China Water Affairs Group Ltd
HKEX:855

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China Water Affairs Group Ltd
HKEX:855
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Price: 4.91 HKD -0.41%
Market Cap: HK$8B

EV/IC

0.4
Current
6%
Cheaper
vs 3-y average of 0.4

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.4
=
Enterprise Value
HK$21.4B
/
Invested Capital
HK$55.1B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.4
=
Enterprise Value
HK$21.4B
/
Invested Capital
HK$55.1B

Valuation Scenarios

China Water Affairs Group Ltd is trading below its 3-year average

If EV/IC returns to its 3-Year Average (0.4), the stock would be worth HK$5.25 (7% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+52%
Average Upside
27%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 0.4 HK$4.91
0%
3-Year Average 0.4 HK$5.25
+7%
5-Year Average 0.4 HK$5.43
+11%
Industry Average 0.6 HK$7.44
+52%
Country Average 0.5 HK$6.79
+38%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close

Market Distribution

In line with most companies in Hong Kong
Percentile
38th
Based on 1 589 companies
38th percentile
0.4
Low
0 — 0.3
Typical Range
0.3 — 0.9
High
0.9 —
Distribution Statistics
Hong Kong
Min 0
30th Percentile 0.3
Median 0.5
70th Percentile 0.9
Max 59 382.5

China Water Affairs Group Ltd
Glance View

Market Cap
8B HKD
Industry
Utilities

China Water Affairs Group Ltd. has carved a remarkable niche in a sector that is both crucial and challenging—water supply and management. Originating as a small-scale operator, the company has expanded exponentially to cater to the growing demands of urban and rural areas across China. Their operations span from the construction and management of water supply infrastructure to sanitation and sewage treatment, employing a keen focus on innovation and sustainability. By upgrading existing water systems and implementing advanced technologies, they ensure efficient resource allocation, which aligns with increasing governmental and public emphasis on environmental sustainability. Their expertise does not just lie in supplying water but extends to a holistic management approach that addresses water conservation and quality improvement. At the heart of China Water Affairs’ business model is a strategic blend of public-private partnerships and government concessions, which amplifies their revenue streams. These alliances allow the company to secure long-term contracts, providing a stable and recurring cash flow. It operates on a model wherein initial investments in infrastructure and technology are reclaimed through service charges levied on consumers, which encompass both residential and industrial users. Additionally, revenue is bolstered by ancillary businesses such as the sale of water-related equipment and services. Through a combination of strategic partnerships, governmental support, and a keen focus on efficiency, China Water Affairs Group Ltd. continues to thrive in the realm of urban water management, reflecting the enormity of delivering a life-sustaining service in one of the world’s most populous nations.

Intrinsic Value
5.06 HKD
Undervaluation 3%
Intrinsic Value
Price HK$4.91
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