Dynagreen Environmental Protection Group (1330) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB1.66 billion, down 22.46% year-over-year due to fewer construction projects and lower construction revenue.

• Net profit attributable to shareholders was RMB303 million, a 16.76% decrease year-over-year.

• Operating projects maintained stable operations, with waste treatment and electricity generation volumes both increasing over 11% year-over-year.

• Gross profit margin improved to 44.63% from 35.95% due to a higher share of operating revenue with better margins.

• Proposed interim cash dividend of RMB0.10 per share, totaling RMB139 million, subject to shareholder approval.

Financial highlights

• Revenue: RMB1.66 billion (down 22.46% YoY); net profit attributable to shareholders: RMB303 million (down 16.76% YoY).

• Gross profit: RMB741 million (down 3.73% YoY); gross margin: 44.63% (up from 35.95%).

• Basic EPS: RMB0.22 (down 15.38% YoY); diluted EPS: RMB0.21.

• Weighted average ROE: 3.80% (down 1.04 percentage points YoY).

• Net cash from operating activities: RMB543 million (up 88.86% YoY).

Outlook and guidance

• The company will focus on expanding waste, steam, and heat supply, and participate in Green Certificate trading.

• Policy changes are expected to shift the industry toward refined management, market-based mechanisms, and new growth in county-level incineration and carbon trading.

• The company aims to strengthen M&A, improve quality and efficiency, and develop low-carbon environmental protection industrial parks.