China Water Affairs 855

Re: China Water Affairs 855

Postby winston » Tue Jun 28, 2016 9:36 am

not vested

CHINA WATER(855)

Analysis:
China Water Affairs Group (855) has announced results for the year ended 31 March 2016. The Group recorded a revenue of HK$40.3 billion, representing a significant increase of 41.1% compared to the same period last year.

The combined revenue from city water supply operation and construction and sewage treatment and drainage operation and construction business amounted to HK$3.63 billion, representing a yearly increase of 53.4%, and accounting for 90.1% of its total revenue , up from 82.8% in the previous financial year.

The strong growth of "Water" segment revenue was mainly attributable to the successful strategy of the Group through procurement of more construction and installation work, increase in operating efficiency and raisng of tariff of the water supply and sewage treatment plants and various mergers and aquisition.

Net profit attributable to shareholders amounted to HK$551 million, representing an increase of 48.8%. Based on the EPS of 36.58 cents , it is currently trading at less than 12 times historical P/E. (I do not hold the above stock)

Strategy:
Buy-in Price: $4.10, Target Price: $4.50, Cut Loss Price: $3.90

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: China Water Affairs 855

Postby winston » Mon Oct 15, 2018 11:45 am

not vested

CHINA WATER(855)

Analysis:

The group is engaged in waterworks investment and operations as well as other related businesses in the PRC.

The Group`s businesses include urban water supply, water supply systems management, meter installation and related value-added businesses.

Currently, the Group`s businesses cover over 50 cities in 3 municipalities of Beijing, Tianjin and Chongqing, and in various provinces including Guangdong, Jiangxi, Henan, Jiangsu, Hunan, Hubei, Sichuan etc, providing water supply for over 20 million citizens.

The total daily processing capacity is approximately 13.07 million cubic meters.

The water fee in China is lower than that in Europe and American, meaning that there is still room to grow. The group expected to adjust their water fee with the local government every three years.

Moreover, thanks to the urbanization, it is believed the water consumption in tier three and four cities to rise continually, leading to 7-8% growth in revenue every year.

The group aims to cover 100 cities within next five years, implying to cover 8 cities every year. Those acquisitions could bring 10% growth in revenue every year.

Although the debt to equity ratio is relatively high, we believe the risk is not that severe, because the water supply business is relatively stable with a strong cash flow.

Strategy:
Buy-in Price: $7.00, Target Price: $8.50, Cut Loss Price: $6.50

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: China Water Affairs 855

Postby winston » Mon Oct 22, 2018 10:48 am

not vested

CHINA WATER(855)

Analysis:
China Water Affairs Group (855) continues to expand its water supply business through acquisitions, forming joint ventures and securing strategic cooperation.

The Group recently announced that Gold Tact, its subsidiary, and the Investor has entered into the Capital Injection Agreement pursuant to which the Investor has conditionally agreed to subscribe for equity interest in Gold Tact up to the amount of RMB500 million.

Pursuant to the Capital Agreement Injection Agreement, the Investor has agreed to establish comprehensive strategic cooperation with the Group in various aspects inc luding strategic planning, management consulting, financial support, financing services and value chain resources consolidation. (I do not hold the above stock)

Strategy:
Buy-in Price: $7.40, Target Price: $8.30, Cut Loss Price: $6.90

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Posts: 108503
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Re: China Water Affairs 855

Postby winston » Tue Feb 12, 2019 11:28 am

not vested

CHINA WATER(855)

Analysis:

The company is a one-stop water service solution provider, dedicated to urban water supply, sewage treatment, water supply pipe and electronic water meter installation, and water resources management.

It provides value-added services, through TOO model (investment, operation and ownership) to expand.

The group owns urban water supply projects in many provinces, cities and regions in China, including Hainan, Hebei, Henan, Hubei and Hunan.

Urban water business is serving for more than 3.3 million users, with about 20 million potential service population and 135,000 kilometers water pipe.

In 2017, the revenue of the water division increased by 27.3% yoy, mainly due to more projects, rising ASP of water supply and sewage treatment, and more mergers and acquisitions.

Strategy:
Buy-in Price: $8.16, Target Price: $9.5 0, Cut Loss Price: $7.50

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
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Posts: 108503
Joined: Wed May 07, 2008 9:28 am

Re: China Water Affairs 855

Postby winston » Fri Jun 28, 2019 3:03 pm

not vested

CHINA WATER(855)

Analysis:
The Group has announced its annual results, where the revenue rose from HKD 7.58 billion to 8.3 billion, up by 9.5%.

The growth is due mainly to the procurement of more construction and connection work, increase in tariff of the water supply and sewage treatment plants, and various mergers and acquisition.

As to Water Supply Business, the net profit was HKD 2.62 billion, up by 9%, where the growth is attributed to the increase in in volume of water sold, the continuation of urban-rural integration as well as the procurement of more construction and connection work driven by PPP projects.

Currently, this business has covered many provinces and cities, such as Hunan, Hubei, Shenzhen, Guangdong, Beijing, Chongqing, Shandong, etc.

As to Environmental Protection Business (including sewage treatment and drainage operating and construction, solid waste and hazardous waste business, environmental sanitation and water environment management), its net profit was HKD 443 million, with a huge growth of 63.8%.

It is because of the upgrade of facilities for higher operating standard and procurement of more construction services.

The Ministry of Finance has released the “Opinions on Promoting the Normative Development of Public – Private Partnership” in March, which substantially enhanced the support for policies regarding private enterprises participating in public services.

The Group will improve its water supply service quality and standard and provide comprehensive and professional water services to our customers.

Strategy:
Buy-in Price: $7.80, Target Price: $9.00, Cut Loss Price: $6.50

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: China Water Affairs 855

Postby winston » Wed Jul 10, 2019 12:44 pm

not vested

CHINA WATER(855)

Analysis:
The company`s main business is to invest in and operate urban water supply, sewage treatment and related businesses in Mainland China.

China Water`s net profit for FY19 increased by 20.9% year-on-year, from HK$1,140.5 million in FY18 to HK$1,369.2 million in FY19.

The performance of the environmental business segment increased by 63.8% year-on-year, from HK$271 million in FY18 to HK$443.9 million in FY19.

The company announced a final dividend of HK$0.16 per shar! e for FY19, up from HK$0.15 per share in FY18.

In early April, the company announced a $1.2 billion acquisition of a 29.52% interest in KANGDA ENV (6136.HK), involving 600 million shares, which is equivalent to a price of HK$2 per share, a premium of 62.6% over the current market price of KANGDA ENV.

The company will regard the acquisition as an industrial investment rather than a financial investment, focusing on the intrinsic core value of the target company.

After the integration, the company believes that the value and synergy of the acquisition can be gradually reflected in the future.

Strategy:
Buy-in Price: $7.15, Target Price: $8.65, Cut Loss Price: $7.00

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
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Posts: 108503
Joined: Wed May 07, 2008 9:28 am

Re: China Water Affairs 855

Postby winston » Fri Nov 29, 2019 12:08 pm

not vested

CHINA WATER(855)

Analysis:

The businesses of China Water Affairs Group (855) comprise 3 segments:
(i) “City water supply operation and construction” involves the provision of water supply operation and construction services;
(ii) “Environmental protection” involves the provision of sewage treatment and drainage operation and construction services, solid waste and hazardous waste business, environmental sanitation and water environment management; and
(iii) “Property development and investment”.

For the six months ended 30 September 2019, the Group recorded a revenue of HK$4,354.7 million, representing a steady increase of 5.1% as compared to last corresponding period.

Profit attributable to shareholders was HK$881.1 million, representing a significant increase of 36.4%.

Looking forward, the Group will focus on the development of its core water supply business, and adhere to the two core development strategies, namely urban-rural water supply integration and supply-drainage integration.

It will also accelerate the development of its value-added businesses of secondary water supply and direct drinking water. (I do not hold the above stock)

Strategy:
Buy-in Price: $6.00, Target Price: $6.60, Cut Loss Price: $5.70

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
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Posts: 108503
Joined: Wed May 07, 2008 9:28 am

Re: China Water Affairs 855

Postby winston » Wed Sep 16, 2020 1:50 pm

not vested

CHINA WATER(855)

Analysis:
The outbreak of the COVID-19 pandemic across different regions has brought unprecedented impacts and challenges to the global economy.

Under such market conditions, China Water Affairs Group (855) still reported stable financial results as the nature of the Group`s utility business characterised by stable revenue and cash flow has become a prominent advantage.

The Group`s total revenue increased from HK$8,302.2 million for the year ended 31 March 2019 to HK$8,694.3 million for the year ended 31 March 2020, representing a steady increase of 4.7%.

Net profit attributable to shareholders increased 19.7% to HK$1,639.5 million.

Looking forward, the Group will focus on the development of its core water supply business, accelerate the development of its value-added businesses including direct drinking water, and improve the smart pipeline network system in order to boost its core competitiveness. (I do not hold the above stock)

Strategy:
Buy-in Price: $6.00, Target Price: $6.70, Cut Loss Price: $5.50

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108503
Joined: Wed May 07, 2008 9:28 am

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