Group 1 - The core viewpoint of the article highlights that Yuehai Investment (00270) has seen a stock price increase of over 3%, with a current price of 7.35 HKD and a trading volume of 50.6043 million HKD [1] - Yuehai Investment reported a 1.3% year-on-year increase in total revenue from continuing operations, amounting to 14.281 billion HKD, primarily driven by growth in the water resources business, which offset declines in department store operations, road and bridge businesses, and power generation [1] - The company's net profit attributable to shareholders rose by 13.2% to 4.067 billion HKD during the same period [1] Group 2 - Huatai Securities expressed concerns regarding uncertainties related to the renewal of the Dongshen water supply project's franchise rights, water pricing, and transaction pricing; however, they believe that Yuehai Investment serves as an important platform for the Guangdong provincial state-owned assets in managing the Dongshen project, indicating strong visibility for renewal [1] - The DCF valuation for the Dongshen project is estimated to be between 45 billion to 62 billion HKD, and other water resources and business segments are expected to contribute stable profits and cash flow [1] - Even under pessimistic assumptions regarding transaction pricing, Yuehai Investment is still considered to have investment value [1]

Core Viewpoint - Yuehai Investment (00270) reported a 1.3% year-on-year increase in revenue for the first three quarters, driven primarily by growth in water resource business, despite declines in department store operations, road and bridge business, and power generation [1] Financial Performance - The unaudited consolidated revenue from continuing operations for the period was HKD 14.281 billion [1] - The unaudited consolidated profit attributable to owners of the company increased by 13.2% to HKD 4.067 billion [1] Market Concerns and Analysis - Concerns exist regarding the uncertainty of the East Shenzhen water supply project's franchise renewal, water pricing, and transaction pricing [1] - Huatai Securities believes that Yuehai Investment serves as an important platform for the Guangdong provincial state-owned enterprise in managing the East Shenzhen project, indicating strong visibility for renewal [1] - The discounted cash flow (DCF) valuation for the East Shenzhen project is estimated to be between HKD 45 billion to HKD 62 billion [1] Future Outlook - The East River water project is expected to maintain reasonable pricing levels [1] - Other water resources and business segments are anticipated to contribute stable profits and cash flow, suggesting that Yuehai Investment retains investment value even under pessimistic transaction pricing assumptions [1]