Beijing Enterprises Water Group (371) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 14% to RMB24.52bn; profit attributable to shareholders increased 60% to RMB1.896bn, with EBITDA up 25% to RMB8.931bn.

• Growth reflected stronger water-treatment revenue and a full-year contribution from urban resources services following BEURG consolidation from H2 2022.

• Proposed final dividend of HK8.7 cents per share; full-year dividend was HK15.7 cents per share.

Financial highlights

• Revenue was RMB24.519bn versus RMB21.485bn; gross profit was RMB9.001bn versus RMB8.461bn.

• Operating profit increased to RMB6.644bn from RMB5.346bn; profit before tax reached RMB4.028bn from RMB3.265bn.

• Net income was RMB3.064bn versus RMB2.335bn; shareholder-attributable profit was RMB1.896bn versus RMB1.181bn.

• Basic/diluted EPS was RMB18.24/RMB18.21 cents, up from RMB11.33/RMB11.31 cents.

Outlook and guidance

• 2024 priorities include integrating scientific and technological advancement into the platform strategy, moving toward asset-light operations, and pursuing a second growth phase and sustainable growth.

• Innovation and digitalisation priorities include 28 product series launched in 2023 and wider use of digital management platforms and drainage-management systems.