and Details Tax Treatment for H Shareholders
Mar 27, 2026
Luzhou Xinglu Water (Group) Co., Ltd. has announced a proposed final ordinary dividend of RMB 0.04 per share for the financial year ended 31 December 2025, subject to shareholder approval on 26 June 2026. The dividend, to be paid in Hong Kong doll...
Luzhou Xinglu Water Signs Connected Property Management Deal for Hejiang Plant
Mar 27, 2026
Luzhou Xinglu Water (Group) Co., Ltd. has a subsidiary, Xinghe Water Governance, that operates wastewater facilities including the Hejiang Wastewater Treatment Plant in Sichuan. The group leverages related-party service providers within its contro...
Luzhou Xinglu Water to Take Control of Integrated Xuyong County Water and Drainage Project
Mar 20, 2026
Luzhou Xinglu Water has entered into a cooperative agreement with Xuyong County Urban and Rural Water Development Group to integrate water supply and drainage operations across Xuyong County and its subordinate townships. Under the deal, Xuyong...
Luzhou Xinglu Water Sets March 2026 Board Meeting to Approve 2025 Results
Mar 17, 2026
Luzhou Xinglu Water (Group) Co., Ltd. has scheduled a board meeting for 27 March 2026 to review and approve the annual results for the financial year ended 31 December 2025, along with the planned publication of those results. The board will also ...
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.