Zheneng Jinjiang Environment Holding Company (BWM) H1 2023 earnings summary

Executive summary

• H1 revenue rose 8.3% YoY to RMB1,992.2m, led by 13.3% growth in core WTE revenue.

• Profit before tax increased 110.7% to RMB365.0m; excluding FX effects, it rose 35.9%.

• Net profit was RMB280.4m; profit attributable to equity holders increased 184.9% to RMB266.3m.

• Operating cash inflow was RMB408.3m.

Financial highlights

• Gross profit rose 13.5% YoY to RMB584.5m; consolidated gross margin expanded 1.3 percentage points to 29.34%.

• Other income increased 53.9% to RMB131.8m; net other losses narrowed to RMB16.7m from RMB110.2m, mainly due to lower FX losses.

• Basic and diluted EPS increased to RMB18.32 cents from RMB6.43 cents.

• Investing and financing cash outflows were RMB451.4m and RMB219.1m, respectively.

Outlook and guidance

• Listed projects are expected to lift total treatment capacity from 42,705 to 62,220 tonnes/day upon completion.

• Growth priorities include expanding existing facilities, pursuing new projects and M&A, and developing sludge and kitchen-waste treatment.

• Southeast Asia is a priority for international expansion; the pipeline includes a 1,000-tonne/day Palembang WTE concession, while India investments are under commercial-feasibility review.

• No interim dividend was declared.