China Water (00855) rose by nearly 5%, with a cumulative increase of nearly 10% this week. As of press release, it rose 3.67% to HK$5.08, with a turnover of HK$10.275,800.
The Zhitong Finance App learned that China Water (00855) rose by nearly 5%, with a cumulative increase of nearly 10% this week. As of press release, it rose 3.67% to HK$5.08, with a turnover of HK$10.275,800.
According to the news, the Guangzhou Municipal Development and Reform Commission issued the “Guangzhou Central City Tap Water Price Reform Plan” and proposed two sets of tap water price adjustment plans for hearing. A hearing is scheduled for May 9. Everbright Securities pointed out that the local water industry is expected to enter a new cycle of price increases to ensure the high-quality operation of existing projects. Furthermore, on April 8, six departments including the National Development and Reform Commission and the Ministry of Finance issued the “Administrative Measures on Infrastructure and Utility Franchises”, which will take effect on May 1, 2024. Changjiang Securities recommended focusing on the water and waste incineration industry.
Guotai Junan previously released a research report stating that China Water is the country's leading integrated water operator. With advanced water purification technology, rich customer resources, and excellent brand and service capabilities, the company's direct drinking water business is expected to grow beyond expectations. The bank also pointed out that at present, the company's water supply capacity is 8.3 million tons/day in operation, 1.6 million tons/day under construction, and 4.2 million tons/day in the plan, and there is room for capacity expansion and capacity utilization; in terms of water prices, in the long run, the company's water supply prices will also benefit from the new cycle of water supply price increases in China and gradually rises. There is a clear trend of increasing the volume and price of the water supply business.