Zheneng Jinjiang Environment Holding Company (BWM) H2 2024 earnings summary

Executive summary

• FY2024 net profit reached a record RMB621.2m; net profit attributable to equity holders rose 119.6% to RMB618.5m.

• Core WTE growth and higher gross margin offset lower BOT construction revenue; total revenue declined 0.5% to RMB3,731.1m.

Financial highlights

• FY2024 gross profit increased 18.1% to RMB1,335.2m; profit before tax was RMB829.6m versus RMB460.4m.

• Basic and diluted EPS rose to RMB42.59 cents from RMB19.37 cents; 2H EPS was RMB28.38 cents versus RMB1.05 cents.

• Electricity generated increased 5.6% to 4,238,271 MWh and on-grid supply rose 8.1% to 3,377,080 MWh; steam supplied increased 11.5% to 5.251m tonnes while waste treated declined 3.3% to 12.826m tonnes.

• Gross margin rose 5.7 percentage points to 35.8%; management cited steam business expansion, technical upgrades and management optimisation as efficiency drivers.

Outlook and guidance

• Daily capacity is targeted to grow from 44,405 to 59,305 tonnes within 10 years; the pipeline includes six facilities under construction or upgrades with 4,900 tonnes/day and 13 projects in preparation with 9,000 tonnes/day.

• Seven WTE projects under construction and 13 in planning are expected to lift installed capacity to 59,305 tonnes/day and 1,300 MW upon completion.

• Growth priorities include steam supply, technical upgrades, kitchen-waste and sludge treatment, and bottom- and fly-ash recycling and resource utilisation.

• Efficiency plans include digital reform and operational optimisation; high-parameter technologies were stated to deliver efficiency gains of 2–5% or 5–8% versus medium-temperature, medium-pressure technology.