Guangdong Investment Limited (0270.HK) stock analysis

In our weekly check, Guangdong Investment Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 5, red flags: 4.

About Guangdong Investment Limited

Guangdong Investment Limited is an Utilities company (Regulated Water) based in Hong Kong, listed on HKSE as 0270.HK.

What our checks show for 0270.HK

Red flags

• Operating profit covers interest only 1.5 times: a weak year could make the payments hard.
• Revenue fell 6.7% a year over the last 3 years.
• The dividend takes 374% of profit: little cushion if profit falls.
• The stock has fallen as much as 81% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 2.2% a year of growth in revenue.
• Earnings per share fell 0.9% a year over the last 3 years.
• Net profit fell 0.8% a year over the last 3 years.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 8.7%.

Strengths

• Net debt is only 0.7x a year of EBITDA: the balance sheet has room.
• The net margin rose by 8.9 points over 5 years, to 24.7%.
• The gross margin is 53.3% and has risen by 14.1 points: pricing power is holding.
• Operating cash flow is 1.74x net profit: the profit arrives as real cash.
• The company keeps 24.7% of its revenue as net profit.
• Free cash flow is 38.5% of revenue: cash for dividends, buybacks or growth.

Similar companies

SBSP3.SA · AWK · CSMG3.SA · WTRG · UU.L · SVT.L

Questions

What grade does Guangdong Investment Limited (0270.HK) have?

In our weekly check, Guangdong Investment Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 5, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0270.HK stock?

This week's biggest flags for Guangdong Investment Limited: Weak interest cover, Weak revenue growth, Dividend stretched. In total 9 of 25 checks show a warning or a red flag.

What does Guangdong Investment Limited do?

Guangdong Investment Limited is an Utilities company (Regulated Water) based in Hong Kong, listed on HKSE as 0270.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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