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Kunming Dianchi Water Treatment Co., Ltd. Class H
(3768)
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Rating:55Neutral
Price Target:
HK$0.49
â–¼(-35.92% Downside)
Action:Reiterated
Date:04/18/26
The score is held back mainly by weak cash flow durability (negative operating/free cash flow in 2025) and declining revenue/profitability trends, despite solid underlying margins and improved leverage. Technical indicators point to soft momentum, while the low P/E provides meaningful valuation support.
Positive Factors
Stable, contract-based business model
The company's revenue comes from recurring, contract-linked municipal wastewater services, creating a predictable demand base backed by regulatory compliance. This structural revenue stability reduces customer churn risk and supports multi-year planning and steady service fee collections.
Negative Factors
Persistent revenue decline
Multi-year top-line contraction erodes scale advantages and can reverse operating leverage, making fixed-cost coverage harder. If structural demand or tariff trends don't reverse, the business may face sustained pressure on growth, investment capacity, and long-term competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable, contract-based business model
The company's revenue comes from recurring, contract-linked municipal wastewater services, creating a predictable demand base backed by regulatory compliance. This structural revenue stability reduces customer churn risk and supports multi-year planning and steady service fee collections.
Read all positive factors
Kunming Dianchi Water Treatment Co., Ltd. Class H (3768) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$488.83M
Dividend YieldN/A
Average Volume (3M)297.30K
Price to Earnings (P/E)2.1
Beta (1Y)0.51
Revenue Growth-7.09%
EPS Growth-25.68%
CountryHK
Employees1,115
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.19
Shares Outstanding340,023,000
10 Day Avg. Volume237,700
30 Day Avg. Volume297,300
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)0.14
Price to Sales (P/S)0.50
P/FCF Ratio-1.40
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
Kunming Dianchi Water Treatment Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Kunming Dianchi Water Treatment Co., Ltd., along with its various subsidiaries, is a comprehensive enterprise dedicated to water infrastructure development and management across the People's Republic of China. The company is involved in the entire...
How the Company Makes Money
The company primarily makes money by providing wastewater treatment services under long-term operating arrangements for wastewater treatment plants, earning service fees that are typically linked to treated water volumes and/or agreed tariff rates...
Kunming Dianchi Water Treatment Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.48B | 1.59B | 1.81B | 2.07B | 2.32B |
| Gross Profit | 706.89M | 713.65M | 798.24M | 857.27M | 724.78M |
| EBITDA | 718.13M | 807.54M | 918.92M | 873.40M | 915.83M |
| Net Income | 196.21M | 263.22M | 316.51M | 322.25M | 338.28M |
Balance Sheet | |||||
| Total Assets | 13.44B | 12.38B | 12.06B | 11.70B | 12.07B |
| Cash, Cash Equivalents and Short-Term Investments | 96.57M | 130.58M | 353.89M | 371.49M | 1.80B |
| Total Debt | 5.19B | 4.59B | 5.27B | 5.89B | 6.41B |
| Total Liabilities | 8.00B | 7.14B | 7.09B | 7.04B | 7.63B |
| Stockholders Equity | 5.43B | 5.23B | 4.97B | 4.65B | 4.43B |
Cash Flow | |||||
| Free Cash Flow | -527.23M | 132.63M | 135.22M | -671.96M | -776.48M |
| Operating Cash Flow | -524.16M | 293.82M | 220.95M | -302.63M | -716.96M |
| Investing Cash Flow | -66.83M | 75.67M | 303.83M | -96.54M | 230.91M |
| Financing Cash Flow | 613.65M | -532.84M | -480.55M | -973.54M | 1.24B |
Kunming Dianchi Water Treatment Co., Ltd. Class H Technical Analysis
Negative
0.76
Price Trends
0.63
Negative
0.65
Negative
0.70
Negative
Market Momentum
-0.03
Positive
20.81
Positive
7.50
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 0.58, above the 50-day MA of 0.63, and above the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 20.81 is Positive, neither overbought nor oversold. The STOCH value of 7.50 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$1.78B | 6.22 | 2.82% | ― | 7.38% | 37.96% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | HK$7.31B | 8.15 | 6.61% | 5.22% | -9.02% | -39.00% | |
62 Neutral | HK$576.01M | 4.44 | 3.66% | 6.03% | -7.01% | -38.60% | |
58 Neutral | HK$22.63B | 14.34 | 5.31% | 6.48% | -9.04% | -7.02% | |
55 Neutral | HK$488.83M | 2.14 | 3.64% | ― | -7.09% | -25.68% | |
42 Neutral | HK$110.97M | -0.05 | -514.90% | ― | -15.27% | -6.77% |
* Utilities Sector Average
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.48
-0.14
-22.13%
HK:0371
Beijing Enterprises Water Group
2.26
0.03
1.53%
HK:0855
China Water Affairs Group
4.48
-1.49
-24.91%
HK:6136
Kangda International Environmental Co Ltd
0.77
0.44
129.85%
HK:6839
Yunnan Water Investment Co., Limited Class H
0.09
-0.08
-47.16%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.67
0.04
6.35%
Kunming Dianchi Water Treatment Co., Ltd. Class H Corporate Events
Kunming Dianchi Water Treatment Resolutions Passed, Board and Auditors Reshuffled
Jun 26, 2026
Kunming Dianchi Water Treatment Co., Ltd. reported that all resolutions at its 2025 annual general meeting were approved by poll, with shareholders representing about 89.45% of issued shares participating. The meeting, held in Kunming on 26 June 2...
Kunming Dianchi Water Treatment Delays Loan Circular and Sets EGM Timetable
Jun 25, 2026
Kunming Dianchi Water Treatment Co., Ltd. has postponed the publication of a shareholder circular relating to the extension of an entrusted loan to Kunming Urban Investment, citing the need for more time to finalize financial information and requi...
Kunming Dianchi Water Treatment Discloses Judicial Auction Sale of 5.64% Stake
Jun 16, 2026
Kunming Dianchi Water Treatment Co., Ltd. reported that 58,000,000 of its shares, representing about 5.64% of total share capital and previously held by controlling shareholder Kunming Dianchi Investment, were successfully bid for at a judicial au...
Kunming Dianchi Water Treatment Extends RMB72 Million Entrusted Loan to Kunming Anju Group
Jun 12, 2026
Kunming Dianchi Water Treatment Co., Ltd. has further extended an entrusted loan granted to Kunming Anju Group through a new extension agreement with Jinma Branch of Guandu Rural Cooperative Bank. The latest arrangement staggers repayment of the r...
Kunming Dianchi Water Treatment Extends RMB180 Million Entrusted Loan to 2029
Jun 8, 2026
Kunming Dianchi Water Treatment has agreed to further extend an existing entrusted loan arrangement with Kunming Urban Investment, keeping RMB180 million of principal outstanding but pushing the maturity date from June 2026 to June 2029, while lea...
Kunming Dianchi Water Treatment Sets 2025 AGM to Decide Governance, Profit Plan and Loan Extension
Jun 4, 2026
Kunming Dianchi Water Treatment Co., Ltd. has called its 2025 annual general meeting for 26 June 2026 in Kunming, where shareholders will vote on the 2025 board report, audited financial statements, and a profit distribution plan. The agenda also ...
Kunming Dianchi Water Treatment Unveils Management Changes After Executive Exit
May 27, 2026
Kunming Dianchi Water Treatment Co., Ltd. announced that executive director, general manager and authorised representative Chen Changyong resigned effective 27 May 2026 due to a work change, though he reported no disagreement with the board, and t...
Kunming Dianchi Water Treatment Details Board and Committee Structure
May 27, 2026
Kunming Dianchi Water Treatment Co., Ltd. has announced the current composition of its board of directors, comprising executive, non-executive, and independent non-executive directors, with Mr. Mu Yong serving as chairperson. The company also disc...
Judicial Auction to Trim Stake of Kunming Dianchi Water Treatment’s Controlling Shareholder
May 26, 2026
Kunming Dianchi Water Treatment Co., Ltd. has disclosed that the People’s Court of Sichuan Pilot Free Trade Zone plans a judicial auction of 58,000,000 of its shares, representing about 5.64% of its total share capital, currently held by con...
Kunming Dianchi Water Treatment Overhauls Board Leadership and Audit Line-up After EGM
May 18, 2026
Kunming Dianchi Water Treatment Co., Ltd. reported that shareholders approved all resolutions at its first extraordinary general meeting of 2026, with about 89% of issued shares represented. The company also confirmed arrangements for its 2025 ann...
Kunming Dianchi Water Treatment Details Board and Committee Structure
May 18, 2026
Kunming Dianchi Water Treatment Co., Ltd. has announced the current composition of its board of directors, listing three executive directors, three non-executive directors and three independent non-executive directors, led by chairperson Mu Yong a...
Kunming Dianchi Water Treatment Extends RMB200 Million Entrusted Loan to 2027
May 12, 2026
Kunming Dianchi Water Treatment Co., Ltd. has agreed to further extend an existing RMB200 million entrusted loan granted to Kunming Development, maintaining all other key terms while pushing the maturity date out to 24 May 2027. The loan continues...
Kunming Dianchi Water Treatment Chair Resigns, Acting Successor Appointed
May 8, 2026
Kunming Dianchi Water Treatment has announced that executive director and board chairperson Mr. Zeng Feng has formally resigned from all his positions, including roles on the strategy and investment decision, nomination, and remuneration and appra...
Kunming Dianchi Water Treatment Clarifies Board and Committee Structure
May 8, 2026
Kunming Dianchi Water Treatment Co., Ltd. announced an updated list of its board of directors, detailing the composition of executive, non-executive and independent non-executive directors. The company also set out the membership structure of its ...
Kunming Dianchi Water Treatment Calls 2026 EGM to Appoint New Executive Director
Apr 29, 2026
Kunming Dianchi Water Treatment Co., Ltd. has convened its first extraordinary general meeting of 2026 for 18 May in Kunming, Yunnan Province, with shareholders of both domestic and H shares eligible to attend subject to register closure and trans...
Kunming Dianchi Water Treatment Enters RMB63.5 Million Finance Lease to Boost Liquidity
Apr 15, 2026
Kunming Dianchi Water Treatment Co., Ltd. has entered into a finance lease agreement with CCB Financial Leasing, under which it will sell certain sewage treatment equipment and facilities with independent ownership rights for up to RMB63.5 million...
Kunming Dianchi Water Treatment Plans Leadership Transition with New Executive Director Proposal
Apr 10, 2026
Kunming Dianchi Water Treatment Co., Ltd. announced that long-serving executive director and board chairperson Zeng Feng plans to resign from his directorship and committee roles upon reaching statutory retirement age, with formal effect upon subm...
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.