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港股异动 | 中国水务(00855)涨近5% 行业或迎新一轮调价周期 公司较多项目有望获批上调水价

Changes in Hong Kong stocks | China Water (00855), the industry has risen nearly 5%, or is welcoming a new round of price adjustment cycles. More projects are expected to be approved to raise water prices

Zhitong Finance ·  Feb 16 00:27

China Water (00855) rose by nearly 5%, reaching a high of HK$4.67 since the end of November 2023. As of press release, it rose 4.72% to HK$4.66, with a turnover of HK$3.774,600.

The Zhitong Finance App learned that China Water (00855) rose by nearly 5%, reaching a new high of HK$4.67 since the end of November 2023. As of press release, it rose 4.72% to HK$4.66, with a turnover of HK$3.774,600.

According to the news, tap water prices have been raised in parts of Shanghai since 2024. Water prices for first-tier to third-tier residential users in Pudong have increased by 17.2%, 21.2%, and 62.6% to 2.25/m3, 4.00/m3, and 6.99/m3, respectively. Minsheng Securities believes that compared with developed countries, water supply prices in China are low, and the increase in water prices may be the general trend in the future. A sharp rise in volume and price is expected to ensure that water companies maintain high dividends.

Furthermore, the Sino-Thai International Research Report pointed out that recently, the company's Xinhuang County project in Hunan received a two-stage increase in tap water prices from the local government. In FY22 and FY23, four and eight projects of the company were approved to raise tap water prices, respectively. It is expected that more projects in the second half of FY24 and FY25 will be approved to raise water prices. Currently, the profit forecast is maintained for the time being, considering the implementation of price adjustments, the possibility of future increases is not ruled out, and the target price of HK$7.00 has been reaffirmed to maintain the “buy” rating.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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