China Everbright Water (U9E) H2 2023 earnings summary

Executive summary

• FY2023 revenue was HK$6,704.7m, down 0.3% YoY; gross profit rose 10%, EBITDA 13%, and profit attributable to equity holders 17%.

• Operating footprint covered 60 districts, counties and cities across 13 Chinese provinces, municipalities and autonomous regions, plus one overseas market; total designed capacity was ~7.47m m³/day.

• Business expansion combined six new investment projects, asset-light contracts and extensions to established wastewater and water-supply operations.

Financial highlights

• Revenue was HK$6,704.7m vs HK$6,728.0m in 2022; gross profit was HK$2,822.4m vs HK$2,564.0m.

• EBITDA increased 13% YoY to HK$2,469.5m; profit attributable to equity holders rose 17% to HK$1,187.4m.

• Basic EPS rose 17% to HK$0.4151; full-year dividend per share increased 17% to HK$0.1244.

• Revenue CAGR for 2019–2023 was 5%; EBITDA CAGR 11%, attributable profit CAGR 9%, and basic EPS CAGR 8%.

Outlook and guidance

• Strategy focuses on water-related businesses, steady development, high-quality growth and opportunities aligned with national strategies; no numerical financial guidance was stated.

• Investment priorities span pipeline operation and maintenance, digital and intelligent water systems, wastewater and sludge resource use, solar power, industrial wastewater and rural revitalisation.

• Plans include improving wastewater-treatment efficiency, expanding low-carbon measures and developing additional Star Intelligent Plants using big data and AI.