Water stocks picked up in the afternoon. As of press release, Beijing Water Group (00371) rose 3.95% to HK$1.84; China Water (00855) rose 2.75% to HK$4.11; China Everbright Water (01857) rose 2.42% to HK$1.27; and Guangdong Investment (00270) rose 1.79% to HK$5.7.
The Zhitong Finance App learned that water stocks picked up in the afternoon. As of press release, Beijing Water Group (00371) rose 3.95% to HK$1.84; China Water (00855) rose 2.75% to HK$4.11; China Everbright Water (01857) rose 2.42% to HK$1.27; and Guangdong Investment (00270) rose 1.79% to HK$5.7.
According to the news, Sino-Thai International released a research report saying that the 2024 tap water price increase cycle is expected to begin nationwide, and there are investment highlights in the water supply industry. Water prices have been raised in parts of Shanghai since 2024. As the economy continues to recover, it is expected that the “Urban Water Supply Price Management Measures” will be strengthened and effective implementation will be strengthened, and some local governments will raise tap water prices.
Changjiang Securities pointed out that water services have the characteristics of a mature industry, good cash flow, and stable earnings. The sample cities were reviewed, and the predictability of price increases was low. Increase profits in the early stages of water supply price increases, and maintain reasonable profits during the price increase period. Water is a high-quality and absolute return circuit, including investment logic such as high dividends, steady growth, and revaluation of Hong Kong stocks.