| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.24 | 105 |
| Intrinsic value (DCF) | 56.88 | 362 |
| Graham-Dodd Method | 2.01 | -84 |
| Graham Formula | 17.36 | 41 |
Haitian Water Group Co., Ltd. is a prominent Chinese utility company specializing in comprehensive water management services. Founded in 2008 and headquartered in Chengdu, the company operates across the entire water value chain, including tap water production and supply, sewage treatment and recycling. As a key player in China's regulated water sector, Haitian Water serves essential municipal and industrial needs while contributing to sustainable water resource management. The company has diversified its operations to include technology services, equipment sales and leasing, and project management consulting, creating multiple revenue streams within the water infrastructure ecosystem. Operating in China's rapidly urbanizing environment, Haitian Water addresses critical water scarcity challenges and environmental protection mandates. With China's ongoing infrastructure development and environmental regulations driving demand for professional water services, the company occupies a strategic position in the utilities sector. Haitian Water's integrated approach to water management positions it as an important infrastructure provider supporting China's economic growth and environmental sustainability goals.
Haitian Water presents a stable utility investment with moderate growth prospects in China's essential water services market. The company demonstrates solid profitability with net income of CNY 305 million on revenue of CNY 1.52 billion, translating to a healthy 20% net margin. However, investors should note the significant debt burden of CNY 2.22 billion against cash reserves of CNY 604 million, indicating potential liquidity concerns. The company's beta of 0.90 suggests lower volatility than the broader market, typical for regulated utilities. Positive operating cash flow of CNY 457 million supports the dividend payment of CNY 0.27 per share, providing income-oriented investors with yield. The capital expenditure of CNY 370 million reflects ongoing infrastructure investments necessary for growth. While the regulated nature of water utilities provides revenue stability, the high debt levels and capital-intensive business model warrant careful monitoring of interest coverage and expansion efficiency.
Haitian Water Group operates in China's fragmented but strategically important water utility sector, where competitive positioning is heavily influenced by regional monopolies, regulatory relationships, and operational scale. The company's primary competitive advantage stems from its integrated service model combining water supply with sewage treatment, creating operational synergies and cross-selling opportunities within its service territories. As a regional player headquartered in Chengdu, Haitian Water benefits from established municipal relationships and local market knowledge in Western China, though this regional focus also limits its national scale compared to larger state-owned competitors. The company's technological services and equipment offerings provide supplementary revenue streams that differentiate it from pure-play water suppliers. However, Haitian Water faces significant competition from larger state-owned enterprises that benefit from superior financing access, political connections, and nationwide operations. The capital-intensive nature of water infrastructure creates high barriers to entry but also favors well-capitalized competitors. Haitian Water's moderate market capitalization of CNY 3.67 billion positions it as a mid-tier player, requiring strategic focus on operational efficiency and selective regional expansion to compete effectively against both state giants and emerging private operators in China's evolving water utility landscape.