Grandblue Environment (600323) Q3 2024 TU earnings summary

Executive summary

• Revenue for the first nine months of 2024 was ¥8.73 billion, down 2.58% year-over-year, while net profit attributable to shareholders rose 18.82% to ¥1.39 billion.

• Gross margin improved due to better energy business performance, cost control, and a one-time electricity income confirmation of ¥120 million.

• Operating cash flow decreased 17.66% year-over-year, mainly due to a high base last year from receivables transfer; excluding this, cash flow increased by about ¥700 million.

• Capital expenditure for the first nine months was ¥1.31 billion, expected to decline for the full year as project completions outpace new starts.

Financial highlights

• Q3 2024 revenue was ¥2.91 billion, down 4.21% compared to Q3 2023.

• Q3 net profit attributable to shareholders was ¥498 million, up 4.65% year-over-year.

• Basic and diluted EPS for the first nine months reached ¥1.70, up 18.88% year-over-year.

• Weighted average ROE for the first nine months was 10.92%, up 0.68 percentage points year-over-year.

• Total assets at quarter-end were ¥37.47 billion, up 4.66% from year-end 2023.

Outlook and guidance

• Capital expenditure is expected to continue declining in 2024 due to fewer new projects.

• Energy business is projected to maintain normal profitability for the year, supported by improved gas price mechanisms and diversified supply.

• Receivables collection is expected to improve significantly by year-end, reducing outstanding balances.