SGX:U9EWater Utilities
China Everbright Water (SGX:U9E) Can Margin Gains Recast Its Low P E Story?
China Everbright Water closed at SGD0.225 today, barely moved over the past week, yet the latest half year numbers give you a very different story to weigh. The headline is margin resilience. Net profit margin over the past 12 months sits at 17.8%, up from 14.8%, even as earnings over five years have drifted lower on average.
The stock trades on a P/E of about 5x, which is well below both industry and peer averages. That combination of fatter margins and a compressed multiple is what matters...