China Everbright Water (U9E) AI Stock Analysis

• Market Cap: S$715.22M
• Dividend Yield: 7.88%
• Average Volume (3M): 378.32K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.31
• Revenue Growth: -4.16%
• EPS Growth: -12.99%
• Country: SG
• Employees: 1,860
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.03
• Shares Outstanding: 2,860,876,700
• 10 Day Avg. Volume: 297,650
• 30 Day Avg. Volume: 378,320
• PEG Ratio: -0.27
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -8.89
• 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): 0.6
• Revenue Forecast (FY): S$10.30B

• Rating: 70 Outperform
• Price Target: S$0.50 ▲(100.00% Upside)

The overall stock score is driven by a strong valuation with a low P/E ratio and high dividend yield, making it attractive for value and income investors. Technical analysis supports a positive trend, although financial performance highlights concerns with revenue growth and high leverage. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Margins

Strong gross margins indicate efficient cost management, which supports long-term profitability and competitive positioning in the market.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing for reinvestment in growth opportunities and strengthening the company's balance sheet.

Stable Share Capital

Stable share capital indicates a steady financial position, reassuring stakeholders about the company's consistent market presence and operational focus.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting the company's ability to invest in growth and potentially impacting long-term financial stability.

Declining Revenue Growth

Declining revenue growth may indicate challenges in market expansion and could affect the company's ability to sustain long-term profitability.

Low Operating Cash Flow

Low operating cash flow conversion suggests inefficiencies in turning income into cash, potentially impacting liquidity and operational flexibility.

China Everbright Water Business Overview & Revenue Model

Company Description

China Everbright Water Limited engages in the water environment management business in Mainland China and Germany. It is involved in municipal wastewater treatment, industrial wastewater treatment, water supply, reusable water, sludge treatment and disposal, sponge city construction, river-basin ecological restoration, livestock and poultry manure resources utilization; and leachate treatment, as well as research and development on water environmental technologies and engineering construction. The company was incorporated in 2003 and is based in Shenzhen, the People's Republic of China. China Everbright Water Limited is a subsidiary of China Everbright Environment Group Limited.

How the Company Makes Money

China Everbright Water generates revenue through multiple streams, primarily from the operation of water treatment plants and the provision of related services. Its key revenue sources include the treatment of municipal and industrial wastewater, the supply of clean drinking water, and the installation and maintenance of water infrastructure. The company also benefits from long-term concession agreements with local governments, which ensure a steady income flow for the duration of the contracts. Additionally, partnerships with governmental and private entities for environmental projects contribute significantly to its earnings, as do initiatives in technology development aimed at enhancing water purification processes and efficiency.

China Everbright Water Financial Statement Overview

Summary

China Everbright Water demonstrates stable profitability with strong margins, but faces challenges in revenue growth and high leverage. The balance sheet's high debt levels could be a risk, while cash flow improvements are a positive sign. Overall, the company shows resilience in profitability but needs to address growth and leverage concerns.

Income Statement

The income statement shows a mixed performance. The company has maintained a healthy gross profit margin of around 40% in the TTM period, indicating efficient cost management. However, the revenue growth rate has declined by 2.17% in the TTM period, which is a concern. The net profit margin remains stable at approximately 14.76%, showcasing consistent profitability. EBIT and EBITDA margins are strong, reflecting good operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.29, indicating significant leverage, which could pose financial risks. The return on equity has decreased to 2.22% in the TTM period, suggesting lower profitability for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis shows improvement in free cash flow growth, which increased by over 200% in the TTM period, indicating better cash management. However, the operating cash flow to net income ratio is low at 0.01, suggesting challenges in converting income into cash. The free cash flow to net income ratio is relatively high at 0.87, reflecting decent cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.15B	6.85B	6.70B	6.73B	6.91B	964.84M
Gross Profit	459.09M	2.62B	2.82B	2.56B	2.80B	374.90M
EBITDA	360.88M	2.20B	2.47B	2.18B	2.25B	314.74M
Net Income	169.12M	1.02B	1.19B	1.01B	1.20B	174.50M
Balance Sheet
Total Assets	38.21B	35.89B	34.22B	33.45B	32.97B	4.58B
Cash, Cash Equivalents and Short-Term Investments	1.87B	1.86B	1.98B	3.07B	2.50B	292.95M
Total Debt	17.27B	16.39B	15.41B	15.27B	14.45B	1.89B
Total Liabilities	23.39B	21.90B	20.77B	20.45B	19.81B	2.64B
Stockholders Equity	13.37B	12.64B	12.21B	11.77B	11.87B	1.79B
Cash Flow
Free Cash Flow	73.60M	-439.48M	-584.50M	-1.01B	-1.18B	-228.43M
Operating Cash Flow	84.18M	-57.94M	-528.78M	-639.63M	-669.14M	-225.28M
Investing Cash Flow	-82.04M	-296.43M	-16.64M	-353.94M	-1.14B	-28.28M
Financing Cash Flow	2.65M	358.23M	-379.29M	1.79B	2.32B	176.10M

China Everbright Water Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:U9E, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.25, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:U9E.

China Everbright Water Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
U9E	70 Outperform	S$715.22M	4.19	8.29%	7.88%	-4.16%	-12.99%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
566	62 Neutral	S$86.13M	34.74	1.67%	1.71%	30.64%	―
5GD	56 Neutral	S$431.32M	17.36	6.52%	―	-5.31%	-47.29%

China Everbright Water Corporate Events

China Everbright Water Keeps Authorised Share Capital Unchanged in December

China Everbright Water Limited reported that its authorised share capital remained unchanged for the month ended 31 December 2025, with 10 billion ordinary shares at a par value of HKD 1 each, amounting to total authorised share capital of HKD 10 billion. The absence of any increase or decrease in authorised share capital during the month signals a stable capital structure with no new authorisations or cancellations, indicating no immediate equity-driven changes to the company’s funding capacity or shareholder base from this filing.

The most recent analyst rating on (SG:U9E) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on China Everbright Water stock, see the SG:U9E Stock Forecast page.

China Everbright Water Maintains Steady Share Capital in November 2025

China Everbright Water Limited reported no change in its authorized share capital for November 2025, maintaining a total of 10 billion shares valued at HKD 10 billion. This stability in share capital suggests a steady operational phase for the company, which could imply a focus on maintaining current projects and market positioning without immediate expansion or contraction.

The most recent analyst rating on (SG:U9E) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on China Everbright Water stock, see the SG:U9E Stock Forecast page.

China Everbright Water Announces Secretary Resignation

China Everbright Water Limited announced the resignation of Ms. Ho Wing Tsz Wendy as joint company secretary, effective December 1, 2025, due to other work commitments. The company expressed gratitude for her contributions and confirmed no disagreements or issues related to her departure, ensuring a smooth transition for stakeholders.

The most recent analyst rating on (SG:U9E) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on China Everbright Water stock, see the SG:U9E Stock Forecast page.

China Everbright Water Achieves Prestigious Awards in Singapore

China Everbright Water Limited has been recognized with two prestigious awards in Singapore’s capital markets, highlighting its strong governance, business development, and competitive positioning. The company received the ‘Highest Weighted Return on Equity Over Three Years’ and ‘Overall Sector Winner’ in the Utilities Sector at the Billion Dollar Club annual awards, and improved its ranking in the Singapore Governance and Transparency Index, underscoring its operational efficiency and capital returns.

The most recent analyst rating on (SG:U9E) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on China Everbright Water stock, see the SG:U9E Stock Forecast page.

China Everbright Water Maintains Stable Share Capital in October 2025

China Everbright Water Limited reported no changes in its authorized or registered share capital for October 2025, maintaining a total of HKD 10 billion. This stability in share capital suggests a consistent financial strategy, potentially reassuring stakeholders about the company’s steady operational and market positioning.

The most recent analyst rating on (SG:U9E) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on China Everbright Water stock, see the SG:U9E Stock Forecast page.