Guozhong Water (600187) Limit Up Analysis: Turning Point and Risks Coexist in the Huiyuan Juice Acquisition Case

On January 20, 2026, Guozhong Water (600187.SH) surged to the limit up, closing at RMB 2.76 with a 9.96% increase. The full-day turnover reached RMB 221 million, with a turnover rate of 5.01%. From the disk characteristics, the stock opened at RMB 2.53, pulled up rapidly in the afternoon to hit the limit up, with an intraday amplitude of 9.56%. The volume ratio of 2.96 indicates that the trading volume has significantly increased to nearly 3 times the recent average level, and capital attention has obviously risen [0][1]. On the same day, the water services sector strengthened as a whole, with Shunkong Development also hitting the limit up. Stocks such as United Water, Jiangnan Water, and Xingrong Environment led the gains, forming an obvious sector linkage effect.

The direct trigger for this limit up is a major turning point in the Huiyuan Juice acquisition case. On January 19, 2026, Yue Mintou (Guangdong Civil Investment) and Wensheng Assets reached a settlement, lifting the equity freeze on Zhuji Wenshenghui. This progress has removed major hurdles for Guozhong Water’s acquisition of Beijing Huiyuan and for helping Huiyuan Juice “return to the A-share market” [2][3].

From the acquisition background, Guozhong Water previously held an indirect 21.8916% stake in Beijing Huiyuan. According to the announcement in July 2024, the company plans to acquire the relevant shares of Zhuji Wenshenghui held by Shanghai Yongrui. After the transaction is completed, it will hold no less than 51% of the equity of Zhuji Wenshenghui, thereby achieving control of Beijing Huiyuan [2]. In April 2025, due to equity freeze issues, Guozhong Water was forced to terminate the major asset restructuring. Now that a settlement turning point has emerged, the market has responded positively.

Guozhong Water’s main business is sewage treatment and environmental protection technical services, belonging to the water production and supply industry. From the financial data, the company’s performance was poor in 2022-2023. In 2023, its operating revenue reached RMB 226 million, a year-on-year decrease of 21.92%, and it turned from loss to profit mainly through investments in Huiyuan [0]. The 2025 third quarterly report shows that the company’s non-recurring EPS is -RMB 0.01, and the profitability of its main business is still weak. The current dynamic price-earnings ratio is about 241.53 times, far higher than the industry median of 26.16 times, while the price-to-book ratio of 1.39 times is relatively reasonable. The high valuation level means that the stock price has already reflected the acquisition expectations in advance [1].

Although this limit up reflects the market’s optimistic expectations for the acquisition’s turning point, in-depth analysis shows that the acquisition still faces complex interest games. According to multiple information reports, the conflict between Wensheng Assets and Huiyuan Group (founder Zhu Xinli’s side) is far from being resolved [2][3].

Specifically, Wensheng Assets is accused of failing to fulfill its RMB 1.6 billion capital increase obligation, having only paid RMB 750 million, with the remaining RMB 850 million unpaid. At the end of 2025, 60% of Beijing Huiyuan’s equity was frozen by the Beijing No. 3 Intermediate People’s Court, stemming from a lawsuit filed by Hebei Huiyuan. On January 8, 2026, “Huiyuan Group” issued a solemn statement, announcing the full takeover of Beijing Huiyuan, and denounced Wensheng Assets for “breach of contract and violation of laws”, leading to the risk of two opposing “Huiyuan” entities in the market [3].

In response, a person from the company’s securities department stated frankly: “Although the conflict between them (Wensheng) and Yue Mintou has been resolved, the conflict with Huiyuan has not been resolved, and the latter conflict is more direct. The company cannot judge the subsequent situation for now.” This statement reveals that the acquisition prospect still has significant uncertainty.

From the perspective of capital flow, Guozhong Water has seen net inflows of main capital for 3 consecutive days, indicating increased attention from short-term capital [4].

Technically, after breaking through the previous consolidation platform, the stock price quickly hit the limit up, but it may face profit-taking pressure in the short term. In the future, it is necessary to focus on whether the trading volume can continue to expand; if the volume shrinks, it may face adjustments; if it can maintain strength, it is expected to challenge the previous high-intensive trading range of RMB 2.85-2.90.

It is worth noting that Guozhong Water’s limit up this time has driven the entire water services sector to strengthen. This sector linkage effect reflects the market’s expectation of valuation repair for the environmental protection and water services sector, while also amplifying the demonstration effect of individual stock limit ups. Investors need to distinguish between rational rises based on fundamental improvements and sentiment-driven follow-up speculation.

: The control dispute between Wensheng Assets and Huiyuan Group may be protracted, and 60% of Beijing Huiyuan’s equity is still frozen by the court, leaving the acquisition process with high uncertainty. If the acquisition is hindered again or the conflict intensifies, the company’s stock price may face valuation regression pressure [2][3].

: The company’s main business continues to lose money, with negative non-recurring EPS and limited profitability. The current stock price is mainly supported by acquisition expectations; once the expectations fail, the valuation will face a sharp callback risk.

: The matter of 60% of Beijing Huiyuan’s equity being frozen by the court has not been resolved yet. This freeze stems from Hebei Huiyuan’s lawsuit against Wensheng Assets, which may affect the normal operation and asset integrity of Beijing Huiyuan.

: If two “Huiyuan” products coexist in the market, it will have a major impact on Huiyuan’s market reputation and consumer perception, which in turn will affect the asset value of Beijing Huiyuan.

: The current price-earnings ratio of 241.53 times is significantly higher than the industry average, and the stock price has fully reflected the positive acquisition expectations in advance, so the risk-reward ratio needs to be re-evaluated.

: Beijing Huiyuan owns core assets such as all “Huiyuan” brand and trademark ownership, all sales channels, Shunyi Factory, and 15 self-owned production lines. As a “national juice” brand, Huiyuan has a deep consumer base and brand recognition in the Chinese market.

: If the acquisition is successfully completed, Guozhong Water will consolidate Beijing Huiyuan into its financial statements. The company’s business scope will expand from sewage treatment to juice production and sales, achieving a diversified layout, and its revenue scale and profitability are expected to be significantly improved.

: Policies such as trade-in for consumer goods are continuously advancing. The expectation of consumption recovery is conducive to valuation repair in the food and beverage industry, and Huiyuan Juice, as a national brand, is expected to benefit.

The current acquisition case is in a critical window period. Investors need to focus on the following time nodes: the latest progress of the lawsuit between Wensheng Assets and Huiyuan Group, whether the equity freeze of Beijing Huiyuan is lifted, and whether Guozhong Water restarts the acquisition process. In the short term, stock price fluctuations will be mainly affected by news, so it is recommended to closely follow relevant announcements and media reports.

The direct catalyst for Guozhong Water’s limit up this time is the settlement between Yue Mintou (Guangdong Civil Investment) and Wensheng Assets, which has removed some hurdles for the Huiyuan Juice acquisition case. However, the acquisition still faces significant uncertainties such as the deep-seated conflict between Wensheng Assets and Huiyuan Group, and the equity freeze of Beijing Huiyuan. The company’s main business has limited profitability, and the current valuation has fully reflected the acquisition expectations.

For investors, participating in this round of market requires high risk tolerance and full understanding of the complexity of the acquisition case. In the future, it is necessary to continuously track key indicators such as the progress of acquisition negotiations, the lifting of equity freezes, and changes in trading volume, and make investment decisions after dynamically evaluating the risk-reward ratio.

: The above analysis is for reference only and does not constitute investment advice. The acquisition case has significant uncertainties, and investors should closely follow company announcements and regulatory inquiries, and carefully judge investment opportunities.