Kunming Dianchi Water Treatment Co (HKSE:03768) Interest Coverage: 2.01 (As of Jun. 2026) — 30% Below Median

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HKSE:03768 Kunming Dianchi Water Treatment Co Ltd HKSE:03768
47 GF Score
Price HK$0.38
GF Value HK$0.54
Valuation Possible Value Trap
! 5 Warning Signs
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What is Kunming Dianchi Water Treatment Co Interest Coverage?

Kunming Dianchi Water Treatment Co HKSE:03768 47 Interest Coverage is 2.01 as of Jun. 2026, which is 30% below its 10-year median of 2.89. GuruFocus rates HKSE:03768 with a GF Score™ of 47/100 and a GF Value™ of HK$0.54 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 450 Utilities - Regulated companies, Kunming Dianchi Water Treatment Co ranks worse than 68% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Kunming Dianchi Water Treatment Co's Operating Income for the six months ended in Jun. 2026 was HK$272 Mil. Kunming Dianchi Water Treatment Co's Interest Expense for the six months ended in Jun. 2026 was HK$-136 Mil. Kunming Dianchi Water Treatment Co's interest coverage for the quarter that ended in Jun. 2026 was 2.01. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Kunming Dianchi Water Treatment Co Ltd interest coverage is 2.55, which is low.

The historical rank and industry rank for Kunming Dianchi Water Treatment Co's Interest Coverage or its related term are showing as below:

HKSE:03768' s Interest Coverage Range Over the Past 10 Years
Min: 2.34   Med: 2.89   Max: 5.73
Current: 2.55


HKSE:03768's Interest Coverage is ranked worse than
68% of 450 companies
in the Utilities - Regulated industry
Industry Median: 3.885 vs HKSE:03768: 2.55

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Kunming Dianchi Water Treatment Co  (HKSE:03768) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Kunming Dianchi Water Treatment Co Interest Coverage Related Terms


Kunming Dianchi Water Treatment Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Kunming Dianchi Water Treatment Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Kunming Dianchi Water Treatment Co Interest Coverage Chart

Kunming Dianchi Water Treatment Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.34 2.94 2.66 2.59 2.84

Kunming Dianchi Water Treatment Co Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.71 2.46 2.58 3.10 2.01

HKSE:03768 vs AWK, WTRG, AWR: Interest Coverage Comparison

For the Utilities - Regulated Water subindustry, Kunming Dianchi Water Treatment Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kunming Dianchi Water Treatment Co Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Kunming Dianchi Water Treatment Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kunming Dianchi Water Treatment Co's Interest Coverage falls into.


HKSE:03768
47GF Score
Kunming Dianchi Water Treatment Co Ltd HKSE:03768
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kunming Dianchi Water Treatment Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Kunming Dianchi Water Treatment Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Kunming Dianchi Water Treatment Co's Interest Expense was HK$-257 Mil. Its Operating Income was HK$732 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$2,388 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*731.542/-257.282
=2.84

Kunming Dianchi Water Treatment Co's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the six months ended in Jun. 2026, Kunming Dianchi Water Treatment Co's Interest Expense was HK$-136 Mil. Its Operating Income was HK$272 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$1,959 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*272.263/-135.562
=2.01

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.01 mean?
Kunming Dianchi Water Treatment Co (HKSE:03768) has a Interest Coverage of 2.01 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kunming Dianchi Water Treatment Co and its competitors. This is 30% below median its historical median of 2.89. Over the past decade, Kunming Dianchi Water Treatment Co's Interest Coverage has ranged from 2.34 to 5.73. According to the industry distribution chart, Kunming Dianchi Water Treatment Co ranks #306 out of 450 companies in the Utilities - Regulated industry, placing it in the top 68%.
Is Kunming Dianchi Water Treatment Co's Interest Coverage too high?
Kunming Dianchi Water Treatment Co's current Interest Coverage of 2.01 is 30% below median its 10-year median of 2.89. Over the past 10 years, this metric has ranged from a low of 2.34 to a high of 5.73. The Utilities - Regulated industry median Interest Coverage is 3.89. Kunming Dianchi Water Treatment Co's value of 2.01 is 48.3% below this industry median. Based on the distribution chart, Kunming Dianchi Water Treatment Co ranks #306 out of 450 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Kunming Dianchi Water Treatment Co has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Kunming Dianchi Water Treatment Co's Interest Coverage compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Kunming Dianchi Water Treatment Co ranks #306 out of 450 companies for Interest Coverage. This places Kunming Dianchi Water Treatment Co in the lower half of its industry. The industry median Interest Coverage is 3.89. Kunming Dianchi Water Treatment Co's value of 2.01 is 48.3% below this benchmark. Historically, Kunming Dianchi Water Treatment Co's own Interest Coverage has ranged from 2.34 to 5.73 over the past decade. While the company's 10-year median is 2.89 vs. the industry median of 3.89, Kunming Dianchi Water Treatment Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.89, based on 450 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kunming Dianchi Water Treatment Co's current Interest Coverage of 2.01 is 48.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kunming Dianchi Water Treatment Co and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kunming Dianchi Water Treatment Co's current Interest Coverage is 2.01, which is 30% below median its own 10-year median of 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kunming Dianchi Water Treatment Co stock overvalued right now?
Based on GuruFocus' analysis, Kunming Dianchi Water Treatment Co (HKSE:03768) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.54, compared to a current price of HK$0.38 — trading 29.6% below its estimated fair value. The current Interest Coverage is 2.01, which is 30% below median its 10-year median of 2.89 and 48.3% below the Utilities - Regulated industry median of 3.89. Kunming Dianchi Water Treatment Co's overall GF Score™ is 47/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Kunming Dianchi Water Treatment Co (HKSE:03768), the current Interest Coverage is 2.01 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kunming Dianchi Water Treatment Co (HKSE:03768) Overvalued in 2026?

Based on GuruFocus' analysis, Kunming Dianchi Water Treatment Co stock appears to be undervalued. The current stock price of HK$0.38 is trading 29.6% below its estimated GF Value™ of HK$0.54. GuruFocus considers Kunming Dianchi Water Treatment Co to be Possible Value Trap.

Key valuation signals for HKSE:03768:

  • Interest Coverage: 2.01 (30% below median its 10-year median of 2.89)
  • GF Value™: HK$0.54 vs. price of HK$0.38 (29.6% below fair value)
  • GF Score™: 47/100 with 5 warning signs
  • Industry Position: 48.3% below the Utilities - Regulated median (#306 of 450)

No single metric tells the full story. See the HKSE:03768 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kunming Dianchi Water Treatment Co Business Description

Address Wastewater Treatment Plant No. 7, Kunming Dianchi Tourist Resort, Yunnan Province, Kunming, CHN
Kunming Dianchi Water Treatment Co Ltd, and its subsidiaries, are principally engaged in the development, design, construction, operation and maintenance of water supply and wastewater treatment facilities in the PRC. The company's reportable segments are as follows: i) Wastewater treatment; ii) Water supply; and iii) Others, including management services, transportation services, construction services, thermal production and treasury functions. The majority of the company's revenue is derived from the Wastewater treatment segment. Geographically, the company's operations are principally located in the PRC.
47GF Score

Get the complete analysis for HKSE:03768

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.38
Price
HK$0.54
GF Value