Yunnan Water Investment Co., Limited Class H (6839) AI Stock Analysis

• Market Cap: HK$177.79M
• Dividend Yield: N/A
• Average Volume (3M): 225.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -5.97%
• EPS Growth: -50.72%
• Country: HK
• Employees: 4,982
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): -0.79
• Shares Outstanding: 363,713,900
• 10 Day Avg. Volume: 103,700
• 30 Day Avg. Volume: 225,866
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: HK$0.14 ▼(-0.71% Downside)

The score is driven primarily by very weak financial performance (declining revenue, sustained losses, high leverage, and negative cash flows). Technicals add further caution as the stock trades below major moving averages with negative MACD, though oversold RSI/Stoch slightly offsets. Valuation support is limited because earnings are negative and no dividend yield is available.

Positive Factors

Government Partnerships

Partnerships with government entities provide stable revenue streams and enhance the company's ability to secure long-term contracts, supporting sustainable growth.

Innovative Technologies

Investing in innovative technologies can improve operational efficiency and environmental impact, positioning the company as a leader in sustainable water management.

Regulatory Support

Access to government subsidies and incentives can enhance financial performance and support strategic initiatives in water resource management.

Negative Factors

Declining Revenue

A declining revenue base indicates challenges in maintaining market share and could impact long-term profitability and business sustainability.

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Consistently negative cash flow suggests operational inefficiencies and challenges in generating cash from core activities, threatening financial stability.

Yunnan Water Investment Co., Limited Class H Business Overview & Revenue Model

Company Description

Yunnan Water Investment Co., Limited, an investment holding company, designs, develops, constructs, operates, and maintains municipal water supply, and wastewater and solid waste treatment facilities in the People's Republic of China and internationally. It operates through five segments: Wastewater Treatment, Water Supply, Solid Waste Treatment, Construction and Sales of Equipment, and Others. It constructs and operates wastewater treatment projects, water supply projects, and solid waste treatment projects; undertakes build and transfer (BT) projects, and engineering-procurement-construction (EPC) projects; and produces, sells, and installs equipment for wastewater treatment, water supply, solid waste treatment, and other infrastructure facilities. It undertakes operation and maintenance (O&M) projects for wastewater treatment and water supply facilities owned by third parties; and offers technical and consultancy services. As at 31 December 2021, it had 134 concession wastewater treatment projects, including 7 build-own-operate (BOO), 69 build-operate-transfer (BOT), 2 transfer-own-operate (TOO), 27 transfer-operate-transfer (TOT) projects, 1 rehabilitate-operate-transfer (ROT), and 28 municipal environment comprehensive treatment projects, with total daily treatment capacity of approximately 3,553,400 tonnes; 67 concession water supply projects comprising, 15 BOO projects, 35 BOT projects, 11 TOT projects, and 6 municipal environment comprehensive treatment projects with total daily capacity of approximately 2,449,100 tonnes; 24 solid waste treatment projects with annual treatment capacity of approximately 4,081,900 tonnes; 10 BT projects and 13 EPC projects; and 26 O&M projects. The company was formerly known as Yunnan Water Industry Investment and Development Co., Ltd. and changed its name to Yunnan Water Investment Company Limited in July 2014. The company was founded in 2009 and is based in Kunming, the People's Republic of China.

How the Company Makes Money

Yunnan Water Investment generates revenue through several key streams. The primary source of income comes from the sale of treated water to residential, commercial, and industrial clients, which is typically governed by long-term contracts with local governments and municipalities. Additionally, the company earns revenue from the operation of wastewater treatment facilities, where it charges fees for treating sewage and effluent from various sectors. Significant partnerships with governmental bodies and private enterprises in infrastructure projects also contribute to its earnings. Furthermore, Yunnan Water Investment may benefit from government subsidies and incentives aimed at improving water resource management and environmental sustainability, bolstering its financial performance.

Yunnan Water Investment Co., Limited Class H Financial Statement Overview

Summary

Yunnan Water Investment Co., Limited Class H faces significant financial challenges across its income statement, balance sheet, and cash flow. Declining revenues and profitability, coupled with high leverage and negative cash flows, indicate serious financial instability. The company's consistent net losses and high debt levels require strategic interventions to steer towards sustainable growth and financial health.

Income Statement

The income statement reveals a concerning trend of declining revenues and increasing net losses. The gross profit margin is decreasing, and the company has consistently reported operating losses, as evidenced by negative EBIT margins. The negative net profit margin indicates significant challenges in turning revenue into profit. A shrinking revenue base from 2020 to 2024 further exacerbates profitability issues.

Balance Sheet

The balance sheet highlights a high debt-to-equity ratio, suggesting substantial leverage which could pose financial risks. Stockholders' equity has been decreasing, and this is reflected in a low equity ratio. Although the company has substantial total assets, the high level of liabilities in relation to equity is a red flag for financial stability.

Cash Flow

The cash flow statement indicates persistent negative free cash flow, suggesting operational inefficiencies. Operating cash flow is also consistently negative, indicating challenges in generating cash from core business activities. This situation is compounded by negative free cash flow to net income ratios, which reflect ongoing cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.71B	2.80B	3.12B	3.79B	5.28B	8.40B
Gross Profit	401.07M	453.73M	655.11M	753.85M	1.32B	2.10B
EBITDA	-590.61M	-387.84M	889.30M	1.17B	938.59M	2.21B
Net Income	-1.87B	-1.74B	-688.07M	-952.79M	-888.29M	340.74M
Balance Sheet
Total Assets	43.53B	44.47B	46.84B	46.67B	48.43B	47.25B
Cash, Cash Equivalents and Short-Term Investments	927.61M	1.06B	899.24M	600.64M	428.43M	1.70B
Total Debt	21.72B	21.41B	31.03B	30.17B	28.70B	27.59B
Total Liabilities	33.41B	33.31B	43.39B	42.18B	40.83B	39.65B
Stockholders Equity	9.34B	10.20B	1.99B	2.74B	5.64B	5.68B
Cash Flow
Free Cash Flow	-109.76M	-172.79M	-185.48M	-659.70M	-3.02B	-5.66B
Operating Cash Flow	-41.92M	-17.70M	-51.32M	-395.40M	-2.82B	-5.14B
Investing Cash Flow	137.78M	379.01M	225.18M	173.06M	-93.48M	-179.76M
Financing Cash Flow	183.48M	-252.65M	125.52M	410.18M	1.65B	4.55B

Yunnan Water Investment Co., Limited Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6839, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 85.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6839.

Yunnan Water Investment Co., Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2281	75 Outperform	HK$636.19M	3.19	6.36%	6.03%	4.85%	-4.80%
3768	69 Neutral	HK$761.54M	2.86	4.69%	―	-9.45%	-17.46%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
6136	60 Neutral	HK$1.20B	6.46	2.82%	―	3.04%	6.91%
1542	43 Neutral	HK$58.00M	-2.71	-9.98%	―	-8.34%	-13.24%
1129	43 Neutral	HK$189.66M	-0.31	-31.95%	―	-43.38%	-25.63%
6839	42 Neutral	HK$177.79M	-0.09	-514.90%	―	-5.97%	-50.72%

Yunnan Water Investment Co., Limited Class H Corporate Events

Yunnan Water Investment Formalizes Audit Committee Rules to Strengthen Governance

Yunnan Water Investment Co., Limited, a PRC-incorporated joint stock company listed in Hong Kong, operates under China’s Company Law and the Hong Kong Listing Rules and is overseen by a board of directors without a separate board of supervisors.

The company has formally set out detailed rules of procedure for its Audit Committee, which was established in 2015 to assume the supervisory functions normally carried out by a board of supervisors. Composed solely of non-executive directors—of whom a majority must be independent and at least one must have professional accounting or financial management expertise—the committee reports to and is accountable to the board while remaining subject to shareholder oversight. The rules set out membership criteria, appointment and replacement mechanisms, leadership selection, and cooling-off restrictions for former audit firm partners, reinforcing the company’s corporate governance structure and alignment with regulatory and listing requirements.

The most recent analyst rating on (HK:6839) stock is a Sell with a HK$0.16 price target. To see the full list of analyst forecasts on Yunnan Water Investment Co., Limited Class H stock, see the HK:6839 Stock Forecast page.

Yunnan Water Investment Shareholders Unanimously Back Governance Overhaul at EGM

Shareholders of Yunnan Water Investment Co., Limited have approved a series of corporate governance changes at an extraordinary general meeting held in Kunming on 19 December 2025, with more than half of the company’s share capital represented. All four special resolutions were passed by poll with 100% of votes cast in favour, including the abolition of the Board of Supervisors and amendments to the Articles of Association as well as to the rules and procedures for shareholders’ meetings and board meetings. The overhaul, endorsed without opposition from attending shareholders, streamlines the company’s supervisory and decision‑making framework and may reshape internal oversight and governance structures, with implications for how the water utility manages regulatory compliance, board authority and stakeholder accountability going forward.

The most recent analyst rating on (HK:6839) stock is a Sell with a HK$0.16 price target. To see the full list of analyst forecasts on Yunnan Water Investment Co., Limited Class H stock, see the HK:6839 Stock Forecast page.

Yunnan Water Investment Co. Announces EGM to Restructure Governance

Yunnan Water Investment Co., Limited has announced an Extraordinary General Meeting (EGM) to be held on December 19, 2025, to discuss significant changes in its governance structure. The meeting will consider the abolition of the Board of Supervisors and amendments to the Articles of Association, as well as updates to the rules and procedures for shareholders’ and board meetings. These changes could impact the company’s operational governance and strategic direction, potentially affecting stakeholders and aligning the company’s structure with its future objectives.

The most recent analyst rating on (HK:6839) stock is a Sell with a HK$0.16 price target. To see the full list of analyst forecasts on Yunnan Water Investment Co., Limited Class H stock, see the HK:6839 Stock Forecast page.

Yunnan Water Investment Proposes Governance Restructuring

Yunnan Water Investment Co., Limited has announced the proposed abolition of its Board of Supervisors, with its authority to be transferred to the audit committee of the Board of Directors. Additionally, the company plans to amend its Articles of Association and the rules and procedures for shareholders’ general meetings and Board meetings, aligning them with the latest Company Law and relevant regulations. These changes aim to streamline governance and require approval from shareholders at an Extraordinary General Meeting (EGM).

The most recent analyst rating on (HK:6839) stock is a Sell with a HK$0.16 price target. To see the full list of analyst forecasts on Yunnan Water Investment Co., Limited Class H stock, see the HK:6839 Stock Forecast page.

Yunnan Water Investment Approves Key Resolutions at EGM

Yunnan Water Investment Co., Limited held an Extraordinary General Meeting (EGM) on October 20, 2025, where key resolutions were passed concerning the Procurement Master Agreement and Proposed Annual Caps. The meeting, attended by executive and non-executive directors, was conducted in accordance with the Company Law of the PRC and the Articles of Association. Shareholders representing 53.52% of the total shares participated, and all resolutions were approved by a significant majority. This outcome is expected to positively impact the company’s operational strategies and stakeholder relations.