HONGCHENG WATERWORKS(SH:600461) Zheng Quan Zhi Xing·2025-06-13 09:42Company Overview - Jiangxi Hongcheng Environment Co., Ltd. is a significant public utility operator in Nanchang, engaged in water supply, gas sales, and sewage treatment within Nanchang and beyond [9][10] - The company is primarily owned by Nanchang Water Industry Group Co., Ltd., with the actual controller being Nanchang Municipal Public Utilities Group Co., Ltd. [10] Credit Rating - The company maintains a credit rating of AA+ with a stable outlook, as does its bond "Hongcheng Convertible Bond" [1][4] - The rating reflects strong market position and profitability in water supply, sewage treatment, and gas supply services [6][8] Financial Performance - As of the end of 2024, the company reported total assets of 247.37 billion yuan and a net profit of 13.38 billion yuan, with a gross profit margin of 31.75% [5][6] - The company has consistently paid interest on its bonds and has utilized raised funds for project construction and working capital [9] Economic Environment - Nanchang's economy is robust, providing a favorable operating environment for public utility companies, with GDP growth projected to continue [6][12] - The city has a population of approximately 6.67 million and is positioned as a key transportation and innovation hub in central China [12][19] Industry Context - The water industry in China faces challenges such as resource scarcity and uneven distribution, with significant investment needs for water resource protection and efficiency improvements [12][15] - The gas industry is expected to see continued growth in demand, with a reliance on imports for natural gas supply, indicating a stable market outlook [16][17]