CHINA WATER (00855) surged over 5% in afternoon trading. At the time of writing, the stock was up 5.44%, trading at HK$5.62, with a turnover of HK$28.9452 million. The increase follows recent news that CHINA WATER has successfully won the bid for the urban-rural water supply integration franchise transfer project in Zhecheng County, Henan Province. This landmark win marks a historic breakthrough for CHINA WATER in Henan, officially establishing its presence in the Central China market and representing a critical expansion of its national business footprint. The Zhecheng County project is not only CHINA WATER's first project in Henan but also the first urban-rural water supply integration project in the province to enter the substantive implementation phase. Zhongtai International previously released a research note stating that during the first half of fiscal year 2026, CHINA WATER received approval for tariff increases on eight water supply projects, already meeting the company's full-year target of 8 to 10 projects. The approved projects include Ningxiang in Hunan, Jiangling and Shishou in Hubei, Yifeng in Jiangxi, Shenzhen Large Industrial Zone, Xihua in Henan, Changning, Boluo in Guangdong, and Lushan in Henan, with a combined daily water supply capacity of 1.05 million tons. This capacity is equivalent to 14.2% of the company's total water supply capacity of 7.39 million tons as of the end of September 2025. Given that the Pengze project in Jiangxi recently received approval for a price increase, and projects in Hegang, Heilongjiang and Yuanchen, Huaihua, Hunan have entered the public hearing stage, the brokerage believes the total number of approvals for the full fiscal year 2026 is likely to exceed expectations.