The Zhitong Finance App learned that water stocks continued their recent gains. As of press release, Beikong Water Group (00371) rose more than 3.09% to HK$2; Guangdong Investment (00270) rose 1.5% to HK$6.1; China Water (00855) rose 1.38% to HK$4.4; and China Everbright Water (01857) rose 0.78% to HK$1.3.

Minsheng Securities released a research report saying that since the water supply industry is closely related to life and industrial production, has obvious rigidity, and most water supply projects have already been put into operation, the overall operation of water companies is stable, and they have a cash flow advantage and strong dividend attributes. At the same time, compared with developed countries, the price of water supply in China is low. The increase in water prices may be the general trend in the future. A sharp rise in volume and price is expected to ensure that water companies maintain high dividends.

Guotai Junan said that it is expected that listed companies in the water industry will gradually enter the next price adjustment cycle, and the rise in water prices will bring new performance increases to the company; while performance is growing steadily, water companies have low valuations and impressive dividends. In the context of monetary easing, the value of high dividend rate allocations is remarkable.