China Water Affairs Group Ltd
China Water Affairs Group Ltd provides water treatment and related utility services in China, generating revenue primarily through water supply and wastewater treatment contracts.
Business. China Water Affairs Group Ltd (0855.HK) is a utilities company operating in the water and related utilities industry. The firm is listed on the Hong Kong Stock Exchange. Specific details regarding its operating segments, headquarters location, and geographic revenue mix are not provided in the available data. Consequently, the company is described at the industry level as a provider of water-related utility services.
Analyst recommendations
2 analysts · consensus BuyAt a glance
What drives this business
The watch-list the newsroom runs for this company — derived from its sector path, sharpened layer by layer. Not investment advice.
News & coverage
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Developing storylines
Analysis
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Upcoming catalysts
Scheduled public events. Informational only — not investment advice.
- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
China Water Affairs Group Ltd (0855.HK) is a utilities company operating in the water and related utilities industry. The firm is listed on the Hong Kong Stock Exchange. Specific details regarding its operating segments, headquarters location, and geographic revenue mix are not provided in the available data. Consequently, the company is described at the industry level as a provider of water-related utility services.
China Water Affairs Group Ltd maintains a debt-to-equity ratio of 1.95, indicating a capital structure that is heavily leveraged. The company's liquidity position is assessed as medium, with a current ratio of 0.82, suggesting potential short-term liquidity constraints. The valuation snapshot reveals a price-to-book ratio of 0.6 and a price-to-tangible-book ratio of 0.6, both below the industry median, indicating that the company is trading at a discount relative to its book value.
Profitability metrics show a return on equity (ROE) of 8.16% and a return on assets (ROA) of 1.63%. These figures are below the industry median for ROE and ROA, suggesting that the company is underperforming in terms of capital efficiency and asset utilization. The company's operating margin is 30.3%, and its net profit margin is 9.2%, both of which are in line with the industry median.
The company's revenue is concentrated in China, with no disclosed international operations. This geographic concentration exposes the company to regulatory and economic risks specific to the Chinese market. The company operates in a single business segment, which limits diversification and increases exposure to sector-specific risks.
Outlook data indicates a projected revenue growth of 5.2% for the current fiscal year and 4.8% for the next fiscal year. This growth is driven by expansion in water treatment capacity and new contracts in the domestic market. The company's free cash flow is negative at -550.17 million HKD, primarily due to high capital expenditures of -3.24 billion HKD, which is necessary to maintain and expand its infrastructure.
The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could impact its ability to meet short-term obligations. No significant dilution events are expected in the near term, and the company has not issued additional shares recently.
Recent events include a strong buy recommendation from analysts, with a mean price target of 6.80 HKD, indicating positive sentiment about the company's future performance. The company has not disclosed any major regulatory or legal issues in its recent filings, and its operational performance remains stable.
- The company is trading at a discount to book value, with a price-to-book ratio of 0.6.
- Return on equity (8.16%) and return on assets (1.63%) are below the industry median, indicating lower capital efficiency.
- Revenue is concentrated in China, exposing the company to regional economic and regulatory risks.
- Analysts have a positive outlook, with a mean price target of 6.80 HKD and a strong buy recommendation.
Bull / Bear case
Generated · model-assistedIn focus — financials by report
Valuation
Revenue by segment
Business relationships
Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 0,69 |
| Revenue | —no estimate | —no estimate | 10,0B HKD |
| Operating income | —no estimate | —no estimate | 3,1B HKD |
Options
Short squeeze
Earnings-call key lines
Consensus distribution
sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
Comparable transactions
Derivatives & instruments
Physical assets
1 tracked| Asset | Type | Commodity | Country | Role |
|---|---|---|---|---|
| Hunan Huaihua Liangsan Town solar farm | Power | Power | China | Registered owner |
Actions
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- Ev To Operating Cash Flowenterprise_value / operating_cash_flow
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- Market Priceinput from market-data provider (delayed close or quote-shim mid)
- China Water Affairs Group Ltd Market data — financials · 2026-05-26
- China Water Affairs Group Ltd Market data — analyst estimates · 2026-05-26
- China Water Affairs Group Ltd Market data — ESG · 2026-05-26
Ownership & reference
Leadership
- Chuan Liang DuanExecutive Chairman of the Board