Zejiang Weiming Environment Protection (603568) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months reached RMB 6.05 billion, up 30.83% year-over-year, with net profit attributable to shareholders at RMB 2.11 billion, up 34.37%.

• Strong growth driven by increased equipment, EPC, service, and project operation income.

• Environmental business saw 12.79% growth in waste intake and 15.38% growth in power generation; 55 waste incineration projects and 19 kitchen waste projects in operation or trial.

• Equipment and new materials segment secured RMB 1.475 billion in new orders; new product launches and project milestones achieved.

• Company added to CSI A500 Index; established a new real estate subsidiary.

Financial highlights

• Q3 revenue: RMB 1.93 billion, up 11.82% compared to the same quarter last year.

• Q3 net profit attributable to shareholders: RMB 688 million, up 26.24% year-over-year.

• Basic EPS for the first nine months: RMB 1.24, up 33.33% year-over-year.

• Operating cash flow for the first nine months: RMB 1.82 billion, up 31.69% year-over-year.

• Total assets at quarter-end: RMB 26.89 billion, up 11.57% from year-end 2023.

Outlook and guidance

• Continued expansion in environmental and equipment businesses, with new projects and capacity increases.

• Government subsidies and inclusion in national investment plans expected to support future growth.