SINGAPORE (May 2): SIIC Environment has announced 1Q19 earnings of RMB 150.1 million ($30.3 million), rising 47.3% on-year from RMB101.9 million due to higher revenue and lower administrative expenses.
This translates to diluted earnings per share (EPS) of RMB5.76 cents, up 1.85 percentage points from RMB3.91 cent per share in 1Q18.
Revenue for the latest quarter rose 13.4% to RMB1.3 billion from RMB1.2 billion a year ago on the back of improved revenue contributions across all business divisions, supported by a relatively higher amount of construction activities, as well as greater water treatment and supply sales volume from existing entities.
Meanwhile, administrative expenses fell 18.6% to RMB89.5 million from RMB110 previously in the absence of one-off listing expenses incurred in the previous comparative quarter.
Selling and distribution costs fell 9.5% to RMB17 million from RMB18.8 million, while finance expenses grew 20.1% to RMB156.1 million from RMB129.9 million a year ago.
As a result, gross profit grew 15.2% to RMB429.2 million from RMB372.6 million a year ago due to growth in higher operating & maintenance income as well as financial income from service concession arrangements.
Gross profit margin grew marginally by half a percentage point to 32.1% for 1Q19.
As at end-March, cash and cash equivalents stood at RMB1.5 billion, up from RMB1.2 billion in the previous year.
Going forward, the group says it remains positive on the demand outlook for wastewater treatment technology and management as China continues to implement strict measures for higher standards of water treatment across the country in view of the newly-updated ‘Water Pollution Prevention Law’.
“Looking ahead, investments in the construction of urban wastewater treatment and recycling facilities are projected to reach RMB565 billion under the 13th Five-Year Plan, which let us remain optimistic on the industry outlook and opportunities in the months to come,” comments SIIC Environment CEO Xu Xiaobing.
Shares in the group last traded 1 cent higher at 32 cents before the midday trading break.
