SEHK:855

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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. More Details


Snowflake Analysis

Undervalued with proven track record and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

855

-1.1%

HK Water Utilities

-3.9%

HK Market


1 Year Return

-2.1%

855

-19.9%

HK Water Utilities

-1.5%

HK Market

Return vs Industry: 855 exceeded the Hong Kong Water Utilities industry which returned -20.5% over the past year.

Return vs Market: 855 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

855IndustryMarket
7 Day-2.3%-1.1%-3.9%
30 Day-5.2%-2.7%-7.1%
90 Day7.7%-5.1%-0.7%
1 Year2.9%-2.1%-16.2%-19.9%2.4%-1.5%
3 Year22.6%8.9%-8.1%-18.6%-7.2%-17.2%
5 Year101.7%68.3%-0.3%-15.7%20.1%-0.1%

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 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$6.01) is trading below our estimate of fair value (HK$38.69)

Significantly Below Fair Value: 855 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 855 is good value based on its PE Ratio (5.9x) compared to the HK Water Utilities industry average (6.5x).

PE vs Market: 855 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 855 is good value based on its PEG Ratio (0.7x)


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).


Next Steps

Future Growth

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

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 855's forecast earnings growth (8% per year) is above the savings rate (1.6%).

Earnings vs Market: 855's earnings (8% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

High Growth Earnings: 855's earnings are forecast to grow, but not significantly.

Revenue vs Market: 855's revenue (9.1% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 855's revenue (9.1% 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 (17.5%).


Next Steps

Past Performance

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

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 855 has high quality earnings.

Growing Profit Margin: 855's current net profit margins (18.9%) are higher than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: 855's earnings have grown significantly by 27% per year over the past 5 years.

Accelerating Growth: 855's earnings growth over the past year (19.6%) is below its 5-year average (27% per year).

Earnings vs Industry: 855 earnings growth over the past year (19.6%) exceeded the Water Utilities industry -4%.


Return on Equity

High ROE: 855's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is China Water Affairs Group's financial position?


Financial Position Analysis

Short Term Liabilities: 855's short term assets (HK$13.3B) exceed its short term liabilities (HK$12.3B).

Long Term Liabilities: 855's short term assets (HK$13.3B) do not cover its long term liabilities (HK$15.5B).


Debt to Equity History and Analysis

Debt Level: 855's debt to equity ratio (128.3%) is considered high.

Reducing Debt: 855's debt to equity ratio has increased from 86.4% to 128.3% over the past 5 years.

Debt Coverage: 855's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: 855's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 855's dividend (4.99%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 855's dividend (4.99%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.92%).


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 (29.4%), 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 (29.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.7yrs

Average management tenure


CEO

Yong Liu (50 yo)

14.67yrs

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

NamePositionTenureCompensationOwnership
Chuan Liang Duan
Executive Chairmanno dataHK$22.04m29.66%
HK$ 2.8b
Bin Ding
Executive Director7.25yrsHK$2.10m0.36%
HK$ 34.2m
Yu Jie Liu
Executive Director6yrsHK$4.42m0.76%
HK$ 72.1m
Zhong Li
Executive Director5.25yrsHK$3.89m2.37%
HK$ 226.1m
Jerry Linnan Duan
Executive Director0.92yrHK$685.93kno data
Yong Liu
General Manager14.67yrsno datano data
Chi Wing Lie
Company Secretary9.67yrsno datano data

9.7yrs

Average Tenure

50yo

Average Age

Experienced Management: 855's management team is seasoned and experienced (9.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chuan Liang Duan
Executive Chairmanno dataHK$22.04m29.66%
HK$ 2.8b
Bin Ding
Executive Director7.25yrsHK$2.10m0.36%
HK$ 34.2m
Yu Jie Liu
Executive Director6yrsHK$4.42m0.76%
HK$ 72.1m
Zhong Li
Executive Director5.25yrsHK$3.89m2.37%
HK$ 226.1m
Jerry Linnan Duan
Executive Director0.92yrHK$685.93kno data
Hai Hu Zhao
Non-Executive Director17.17yrsHK$663.00k0.27%
HK$ 25.9m
Kam Wing Chau
Independent Non Executive Director13.5yrsHK$348.00kno data
Makoto Inoue
Non-Executive Director8.17yrsHK$60.00kno data
Wen Zhi Zhou
Non-Executive Director15.92yrsHK$120.00k0.055%
HK$ 5.2m
Chi Ming Siu
Independent Non-Executive Director4.5yrsHK$300.00kno data
Xiaoqin Wang
Non-Executive Director5.25yrsHK$2.98m0.56%
HK$ 53.8m
Ping Ho
Independent Non-Executive Director3.58yrsHK$159.00k0.062%
HK$ 5.9m

6.0yrs

Average Tenure

54yo

Average Age

Experienced Board: 855's board of directors are considered experienced (6 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.


Recent Insider Transactions

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:
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: HK$9.539b
  • Shares outstanding: 1.59b
  • Website: https://www.chinawatergroup.com

Number of Employees


Location

  • China Water Affairs Group Limited
  • Central Plaza
  • 64th Floor
  • Wan Chai
  • 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. It operates through City Water Su ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 19:31
End of Day Share Price2020/09/24 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.