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

• Market Cap: HK$196.88M
• Dividend Yield: N/A
• Average Volume (3M): 225.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• 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: 40 Underperform
• Price Target: HK$0.16 ▲(1.25% Upside)

Yunnan Water Investment Co., Limited Class H is facing significant financial instability, with declining revenues, high leverage, and negative cash flows being the most impactful factors. The technical analysis indicates bearish momentum, and the valuation metrics reflect ongoing losses, resulting in a low overall stock score.

Positive Factors

Sustainable Water Management

The company's focus on sustainable water management aligns with global environmental trends, potentially attracting long-term government support and partnerships.

Long-term Contracts

Long-term contracts with municipalities provide stable revenue streams, reducing volatility and ensuring consistent cash flow over time.

Government Subsidies

Access to government subsidies and incentives can enhance financial stability and support infrastructure investments, aiding long-term growth.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Declining Revenues

Declining revenues indicate challenges in market competitiveness and demand, which could hinder long-term profitability and business expansion.

Negative Cash Flows

Negative cash flows reflect operational challenges, limiting the company's ability to reinvest in its business and potentially leading to liquidity issues.

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

Company Description

Yunnan Water Investment Co., Limited Class H (6839) is a leading company in the water supply and wastewater treatment sector based in Yunnan Province, China. The company is primarily engaged in the investment, construction, and operation of water resource projects, including the provision of clean water supply services and the treatment of wastewater. Yunnan Water Investment focuses on enhancing water quality and sustainability through innovative technologies and infrastructure development.

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: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.88 is Neutral, neither overbought nor oversold. The STOCH value of 45.38 is Neutral, 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$627.59M	3.14	6.36%	6.03%	4.85%	-4.80%
3768	69 Neutral	HK$761.54M	2.89	4.69%	―	-9.45%	-17.46%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
6136	60 Neutral	€1.04B	5.43	2.82%	―	3.04%	6.91%
1542	43 Neutral	HK$57.00M	-2.66	-9.98%	―	-8.34%	-13.24%
1129	43 Neutral	HK$192.82M	-0.31	-31.95%	―	-43.38%	-25.63%
6839	40 Underperform	HK$196.88M	-0.09	-514.90%	―	-5.97%	-50.72%

Yunnan Water Investment Co., Limited Class H Corporate Events

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.

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).

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.

Yunnan Water Investment Schedules EGM for Key Agreement Approvals

Yunnan Water Investment Co., Limited has announced an extraordinary general meeting (EGM) scheduled for October 20, 2025, to approve the Procurement Master Agreement and the Proposed Annual Caps. This meeting is significant for stakeholders as it involves authorizing directors to implement these agreements, potentially impacting the company’s operational strategies and market positioning.