China Water (00855) is now up more than 5%. As of press release, it is up 5.02% to HK$4.39, with a turnover of HK$11.174,500.
The Zhitong Finance App learned that China Water (00855) is now up more than 5%. As of press release, it has risen 5.02% to HK$4.39, with a turnover of HK$11.174,500.
According to the news, Huatai Securities pointed out that there is currently room for price adjustment/reasonable demand from the perspective of users/water companies. It is expected that the water industry may enter a new price adjustment cycle, and it is optimistic that rising water prices will bring performance increases to major water companies.
Sino-Thai International, on the other hand, pointed out that recently, the company's Xinhuang County project in Hunan received a two-stage increase in tap water prices from the local government. In FY22 and FY23, four and eight projects of the company were approved to raise tap water prices, respectively. It is expected that more projects in the second half of FY24 and FY25 will be approved to raise water prices. Currently, the profit forecast is maintained for the time being, considering the implementation of price adjustments, the possibility of future increases is not ruled out, and the target price of HK$7.00 has been reaffirmed to maintain the “buy” rating.