Jinwu Financial News | Guotai Junan released a research report that Beijing Water is a water platform owned by Beijing Holdings, the flagship enterprise of the Beijing Municipal Government. It has a total design capacity of 24.5 million tons/day for in-hand sewage treatment and reclaimed water treatment projects, ranking first in the country. The company's performance has been growing steadily over the years, and its profitability is stable. In terms of assets, the company insists on operating projects. Water treatment assets are of high quality, and the current growth rate of assets and debt is slowing down.
According to the bank, China's water treatment industry has experienced many years of rapid development and is currently in a mature stage. However, the problem of unbalanced development of urban sewage collection and treatment still exists, and shortcomings and weaknesses are still prominent. It is estimated that during the “14th Five-Year Plan” period, China's water treatment market will still have a broad market space of over 200 billion dollars, mainly in the segments of sewage treatment, reclaimed water treatment, sewage networks, and sludge disposal. As a leading national water service company, sewage treatment fees and water supply prices will also continue to benefit from the gradual upward trend in industry trends, driving steady growth in water treatment performance.
The bank pointed out that the company has maintained a steady dividend level in recent years. Assuming that the total dividend in 2023 reaches the 2022 level, the expected dividend rate is 8.32%, and the company's high dividend characteristics are obvious.
The bank predicts that the net profit attributable to the company in 2023-2025 will be HK$2,225, 23.98, and HK$2,563 billion, respectively, with corresponding EPS of HK$0.22, 0.24 and HK$0.26, respectively. The company is the leader in the water treatment industry with the largest production capacity in the country. The sewage and water supply business is growing steadily; capital expenditure has entered a downward cycle, cash flow has improved, dividends are stable, and the characteristics of high dividends are obvious. It is expected to usher in a revaluation, coverage for the first time, and an “increase” rating.