Executive Summary
China Water Affairs Group Limited, an investment holding company, engages in the water supply, sewage treatment, and property businesses in the People’s Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value average dividend payer.
Similar Companies
Share Price & News
How has China Water Affairs Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 855 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: 855's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.4%
855
-0.6%
HK Water Utilities
-0.5%
HK Market
1 Year Return
5.6%
855
-15.9%
HK Water Utilities
25.4%
HK Market
Return vs Industry: 855 exceeded the Hong Kong Water Utilities industry which returned -15.9% over the past year.
Return vs Market: 855 underperformed the Hong Kong Market which returned 25.5% over the past year.
Shareholder returns
| 855 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -0.6% | -0.5% |
| 30 Day | -0.6% | -2.4% | -0.9% |
| 90 Day | 3.5% | -7.4% | -3.2% |
| 1 Year | 10.9%5.6% | -11.9%-15.9% | 30.2%25.4% |
| 3 Year | -9.5%-20.6% | -9.5%-19.9% | 3.0%-7.9% |
| 5 Year | 89.3%55.6% | 7.4%-10.2% | 61.6%34.1% |
Long-Term Price Volatility Vs. Market
How volatile is China Water Affairs Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Type Of Shareholders Make Up China Water Affairs Group Limited's (HKG:855) Share Registry?1 month ago | Simply Wall St
Should We Be Delighted With China Water Affairs Group Limited's (HKG:855) ROE Of 17%?1 month ago | Simply Wall St
We Like These Underlying Trends At China Water Affairs Group (HKG:855)Valuation
Is China Water Affairs Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 855 (HK$6.21) is trading below our estimate of fair value (HK$49.59)
Significantly Below Fair Value: 855 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 855 is poor value based on its PE Ratio (6.3x) compared to the HK Water Utilities industry average (5.4x).
PE vs Market: 855 is good value based on its PE Ratio (6.3x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 855 is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: 855 is overvalued based on its PB Ratio (1.1x) compared to the HK Water Utilities industry average (0.5x).
Future Growth
How is China Water Affairs Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
12.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 855's forecast earnings growth (12.3% per year) is above the savings rate (1.5%).
Earnings vs Market: 855's earnings (12.3% per year) are forecast to grow slower than the Hong Kong market (17% per year).
High Growth Earnings: 855's earnings are forecast to grow, but not significantly.
Revenue vs Market: 855's revenue (10.1% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).
High Growth Revenue: 855's revenue (10.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 855's Return on Equity is forecast to be low in 3 years time (18.3%).
Past Performance
How has China Water Affairs Group performed over the past 5 years?
22.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 855 has high quality earnings.
Growing Profit Margin: 855's current net profit margins (16.7%) are lower than last year (18.8%).
Past Earnings Growth Analysis
Earnings Trend: 855's earnings have grown significantly by 22.8% per year over the past 5 years.
Accelerating Growth: 855's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 855 had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Water Utilities industry average (-0.01%).
Return on Equity
High ROE: 855's Return on Equity (16.6%) is considered low.
Financial Health
How is China Water Affairs Group's financial position?
Financial Position Analysis
Short Term Liabilities: 855's short term assets (HK$13.5B) exceed its short term liabilities (HK$12.7B).
Long Term Liabilities: 855's short term assets (HK$13.5B) do not cover its long term liabilities (HK$17.1B).
Debt to Equity History and Analysis
Debt Level: 855's debt to equity ratio (129.7%) is considered high.
Reducing Debt: 855's debt to equity ratio has increased from 98.6% to 129.7% over the past 5 years.
Debt Coverage: 855's debt is not well covered by operating cash flow (15.6%).
Interest Coverage: 855's interest payments on its debt are well covered by EBIT (15.5x coverage).
Balance Sheet
Dividend
What is China Water Affairs Group current dividend yield, its reliability and sustainability?
4.83%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 855's dividend (4.83%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).
High Dividend: 855's dividend (4.83%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.99%).
Stability and Growth of Payments
Stable Dividend: 855's dividend payments have been volatile in the past 10 years.
Growing Dividend: 855's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.3%), 855's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 855's dividends in 3 years are forecast to be well covered by earnings (28.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.3yrs
Average management tenure
CEO
Yong Liu (50 yo)
15.33yrs
Tenure
Mr. Yong Liu serves as General Manager of China Water Affairs Group Ltd and served its an Executive General Manager since 2006 and served as its Deputy Executive General Manager of Group. Mr. Liu has over ...
Leadership Team
Experienced Management: 855's management team is seasoned and experienced (10.3 years average tenure).
Board Members
Experienced Board: 855's board of directors are considered experienced (6.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
China Water Affairs Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Water Affairs Group Limited
- Ticker: 855
- Exchange: SEHK
- Founded: NaN
- Industry: Water Utilities
- Sector: Utilities
- Market Cap: HK$9.842b
- Shares outstanding: 1.58b
- Website: https://www.chinawatergroup.com
Number of Employees
Location
- China Water Affairs Group Limited
- Central Plaza
- 64th Floor
- Wan Chai
- Hong Kong
Listings
Biography
China Water Affairs Group Limited, an investment holding company, engages in the water supply, sewage treatment, and property businesses in the People’s Republic of China. It operates through City Water Su...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/09 10:13 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.