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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 - 4o)
Rating:69Neutral
Price Target:
HK$1.00
▲(33.33% 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
Business Model Strength
The company's focus on water treatment and environmental services positions it well in the growing environmental protection sector, ensuring long-term demand for its services.
Operational Efficiency
Stable gross profit margins suggest effective cost management, which is crucial for maintaining profitability in a competitive industry.
Revenue Streams
Diverse revenue streams and potential partnerships with governments and industries provide a stable and potentially growing income base.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in market expansion or competitive pressures, which could impact long-term growth prospects.
Leverage Risks
High leverage can strain financial flexibility and increase risk, especially if revenue continues to decline, affecting long-term stability.
Cash Flow Volatility
Volatile cash flow indicates inconsistent operational efficiency, which can hinder the company's ability to invest in growth and manage debt.

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
62
Positive
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
58
Neutral
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
55
Neutral
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
Positive
Last Price0.75
Price Trends
50DMA
0.77
Negative
100DMA
0.74
Positive
200DMA
0.68
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
48.96
Neutral
STOCH
36.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3768, the sentiment is Positive. The current price of 0.75 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 Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$627.59M3.146.36%6.03%4.85%-4.80%
69
Neutral
HK$761.54M2.894.69%-9.45%-17.46%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
60
Neutral
HK$1.04B5.432.82%3.04%6.91%
43
Neutral
HK$57.00M-2.66-9.98%-8.34%-13.24%
43
Neutral
HK$192.82M-0.31-31.95%-43.38%-25.63%
40
Underperform
HK$196.88M-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
0.75
0.12
19.05%
HK:6136
Kangda International Environmental Co Ltd
0.45
0.13
39.06%
HK:6839
Yunnan Water Investment Co., Limited Class H
0.16
-0.01
-6.63%
HK:1129
China Water Industry Group Limited
0.30
-0.04
-11.76%
HK:1542
Taizhou Water Group Co., Ltd. Class H
1.14
-0.46
-28.75%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.73
0.17
30.36%

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

Kunming Dianchi Water Treatment Co. Enhances Governance with Amended Nomination Rules
Sep 26, 2025

Kunming Dianchi Water Treatment Co., Ltd. has amended the Implementation Rules of its Nomination Committee to enhance corporate governance. The Nomination Committee is tasked with selecting directors and senior management, ensuring a majority of independent directors, and is structured to improve board composition and governance practices.

Kunming Dianchi Water Treatment Announces Board Changes and Rule Amendments
Sep 26, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced the results of its 2025 First Extraordinary General Meeting, where all proposed resolutions were passed. Key changes include the appointment of new board members and amendments to the implementation rules of several board committees, which are expected to enhance governance and operational efficiency.

Kunming Dianchi Water Treatment Co., Ltd. Announces Board Composition and Roles
Sep 26, 2025

Kunming Dianchi Water Treatment Co., Ltd. announced the composition and roles of its board of directors, highlighting the leadership structure and committee memberships. This announcement provides insights into the company’s governance framework, which may influence its strategic decisions and operational effectiveness, impacting stakeholders and market positioning.

Kunming Dianchi Water Treatment Co., Ltd. Enhances Audit Committee Rules
Sep 26, 2025

Kunming Dianchi Water Treatment Co., Ltd. has amended the Implementation Rules of its Audit Committee to strengthen the decision-making function of its Board of Directors. This move aims to enhance corporate governance by ensuring effective surveillance of management and improving the internal and external audit processes, thereby aligning with legislative requirements and the Hong Kong Listing Rules.

Kunming Dianchi Water Treatment Enhances Governance with Amended Committee Rules
Sep 26, 2025

Kunming Dianchi Water Treatment Co., Ltd. has amended its Implementation Rules for the Remuneration and Appraisal Committee of the Board. This amendment aims to enhance corporate governance by establishing a robust assessment and remuneration management system for directors and senior management, aligning with relevant Chinese laws and Hong Kong listing regulations. The committee, primarily composed of independent directors, is tasked with formulating and reviewing assessment criteria and remuneration policies, ensuring accountability to the board.

Kunming Dianchi Water Treatment Schedules 2025 Extraordinary General Meeting
Sep 9, 2025

Kunming Dianchi Water Treatment Co., Ltd. has announced its 2025 first extraordinary general meeting scheduled for September 26, 2025. The meeting will address several key resolutions, including the appointment of new directors and amendments to the company’s board committee rules, which could impact its governance structure and operational strategies.

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