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Citic Envirotech posts 39% jump in Q1 profit
CITIC Envirotech, a membrane-based water treatment solutions provider, reported a 39.1 per cent jump in net profit to S$12.3 million for the first quarter ended March 31, 2016.
This came on the back of a 62.5 per cent surge in revenue to S$99.5 million, thanks to increased engineering business and membrane sales. But other income was 78.3 per cent lower than a year ago at S$1.6 million due mainly to the net foreign-exchange gain of S$3.8 million recorded in the quarter ended March 31, 2015.
The group said it continues to remain upbeat about its prospects in the water sector in China given that addressing pollution issues is a key political mission of the Chinese central government.
With the urban land getting scarce and the tightening of discharge standard, the demand for highly effective and efficient advanced treatment technology is set to rise.
"This would benefit the group as its strength lies in advanced wastewater treatment technology like Membrane Bioreactor (MBR) technology which occupies less land, generates less sludge and delivers better-quality discharge," it said.
"In addition, the group will further leverage on its strong track record and core expertise by engaging in strategic and large-scale merger and acquisition activities to expand its asset portfolio, particularly in the industrial sectors."