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Bohai Water Industry Co (000605) Fair Value & Analysis

Utilities · CN · Market cap 2.1B CNY

BW Bohai Water Industry Co 000605 · SHE
Price¥6.03
Fair Value¥0.8200
Upside-86.4%
Quality40/100
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Weak Growth
Thin margins · 0.5% net margin
Moderate debt · negative free cash flow
0.20% dividend yield
Trails peers (3/13)
Narrow moat 23/100
Evidence: Medium Range ¥0.5700 – ¥1.07 Share as image

Fair value as of: Jul 21, 2026

From 14 valuation models · updated 20 days ago

Share price +9.2% over the past month.

Below-average quality, and screening another 86% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.07). The favourable scenario is already priced in.
  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (¥0.5700 to ¥1.07) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥13.49 ¥3.80 Fair Value ¥0.8200 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range ¥3.80 – ¥13.49 · fair‑value band ¥0.5700 – ¥1.07 · the ¥6.03 price screens above the ¥0.8200 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Bohai Water Industry Co (000605) currently trades at ¥6.03, while our model-based Fair Value estimate is ¥0.8200, implying the stock looks roughly 86.4% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Bohai Water Industry Co generated revenue of 2.0B CNY at a net margin of 0.5%. Revenue grew 19.8% year over year. It earns a return on equity of 1.4%. Net debt stands at 2.6B CNY. Fundamentals as of Jul 21, 2026

Our scenario range runs from ¥0.5700 (bear case) to ¥1.07 (bull case); at ¥6.03, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 26% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -10% fair-value upside, at -86%, 000605 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (¥0.4100 to ¥6.06). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ¥3.98 ¥3.61 ¥2.46 76
ROIC Compounder ¥0.1900 72
Growth-Adj P/E ¥0.5700 ¥0.8200 ¥1.07 68
All 14 models by family
Earnings-Based
Graham-Dodd ¥0.1600 ¥1.15 ¥1.61 54
Lynch FV ¥0.4900 ¥0.7000 ¥0.9100 50
PEG = 1.0 ¥0.4900 ¥0.7000 ¥0.9100 46
EPV ¥0.1900 59
Multiples
P/E Multiple ¥0.3300 ¥0.4400 ¥0.5400 63
P/S Multiple ¥0.3100 ¥0.4100 ¥0.5100 58
P/B Multiple ¥0.3100 ¥0.4100 ¥0.5100 55
EV/EBIT ¥0.7400 ¥2.32 ¥3.91 53
EV/EBITDA ¥3.54 ¥6.06 ¥8.57 54
EV/Revenue ¥1.48 ¥3.13 43
Asset-Based
NCAV (Graham) ¥3.01 ¥4.04 ¥6.03 50
Economic Profit
Residual Income ¥3.98 ¥3.61 ¥2.46 76
ROIC Compounder ¥0.1900 72
Growth Earnings
Growth-Adj P/E ¥0.5700 ¥0.8200 ¥1.07 68

Widest divergence: Asset-Based (¥4.04) versus Multiples (¥0.4400). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 2.0B CNY
Revenue growth (YoY) +19.8%
Net margin 0.5%
Return on equity 1.4%
Free cash flow −203M CNY FY2025
P/E ratio 201.0
More key figures
Operating margin 9.0%
EPS (TTM) ¥0.0300
Dividend yield 0.2%
EPS growth (YoY) +3.1%
Net debt 2.6B CNY FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 37 · Market factors (momentum, volatility) 37

Profitability 13
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 16
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 11
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Bohai Water Industry Co.,Ltd engages in the sewage treatment and solid and hazardous waste treatment business in China. It operates through Water Supply Services; Heating Services; and Environmental Governance and Solid Waste and Hazardous Waste segments.

Full company description

Bohai Water Industry Co.,Ltd engages in the sewage treatment and solid and hazardous waste treatment business in China. It operates through Water Supply Services; Heating Services; and Environmental Governance and Solid Waste and Hazardous Waste segments. The company is involved in sale of raw water and tap water; heating; raw water development and supply; inter-regional water transfer; coarse water; tap water production and transportation; high-value-added operation of high-quality groundwater; direct drinking water; centralized urban water supply; new water technology research and development, and application; investment, construction, and operation management of water environment governance infrastructure, as well as the investment and general contracting of municipal and park sewage treatment projects. It also offers handle solid waste and hazardous waste disposal, resource recycling, and clean energy heating services. Bohai Water Industry Co.,Ltd was founded in 1996 and is based in Beijing, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Bohai Water Industry Co reported revenue of ¥1.9B in FY2025 versus ¥1.8B in FY2021, a compound +0.8%/yr. Reported net income was ¥8.5M in FY2025, compounding −7.1%/yr from FY2021.

Growth Quality 25/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.9B CNY
Latest YoY
+6.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.1%
Avg. growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.8%
Revenue +0.8%/yr
FY21 ¥1.8B
FY22 ¥1.8B
FY23 ¥1.8B
FY24 ¥1.8B
FY25 ¥1.9B
Net income −7.1%/yr
FY21 ¥11.4M
FY22 ¥15.6M
FY23 ¥20.1M
FY24 ¥16.1M
FY25 ¥8.5M
Character of growth · EPS growth decomposed (2013-2024) −17.9 % p.a.
Revenue per share +4.1 pp

of which total revenue +10.4 pp · buybacks/dilution −6.3 pp

EBIT margin −13.5 pp
Tax rate −2.2 pp
Residual (interest, one-offs) −6.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

000605 screens 86% overvalued. Compare with American Water Works Company →

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Cite: Fair Value Calculator (2026). "Bohai Water Industry Co Fair Value". https://www.fairvalue-calculator.com/stock/000605

Peer Group

Utilities - Regulated Water · 67 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 40 · Below median
Fair Value upside −86% · Bottom 25%
Return on equity (TTM) 1% · Bottom 25%
Return on assets 1% · Bottom 25%
Net margin (TTM) 0% · Bottom 25%
Operating margin (TTM) 9% · Below median
Revenue growth 20% · Top 25%
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.87× · Higher than median

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 201.0× · Pricier than 75% of peers
P/B 1.00× · Cheaper than median
P/S (TTM) 1.07× · Cheaper than median
EV/EBITDA 12.4× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 1
FUTURE 99 · sector 28
PAST 6 · sector 29
HEALTH 57 · sector 66
DIVIDEND 4 · sector 49

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $134.33 $65.80 -51%
SBSP3 SBSP3 R$29.22 R$31.23 +7%
SBS SBS $5.79 $5.21 -10%
Essential Utilities, Inc WTRG $38.59 $21.81 -43%
CSMG3 CSMG3 R$66.10 R$60.17 -9%
Grandblue Environment Co 600323 ¥29.42 ¥33.29 +13%
American States Water Company AWR $85.01 $48.02 -44%
Chengdu Xingrong Environment Co 000598 ¥6.97 ¥10.74 +54%
California Water Service Group CWT $49.73 $33.56 -33%
Chongqing Water Group 601158 ¥4.12 ¥2.77 -33%

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Frequently asked questions

Is Bohai Water Industry Co (000605) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of ¥0.8200 versus a price of ¥6.03, about −86% (overvalued).
What is the fair value of 000605?
Our model-based fair value for Bohai Water Industry Co is ¥0.8200 (as of Jul 21, 2026), built from audited fundamentals. The current price is ¥6.03.
What is the quality score of 000605?
Bohai Water Industry Co has a Quality Score of 40/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Bohai Water Industry Co (000605)?
Bohai Water Industry Co reported trailing-twelve-month revenue of about 2.0B CNY (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 000605?
The net profit margin of Bohai Water Industry Co is about 0.5%, meaning it keeps roughly 0.5% of revenue as net income. Based on the latest reported figures.
Does Bohai Water Industry Co pay a dividend?
Bohai Water Industry Co currently shows a dividend yield of about 0.20% relative to its recent price (as of Jul 21, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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