Chongqing Water(SH:601158) Xin Lang Cai Jing·2025-11-02 06:36Core Viewpoint - The company demonstrated steady performance growth with significant cash flow, achieving a revenue of 5.568 billion yuan and a net profit of 779 million yuan in the first three quarters of 2025, reflecting a year-on-year growth of 7.21% and 7.10% respectively [2][3] Financial Performance - In Q3 alone, the company reported a revenue of 2.049 billion yuan, marking a year-on-year increase of 7.30%, and a net profit of 322 million yuan, up by 3.16% [2] - The net cash flow from operating activities reached 1.597 billion yuan, showing a substantial year-on-year growth of 26.55%, supporting the company's high dividend strategy [2] Market Dynamics - The upcoming water price reform is expected to enhance the company's profitability, as the supply pricing mechanism will shift towards a more market-oriented approach, ensuring reasonable returns for enterprises [2] - The company's current water supply business has a low profitability, with a gross margin of 14.41% in the first half of 2025, down by 1.53 percentage points year-on-year, indicating ample room for price increases [2] Strategic Development - The company is actively pursuing asset integration and external acquisitions to strengthen its regional leadership, including the acquisition of 100% equity in Chongqing Yujing Water Co., Ltd. for 354 million yuan [3] - The management of various water supply companies under the major shareholder indicates a significant step towards future asset injections, which could enhance the company's performance and open new growth avenues [3] Earnings Forecast - The company is projected to achieve revenues of 7.351 billion yuan, 7.740 billion yuan, and 8.166 billion yuan from 2025 to 2027, with year-on-year growth rates of 5.02%, 5.29%, and 5.51% respectively [3] - The net profit forecasts for the same period are 883 million yuan, 891 million yuan, and 935 million yuan, with growth rates of 12.51%, 0.85%, and 4.92% respectively [3] - Based on the closing price on October 30, 2025, the corresponding PE ratios are projected to be 25.92, 25.70, and 24.50, with EPS estimates of 0.18, 0.19, and 0.19 yuan [3]