CHINA-BASED waste treatment group Zheneng Jinjiang Environment reported a net profit of 411.6 million yuan (S$76.2 million) for the second half ended Dec 31, rising more than 26 times the 15.3 million yuan it posted the prior corresponding period.
This translated to an earnings per share (EPS) of 0.2838 yuan for the half-year period, up from 0.0105 yuan the previous year.
On Friday (Feb 28), the company said that revenue for H2 FY2024 climbed 6.2 per cent to 1.9 billion yuan from 1.8 billion yuan in H2 FY2023.
The company’s board proposed a final cash dividend of S$0.023 per share, up from S$0.013 per share in the year-ago period. This translates to a dividend payout ratio of 29 per cent.
The dividend will be paid upon shareholders’ approval at its upcoming annual general meeting and a payment date will be announced later.
For the full year, net profit stood at 618.5 million yuan, up 119.6 per cent from 281.6 million yuan in FY2023. This translates to an EPS of 0.4259 yuan, up from an EPS of 0.1937 yuan. Full-year revenue dipped on the year by 0.5 per cent to 3.7 billion yuan from 3.8 billion yuan in FY2023.
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The absence of impairment losses of around 271.8 million yuan lifted FY2024 earnings. The losses, which were recorded as at December 2023, had arisen from “difficulties and uncertainty associated with projects in India”.
Net profit also increased due to growth of its waste-to-energy (WTE) business, the revenue of which rose 6 per cent year on year from 3.4 billion yuan to 3.6 billion yuan, driven by the expansion of its power plant steam supply business, increased tonnage supply after it optimised its power plant management, and revenue recognition of by-products such as slag.
Currently, the company has seven WTE projects under construction and 13 in the planning stage. Its total installed waste treatment capacity is set to reach 59,305 tonnes per day and 1,300 megawatts upon completion.
The group said its financial results are consistent with its earlier Feb 8 profit guidance statement, where it said it expected to post a “significant increase” in comprehensive income for FY2024.
The company said that the Chinese government’s policy document Opinions on Accelerating the Comprehensive Green Transformation alongside expanded investments in clean energy have created “significant development opportunities” for the WTE industry.
Zheneng Environment executive chairman Wei Dongliang said: “With favourable national policies supporting renewable energy and the carbon peak and carbon neutrality goals, the group is well-positioned to drive long-term growth while piggybacking on China’s sustainable development agenda.”
Zheneng Jinjiang Environment shares rose 1.2 per cent or S$0.005 to S$0.435 on Friday.
