Major Estimate Revision • Jul 06
Consensus EPS estimates fall by 15%, revenue upgraded The consensus outlook for fiscal year 2027 has been updated. 2027 revenue forecast increased from HK$9.54b to HK$10.1b. EPS estimate fell from HK$0.743 to HK$0.63 per share. Net income forecast to grow 3.9% next year vs 8.8% growth forecast for Water Utilities industry in Hong Kong. Consensus price target down from HK$6.87 to HK$5.92. Share price was steady at HK$4.49 over the past week. Price Target Changed • Jul 01
Price target decreased by 7.5% to HK$6.66 Down from HK$7.20, the current price target is an average from 2 analysts. New target price is 52% above last closing price of HK$4.38. Stock is down 27% over the past year. The company is forecast to post earnings per share of HK$0.72 for next year compared to HK$0.61 last year. Reported Earnings • Jun 30
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2026 results: EPS: HK$0.61 (down from HK$0.66 in FY 2025). Revenue: HK$10.3b (down 11% from FY 2025). Net income: HK$986.2m (down 8.2% from FY 2025). Profit margin: 9.5% (in line with FY 2025). Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is expected to decline by 6.6% p.a. on average during the next 2 years, while revenues in the Water Utilities industry in Asia are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Jun 29
China Water Affairs Group Limited, Annual General Meeting, Sep 28, 2026 China Water Affairs Group Limited, Annual General Meeting, Sep 28, 2026. Announcement • Jun 09
China Water Affairs Group Limited to Report Fiscal Year 2026 Results on Jun 29, 2026 China Water Affairs Group Limited announced that they will report fiscal year 2026 results on Jun 29, 2026 Upcoming Dividend • May 15
Upcoming dividend of HK$0.13 per share Eligible shareholders must have bought the stock before 22 May 2026. Payment date: 18 June 2026. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 5.6%. Lower than top quartile of Hong Kong dividend payers (6.7%). In line with average of industry peers (5.5%). Buy Or Sell Opportunity • Jan 16
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to HK$5.41. The fair value is estimated to be HK$6.86, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.5% over the last 3 years. Earnings per share has declined by 23%. Revenue is forecast to decline by 14% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Reported Earnings • Jan 01
First half 2026 earnings released: EPS: HK$0.35 (vs HK$0.46 in 1H 2025) First half 2026 results: EPS: HK$0.35 (down from HK$0.46 in 1H 2025). Revenue: HK$5.18b (down 13% from 1H 2025). Net income: HK$571.3m (down 24% from 1H 2025). Profit margin: 11% (down from 13% in 1H 2025). The decrease in margin was driven by lower revenue. Revenue is expected to decline by 6.7% p.a. on average during the next 3 years, while revenues in the Water Utilities industry in Asia are expected to grow by 4.7%. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Dec 09
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to HK$5.37. The fair value is estimated to be HK$6.86, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.5% over the last 3 years. Earnings per share has declined by 23%. Revenue is forecast to decline by 14% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Major Estimate Revision • Dec 06
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from HK$10.1b to HK$9.90b. EPS estimate also fell from HK$0.787 per share to HK$0.697 per share. Net income forecast to grow 32% next year vs 13% growth forecast for Water Utilities industry in Hong Kong. Consensus price target down from HK$7.20 to HK$6.87. Share price fell 4.4% to HK$5.61 over the past week. Reported Earnings • Nov 29
First half 2026 earnings released: EPS: HK$0.35 (vs HK$0.46 in 1H 2025) First half 2026 results: EPS: HK$0.35 (down from HK$0.46 in 1H 2025). Revenue: HK$5.18b (down 13% from 1H 2025). Net income: HK$571.3m (down 24% from 1H 2025). Profit margin: 11% (down from 13% in 1H 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 4.8% growth forecast for the Water Utilities industry in Asia. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Nov 28
China Water Affairs Group Limited Announces Ordinary Interim Dividend for the Six Months Ended September 30, 2025, Payable on June 18, 2026 China Water Affairs Group Limited announced ordinary interim dividend of HKD 0.13 per share for the six months ended September 30, 2025. Ex-dividend date is May 22, 2026. Record date is May 29, 2026. Payment date is June 18, 2026. Announcement • Nov 11
China Water Affairs Group Limited to Report First Half, 2026 Results on Nov 28, 2025 China Water Affairs Group Limited announced that they will report first half, 2026 results on Nov 28, 2025 Announcement • Oct 02
China Water Affairs Group Limited Announces Change of Non-Executive Directors, Effective from 2 October 2025 China Water Affairs Group Limited announced With effect from 2 October 2025, Ms. Liu Yu Jie resigned as non-executive director of the Company due to her other business commitments. After her resignation, Ms. Liu shall remain as a consultant of the Group. Ms. Liu confirmed that she has no disagreement with the Board and there are no matters relating to her resignation that would need to be brought to the attention of the shareholders of the Company and The Stock Exchange of Hong Kong Limited. The Board would like to extend its appreciation to Ms. Liu for her valuable contribution during her tenure of office in the Company. With effect from 2 October 2025, Mr. Xu Yan has been appointed as non-executive director of the Company. Mr. Xu Yan, aged 50, graduated from Northeastern University with a doctorate. He has worked for Dalian Development and Reform Commission and served as senior management in various state-owned and private enterprises. He joined ORIX Group in 2022. ORIX Corporation is a substantial shareholder of the Company. Mr. Xu is currently the Co-President of ORIX (China) Industrial Holdings Co. Ltd. and the Executive President of (Dalian Financial & Industry Investment Group Co. Ltd.). He is also currently a director of (Beijing Oriental Zhongke Integrated Technology Co. Ltd.), the shares of which are listed on the Shenzhen Stock Exchange. Save as disclosed, Mr. Xu did not hold any directorship in any public listed companies in the last three years. There is no service contract between Mr. Xu and the Company. His appointment has no fixed term and is subject to retirement and re-election at the annual general meeting of the Company. Mr. Xu is entitled to a director remuneration of HKD 100,000 per annum. Save as disclosed above, Mr. Xu has no relationship with any director, senior management or substantial shareholder of the Company. As at the date of this announcement, Mr. Xu is interested in 100,000 shares of the Company and 450,000 shares in Kangda International Environmental Company Limited, an associated corporation of the Company, within the meaning of Part XV of the Securities and Futures Ordinance. Save as aforesaid, Mr. Xu does not hold any other position with the Company or any of its subsidiaries. There is no information to be disclosed by Mr. Xu pursuant to Rule 13.51(2) (h) to (v) of the Rules Governing the Listing of Securities on the Stock Exchange and there is no other information that need to be brought to the attention of the shareholders of the Company. Upcoming Dividend • Sep 18
Upcoming dividend of HK$0.15 per share Eligible shareholders must have bought the stock before 25 September 2025. Payment date: 14 November 2025. Payout ratio is a comfortable 43% but the company is paying out more than the cash it is generating. Trailing yield: 4.6%. Lower than top quartile of Hong Kong dividend payers (6.6%). In line with average of industry peers (4.9%). Reported Earnings • Jul 31
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: HK$0.66 (down from HK$0.94 in FY 2024). Revenue: HK$11.7b (down 9.4% from FY 2024). Net income: HK$1.07b (down 30% from FY 2024). Profit margin: 9.2% (down from 12% in FY 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is expected to decline by 4.3% p.a. on average during the next 3 years, while revenues in the Water Utilities industry in Asia are expected to grow by 4.9%. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Jul 22
China Water Affairs Group Limited (SEHK:855) and Duan Chuan Liang proposed to acquire additional 44.49% stake in Kangda International Environmental Company Limited (SEHK:6136) for approximately HKD 330 million in a tender offer transaction. China Water Affairs Group Limited (SEHK:855) and Duan Chuan Liang proposed to acquire additional 44.49% stake in Kangda International Environmental Company Limited (SEHK:6136) for approximately HKD 330 million in a tender offer transaction on July 21, 2025. A cash consideration valued at HKD 0.048 per share and valued at HKD 0.348 per share will be paid by China Water Affairs Group Limited. As part of consideration, an undisclosed value is paid towards common equity and an undisclosed value is paid towards options of Kangda International Environmental Company Limited. The transaction will be financed through equity investment of HKD 339.2 million.
The Board of Directors of Kangda International Environmental Company Limited formed a special committee for the transaction.
Amasse Capital Limited acted as fairness opinion provider for Kangda International Environmental Company Limited. First Shanghai Capital Limited acted as financial advisor for China Water Affairs Group Limited. Price Target Changed • Jul 14
Price target increased by 7.4% to HK$7.17 Up from HK$6.67, the current price target is an average from 3 analysts. New target price is 15% above last closing price of HK$6.21. Stock is up 29% over the past year. The company is forecast to post earnings per share of HK$0.78 for next year compared to HK$0.66 last year. Declared Dividend • Jul 02
Final dividend of HK$0.15 announced Dividend of HK$0.15 is the same as last year. Ex-date: 25th September 2025 Payment date: 14th November 2025 Dividend yield will be 4.7%, which is lower than the industry average of 11%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 37% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 01
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: HK$0.66 (down from HK$0.94 in FY 2024). Revenue: HK$11.7b (down 9.4% from FY 2024). Net income: HK$1.07b (down 30% from FY 2024). Profit margin: 9.2% (down from 12% in FY 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is expected to decline by 2.8% p.a. on average during the next 2 years, while revenues in the Water Utilities industry in Asia are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Jun 06
China Water Affairs Group Limited to Report Fiscal Year 2025 Results on Jun 27, 2025 China Water Affairs Group Limited announced that they will report fiscal year 2025 results on Jun 27, 2025 Recent Insider Transactions • Mar 28
Executive Chairman recently bought HK$3.3m worth of stock On the 26th of March, Chuan Liang Duan bought around 514k shares on-market at roughly HK$6.40 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Chuan Liang's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$6.85, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Water Utilities industry in Asia. Total loss to shareholders of 7.5% over the past three years. Announcement • Mar 21
China Water Affairs Group Limited Appoints Bai Li as Non-Executive Director The Board of directors (the "Board") of China Water Affairs Group Limited announced the following: With effect from 21 March 2025, Mr. Bai Li has been appointed as non-executive director of the Company. Mr. Bai Li, aged 51, graduated from Nanjing University with a doctorate. He served successively as deputy director and director of the News Department of the General Office of the People's Bank of China (during which time he served as assistant to the mayor of Xicheng District People's Government of Beijing, and concurrently served as secretary of the Party Leadership Group and executive deputy commander of the Beijing Financial Street Construction Command), and secretary of the Youth League Committee of the People's Bank of China (at the division and bureau level). He is currently the Party Secretary and Chairman of Greatwall Life Insurance Co. Ltd., which is a shareholder of the Company holding approximately 5.02% of the Company's total issued shares. He is currently also a director of Financial Street Holdings Co. Ltd. and a non-independent director of Guangdong Construction Engineering Group Co. Ltd. Save as disclosed, Mr. Bai did not hold any directorship in any public listed companies in the last three years. Price Target Changed • Mar 13
Price target increased by 9.6% to HK$6.67 Up from HK$6.09, the current price target is an average from 3 analysts. New target price is 15% above last closing price of HK$5.81. Stock is up 16% over the past year. The company is forecast to post earnings per share of HK$0.87 for next year compared to HK$0.94 last year. Upcoming Dividend • Jan 13
Upcoming dividend of HK$0.13 per share Eligible shareholders must have bought the stock before 20 January 2025. Payment date: 16 May 2025. Payout ratio is a comfortable 31% but the company is not cash flow positive. Trailing yield: 6.1%. Lower than top quartile of Hong Kong dividend payers (8.1%). In line with average of industry peers (6.2%). New Risk • Dec 11
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (10% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Significant insider selling over the past 3 months (HK$137m sold). Declared Dividend • Dec 02
First half dividend of HK$0.13 announced Dividend of HK$0.13 is the same as last year. Ex-date: 20th January 2025 Payment date: 16th May 2025 Dividend yield will be 6.3%, which is lower than the industry average of 11%. Sustainability & Growth Dividend is covered by earnings (31% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 14% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 30
First half 2025 earnings released: EPS: HK$0.46 (vs HK$0.51 in 1H 2024) First half 2025 results: EPS: HK$0.46 (down from HK$0.51 in 1H 2024). Revenue: HK$5.95b (down 13% from 1H 2024). Net income: HK$755.6m (down 8.5% from 1H 2024). Profit margin: 13% (in line with 1H 2024). Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Water Utilities industry in Asia. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Announcement • Nov 29
China Water Affairs Group Limited Announces Ordinary Interim Dividend for the Six Months Ended 30 September 2024, Payable on May 16, 2025 China Water Affairs Group Limited announced Ordinary Interim Dividend of HKD 0.13 per share for the Six Months Ended 30 September 2024. Ex-dividend date is 20 January 2025. Record date is 24 January 2025. Payment date is 16 May 2025. Announcement • Nov 08
China Water Affairs Group Limited to Report First Half, 2025 Results on Nov 29, 2024 China Water Affairs Group Limited announced that they will report first half, 2025 results on Nov 29, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$5.23, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 13x in the Water Utilities industry in Asia. Total loss to shareholders of 28% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$8.25 per share. Upcoming Dividend • Sep 17
Upcoming dividend of HK$0.15 per share Eligible shareholders must have bought the stock before 24 September 2024. Payment date: 15 November 2024. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 6.4%. Lower than top quartile of Hong Kong dividend payers (8.7%). Lower than average of industry peers (7.5%). Reported Earnings • Aug 02
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: HK$0.94 (down from HK$1.14 in FY 2023). Revenue: HK$12.9b (down 9.4% from FY 2023). Net income: HK$1.53b (down 17% from FY 2023). Profit margin: 12% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Water Utilities industry in Asia. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 7% per year. Announcement • Jul 15
China Water Affairs Group Limited Announces Board and Committee Changes With effect from 15 July 2024, Ms. Zhou Nan resigned as independent non-executive director of China Water Affairs Group Limited and member of the audit committee and remuneration committee of the Board due to her other business commitments. Ms. Zhou confirmed that she has no disagreement with the Board and there are no matters relating to her resignation that would need to be brought to the attention of the shareholders of the Company and The Stock Exchange of Hong Kong Limited. With effect from 15 July 2024, Mr. Xiao Zhe has been appointed as independent non-executive director of the Company and member of the audit committee and remuneration committee of the Board. Mr. Xiao Zhe, aged 38, has over 10 years of working experience in finance and investment. From March 2015 to December 2018, he worked as an investment manager in China Minsheng Investment Group, where he was responsible for investment management. From May 2013 to March 2015, he worked as an analyst in securities research department of Shenwan Hongyuan Securities Co. Ltd. From March 2010 to May 2013, he worked as an analyst in securities research department of Sinolink Securities Co. Ltd. Mr. Xiao obtained a bachelor's degree in Materials Science and Engineering in July 2007 and a master's degree in Finance in March 2010 from Shanghai Jiao Tong University in the PRC, respectively. Mr. Xiao did not hold any directorship in any public listed companies in the last three years. Price Target Changed • Jul 05
Price target decreased by 11% to HK$6.13 Down from HK$6.90, the current price target is an average from 2 analysts. New target price is 20% above last closing price of HK$5.11. Stock is down 12% over the past year. The company is forecast to post earnings per share of HK$0.98 for next year compared to HK$0.94 last year. Declared Dividend • Jun 29
Final dividend reduced to HK$0.15 Dividend of HK$0.15 is 17% lower than last year. Ex-date: 24th September 2024 Payment date: 15th November 2024 Dividend yield will be 5.6%, which is lower than the industry average of 11%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 40% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 28
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: HK$0.94 (down from HK$1.14 in FY 2023). Revenue: HK$12.9b (down 9.4% from FY 2023). Net income: HK$1.53b (down 17% from FY 2023). Profit margin: 12% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Water Utilities industry in Asia. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 6% per year. Announcement • Jun 27
China Water Affairs Group Limited Proposes Final Dividend for the Year Ended 31 March 2024, Payable on 15 November 2024 China Water Affairs Group Limited proposed a final dividend of HKD 0.15 per share for the year ended 31 March 2024. The date of shareholders' approval is 06 September 2024. The ex-dividend date is 24 September 2024. The record date is 27 September 2024. The payment date is 15 November 2024. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to HK$5.17, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 13x in the Water Utilities industry in Asia. Negligible returns to shareholders over past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$8.95 per share. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$5.78, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 14x in the Water Utilities industry in Asia. Total returns to shareholders of 8.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$8.95 per share. Announcement • Mar 08
China Water Affairs Group Limited Announces Resignation of Zhao Hai Hu as Non-Executive Director The Board of directors of China Water Affairs Group Limited announced the following: With effect from 8 March 2024, Mr. Zhao Hai Hu resigned as non-executive director of the Company due to his decision to devote more time to his personal affairs. After his resignation, Mr. Zhao shall remain as a consultant of the Group. Upcoming Dividend • Jan 22
Upcoming dividend of HK$0.13 per share at 7.9% yield Eligible shareholders must have bought the stock before 29 January 2024. Payment date: 17 May 2024. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 7.9%. Lower than top quartile of Hong Kong dividend payers (8.7%). Lower than average of industry peers (9.6%). Price Target Changed • Dec 06
Price target decreased by 10% to HK$7.57 Down from HK$8.45, the current price target is an average from 3 analysts. New target price is 81% above last closing price of HK$4.19. Stock is down 28% over the past year. The company is forecast to post earnings per share of HK$1.18 for next year compared to HK$1.14 last year. Announcement • Nov 29
China Water Affairs Group Limited Announces an Interim Dividend for the Six Months Ended 30 September 2023, Payable on 17 May 2024 China Water Affairs Group Limited announced an interim dividend of HKD 0.13 per share for the six months ended 30 September 2023. Ex-dividend date is 29 January 2024. Record date is 2 February 2024. Payment date is 17 May 2024. Reported Earnings • Nov 29
First half 2024 earnings released: EPS: HK$0.51 (vs HK$0.59 in 1H 2023) First half 2024 results: EPS: HK$0.51 (down from HK$0.59 in 1H 2023). Revenue: HK$6.85b (flat on 1H 2023). Net income: HK$825.9m (down 15% from 1H 2023). Profit margin: 12% (down from 14% in 1H 2023). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Water Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Nov 14
China Water Affairs Group Limited to Report First Half, 2024 Results on Nov 27, 2023 China Water Affairs Group Limited announced that they will report first half, 2024 results on Nov 27, 2023 Upcoming Dividend • Sep 12
Upcoming dividend of HK$0.18 per share at 6.2% yield Eligible shareholders must have bought the stock before 19 September 2023. Payment date: 17 November 2023. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 6.2%. Lower than top quartile of Hong Kong dividend payers (7.8%). Lower than average of industry peers (9.2%). Reported Earnings • Jul 29
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: HK$1.14 (down from HK$1.17 in FY 2022). Revenue: HK$14.2b (up 9.6% from FY 2022). Net income: HK$1.86b (down 1.9% from FY 2022). Profit margin: 13% (down from 15% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 2.6%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the Water Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 28
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: HK$1.14 (down from HK$1.17 in FY 2022). Revenue: HK$14.2b (up 9.6% from FY 2022). Net income: HK$1.86b (down 1.9% from FY 2022). Profit margin: 13% (down from 15% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 2.6%. Revenue is forecast to grow 9.4% p.a. on average during the next 2 years, compared to a 9.5% growth forecast for the Water Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 2% per year. Announcement • Jun 10
China Water Affairs Group Limited to Report Fiscal Year 2023 Results on Jun 27, 2023 China Water Affairs Group Limited announced that they will report fiscal year 2023 results on Jun 27, 2023 Upcoming Dividend • Feb 09
Upcoming dividend of HK$0.16 per share at 4.6% yield Eligible shareholders must have bought the stock before 16 February 2023. Payment date: 03 April 2023. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 4.6%. Lower than top quartile of Hong Kong dividend payers (8.1%). Lower than average of industry peers (6.6%). Price Target Changed • Jan 26
Price target decreased by 9.6% to HK$9.14 Down from HK$10.12, the current price target is an average from 3 analysts. New target price is 33% above last closing price of HK$6.85. Stock is down 27% over the past year. The company is forecast to post earnings per share of HK$1.20 for next year compared to HK$1.17 last year. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 16% share price gain to HK$6.75, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 11x in the Water Utilities industry in Asia. Total returns to shareholders of 24% over the past three years. Recent Insider Transactions • Dec 06
Executive Director recently bought HK$1.0m worth of stock On the 2nd of December, Zhong Li bought around 186k shares on-market at roughly HK$5.55 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought HK$2.7m more in shares than they have sold in the last 12 months. Reported Earnings • Dec 01
First half 2023 earnings released: EPS: HK$0.59 (vs HK$0.64 in 1H 2022) First half 2023 results: EPS: HK$0.59 (down from HK$0.64 in 1H 2022). Revenue: HK$6.79b (up 4.8% from 1H 2022). Net income: HK$970.4m (down 4.8% from 1H 2022). Profit margin: 14% (down from 16% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Water Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 2% per year. 
