Company introduction:

Mainly engaged in water supply, sewage treatment and drainage management and construction services; solid waste and hazardous waste operations; environmental sanitation and water environment treatment services; property development and property investment.

Reason for recommendation:

China Water recently announced results for the six months ending the end of September this year. Gross profit increased 19.66% year-on-year, and net profit increased 23.38% year-on-year to 1.02 billion yuan. Revenue increased 26.14% during the period. Contributions from various businesses have increased significantly; among them, direct drinking water is the strongest expression. The group said that the future goal is to fully develop the direct drinking water business, which is expected to become another major source of revenue. The group's stock price continued to strengthen with upward momentum after rebounding from a low level. The upward trend in performance did not decrease. Supported by favorable news, it is expected to reach a new high in the short term. A purchase of 9.55 yuan is recommended. The target is 11 yuan, and the stop-erosion price is 8.6 yuan.