SIIC Environment (BHK) Q3 2023 earnings summary

Executive summary

• 9MFY2023 revenue rose 9.7% YoY to RMB6,348.959m, gross profit rose 14.6% to RMB2,214.358m, and attributable profit increased 2.2% to RMB583.384m.

• Q3 revenue increased 10.9% YoY to RMB2,330.1m; gross profit rose 13.0% to RMB776.6m and attributable profit was up 0.5% to RMB206.0m.

• Interim figures are unaudited and were not reviewed by auditors.

Financial highlights

• 9M profit for the period was RMB924.519m, up 9.6% YoY from RMB843.774m.

• 9M revenue growth reflected higher O&M and service-concession finance income, as well as construction revenue from increased project activity.

• 9M finance expenses rose to RMB634.0m from RMB523.2m, mainly due to higher construction and upgrade borrowings and increased rates on some floating-rate loans.

• 9M operating cash flow was RMB1,647.8m; excluding cash invested in service-concession projects, operating cash generated was RMB1,404.6m.

Outlook and guidance

• Priorities include expanding market share, improving scale and efficiency, pursuing high-quality projects, and advancing green and low-carbon technologies and informatization.

• Xicen construction progressed, with raft foundation work completed in mid-October; Lam Mau began construction in September after completing preliminary design.

• A Shanting upgrade and expansion agreement was signed in Q3 for its 50,000-tonne-per-day WWTP.