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Everbright Water sees 23% growth in FY20 earnings of HK$1.02 bil

Felicia Tan
Felicia Tan2/25/2021 5:33 PM GMT+08  • 3 min read
Everbright Water sees 23% growth in FY20 earnings of HK$1.02 bil
Shares in China Everbright Water closed 1 cent higher or 4.5% up at 23 cents on Feb 25.
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Everbright Water has posted 23% growth in earnings of HK$1.02 billion ($174.3 million) for the FY2020 ended December, from earnings of HK$833.5 million a year ago.

Group revenue for the year climbed 2% y-o-y to HK$5.66 billion, while gross profit grew 16% y-o-y to HK$2.20 billion.

During the period, gross profit margin (GPM) increased 5 percentage points to 39%.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 17% y-o-y to HK$1.93 billion.

Basic earnings per share (EPS) stood at 35.80 HK cents, up 19% y-o-y.

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For the FY2020, the group attributes its growth to its focus on traditional business sectors like waste water treatment. It also continued solidifying its market position in regions including the Yangtze River Economic Belt and the Bohai Economic Rim.

The group, during the period, secured nine new projects valued at RMB1.19 billion ($243.2 million).

Such projects contribute an additional designed daily waste water treatment capacity (inclusive of the O&M project and exclusive of the EPC project) of 290,000 m3 and an additional designed daily reusable water supply capacity of 30,000 cubic metres, says the group.

As at Dec 31, 2020, the group invested in and held 138 environmental protection projects, commanding a total investment of about RMB24.68 billion.

Cash and cash equivalents as at end-December stood at HK$1.72 billion.

For the FY2020, the group has declared a final dividend of HK6.07 cents (or 1.04 cents), bringing the total dividend for FY2020 to HK9.81 cents (or 1.71 cents).

SEE:China Everbright Water secures second phase of Jiangsu waste water treatment project with investment of RMB150 mil

“In 2020, amid the opportunities and challenges in the external environment, Everbright Water focused on the ‘Innovation-driven Development’ ethos and made a concerted effort to steadily forge ahead,” says Everbright Water’s executive director and CEO An Xuesong.

“As a result, the group made good progress in the synergy and development of asset-light and assetheavy businesses, refined management and expansion of financing channels. In addition, it demonstrated a stable progress in its overall business, thereby further cementing its fully-fledged business coverage and full industry chain in the area of water environment management,” he adds.

Looking ahead, An says the group will “seize opportunities arising from the national policies; continue its optimisation of the asset-light and asset-heavy allocation; pursue development that is led by innovation; accelerate the development of digitalisation across the group; strengthen refined management and create value by ‘resource recovery’; and leverage on its dual listing status in Singapore and Hong Kong to drive business integration with capital.”

Shares in China Everbright Water closed 1 cent higher or 4.5% up at 23 cents on Feb 25.

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