CHINA WATER AFFAIRS (855.HK) Kangda’s Reforms Have Seen Initial Results, Synergy Effects Need Time to Reflect September 17, 2019 33

PSR Recommendation: BUY Status: Upgraded
Target Price: HKDHKD10.33

Event Update
On April 3, 2019, CWA spent HKD 1.2 billion to acquire a 29.52% stake in Kangda International. Upon completion of the acquisition, CWA will nominate 4 and 1 candidates respectively to serve as executive directors and independent non-executive directors of Kangda International, which holds the majority of the board of directors of Kangda International, and CWA will become the single largest shareholder of Kangda International. Kangda International will be accounted as an associate company of CWA. Kangda International is mainly engaged in Urban Water Treatment, followed by the Water Environment Comprehensive Remediation and the Rural Water Improvement.

About the author

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Leon Duan
Investment Analyst

Bachelor Degree in Shandong University of Science, and Master Degrees in Chinese University of Hong Kong Faculty of Science and City University of Hong Kong College of Business. Currently cover Pharmaceuticals and Environmental Protection sectors, good at combining analysis with industry prospects and company fundamentals.

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