China Everbright Water (U9E) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 2% YoY to HK$6.852bn, while EBITDA fell 11% to HK$2.197bn and profit attributable to equity holders declined 14% to HK$1.020bn.

• Operating volume increased: wastewater treated reached 1.763bn m³, up 1% YoY, and reusable water supplied reached 48.50m m³, up 6.5%.

• Expansion added 192,000 m³/day of wastewater treatment capacity, with approximately RMB896m in new investment and RMB1.033bn in new contract value.

Financial highlights

• Revenue was HK$6.852bn, up 2% YoY; gross profit was HK$2.617bn, down 7%, and gross margin fell 4 percentage points to 38%.

• EBITDA declined 11% YoY to HK$2.197bn; profit attributable to equity holders fell 14% to HK$1.020bn.

• Basic EPS decreased 14% YoY to HK35.64 cents; full-year dividend per share was HK11.90 cents, down 4%.

Outlook and guidance

• Construction revenue share rose as more projects entered construction; operating income is expected to increase gradually as projects under construction or preparation commence operations.

• Priorities include stronger trade-receivables collection, asset efficiency, intelligent management, commercialising operational services, and expanding asset-light and asset-heavy businesses.

• Planned growth areas include technology and product development, overseas expansion with a focus on Southeast Asia, and rural pollution control and resource utilisation.