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

• Market Cap: HK$258.93M
• Dividend Yield: N/A
• Average Volume (3M): 166.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• 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: 134,500
• 30 Day Avg. Volume: 166,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is heavily influenced by the company's weak financial performance, characterized by declining revenues, high leverage, and negative cash flows. Technical analysis provides a slightly more positive outlook with neutral momentum indicators, but the poor valuation due to negative earnings further weighs down the score.

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

The company's revenue model is primarily based on the provision of water supply and wastewater treatment services. Yunnan Water Investment generates income through service fees charged to municipalities and industrial clients for water supply and sewage disposal. Key revenue streams include long-term contracts with local governments for water management, tariffs from water usage, and fees for the treatment of wastewater. The company may also engage in public-private partnerships (PPPs) to expand its service offerings and enhance its operational capabilities. Additionally, Yunnan Water Investment can benefit from government subsidies and incentives aimed at improving water infrastructure and promoting environmental sustainability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.80B	3.12B	3.79B	5.28B	8.40B
Gross Profit	453.73M	655.11M	753.85M	1.32B	2.10B
EBITDA	-387.84M	889.30M	1.17B	938.59M	2.21B
Net Income	-1.74B	-688.07M	-1.06B	-1.00B	223.09M
Balance Sheet
Total Assets	44.47B	46.84B	46.67B	48.43B	47.25B
Cash, Cash Equivalents and Short-Term Investments	1.06B	899.24M	600.64M	428.43M	1.70B
Total Debt	21.41B	31.03B	30.17B	28.70B	27.59B
Total Liabilities	33.31B	43.39B	42.18B	40.83B	39.65B
Stockholders Equity	10.20B	1.99B	2.74B	5.64B	5.68B
Cash Flow
Free Cash Flow	-172.79M	-185.48M	-659.70M	-3.02B	-5.66B
Operating Cash Flow	-17.70M	-51.32M	-395.40M	-2.82B	-5.14B
Investing Cash Flow	379.01M	225.18M	173.06M	-93.48M	-179.76M
Financing Cash Flow	-252.65M	125.52M	410.18M	1.65B	4.55B

Yunnan Water Investment Co., Limited Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.56 is Neutral, neither overbought nor oversold. The STOCH value of 75.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6136	65 Neutral	865.13M	4.57	2.83%	―	3.04%	6.91%
3768	64 Neutral	730.67M	2.74	5.03%	―	-9.45%	-17.46%
1542	50 Neutral	70.00M	-3.27	-12.40%	―	-8.34%	-13.24%
1129	49 Neutral	619.55M	-1.02	-40.48%	―	-43.38%	-25.63%
6839	44 Neutral	HK$258.93M	―	-514.90%	―	-5.97%	-50.72%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Yunnan Water Investment Co., Limited Class H Corporate Events

Yunnan Water Investment Reports Increased Losses in H1 2025

Yunnan Water Investment Co., Limited reported a 6.8% decrease in revenue to approximately RMB1,157.6 million for the first half of 2025, coupled with a significant 26.2% drop in gross profit. The company recorded a net loss of approximately RMB1,047.5 million, attributed to reduced operating income, expected loss allowances on financial assets, and impairment provisions for long-term assets. The board has decided not to distribute any interim dividends for this period, reflecting the financial challenges faced by the company.

Yunnan Water Investment Co. Schedules Board Meeting to Review Interim Results

Yunnan Water Investment Co., Limited has announced an upcoming board meeting scheduled for August 29, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and the company’s market positioning.

Yunnan Water Investment Enters Procurement Agreement with Beijing OriginWater

Yunnan Water Investment Co., Limited announced the signing of a Procurement Master Agreement with Beijing OriginWater to purchase membrane ancillary materials from 13 August 2025 to 31 December 2027. This agreement constitutes continuing connected transactions under Hong Kong’s Listing Rules, requiring independent shareholders’ approval due to the significant shareholding of Beijing OriginWater in the company. An Independent Board Committee and an Independent Financial Adviser have been appointed to guide shareholders on this matter, with a circular to be published by 3 September 2025.

Yunnan Water Investment Co., Limited Announces Successful AGM Results

Yunnan Water Investment Co., Limited held its Annual General Meeting (AGM) on June 30, 2025, where all proposed resolutions were passed with overwhelming support. The resolutions included the approval of the company’s financial reports, re-election of directors, and re-appointment of auditors, indicating strong shareholder confidence and stable governance. The AGM results reflect the company’s solid operational standing and commitment to transparent financial practices, which are crucial for maintaining investor trust and industry positioning.