节日期间,依托智慧供水调度系统,对全市供水管网压力、流量及水库水位实施24小时动态监测,精准研判 用水需求,及时优化水厂生产与管网压力调控。各水厂严格执行生产工艺标准,加强设备巡检维护,保障制 水设备持续安全稳定运行。针对可能出现的区域性、时段性用水高峰,提前做好调配预案,全力保障供水 水量足、水压稳。 严格把关 守护水质"生命线" 元旦佳节,万家团圆。为确保岛城人民在欢乐祥和的节日中用水无忧,青岛水务海润自来水集团提前部 署、周密安排,广大干部职工坚守岗位、履职尽责,圆满完成了节日期间的城市供水保障任务。2026年元 旦假期,岛城平均日供水量稳定在74万立方米左右,三天累计供水222.23万立方米,实现了安全供水"零事 故"、优质服务"零等待"的既定目标,交上了一份令人满意的民生答卷。 记者赵波青岛报道通讯员王林 高位谋划 筑牢供水"安全堤" 节前,海润集团召开专题部署会议,启动节日保供专项预案。针对可能出现的低温冰冻等突发状况,进行了 多轮次、全方位风险评估,制定详尽的应对措施。组织专人对水厂、泵站以及施工工地等,开展拉网式安 全生产大检查,重点排查整治工艺运行、设备设施、水质监测、应急物资储备等方面的安 ...

Core Viewpoint - The company reported a decline in total revenue and net profit for the first half of FY2026, with total revenue at HKD 5.183 billion, down 12.9% year-on-year, and net profit at HKD 571 million, down 24.4% year-on-year [1] Revenue Breakdown - The company's revenue decreased by HKD 769 million year-on-year, with the largest declines in the following segments: water supply construction (down HKD 456 million), property sales (down HKD 241 million), water supply connections (down HKD 223 million), and direct drinking water construction (down HKD 80 million) [2] - The net profit of HKD 571 million reflects a 24.4% year-on-year decline, but adjusted for a non-cash loss of HKD 64 million due to a share dilution from a takeover offer, the adjusted net profit would be approximately HKD 635 million, down 15.9% year-on-year [2] Cost Management - The company has successfully reduced costs, with selling and administrative expenses down 9.0% to HKD 437 million and financial expenses down 17.6% to HKD 352 million [2] - The debt-to-asset ratio showed a downward trend, decreasing by 2.5 percentage points to 64.3% at the end of FY26H1 compared to the beginning of the period [2] Segment Performance - In the urban water supply segment, revenue was HKD 3.271 billion, down 13.1%, with segment profit at HKD 941 million, down 17.4%, primarily due to a reduction in installation, maintenance, and construction projects [2] - The pipeline direct drinking water segment saw revenue of HKD 263 million, down 28.3%, with segment profit at HKD 75 million, down 55.2%, also affected by reduced installation and maintenance projects [2] - The environmental segment reported revenue of HKD 832 million, up 8.7%, with segment profit at HKD 367 million, up 29.7%, driven by increased revenue from the Huizhou Daya Bay Mobil project [2] - The total contracting construction segment had revenue of HKD 398 million, down 6.1%, with segment profit at HKD 158 million, down 60.2%, mainly due to a decrease in water supply project construction [2] - The property segment generated revenue of HKD 170 million, with segment profit of HKD 500,000, down 96.4% year-on-year due to a decline in property project sales [2] Water Supply Operations - The company reported a 5% year-on-year increase in water supply volume, with revenue from water supply operations at HKD 1.801 billion, up 4.5% [3] - The average water price was HKD 2.37 per ton, with 8 projects completing price adjustments and over 20 projects initiating price adjustment procedures, which is expected to enhance profit margins [3] Capital Expenditure and Dividends - Capital expenditure decreased by 31.8% to HKD 1.243 billion, while the total dividend remained stable at HKD 0.13 per share, maintaining a dividend yield of 4.8% [4] - The company anticipates steady growth in core water supply operations, with no accounts receivable risk and increasing free cash flow, enhancing dividend capacity [4] Profit Forecast - Due to the ongoing decline in connection and construction revenue, the company has revised its net profit forecasts for FY2026-2028 from HKD 1.372 billion, 1.387 billion, and 1.415 billion to HKD 1.136 billion, 1.206 billion, and 1.232 billion, respectively, corresponding to PE ratios of 8.4, 7.9, and 7.8 times [4]

Core Viewpoint - Dongwu Securities maintains a "buy" rating for China Water Affairs (00855), highlighting the robust growth of its core water supply operations, absence of receivable risks, decreasing capital expenditures, and increasing free cash flow, which enhances its dividend capacity [1] Financial Performance - For the first half of FY26, the company reported total revenue of HKD 5.183 billion and a net profit attributable to shareholders of HKD 571 million, with a reduction in sales and administrative expenses by 9.0% to HKD 437 million and financial expenses down by 17.6% to HKD 352 million [2] - The debt-to-asset ratio showed a downward trend, decreasing by 2.5 percentage points to 64.3% at the end of FY26H1 compared to the beginning of the period [2] Segment Performance - In FY26H1, revenue from urban water supply reached HKD 3.271 billion with a segment profit of HKD 941 million, influenced by a reduction in installation, maintenance, and construction projects [2] - The pipeline drinking water segment generated revenue of HKD 263 million with a segment profit of HKD 75 million [2] - The environmental segment saw revenue of HKD 832 million, up 8.7% year-on-year, with a segment profit of HKD 367 million, a 29.7% increase, primarily due to revenue growth from the Huizhou Daya Bay Mobil project [2] - Total construction contracting revenue was HKD 398 million with a segment profit of HKD 158 million, while the property segment generated revenue of HKD 170 million with a segment profit of HKD 500,000 [2] Water Supply Operations - The company achieved a 5% year-on-year increase in water supply volume, with revenue from water supply operations at HKD 1.801 billion, a 4.5% increase year-on-year [3] - The total water sales volume was 76 million tons, with an average water price of HKD 2.37 per ton; 8 projects completed price adjustments, and over 20 projects have initiated adjustment procedures [3] Direct Drinking Water Strategy - The direct drinking water segment reported revenue of HKD 185 million, with equipment sales increasing by 34.1% to HKD 19 million and bottled water sales soaring by 145.4% to HKD 4 million [4] - Capital expenditures decreased by 31.8% to HKD 1.243 billion, while the total dividend remained stable at HKD 0.13 per share, resulting in a dividend yield of 4.8% [4]

Group 1: China Gas Performance - China Gas reported a revenue of HKD 34.481 billion for the six months ending September 30, 2025, a year-on-year decrease of 1.8% [3] - The gross profit was HKD 5.506 billion, down 6.0% year-on-year, while the net profit attributable to shareholders fell by 24.2% to HKD 1.334 billion [3] - The company experienced a decline in new residential connections, with 676,300 new users added, a decrease of approximately 25.2% compared to the previous year [4] Group 2: Industry Challenges - The domestic natural gas consumption in China saw a slight decline of 0.2% year-on-year, totaling 317.75 billion cubic meters from January to September [3] - The ongoing challenges in the real estate market have led to a decrease in new user development for the gas industry [4] - China Gas is actively participating in the national initiative for urban gas pipeline upgrades and is pushing for reforms in natural gas pricing mechanisms [3] Group 3: China Water Performance - China Water reported a revenue of HKD 5.183 billion for the six months ending September 30, 2025, down 12.9% from HKD 5.953 billion in the same period last year [6] - The profit attributable to shareholders decreased to HKD 571 million, down from HKD 756 million year-on-year [6] - The company is focusing on optimizing its development strategy, prioritizing projects with the best returns, which has led to a slowdown in construction activities and related revenues [9] Group 4: Water Industry Insights - China Water's revenue from urban water supply and pipeline drinking water supply segments decreased significantly, with urban water supply revenue falling by 13.1% to HKD 3.271 billion [9] - The environmental business saw an increase in revenue by 8.7%, primarily due to growth in wastewater treatment services [9] - Long-term operational models like TOO (Transfer-Own-Operate) are expected to provide higher intrinsic value compared to other models, benefiting the company's water supply business [10]

Group 1: China Gas Performance - China Gas reported a revenue of HKD 34.481 billion for the six months ending September 30, 2025, a year-on-year decrease of 1.8% [3] - The company's gross profit was HKD 5.506 billion, down 6.0% year-on-year, and the net profit attributable to shareholders was HKD 1.334 billion, reflecting a decline of 24.2% [3] - The company connected 676,300 new residential users during the first half of the fiscal year, a decrease of approximately 25.2% compared to the same period last year [4] Group 2: Industry Challenges - The domestic natural gas consumption in China saw a slight decline of 0.2% year-on-year, totaling 317.75 billion cubic meters from January to September [3] - The ongoing downturn in the real estate market has led to a continuous decline in new housing starts and completions, impacting the development of new users in the gas industry [4] - China Gas is actively participating in the national initiative for urban gas pipeline upgrades and is pushing for reforms in the natural gas pricing mechanism to alleviate cost pressures [3] Group 3: China Water Performance - China Water reported a revenue of HKD 5.183 billion for the six months ending September 30, 2025, down 12.9% from HKD 5.953 billion in the same period last year [5] - The profit attributable to shareholders was HKD 571 million, a decrease from HKD 756 million year-on-year [5] - The company's revenue from urban water supply and pipeline drinking water supply segments decreased significantly, with urban water supply revenue falling by 13.1% to HKD 3.271 billion [7] Group 4: Strategic Adjustments - China Water is optimizing its development strategy to focus on core business project management, leading to a slowdown in construction activities and related revenue [7] - The environmental protection segment saw an increase in revenue by 8.7% year-on-year, primarily due to increased operational services from wastewater treatment projects [7] - The company is expected to benefit from the current pricing adjustment cycle, which may lead to a recovery in profitability [8]

Core Viewpoint - Recent performance reports from certain Hong Kong utility companies, particularly China Gas, have led to significant declines in their stock prices due to decreased revenue and profit, raising market concerns about their profitability [1][4]. Group 1: China Gas Performance - For the six months ending September 30, 2025, China Gas reported revenue of HKD 34.481 billion, a year-on-year decrease of 1.8%, and a net profit of HKD 1.334 billion, down 24.2% [4]. - The company has established a comprehensive energy supply structure, primarily focusing on pipeline natural gas, liquefied petroleum gas, and smart energy services [4]. - The domestic natural gas consumption faced challenges, with a slight decline of 0.2% year-on-year to 317.75 billion cubic meters from January to September [4]. - China Gas connected 676,300 new residential users during the first half of the fiscal year, a decrease of approximately 25.2% compared to the previous year [5]. Group 2: China Water Performance - China Water reported revenue of HKD 5.183 billion for the six months ending September 30, 2025, down 12.9% from HKD 5.953 billion in the same period last year [7][10]. - The company's profit attributable to shareholders was HKD 571 million, a decrease from HKD 756 million year-on-year [7]. - The decline in revenue was attributed to a strategic shift towards optimizing project management and prioritizing high-return projects, leading to a slowdown in construction activities [10]. - The urban water supply segment generated revenue of HKD 3.271 billion, down 13.1% year-on-year, while the pipeline drinking water supply segment saw a revenue drop of 28.3% [10][11].

Investment Rating - The report maintains a "Buy" rating for China Water Affairs (00855.HK) [1] Core Views - The company demonstrates resilient core operations with a focus on cost reduction and efficiency improvements, despite a decline in revenue and net profit [7] - Capital expenditures continue to decrease, and the company is expected to enhance its free cash flow and dividend capacity [7] Financial Performance Summary - For FY2026, total revenue is projected at HKD 10,026 million, reflecting a year-on-year decline of 13.98% [1] - The net profit attributable to shareholders is estimated at HKD 1,136 million, showing a year-on-year increase of 5.70% [1] - The latest diluted EPS is forecasted to be HKD 0.70, with a P/E ratio of 8.44 [1] Segment Performance - The urban water supply segment reported revenue of HKD 32.71 billion, down 13.1% year-on-year, with segment profit decreasing by 17.4% [7] - The environmental protection segment saw revenue growth of 8.7% year-on-year, with a segment profit increase of 29.7% [7] - The direct drinking water segment experienced a significant revenue decline of 28.3% year-on-year [7] Capital Expenditure and Dividends - Capital expenditures for FY26H1 were HKD 12.43 billion, down 31.8% year-on-year [7] - The total dividend per share remains stable at HKD 0.13, with a dividend yield of 4.8% [7] Earnings Forecast Adjustments - The forecast for net profit attributable to shareholders for FY2026-2028 has been revised down to HKD 11.36 billion, HKD 12.06 billion, and HKD 12.32 billion respectively [7] - Corresponding P/E ratios are projected at 8.4, 7.9, and 7.8 for FY2026, FY2027, and FY2028 [7]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a revenue of HKD 5.183 billion for FY2026H1, a year-on-year decrease of 12.9%. Gross profit was HKD 1.827 billion, down 20.1%, and net profit attributable to shareholders was HKD 571 million, a decline of 24.4%. The interim dividend per share remained flat at HKD 0.13 [2][6]. - The core operating business remains stable, although the installation, maintenance, and construction segments, along with property business, have seen declines, impacting overall profitability. The company has shown signs of a turning point in free cash flow, indicating potential for future dividend increases [2][9]. Business Segment Analysis - **Urban Water Supply**: Revenue decreased by 13.1% to HKD 3.27 billion, with segment profit down 17.4% to HKD 941 million. However, core water supply service revenue increased by 4.5% to HKD 1.801 billion, driven by a 5% increase in water sales. The completion of water price adjustments in eight cities is expected to further boost revenue and profit margins [9]. - **Direct Drinking Water**: Revenue fell by 28.3% to HKD 263 million, with segment profit declining 55.2% to HKD 75 million. Despite this, revenue from direct water supply operations and equipment sales remained stable [9]. - **Environmental Segment**: Benefiting from the Meifeng Wastewater Treatment Project, this segment achieved revenue of HKD 832 million, a year-on-year increase of 8.7%, with segment profit rising 29.7% to HKD 367 million [9]. - **General Contracting**: Revenue decreased by 6.1% to HKD 398 million, with segment profit down 60.2% to HKD 158 million [9]. - **Property Business**: Revenue plummeted by 93.3% to HKD 17 million, with segment profit dropping 96.4% to HKD 500,000, but the impact on overall performance is expected to be limited [9]. Financial Performance - The company experienced a 17.6% decrease in financial expenses during FY2026H1, benefiting from lower financing costs amid domestic and international interest rate cuts [9]. - The interim dividend payout ratio is 37%, with capital expenditures peaking at HKD 5.14 billion in FY2024, decreasing to HKD 3.24 billion in FY2025, leading to a positive free cash flow of HKD 150 million. For FY2026, capital expenditures are projected to be no more than HKD 2 billion, indicating a clear turning point in free cash flow and potential for increased dividends [9]. Earnings Forecast and Valuation - The company is expected to achieve net profits attributable to shareholders of HKD 1.14 billion, 1.16 billion, and 1.20 billion for FY2026-2028, with year-on-year growth rates of 6.0%, 2.2%, and 2.7% respectively. The emergence of free cash flow is viewed positively for future dividend increases, with a projected dividend payout ratio of 42.53% for FY2026-2028, corresponding to dividend yields of 5.1%, 5.2%, and 5.3% based on the stock price as of November 28, 2025 [9].

Core Viewpoint - China Water Affairs (00855.HK) reported a decline in mid-term performance for the six months ending September 30, 2025, with revenue decreasing by 12.9% to HKD 5.1833 billion and net profit attributable to shareholders down by 24.4% to HKD 571.3 million [1] Financial Performance - Revenue for the period was HKD 5.1833 billion, a decrease of 12.9% year-on-year [1] - Net profit attributable to shareholders was HKD 571.3 million, reflecting a 24.4% decline compared to the previous year [1] - Basic earnings per share were HKD 0.3512, with an interim dividend proposed at HKD 0.13 per share [1] Business Strategy and Operations - The company is optimizing its development strategy to enhance project management in core business areas [1] - There is a greater focus on project returns, leading to a slowdown in construction activities and a decline in related construction revenue [1] - Revenue from the segments of "Urban Water Supply," "Pipeline Drinking Water Supply," and "Environmental Protection" decreased from HKD 4.8979 billion to HKD 4.3664 billion, representing a 10.9% reduction [1] - The decline in revenue is primarily attributed to reduced installation, maintenance, and construction activities in the "Urban Water Supply" and "Pipeline Drinking Water Supply" segments [1] Joint Venture Performance - The group's share of joint venture performance decreased, mainly due to a one-time loss recognized from the sale of a portion of the equity in Kangda International Environmental Company [1]

Core Points - The water supply pipeline renovation project in Baoji City has been completed after over 900 days, significantly enhancing the city's water supply capacity [1] - The project, which started in April 2023, involved the installation of 24.4 kilometers of new ductile iron pipes, marking a major milestone for Baoji's urban development [1] - The new pipeline can supply up to 120,000 cubic meters of water daily, addressing the water needs of local residents [1] Project Details - The pipeline runs from Fengjiashan Water Plant, passing through various regions including Qianhe Town and Jintai Avenue, and crosses complex areas such as the Yinchuan Canal and the Longhai Railway [1] - The construction was executed in two phases to ensure normal water supply during the process, and the entire line is now connected [1] - Innovative construction techniques were employed, such as using stainless steel-lined non-excavation methods to cross the Yinchuan Canal, ensuring progress without affecting agricultural irrigation [1] Future Implications - The upgraded water supply pipeline is expected to provide reliable water support for Baoji City's future urban development [1]