SEHK:855

Stock Analysis Report

China Water Affairs Group

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.

Snowflake

Fundamentals

Good value average dividend payer.

Risks

  • China Water Affairs Group has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

2.3%

SEHK:855

0.4%

HK Water Utilities

0.7%

HK Market


1 Year Return

-24.6%

SEHK:855

8.6%

HK Water Utilities

-5.3%

HK Market

855 underperformed the Water Utilities industry which returned 12.1% over the past year.

855 underperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

855IndustryMarket
7 Day2.3%0.4%0.7%
30 Day2.6%2.1%4.9%
90 Day-19.1%-0.7%-3.7%
1 Year-21.5%-24.6%12.7%8.6%-1.8%-5.3%
3 Year46.8%31.2%18.7%7.3%16.4%4.6%
5 Year112.6%83.0%43.9%26.0%18.0%-1.7%

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

Valuation

Is China Water Affairs Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Water Affairs Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Water Affairs Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Water Affairs Group is overvalued based on earnings compared to the HK Water Utilities industry average.

China Water Affairs Group is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Water Affairs Group is good value based on expected growth next year.


Price Based on Value of Assets

China Water Affairs Group is overvalued based on assets compared to the HK Water Utilities industry average.


Next Steps

Future Growth

How is China Water Affairs Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Water Affairs Group's revenue is expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

China Water Affairs Group's earnings are expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).

China Water Affairs Group's revenue growth is expected to exceed the Hong Kong market average.

China Water Affairs Group's earnings growth is expected to exceed the Hong Kong market average.

China Water Affairs Group's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Water Affairs Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has China Water Affairs Group performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Water Affairs Group has delivered over 20% year on year earnings growth in the past 5 years.

China Water Affairs Group's 1-year earnings growth is less than its 5-year average (20.1% vs 30.6%)

China Water Affairs Group's earnings growth has exceeded the HK Water Utilities industry average in the past year (20.1% vs 13.4%).


Return on Equity

China Water Affairs Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Water Affairs Group used its assets less efficiently than the HK Water Utilities industry average last year based on Return on Assets.


Return on Capital Employed

China Water Affairs Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Water Affairs Group's financial position?


Financial Position Analysis

China Water Affairs Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Water Affairs Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

China Water Affairs Group's level of debt (118%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (86.1% vs 118% today).

Debt is not well covered by operating cash flow (6.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 13.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is China Water Affairs Group's current dividend yield, its reliability and sustainability?

5.79%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Water Affairs Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

China Water Affairs Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.08%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

What is the CEO of China Water Affairs Group's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average board tenure


CEO

China Water Affairs Group has no CEO, or we have no data on them.


Board Age and Tenure

7.2yrs

Average Tenure

55.5yo

Average Age

The tenure for the China Water Affairs Group board of directors is about average.


Insider Trading

More shares have been bought than sold by China Water Affairs Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyHK$1,683,68003 Sep 19
Chuan Liang Duan
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares272,000
Max PriceHK$6.19
BuyHK$467,40003 Sep 19
Yu Jie Liu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares76,000
Max PriceHK$6.15
BuyHK$2,058,41930 Aug 19
Chuan Liang Duan
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares338,000
Max PriceHK$6.09
BuyHK$730,80030 Aug 19
Yu Jie Liu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares120,000
Max PriceHK$6.09
BuyHK$1,500,00029 Aug 19
Chuan Liang Duan
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares250,000
Max PriceHK$6.00
BuyHK$2,307,99928 Aug 19
Chuan Liang Duan
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares400,000
Max PriceHK$5.77
BuyHK$1,156,00028 Aug 19
Yu Jie Liu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares200,000
Max PriceHK$5.78
BuyHK$2,754,99827 Aug 19
Chuan Liang Duan
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares500,000
Max PriceHK$5.51
BuyHK$823,50027 Aug 19
Yu Jie Liu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares150,000
Max PriceHK$5.49
BuyHK$714,50008 Jul 19
Zhong Li
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares100,000
Max PriceHK$7.14

Ownership Breakdown


Management Team

  • Chuan Liang Duan (56yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$22.04m
  • Michelle Liu (55yo)

    Executive Director

    • Tenure: 5yrs
    • Compensation: HK$4.42m
  • Aston Lie (41yo)

    Company Secretary

    • Tenure: 8.7yrs
  • Bin Ding (43yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$2.12m
  • Zhong Li (51yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$4.24m

Board Members

  • Hai Hu Zhao (64yo)

    Non-Executive Director

    • Tenure: 16.2yrs
    • Compensation: HK$678.00k
  • Chuan Liang Duan (56yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$22.04m
  • Donald Chau (56yo)

    Independent Non Executive Director

    • Tenure: 12.5yrs
    • Compensation: HK$348.00k
  • Makoto Inoue (67yo)

    Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: HK$60.00k
  • King Keung Ong (43yo)

    Independent Non-Executive Director

    • Tenure: 12.5yrs
    • Compensation: HK$300.00k
  • Wen Zhi Zhou (78yo)

    Non-Executive Director

    • Tenure: 14.9yrs
    • Compensation: HK$120.00k
  • Michelle Liu (55yo)

    Executive Director

    • Tenure: 5yrs
    • Compensation: HK$4.42m
  • Bin Ding (43yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$2.12m
  • Zhong Li (51yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$4.24m
  • Xiaoqin Wang (46yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$2.88m

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:
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: HK$10.073b
  • Shares outstanding: 1.60b
  • Website: https://www.chinawatergroup.com

Number of Employees


Location

  • China Water Affairs Group Limited
  • Central Plaza
  • 64th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
855SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1999
CUBBDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1999
CWAF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1999
855SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 1999
CUBXTRA (XETRA Trading Platform)HKD0.01DEEURApr 2006

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. The company’s City Water Supply O ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 12:36
End of Day Share Price2019/09/17 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.