China Water Affairs Group (855)

Business description

China Water Affairs Group owns and operates regulated water supply assets across 50 cities in mainland China, serving 10 million customers in the residential, commercial and industrial sectors.

Stock data

Market cap.HK$11366.4m
Last closeHK$7.10
High / Low (52 weeks)HK$7.4 / HK$4.2
Stock market listingHK
Forecast net debt (HK$m)5901
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorGeneral Industrials

Price performance

%1m3m12m
Actual17.247.344.3
Relative *17.040.610.9

* % Relative to local index

Other companies in sector Show

Company news

Did China Water Affairs Group Limited (SEHK:855) Create Value For Shareholders?

Sun, 10 Dec 2017 22:41:15 GMT

China Water Affairs sells 14.5 pct stake to Orix at premium

Fri, 20 May 2011 00:52:45 GMT

Dividend Growth and Technical Update on China Water Affairs Group Limited ...

Sun, 17 Dec 2017 04:52:30 GMT

China Water Affairs Group Limited (0855) Decline -0.429% on Dec 15

Fri, 15 Dec 2017 02:48:45 GMT

In a bullish sign, these five companies bought back their own shares in recent ...

Sun, 23 Apr 2017 07:43:50 GMT

Y/E Mar Revenue (HK$m) EBITDA (HK$m) PBT (HK$m) EPS (c) P/E (x) P/CF (x)
2016A 4740.0 1951.0 1505.0 40.1 17.7 N/A
2017A 5708.0 2647.0 1963.0 55.4 12.8 N/A
2018E 7103.0 2831.0 2159.0 59.9 11.9 N/A
2019E 8526.0 3283.0 2536.0 70.4 10.1 N/A

Last updated on 08/12/2017

Investment summary

We forecast revenue to increase 25% in FY18 and 20% in FY19 (vs consensus of 19% and 14%, respectively), on the back of a 50% increase in capex in FY17 under service concession contracts. Its net debt of HK$6.2bn and net debt to equity ratio of 70% are at a historical high. We reduce our fair value by 6% from HK$7.12/share to HK$6.71/share based on a sum-of-the-parts EV/EBITDA valuation as we lower our revenue forecasts for FY18 and FY19 by 6% and 7%, respectively (given CWA’s reported FY17 sales were 9% below our previous estimates). Interim results are to be announced at the end of November 2017.

Last updated on 13/12/2017

Industry outlook

The water supply industry in China remains highly fragmented and, according to CWA, only 20% of water assets in China are owned by private companies. The central government encourages local governments to deleverage their own balance sheets with private-public partnerships. The overall trend remains positive for CWA.

Last updated on 13/12/2017

Key management

Duan Chuan Liang, Chairman
Ding Bin, Executive director
Liu Yu Jie, Executive director
Li Zhong, Executive director

Company address

Suite 6408, 64/F, Central Plaza
18 Harbour Road
Wanchai
Hong Kong
+852 3968 6666
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