China Everbright Environment Group (257) H2 2017 earnings summary

Executive summary

• 2017 revenue topped HKD 20bn, with profit attributable to equity holders above HKD 3.5bn; project awards, construction and operating activity expanded.

• Six business sectors advanced, supported by environmental-policy tailwinds; management aims to scale operations, strengthen technology and expand overseas steadily.

Financial highlights

• Consolidated revenue was HKD 20.043bn, up 43% YoY; gross profit reached HKD 7.1bn, up 34%, and EBITDA was HKD 6.86bn, up 36%.

• Profit attributable to equity holders was HKD 3.5bn, up 26%; basic EPS was HKD 0.783.

• Total assets exceeded HKD 70bn; shareholders’ equity was HKD 22bn and cash on hand HKD 10.8bn at year-end.

Outlook and guidance

• Management expressed confidence in 2018: 40 projects awarded in 2017 and 45 completed projects are expected to support future revenue from construction and operating services.

• A further 97 projects were under preparation or construction at year-end and expected to start construction in 2018.

• Longer-term priorities include growing market share, expanding overseas in a measured way, broadening service scope and investing at least HKD 1bn in R&D over the next five years.

• Management targets assets above HKD 100bn and profit in the tens of billions as scale ambitions, without specifying a timetable.