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China Water Industry Group (1129) Fair Value & Analysis

Utilities · HK · Market cap HK$103M

CW China Water Industry Group 1129 · HK
PriceHK$0.1630
Fair ValueHK$0.2600
Upside+59.5%
Quality44/100
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Weak Growth
Loss-making · -118.0% net margin
Low debt · generates free cash flow
Mixed vs. peers (5/11)
Narrow moat 6/100
Evidence: Medium Range HK$0.2100 – HK$0.3100 Share as image

Fair value as of: Aug 13, 2026

From 10 valuation models · updated 3 days ago

Below-average quality, screening 60% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$0.2100). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$2.70 HK$0.1630 Fair Value HK$0.2600 Mar 2021 Aug 2026

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$0.1630 – HK$2.70 · fair‑value band HK$0.2100 – HK$0.3100 · the HK$0.1630 price screens below the HK$0.2600 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Water Industry Group (1129) currently trades at HK$0.1630, while our model-based Fair Value estimate is HK$0.2600, implying the stock looks roughly 59.5% undervalued today. The Quality Score stands at 44/100 (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.

Trailing-twelve-month revenue stands at HK$234M. Revenue declined 47.5% year over year. It earns a return on equity of -31.1%. Net debt stands at HK$619M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.2100 (bear case) to HK$0.3100 (bull case); at HK$0.1630, 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. For context, the median of 10 Utilities peers we cover trades at 12% fair-value upside, at 60%, 1129 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.

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
Growth DCF HK$0.2100 HK$0.2400 HK$0.2800 80
Rev-Margin DCF HK$0.2100 HK$0.2800 HK$0.3600 74
EV/EBITDA HK$0.2600 HK$0.3200 HK$0.3800 54
All 10 models by family
DCF Models
FCF DCF HK$0.2000 HK$0.2300 HK$0.2900 38
5Y Revenue Exit HK$0.2100 HK$0.2700 HK$0.3600 39
5Y EBITDA Exit HK$0.2200 HK$0.2800 HK$0.3700 41
10Y Revenue Exit HK$0.2000 HK$0.2500 HK$0.3000 36
10Y EBITDA Exit HK$0.2100 HK$0.2600 HK$0.3100 37
Multiples
EV/EBITDA HK$0.2600 HK$0.3200 HK$0.3800 54
EV/Revenue HK$0.2300 HK$0.3000 HK$0.3800 43
Asset-Based
NCAV (Graham) HK$0.5100 HK$0.6900 HK$1.02 50
Growth DCF
Growth DCF HK$0.2100 HK$0.2400 HK$0.2800 80
Rev-Margin DCF HK$0.2100 HK$0.2800 HK$0.3600 74

Widest divergence: Asset-Based (HK$0.6900) versus Growth DCF (HK$0.2400). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$234M
Revenue growth (YoY) -47.5%
Net margin -118%
Return on equity -31.1%
Free cash flow HK$11.6M FY2025
Operating margin -42.3%
More key figures
EPS (TTM) HK$-0.1100
EPS growth (YoY) +3,023%
Net debt HK$619M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 42 · Market factors (momentum, volatility) 13

Profitability 0
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 28
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 0
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 100
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

China Water Industry Group Limited, an investment holding company, provides sewage treatment and related construction services in the People's Republic of China.

Full company description

China Water Industry Group Limited, an investment holding company, provides sewage treatment and related construction services in the People's Republic of China. It operates through the Provision of Sewage Treatment and Related Construction Services; Exploitation and Sale of Renewable Energy; Property Investment and Development; and Waste Management and Recycling segments. The company offers sewage treatment operations and related construction services; electricity and compressed natural gas from biogas power plants; solid organic fertilizer from utilization of straw and livestock and poultry waste; administrative services; and environmental protection technical services. It is also involved in the sale of commercial and residential units; and collection and recycling of glass bottles; collection of food waste; installation of water suppliers' facilities; exploitation, generation, and sale of renewable energy; property development and management; glass recycling; and sale of environmental protection equipment. The company was formerly known as Sky Hawk Computer Group Limited and changed its name to China Water Industry Group Limited in November 2006. China Water Industry Group Limited was incorporated in 2001 and is headquartered in Shenzhen, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Water Industry Group reported revenue of HK$234M in FY2025 versus HK$1.1B in FY2021, a compound −32.1%/yr. Reported net income was −HK$276M in FY2025.

Growth Quality 18/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$234M
Latest YoY
−56.4%
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.
−42.3%
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.
−27.0%
Avg. growth/yr (24Y) 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.
−0.7%
Revenue −32.1%/yr
FY21 HK$1.1B
FY22 HK$1.2B
FY23 HK$734M
FY24 HK$537M
FY25 HK$234M
Net income
FY21 −HK$44.0M
FY22 −HK$89.2M
FY23 −HK$243M
FY24 −HK$322M
FY25 −HK$276M

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Cite: Fair Value Calculator (2026). "China Water Industry Group Fair Value". https://www.fairvalue-calculator.com/stock/1129

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.

Quality Score 44 · Below median
Fair Value upside +60% · Top 25%
Return on assets -3% · Bottom 25%
Net margin (TTM) -118% · Bottom 25%
Operating margin (TTM) -42% · Bottom 25%
Revenue growth -48% · Bottom 25%

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

P/S (TTM) 0.06× · Cheaper than 75% of peers
P/FCF 1.1× · Cheaper than median
PEG 1.57× · Cheaper 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 100 · sector 10
FUTURE 0 · sector 27
PAST 0 · sector 29
HEALTH 100 · sector 65
DIVIDEND 0 · sector 51

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 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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Frequently asked questions

Is China Water Industry Group (1129) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.2600 versus a price of HK$0.1630, about +60% (undervalued).
What is the fair value of 1129?
Our model-based fair value for China Water Industry Group is HK$0.2600 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.1630.
What is the quality score of 1129?
China Water Industry Group has a Quality Score of 44/100. 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 China Water Industry Group (1129)?
China Water Industry Group reported trailing-twelve-month revenue of about HK$234M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1129?
The net profit margin of China Water Industry Group is about -118.0%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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