Winner China Everbright Water secures more projects

China Everbright Water came up as winner in the services sector of the Centurion Club Awards, edging out MM2 Asia and Moya Holdings Asia. It scored the highest for three-year growth in profit after tax and three-year return on equity,

The company, previously known as HanKore Environment Tech Group, was formed after China Everbright International injected all of its water assets into HanKore to become its largest shareholder.

Besides being listed on Singapore Exchange, China Everbright Water is also listed in Hong Kong. It launched its Hong Kong public offering in April at HK$2.99 each. The company’s stock price on SGX jumped 11% after the announcement of its 1QFY2019 results. Profit improved 15.9% to HK$206.4 million ($36.3 million) on the back of higher construction revenue, which arose from the construction of several water environment treatment and water supply projects as well as the expansion and upgrading of several wastewater treatment plants.

In the last five years, HanKore’s revenue rose at a compound annual growth rate of 46%, from HK$1.1 billion in FY2014 to HK$4.8 billion in FY2018. Gross profit grew 28.5% from HK$596.5 million to HK$1.6 billion in the same period. Correspondingly, net profit rose at a CAGR of 23.3% to HK$676.5 million in FY2018.

In 1QFY2019, the company secured a wastewater treatment plant operation and management project, and a sludge treatment project. In April and May, it won four more projects with a total investment value of RMB2.8 billion ($543.3 million) that will contribute an additional daily designated water treatment capacity of 802,000m3.

In a July 19 report, DBS Group Research notes that the company’s efforts at securing more projects and pursuing its asset-light strategy is progressing well.