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Kunming Dianchi Water Treatment Co., Ltd. Class H (HK:3768)
:3768
Hong Kong Market

Kunming Dianchi Water Treatment Co., Ltd. Class H (3768) AI Stock Analysis

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HK:3768

Kunming Dianchi Water Treatment Co., Ltd. Class H

(3768)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
HK$0.81
▲(6.58% Upside)
The overall stock score of 69 reflects a balance between strong technical momentum and attractive valuation, offset by moderate financial performance challenges. The stock's undervaluation presents an opportunity, but caution is advised due to potential overbought conditions and financial leverage risks.
Positive Factors
Market Position
As a leading provider in municipal and industrial water treatment, the company benefits from structural public-sector demand and long-term service contracts. Its focus on equipment, plant builds and consulting supports recurring revenue and resilience against short-term market swings.
Gross Margin Stability
Stable gross margins suggest durable cost controls and manufacturing or project delivery efficiencies. This margin resilience helps absorb revenue volatility, supports funding for maintenance and technology upgrades, and underpins sustainable operational profitability.
Improving Operating Cash Flow
A shift from negative to positive operating cash flow signals improving cash conversion from core operations. Sustained OCF reduces reliance on external funding, enables reinvestment in projects and equipment, and strengthens the company’s ability to service debt over the medium term.
Negative Factors
Declining Revenue Trend
Persistent revenue decline erodes scale advantages, pressures fixed-cost absorption and reduces funds available for capex and R&D. Over several quarters this trend can signal weaker project intake or competitive displacement, constraining long-term growth prospects.
Elevated Leverage
High leverage increases interest burden and refinancing risk, limiting strategic flexibility. With volatile cash flows and declining ROE, elevated debt can restrict bidding capacity on new projects, raise funding costs, and magnify downside in adverse market conditions.
Inconsistent Free Cash Flow
Inconsistent free cash flow undermines the company’s ability to finance capex, service debt, and sustain long-term contracts without external funding. This variability raises execution risk on multi-year projects and complicates strategic planning and investment prioritization.

Kunming Dianchi Water Treatment Co., Ltd. Class H (3768) vs. iShares MSCI Hong Kong ETF (EWH)

Kunming Dianchi Water Treatment Co., Ltd. Class H Business Overview & Revenue Model

Company DescriptionKunming Dianchi Water Treatment Co., Ltd., together with its subsidiaries, designs, develops, constructs, operates, and maintains water supply and wastewater treatment facilities in the People's Republic of China. The company operates through Wastewater Treatment, Water Supply, and Others segments. It designs, constructs, operates, and maintains wastewater treatment or water supply facilities under the transfer-operate-transfer and build-operate-transfer concession agreements. The company is also involved in the reclaimed water supply and running water supply; municipal wastewater treatment; water quality testing; provision of logistics and leasing services, and professional training; and manufacture and sale of chemical products. In addition, it provides management, transportation, watershed management, sludge recycling, mine restoration, and solid waste treatment and disposal services, as well as engages in the thermal production activities. The company was founded in 1989 and is headquartered in Kunming, the People's Republic of China. Kunming Dianchi Water Treatment Co., Ltd. is a subsidiary of Kunming Dianchi Investment Co., Ltd.
How the Company Makes MoneyKunming Dianchi Water Treatment Co., Ltd. generates revenue through several key streams, including the sale of water treatment equipment and systems to municipalities and industries, as well as ongoing service contracts for maintenance and support. The company also earns income from project contracts for the construction of water treatment plants and related infrastructure. Strategic partnerships with government entities and private firms enhance its capabilities and market reach, further contributing to its earnings. Additionally, the company may benefit from environmental compliance incentives and grants aimed at promoting sustainable water management solutions.

Kunming Dianchi Water Treatment Co., Ltd. Class H Financial Statement Overview

Summary
Kunming Dianchi Water Treatment Co., Ltd. Class H faces challenges with declining revenue and profitability, coupled with a reliance on debt financing. While operational efficiency remains relatively stable, there is a need for strategic measures to enhance revenue growth and manage leverage. The company's financial health is moderate, with potential risks associated with leverage and cash flow volatility.
Income Statement
The company shows declining revenue over the past years, with a significant drop from 2021 to 2024. Gross profit margin has remained relatively stable, indicating efficiency in managing production costs. Net profit margin has seen a decline, reflecting potential challenges in managing operational expenses. EBIT and EBITDA margins are solid, though they have decreased slightly over time, indicating a potential reduction in operational efficiency.
Balance Sheet
The company's debt-to-equity ratio is relatively high, suggesting a higher reliance on debt financing. However, the equity ratio reflects a reasonable proportion of equity financing. Return on equity has been decreasing, indicating a declining effectiveness in generating profits from shareholders' equity. Overall, the balance sheet shows moderate financial stability but with heightened leverage risks.
Cash Flow
Operating cash flow has been volatile, with negative figures in past years turning positive in recent periods, indicating some improvement in operational efficiency. The free cash flow growth rate is inconsistent, reflecting challenges in maintaining consistent cash flow generation. The cash flow ratios indicate moderate efficiency in converting income into cash, although improvements are needed to ensure sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.53B1.59B1.81B2.07B2.32B1.92B
Gross Profit660.61M713.65M798.24M857.27M724.78M679.18M
EBITDA782.24M807.54M918.92M873.40M915.83M886.78M
Net Income247.06M263.22M316.51M322.25M338.28M348.55M
Balance Sheet
Total Assets12.81B12.38B12.06B11.70B12.07B10.50B
Cash, Cash Equivalents and Short-Term Investments69.77M130.58M353.89M371.49M1.80B1.05B
Total Debt4.80B4.59B5.27B5.89B6.41B4.97B
Total Liabilities7.44B7.14B7.09B7.04B7.63B6.22B
Stockholders Equity5.36B5.23B4.97B4.65B4.43B4.27B
Cash Flow
Free Cash Flow45.69M132.63M135.22M-671.96M-776.48M-802.33M
Operating Cash Flow166.85M293.82M220.95M-302.63M-716.96M-613.47M
Investing Cash Flow-17.75M75.67M303.83M-96.54M230.91M-290.73M
Financing Cash Flow-155.38M-532.84M-480.55M-973.54M1.24B387.55M

Kunming Dianchi Water Treatment Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.76
Price Trends
50DMA
0.77
Negative
100DMA
0.75
Negative
200DMA
0.68
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
46.16
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3768, the sentiment is Negative. The current price of 0.76 is above the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.77, and above the 200-day MA of 0.68, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.16 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3768.

Kunming Dianchi Water Treatment Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$636.19M3.196.36%6.03%4.85%-4.80%
69
Neutral
HK$761.54M2.864.69%-9.45%-17.46%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
60
Neutral
HK$1.20B6.462.82%3.04%6.91%
43
Neutral
HK$58.00M-2.71-9.98%-8.34%-13.24%
43
Neutral
HK$189.66M-0.31-31.95%-43.38%-25.63%
42
Neutral
HK$177.79M-0.09-514.90%-5.97%-50.72%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.74
0.12
19.35%
HK:6136
Kangda International Environmental Co Ltd
0.53
0.23
76.67%
HK:6839
Yunnan Water Investment Co., Limited Class H
0.15
-0.02
-12.28%
HK:1129
China Water Industry Group Limited
0.30
-0.04
-10.61%
HK:1542
Taizhou Water Group Co., Ltd. Class H
1.16
-0.44
-27.50%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.74
0.18
32.14%

Kunming Dianchi Water Treatment Co., Ltd. Class H Corporate Events

Kunming Dianchi Water Treatment Wins Shareholder Backing for Lease Adjustments and Board Changes
Dec 23, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced that all resolutions proposed at its second extraordinary general meeting of 2025 were duly passed by poll, with shareholders representing about 77.42% of issued shares participating. Investors approved adjustments and supplemental terms to a finance lease arrangement with Industrial Bank Financial Leasing, endorsed a change to the remuneration of independent non-executive director Zha Guiliang, and unanimously appointed Ms. Fu Jifang as an independent non-executive director, who will also chair the Nomination Committee and join the Audit Committee, signaling a refreshed governance structure and potentially stronger oversight of the company’s financing and board nomination processes.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Sets Out Board Line-up and Committee Roles
Dec 23, 2025

Kunming Dianchi Water Treatment Co., Ltd. has announced the current composition of its board of directors, which includes three executive directors, three non-executive directors and three independent non-executive directors, led by chairperson Zeng Feng and general manager Chen Changyong. The company has also detailed the membership and leadership of its four key board committees—Audit, Remuneration and Appraisal, Nomination, and Strategy and Investment Decision—clarifying oversight responsibilities and reinforcing its corporate governance structure for shareholders and other stakeholders.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Announces Unfreezing of Major Equity Stake
Dec 4, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced that the People’s Court of Xishan District has ruled to unfreeze the 60.95% equity interest in the company previously held by Kunming Dianchi Investment. This decision, prompted by an application from BOCOM International Trust Co., Ltd., may impact the company’s operations and stakeholder interests as the board continues to monitor and disclose relevant updates regarding the judicial status of these shares.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Co., Ltd. Announces 2025 Second EGM
Dec 4, 2025

Kunming Dianchi Water Treatment Co., Ltd. has announced its 2025 second extraordinary general meeting to be held on December 23, 2025. The meeting will address adjustments to the finance lease arrangement, changes in director remuneration, and the appointment of a new independent non-executive director. These resolutions reflect the company’s ongoing efforts to optimize its financial arrangements and strengthen its board, potentially impacting its operational efficiency and governance structure.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Faces Enforcement Measures Amid Contract Dispute
Dec 2, 2025

Kunming Dianchi Water Treatment Co., Ltd. has been listed as a party subject to enforcement due to a dispute over construction project contracts with Guizhou Construction Group Fourth Engineering Co., Ltd., resulting in restricted consumption measures for the company and its legal representative. Despite this, the company states that the matter will not affect its normal operations or have a material impact on its principal activities, as it continues to negotiate and communicate with relevant parties to resolve the issue.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Announces Key Management Changes and Circular Dispatch Delay
Nov 28, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced a delay in the dispatch of a circular related to a finance lease arrangement due to the need for additional preparation time for financial information and auditor statements. Additionally, the company has appointed Ms. Tsui Sum Yi as the new company secretary, authorized representative, and process agent following the resignation of Mr. Chiu Ming King. The company also proposed a reduction in the remuneration of independent non-executive director Mr. Zha Guiliang, aligning with the current economic environment and industry standards.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Co., Ltd. Announces Board Composition and Committee Roles
Nov 28, 2025

Kunming Dianchi Water Treatment Co., Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement outlines the structure of the board committees, which include the Audit Committee, Remuneration and Appraisal Committee, Nomination Committee, and Strategy and Investment Decision Committee, highlighting the leadership and membership roles within these committees.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Secures Additional Financing Guarantee
Nov 11, 2025

Kunming Dianchi Water Treatment Co., Ltd. has entered into a Financing Guarantee Framework Agreement with Kunming Water Group, allowing the latter to provide an additional RMB500 million guarantee for the company’s loans and credit facilities. This agreement aims to strengthen the company’s financial position by ensuring access to necessary funds without incurring guarantee fees or requiring counter-guarantees, potentially improving its operational capabilities and market competitiveness.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Adjusts Finance Lease Terms in Major Transaction
Nov 10, 2025

Kunming Dianchi Water Treatment Co., Ltd. has entered into a Supplemental Agreement II with Industrial Bank Financial Leasing to adjust terms of their existing finance lease arrangement. This major transaction requires shareholder approval and involves changes to the lease term and rental payment arrangements, highlighting the company’s strategic financial management efforts.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Faces Litigation Judgment with Minimal Operational Impact
Nov 4, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced a litigation judgment regarding a dispute with Guizhou Construction over a water purification plant construction contract. The Yunnan Provincial High Court ruled that the company must pay Guizhou Construction a significant sum, including interest, but the judgment will not materially affect the company’s financial performance in 2025 or its daily operations.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

Kunming Dianchi Water Treatment Faces Share Freeze Amid Legal Dispute
Nov 4, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced that its controlling shareholder, Kunming Dianchi Investment Co. Ltd., has had its shares in the company frozen due to a legal dispute. This development could impact the company’s operations and its market positioning, as a significant portion of its shares are tied up in legal proceedings, potentially affecting stakeholder confidence and financial stability.

The most recent analyst rating on (HK:3768) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Kunming Dianchi Water Treatment Co., Ltd. Class H stock, see the HK:3768 Stock Forecast page.

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.Date of analysis: Nov 05, 2025