Equity Analysis /
China

CN : Water - Water refresher

    Mark Po
    Mark Po

    Research Analyst

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    CGS-CIMB
    1 September 2021
    Published byCGS-CIMB

    This report is an update on our discussion about a new pricing system for China’s water-supply industry and a refresher on the latest situation. The water-related industry (water supply, waste water and water equipment) has been off investors’ radar in the past several years, but we note a rerating of water-related names. New policies on water pricing will be implemented with effect from Oct 2021; this is expected to enhance the profitability and return of the water-supply industry. . Water-related names may benefit from improved overall profitability. Proxies include China Water Affairs [0855.HK], China Lesso [2128.HK], Beijing Enterprise Water [0371.HK], Shanghai Industrial [0363.HK] and Wasion [3393.HK].