Zheneng Jinjiang Environment Holding Company (BWM) H2 2023 earnings summary

Executive summary

• FY2023 revenue was RMB3,750.4m, down 7.9% YoY; gross profit was RMB1,130.5m, down 2.4%, and net profit was RMB305.8m, down 11.3%.

• Operating indicators improved: electricity generated rose 6.6%, on-grid electricity supplied 7.4%, steam supplied 35.2%, and waste treated 1.1% YoY.

• Core WTE revenue increased 2.7% YoY, supported by higher steam output, while total revenue declined.

Financial highlights

• Net profit attributable to equity holders was RMB281.6m, down 13.3% YoY; basic and diluted EPS was RMB19.37 cents, versus RMB22.35 cents in FY2022.

• Revenue fell mainly because construction-services revenue and financial income under service concession agreements decreased by a combined RMB331.7m.

• Proposed final dividend was SGD1.30 cents per share, representing a 36.1% payout ratio.

Outlook and guidance

• Six projects were under construction and 17 in active preparation; completion would raise capacity to 63,270 tonnes/day and 1,352 MW from 44,405 tonnes/day and 915 MW.

• Expansion and upgrade plans target an additional 4,665 tonnes/day within 1–2 years and 14,200 tonnes/day within 10 years; total daily treatment capacity is targeted to rise 42% to 63,270 tonnes.

• Wuhan Jinjiang WTE expansion adds 3,000 tonnes/day to existing 2,500-tonne/day capacity, bringing total capacity to 5,500 tonnes/day.

• Growth priorities include WTE ecosystem and steam-market expansion, geographic and technical diversification, efficiency, cost management, energy savings, maintenance, and talent recruitment.

• High-parameter technology is expected to improve incineration power-generation efficiency by 2–5% for medium-temperature sub-high-pressure systems and 5–8% for ultra-high-pressure systems.