China Water (00855) rose by nearly 5%, reaching a high of HK$4.67 since the end of November 2023. As of press release, it rose 4.72% to HK$4.66, with a turnover of HK$3.774,600.
The Zhitong Finance App learned that China Water (00855) rose by nearly 5%, reaching a new high of HK$4.67 since the end of November 2023. As of press release, it rose 4.72% to HK$4.66, with a turnover of HK$3.774,600.
According to the news, tap water prices have been raised in parts of Shanghai since 2024. Water prices for first-tier to third-tier residential users in Pudong have increased by 17.2%, 21.2%, and 62.6% to 2.25/m3, 4.00/m3, and 6.99/m3, respectively. Minsheng Securities believes that compared with developed countries, water supply prices in China are low, and 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.
Furthermore, the Sino-Thai International Research Report 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.