China Water Affairs Group Ltd (0855) fair value: what the stock is really worth
As of Sep 29, 2026: fair value of China Water Affairs Group Ltd HK$7.31, price HK$4.27, upside +71.4%, quality 42 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? No
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China Water Affairs Group Ltd
0855 · HKCheap, value-trap riskThe stock looks deeply undervalued, but low quality raises value-trap risk.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range HK$3.27 – HK$9.11 · fair‑value band HK$7.12 – HK$13.64 · the HK$4.27 price screens below the HK$7.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.
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Company profile
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.
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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.
Stock analysis
China Water Affairs Group Ltd (0855) currently trades at HK$4.27, while our model-based Fair Value estimate is HK$7.31, implying the stock looks roughly 41.7% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of HK$13.85 per share, and 18 of the 22 models we run sit above the HK$4.27 price.
Bear case: the Economic Profit group reads lowest at HK$2.56, and 4 of the 22 models stay below the price. Evidence for this calculation is low.
Scenario range: HK$7.12 (bear) to HK$13.64 (bull), the price of HK$4.27 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 42/100 (below-average quality), in the Utilities sector.
Weak Growth: Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
China Water Affairs Group Ltd 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.
Key figures
Market cap HK$6.9B (≈ $884M) · P/E ratio 7.2 · P/S ratio 0.69 · EPS (TTM) HK$0.5500 · Dividend yield 3.0% · Net margin 9.5% · Return on equity 7.6% · Return on assets (EBIT) 6.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 32% 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 −41% fair-value upside, at 71%, 0855 screens cheaper than that median.
Fair Value models
All 23 models by family
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Set up alert →Quality Score breakdown
Of which business quality 40 · Market factors (momentum, volatility) 39
Revenue & earnings trend
Growth Forecast
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Compare China Water Affairs Group Ltd with another stock
Price, fair value, quality and upside side by side.
Peer Groupⓘ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.Utilities - Regulated Water · 64 stocks
Valuation Multiplesvs Utilities - Regulated Water median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Utilities sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Utilities
- Undervalued stocks: Hong Kong Stocks
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| American Water Works Company AWK | $130.91 | $64.66 | −51% |
| Essential Utilities, Inc WTRG | $39.53 | $23.30 | −41% |
| Grandblue Environment Co 600323 | ¥29.17 | ¥57.09 | +96% |
| American States Water Company AWR | $81.35 | $38.24 | −53% |
| Chengdu Xingrong Environment Co 000598 | ¥7.01 | ¥9.09 | +30% |
| Beijing Capital Eco-Environment Protection Group 600008 | ¥2.71 | ¥3.43 | +27% |
| Chongqing Water Group 601158 | ¥4.00 | ¥1.76 | −56% |
| California Water Service Group CWT | $45.84 | $25.01 | −45% |
| H2O America, through its subsidiaries, HTO | $62.27 | $29.35 | −53% |
| Zhongshan Public Utilities Group 000685 | ¥10.81 | ¥14.39 | +33% |
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