SIIC Environment (BHK) Q4 2023 earnings summary

Executive summary

• FY2023 revenue fell 8.8% YoY to RMB7.573bn; net profit attributable to shareholders declined 22.6% to RMB604m.

• Gross profit rose 2.7% to RMB2.704bn as higher operating-business revenue and margins offset lower construction revenue.

• The board recommended a final dividend of SGD0.006 per ordinary share, subject to shareholder approval.

Financial highlights

• Revenue was RMB7.573bn, down 8.8% YoY; gross profit was RMB2.704bn, up 2.7% YoY.

• Net profit was RMB1.020bn, down 9.1% YoY; net profit attributable to shareholders was RMB604m, down 22.6%.

• EPS was RMB23.45 cents, down 22.6% YoY from RMB30.29 cents.

• Financing costs increased RMB119m, chiefly due to higher rates on overseas floating-rate borrowings.

Outlook and guidance

• Policy support for green, low-carbon development, wastewater treatment, resource recycling and public-private partnership projects is expected to create industry opportunities.

• Plans include pursuing quality projects and expanding wastewater, sludge and solid waste treatment, while developing green technologies and digitalization.

• The Xicen Water Purification Plant was under construction; raft foundation work was complete and filter pool walls were 90% complete at FY2023-end.