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Guangxi Nanning Waterworks Group (601368) Fair Value & Analysis

Utilities · CN · Market cap 3.9B CNY

GN Guangxi Nanning Waterworks Group 601368 · SHG
Price¥4.41
Fair Value¥1.83
Upside-58.5%
Quality40/100
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Expensive Growth
Thin margins · 4.7% net margin
High debt · negative free cash flow
0.79% dividend yield
Trails peers (3/13)
Narrow moat 36/100
Evidence: High Range ¥1.38 – ¥2.29 Share as image

Fair value as of: Aug 8, 2026

From 12 valuation models · updated 2 days ago

Share price −0.9% over the past month.

Below-average quality, and screening another 59% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥2.29). 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.
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Price vs Fair Value (5 years)

¥7.73 ¥3.77 Fair Value ¥1.83 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ¥3.77 – ¥7.73 · fair‑value band ¥1.38 – ¥2.29 · the ¥4.41 price screens above the ¥1.83 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Guangxi Nanning Waterworks Group (601368) currently trades at ¥4.41, while our model-based Fair Value estimate is ¥1.83, implying the stock looks roughly 58.5% 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: high).

Over the trailing twelve months, Guangxi Nanning Waterworks Group generated revenue of 2.5B CNY at a net margin of 4.7%. Revenue grew 0.9% year over year. It earns a return on equity of 2.4%. Net debt stands at 16.5B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥1.38 (bear case) to ¥2.29 (bull case); at ¥4.41, 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 22% below its 52-week high and 3% 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 -59%, 601368 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.

Model BearBaseBull Evidence
Highest evidence
Residual Income ¥3.77 ¥3.55 ¥2.73 76
Gordon GGM ¥0.2600 ¥0.5200 ¥0.7900 70
Growth-Adj P/E ¥1.08 ¥1.55 ¥2.01 68
All 12 models by family
Earnings-Based
Graham-Dodd ¥0.7300 ¥2.64 ¥3.56 54
Lynch FV ¥0.6200 ¥0.8900 ¥1.16 50
PEG = 1.0 ¥0.6200 ¥0.8900 ¥1.16 46
Dividend Discount
Gordon GGM ¥0.2600 ¥0.5200 ¥0.7900 70
DDM Multi-Stage ¥0.2600 ¥0.4500 ¥0.5500 61
Multiples
P/E Multiple ¥1.46 ¥1.94 ¥2.43 63
P/S Multiple ¥1.38 ¥1.83 ¥2.29 58
P/B Multiple ¥1.38 ¥1.83 ¥2.29 55
EV/EBITDA ¥0.4100 ¥4.04 54
Asset-Based
NCAV (Graham) ¥2.72 ¥3.65 ¥5.45 50
Economic Profit
Residual Income ¥3.77 ¥3.55 ¥2.73 76
Growth Earnings
Growth-Adj P/E ¥1.08 ¥1.55 ¥2.01 68

Widest divergence: Asset-Based (¥3.65) versus Dividend Discount (¥0.4500). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.5B CNY
Revenue growth (YoY) +0.9%
Net margin 4.7%
Return on equity 2.4%
Free cash flow −1.8B CNY FY2025
P/E ratio 33.9
More key figures
Operating margin 23.6%
EPS (TTM) ¥0.1300
Dividend yield 0.8%
EPS growth (YoY) +1,044%
Net debt 16.5B CNY FY2025

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 37 · Market factors (momentum, volatility) 42

Profitability 15
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 7
Balance sheet, leverage, solvency risk
Investment 49
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 20
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

Guangxi Nanning Waterworks Group Company Limited engages in the production and supply of tap water in China. The company is involved in sewage treatment business; and provision of water quality inspection and testing services. It also engages in repair and calibration of water meters, flow meters, and automation instruments.

Full company description

Guangxi Nanning Waterworks Group Company Limited engages in the production and supply of tap water in China. The company is involved in sewage treatment business; and provision of water quality inspection and testing services. It also engages in repair and calibration of water meters, flow meters, and automation instruments. The company was formerly known as Guangxi Nanning Waterworks Co.,Ltd. and changed its name to Guangxi Nanning Waterworks Group Company Limited in August 2025. The company was founded in 2006 and is headquartered in Nanning, China. Guangxi Nanning Waterworks Group Company Limited operates as a subsidiary of Nanning Jianning Water Investment Group Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guangxi Nanning Waterworks Group reported revenue of ¥2.5B in FY2025 versus ¥2.1B in FY2021, a compound +4.6%/yr. Reported net income was ¥95.2M in FY2025, compounding −24.7%/yr from FY2021.

Growth Quality 43/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
2.5B CNY
Latest YoY
+0.8%
Avg. growth/yr (3Y)
+3.5%
Avg. growth/yr (5Y)
+10.1%
Avg. growth/yr (17Y)
+11.4%
Revenue +4.6%/yr
FY21 ¥2.1B
FY22 ¥2.3B
FY23 ¥2.3B
FY24 ¥2.5B
FY25 ¥2.5B
Net income −24.7%/yr
FY21 ¥296M
FY22 ¥164M
FY23 ¥73.5M
FY24 ¥87.9M
FY25 ¥95.2M

601368 screens 59% overvalued. Compare with American Water Works Company →

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Cite: Fair Value Calculator (2026). "Guangxi Nanning Waterworks Group Fair Value". https://www.fairvalue-calculator.com/stock/601368

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 −59% · Bottom 25%
Return on equity (TTM) 2% · Bottom 25%
Return on assets 1% · Below median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 24% · Above median
Revenue growth 1% · Below median
Dividend yield (TTM) 0.8% · Bottom 25%
Debt / equity 2.76× · Higher than 75% of peers

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

P/E (TTM) 33.9× · Pricier than 75% of peers
P/B 0.81× · Cheaper than 75% of peers
P/S (TTM) 1.55× · Cheaper than median
EV/EBITDA 12.8× · 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 7
FUTURE 5 · sector 28
PAST 10 · sector 29
HEALTH 0 · sector 66
DIVIDEND 16 · 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 Aug 8, 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 Guangxi Nanning Waterworks Group (601368) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥1.83 versus a price of ¥4.41, about −59% (overvalued).
What is the fair value of 601368?
Our model-based fair value for Guangxi Nanning Waterworks Group is ¥1.83 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥4.41.
What is the quality score of 601368?
Guangxi Nanning Waterworks Group 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 Guangxi Nanning Waterworks Group (601368)?
Guangxi Nanning Waterworks Group reported trailing-twelve-month revenue of about 2.5B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 601368?
The net profit margin of Guangxi Nanning Waterworks Group is about 4.7%, meaning it keeps roughly 4.7% of revenue as net income. Based on the latest reported figures.
Does Guangxi Nanning Waterworks Group pay a dividend?
Guangxi Nanning Waterworks Group currently shows a dividend yield of about 0.81% relative to its recent price (as of Aug 8, 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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