Through a mixture of volume and price increases and inorganic growth, we expect China Water Affairs (CWA) to grow operating profit by a CAGR of 17.8% over the next five years. CWA owns and operates water supply assets in 46 cities across China. China’s economy suffers from polluted water and water scarcity and only around 50% of households are connected to a water network. The Chinese government has become increasingly supportive of private companies developing the water sector and, for now, is happy to reward private firms with attractive ROEs. Favourable regulatory drivers, coupled with a well-regarded management team, have enabled CWA to deliver excellent earnings growth and we believe this will continue.

26 Apr 2016
Signs of delivery on ambitious growth plans

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Signs of delivery on ambitious growth plans
China Water Affairs Group Limited (855:HKG) | 0 0 0.0%
- Published:
26 Apr 2016 -
Author:
Jamie Aitkenhead -
Pages:
16 -
Through a mixture of volume and price increases and inorganic growth, we expect China Water Affairs (CWA) to grow operating profit by a CAGR of 17.8% over the next five years. CWA owns and operates water supply assets in 46 cities across China. China’s economy suffers from polluted water and water scarcity and only around 50% of households are connected to a water network. The Chinese government has become increasingly supportive of private companies developing the water sector and, for now, is happy to reward private firms with attractive ROEs. Favourable regulatory drivers, coupled with a well-regarded management team, have enabled CWA to deliver excellent earnings growth and we believe this will continue.