China Water Affairs Group (0855) Fair Value & Analysis
Utilities · HK · Market cap HK$7.2B
Fair value as of: Aug 13, 2026
From 21 valuation models · updated 2 days ago
Share price −1.3% over the past month.
Below-average quality, screening 124% undervalued on our models.
What matters now
- The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
- The price is below even our cautious bear case (HK$7.73). The market is more pessimistic than our downside scenario.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range HK$3.27 – HK$9.11 · fair‑value band HK$7.73 – HK$13.64 · the HK$4.59 price screens below the HK$10.26 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
China Water Affairs Group (0855) currently trades at HK$4.59, while our model-based Fair Value estimate is HK$10.26, implying the stock looks roughly 123.5% undervalued today. The Quality Score stands at 42/100 (below-average quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.
Over the trailing twelve months, China Water Affairs Group generated revenue of HK$10.3B at a net margin of 9.5%. Revenue declined 9.7% year over year. It earns a return on equity of 7.6%. Net debt stands at HK$22.1B. Fundamentals as of Aug 13, 2026
Our scenario range runs from HK$7.73 (bear case) to HK$13.64 (bull case); at HK$4.59, the current price sits below 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 30% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at 12% fair-value upside, at 124%, 0855 screens cheaper 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.
All 21 models by family
Widest divergence: Growth Earnings (HK$13.85) versus Economic Profit (HK$4.41). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 40 · Market factors (momentum, volatility) 39
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
China Water Affairs Group Limited, an investment holding company, engages in the water supply, environmental protection, and property businesses in the People's Republic of China.
Full company description
China Water Affairs Group Limited, an investment holding company, engages in the water supply, environmental protection, and property businesses in the People's Republic of China. It operates through City Water Supply, Pipeline Direct Drinking Water Supply, Environmental Protection, Main Contractor Construction, and Property Development and Investment segments. The City Water Supply segment is involved in the provision of water supply operation and construction, installation and maintenance, and other services. Its Pipeline Direct Drinking Water Supply segment is involved in the provision of pipeline direct drinking water supply operations and construction, installation and maintenance services, and other services. The Environmental Protection segment engages in sewage treatment, drainage operation, construction services, solid and hazardous waste, environmental sanitation, and water environment management businesses. Its Main Contractor Construction segment is involved in the provision of municipal public construction services. The Property Development and Investment segment develops, sells, and invests in properties. It also involved in the development and infrastructure of sightseeing area; provision of water environmental renovation infrastructure; construction and operations in urban water treatment business, remediation and rural water improvement; and investment, construction, and operation of water conservation and hydropower related projects, as well as energy conservation and environmental protection and hotel operations. In addition, the company offers warehousing, storage, trading and distribution of oil related products. The company was formerly known as China Silver Dragon Group Limited and changed its name to China Water Affairs Group Limited in December 2004. China Water Affairs Group Limited was incorporated in 2003 and is headquartered in Wan Chai, Hong Kong.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
China Water Affairs Group reported revenue of HK$10.3B in FY2026 versus HK$12.9B in FY2022, a compound −5.5%/yr. Reported net income was HK$986M in FY2026, compounding −15.0%/yr from FY2022.
of which total revenue +11.3 pp · buybacks/dilution −1.1 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).
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Peer Group
Utilities - Regulated Water · 68 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.
Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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 Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| American Water Works Company AWK | $134.92 | $65.80 | -51% |
| SBSP3 SBSP3 | R$26.12 | R$31.23 | +20% |
| SBS SBS | $5.10 | $8.12 | +59% |
| Essential Utilities, Inc WTRG | $40.08 | $21.81 | -46% |
| Guangdong Investment Limited 0270 | HK$8.15 | HK$12.82 | +57% |
| CSMG3 CSMG3 | R$60.57 | R$60.17 | -1% |
| Grandblue Environment Co 600323 | ¥29.61 | ¥33.29 | +12% |
| American States Water Company AWR | $87.54 | $47.94 | -45% |
| Chengdu Xingrong Environment Co 000598 | ¥7.14 | ¥9.09 | +27% |
| California Water Service Group CWT | $49.98 | $33.56 | -33% |
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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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