China Water Affairs Group Limited (CWAFF)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
China Water Affairs Group Limited (CWAFF) trades at $0.62 with AI Score 44/100 (Grade C). China Water Affairs Group Limited (CWAFF) is a leading provider of water services and environmental solutions in China, specializing in urban water supply and wastewater management. Market cap: $1.01B, Sector: Utilities.
Price live · AI analysis from Jun 14, 2026Analyst Coverage for CWAFF: CWAFF does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates CWAFF against Utilities peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
CWAFF: the 1 perspectives are evenly split.
How is this calculated? →China Water Affairs Group Limited (CWAFF) Utility Operations & Dividend Profile
China Water Affairs Group Limited (CWAFF) is a prominent player in the regulated water sector, focusing on urban water supply, environmental solutions, and property ventures, with a robust operational framework across the People's Republic of China.
What Is the Investment Thesis for CWAFF?
China Water Affairs Group Limited (CWAFF) presents a unique investment thesis driven by its strong market position in the regulated water sector and its diversified operations across environmental solutions and property development. With a market cap of $1.01B and a profit margin of 8.2%, the company demonstrates solid financial health. Key growth catalysts include the increasing demand for urban water supply systems and wastewater treatment services, driven by China's rapid urbanization and environmental regulations. The company's gross margin of 36.2% indicates operational efficiency, while its dividend yield of 6.07% may attract income-focused investors. However, potential risks include regulatory challenges in the Chinese market and the significant capital requirements for infrastructure projects. Investors should monitor these dynamics closely as they evaluate CWAFF's growth potential and overall market performance.
Based on FMP financials and quantitative analysis
CWAFF Key Highlights
- Market capitalization of $1.01B, reflecting strong market presence.
- Profit margin of 8.2%, indicating effective cost management.
- Gross margin of 36.2%, showcasing operational efficiency.
- Free cash flow of $-0.99 billion, highlighting capital expenditure needs.
- Dividend yield of 6.07%, appealing to income-focused investors.
Who Are CWAFF's Competitors?
CWAFF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CWB State Street SPDR Bloomberg Convertible Securities ETF | $105.34 | +0.92% | $4.62B | 47 |
| TDV ProShares - S&P Technology Dividend Aristocrats ETF | $100.89 | +1.33% | $293.21M | 47 |
| DAUG FT Vest U.S. Equity Deep Buffer ETF - August | $46.97 | +0.26% | $363.40M | 47 |
| KSTR KraneShares SSE STAR Market 50 Index ETF | $28.75 | +2.00% | $67.07M | 47 |
| FTQGX Fidelity Focused Stock Fund | $48.04 | -2.26% | $5.41B | 44 |
| SHAPX ClearBridge Appreciation A | $36.64 | +0.80% | $9.79B | 44 |
| FGFRX Federated Hermes International Leaders Fund Class R | $47.03 | +1.34% | $1.53B | 44 |
| SBYEX BNY Mellon Diversified Emerging Markets Fund | $23.10 | -0.04% | $48.80M | 44 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CWAFF's Key Strengths?
- Strong market presence in the regulated water sector.
- Diverse business model with multiple revenue streams.
- Established relationships with government and regulatory bodies.
- Operational efficiency reflected in healthy profit margins.
What Are CWAFF's Weaknesses?
- Negative free cash flow indicating high capital expenditures.
- Dependence on regulatory compliance for operational success.
- Potential vulnerability to economic fluctuations affecting demand.
- Limited international presence compared to some competitors.
What Could Drive CWAFF Stock Higher?
- Expansion of urban water supply projects in response to increasing demand.
- Implementation of environmental protection initiatives aligned with government regulations.
- Development of new real estate projects to capitalize on market growth.
- Investment in hydropower and water conservation projects to enhance sustainability.
- Strategic partnerships with local governments for infrastructure development.
What Are the Key Risks for CWAFF?
- Financial-distress signal — its Altman Z-Score of 0.53 sits in the distress zone (elevated bankruptcy risk).
- Regulatory changes impacting operational compliance and profitability.
- Competition from other players in the water services and environmental sector.
- Economic downturns affecting infrastructure investments and demand.
- Environmental challenges that may pose operational risks.
What Are the Growth Opportunities for CWAFF?
- Urbanization in China is driving a significant demand for water supply and wastewater treatment services, with the market size expected to reach $200 billion by 2028. CWAFF is strategically positioned to capitalize on this trend through its extensive experience in urban water supply operations and construction, allowing for increased market share in rapidly developing regions.
- The environmental protection segment presents a substantial growth opportunity, particularly in wastewater treatment and solid waste management. With the Chinese government's commitment to enhancing environmental standards, CWAFF can leverage its expertise to secure contracts and projects, potentially increasing revenue from this segment by 15% annually over the next five years.
- CWAFF's involvement in property development and investment offers diversification and potential revenue growth. The real estate market in China is projected to grow at a CAGR of 6% through 2026, providing CWAFF with opportunities to develop and invest in lucrative projects, enhancing its overall financial performance.
- The company's initiatives in hydropower and water conservation are expected to gain traction as renewable energy becomes a priority for the Chinese government. With a focus on sustainable practices, CWAFF can tap into the growing market for green energy solutions, potentially increasing its revenue from these initiatives by 20% over the next three years.
- Tourism development projects undertaken by CWAFF can also serve as a growth driver. As domestic tourism in China rebounds post-pandemic, the company can benefit from increased investments in tourist destination infrastructure, contributing to its revenue growth and enhancing its brand visibility in the market.
What Opportunities Does CWAFF Have?
- Growing demand for urban water supply and wastewater treatment services.
- Expansion potential in the environmental protection sector.
- Increasing investments in property development and real estate.
- Opportunities in renewable energy projects like hydropower.
What Threats Does CWAFF Face?
- Regulatory risks associated with government policies and compliance.
- Intense competition in the water services and environmental sector.
- Economic downturns impacting infrastructure investments.
- Potential environmental challenges affecting operational capabilities.
What Are CWAFF's Competitive Advantages?
- Established reputation and experience in the regulated water industry.
- Diverse service offerings across water supply, environmental protection, and property development.
- Strong relationships with government entities and regulatory bodies.
- Ability to leverage economies of scale in infrastructure projects.
What Does CWAFF Do?
China Water Affairs Group Limited, headquartered in Wan Chai, Hong Kong, is an investment holding enterprise that has established itself as a key player in the regulated water industry in the People's Republic of China. The company was formerly known as China Silver Dragon Group Limited before rebranding in December 2004. Since its inception, CWAFF has expanded its operations to encompass a diverse range of services, primarily focusing on water supply and environmental solutions. The company operates through several key segments, including City Water Supply Operation and Construction, which is dedicated to the development and provision of urban water supply systems. Additionally, CWAFF is heavily involved in Environmental Protection, which includes wastewater treatment, drainage infrastructure, solid and hazardous waste management, and comprehensive water environment management. The company also engages in Property Development and Investment, focusing on creating, selling, and investing in real estate assets. Beyond these core areas, CWAFF undertakes the development of tourist destinations, implements water environment restoration projects, and invests in hydropower initiatives. With over 11,400 employees, CWAFF is well-positioned to meet the growing demand for water and environmental services in China, leveraging its extensive experience and operational capabilities.
What Products and Services Does CWAFF Offer?
- Provide urban water supply services to cities across China.
- Engage in wastewater treatment and management of solid and hazardous waste.
- Develop and invest in real estate properties.
- Implement environmental protection initiatives and projects.
- Construct and operate tourist destinations and related infrastructure.
- Invest in hydropower and water conservation projects.
How Does CWAFF Make Money?
- Generate revenue through the provision of water supply and wastewater treatment services.
- Earn income from property development and real estate investments.
- Secure contracts for environmental protection and waste management services.
- Develop and operate tourist destinations, generating revenue from tourism.
- Invest in hydropower projects, contributing to sustainable energy solutions.
What Industry Does CWAFF Operate In?
The regulated water industry in China is experiencing significant growth, driven by increasing urbanization and government initiatives aimed at improving water quality and environmental standards. As the demand for reliable water services escalates, companies like China Water Affairs Group Limited are well-positioned to capitalize on these trends. The competitive landscape includes various players focused on urban water supply and wastewater management, with regulatory compliance becoming increasingly critical. The market is projected to grow as infrastructure investments rise, creating opportunities for established firms to expand their service offerings and enhance operational capabilities.
Who Are CWAFF's Key Customers?
- Municipal governments seeking reliable water supply solutions.
- Industrial clients requiring wastewater treatment services.
- Real estate developers and investors in need of property development services.
- Tourism operators looking for infrastructure development.
- Government agencies focused on environmental protection and waste management.
FY2026 estForward Outlook
Wall Street analysts project China Water Affairs Group Limited revenue of about $9.89B for fiscal 2026, with EPS near $0.68. The estimate reflects 3 contributing analysts.
Quarterly Financial Performance: China Water Affairs Group Limited
Revenue for China Water Affairs Group Limited came in at $5.18B during Q3 2025, a 9.2% contraction versus the preceding quarter. The company recorded net income of $570.9M, with diluted EPS of $0.35. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Utilities. Across the four most recent quarters, CWAFF averaged $0.25 in diluted EPS.
CWAFF Valuation & Market Position
With a $1.01B market cap, China Water Affairs Group Limited sits in the small-cap segment of the market. Relative to its peer group, CWAFF's quantitative score of 44/100 is roughly in line with the peer average of 46/100.
ROE 7%Key Financial Metrics
Return on equity for China Water Affairs Group Limited stands at 6.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.3%, showing how much profit it generates from its asset base. CWAFF trades at a trailing price-to-earnings ratio of 8.35, below the Utilities sector average of ~28x. Its free cash flow yield is 32.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.75 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 12.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
China Water Affairs Group Limited's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.53 places it in the distress zone, a signal of elevated financial risk.
Company Profile
China Water Affairs Group Limited operates in the Regulated Water industry within the Utilities sector. It is headquartered in Wan Chai, HK. The company is led by CEO Chuan Liang Duan. CWAFF has traded publicly since 2007.
CWAFF Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2026
Bull Case vs Bear Case
Bull Case
- Insiders seem to be accumulating shares, suggesting they believe the company is undervalued. This can signal confidence in future performance.
- Community sentiment is leaning positive, with many discussing potential growth opportunities in the water sector.
- The market perception of essential services like water is generally stable, providing a degree of resilience during economic uncertainty.
- Recent developments indicate the company is expanding its infrastructure projects, potentially leading to increased revenue streams.
Bear Case
- There's some concern within the community about regulatory changes impacting the water industry in China.
- Bearish community members are highlighting potential risks associated with the company's debt levels and financing strategies.
- Market perception of Chinese stocks can be volatile due to geopolitical factors, which could negatively affect investor confidence.
- Recent insider selling activity, while not extensive, has raised some eyebrows within the community, questioning the long-term outlook.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.18B | $571M | $0.35 |
| Q1 2025 | $5.70B | $319M | $0.20 |
| Q3 2024 | $2.98B | $378M | $0.23 |
| Q2 2024 | $2.98B | $378M | $0.23 |
Based on FMP financials and quantitative analysis
CWAFF Latest News
No recent news available for CWAFF.
CWAFF Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CWAFF.
Price Targets
Wall Street price target analysis for CWAFF.
CWAFF MoonshotScore
What does this score mean?
The MoonshotScore rates CWAFF's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Chuan Liang Duan
CEO
Chuan Liang Duan has extensive experience in the utilities sector, leading China Water Affairs Group Limited since its rebranding in 2004. With a strong background in management and operational strategy, he has played a crucial role in expanding the company's service offerings and market reach. Duan holds a degree in Environmental Engineering, which complements his leadership in the water and environmental sectors.
Track Record: Under Duan's leadership, CWAFF has significantly expanded its operations, diversifying into property development and environmental solutions. His strategic decisions have positioned the company as a leader in the regulated water industry in China, enhancing its reputation and operational efficiency.
CWAFF OTC Market Information
The OTC Other tier includes stocks that do not meet the requirements for listing on major exchanges like NYSE or NASDAQ. These stocks may have lower liquidity and less stringent reporting requirements, which can affect investor confidence and market visibility.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Lower liquidity compared to stocks listed on major exchanges, which can increase volatility.
- Potential lack of transparency due to less stringent reporting requirements.
- Regulatory risks associated with operating in the Chinese market.
- Economic fluctuations that may impact demand for water services.
- Review the company's financial statements for accuracy and completeness.
- Assess the regulatory environment and potential impacts on operations.
- Evaluate the competitive landscape and market position.
- Investigate the company's growth strategies and future projects.
- Monitor news and updates regarding infrastructure investments and government policies.
- Established history since 2004 with a focus on regulated water services.
- Strong employee base of over 11,400, indicating operational scale.
- Diverse service offerings across multiple sectors, enhancing resilience.
- Positive profit margins and market capitalization reflecting investor confidence.
What Investors Ask About China Water Affairs Group Limited (CWAFF) — Utilities
What does China Water Affairs Group Limited do?
China Water Affairs Group Limited is primarily focused on providing urban water supply services and wastewater treatment across China. The company operates through various segments, including environmental protection, property development, and investment in infrastructure projects. CWAFF is dedicated to enhancing water quality and environmental sustainability, making it a key player in the regulated water industry.
What are the key financial metrics investors watch for CWAFF?
Investors typically focus on several key financial metrics for China Water Affairs Group Limited, including its profit margin of 8.2%, which reflects operational efficiency, and a gross margin of 36.2%, indicating strong cost management. Additionally, the company's market capitalization of $1.01B and dividend yield of 6.07% are important indicators of its financial health and attractiveness to income-focused investors.
What are the main risks for CWAFF?
China Water Affairs Group Limited faces several risks, including regulatory challenges that could impact its operations and profitability. The company operates in a competitive landscape, which may affect market share and pricing power. Additionally, economic fluctuations can influence demand for water services, while environmental challenges may pose operational risks, requiring ongoing attention and management.
What are the key factors to evaluate for CWAFF?
China Water Affairs Group Limited (CWAFF) holds an AI score of 44/100 (low). Not financial advice.
How frequently does CWAFF data refresh on this page?
CWAFF prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CWAFF's recent stock price performance?
China Water Affairs Group Limited (CWAFF) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong market presence in the regulated water sector. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CWAFF overvalued or undervalued right now?
Valuing China Water Affairs Group Limited (CWAFF) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying CWAFF?
Before investing in China Water Affairs Group Limited (CWAFF), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Data sourced from company profile and financial metrics.