SIIC Environment's Q1 profit up 23.1% to 160.1m yuan

MAINBOARD-listed SIIC Environment Holdings on Monday posted a 23.1 per cent rise in first-quarter net profit to 160.1 million yuan (S$33.1 million), from 130.1 million yuan the previous year.

For the three months ended March 31, earnings per share rose to 6.16 fen, from five fen last year.

Revenue rose 54 per cent to 1.62 billion yuan, from 1.05 billion yuan in the prior year, boosted by revenue growth across all its businesses, particularly in construction income.

The group's construction income increased over twofold year-on-year to 570.9 million yuan. This was due a lower base last year where fewer construction projects were undertaken due to the pandemic. Work began to normalise this year with a marked increase in number of projects in Q1, said the group.

Operating and maintenance income and financial income from service concession arrangements was up 19.3 per cent 981.5 million yuan as a result of increase in wastewater treatment volume and average treatment tariff.

Service income from non-service concession arrangements was up 26.6 per cent to 39.2 million yuan while other revenue, which consists mainly of installation works, was up 25 per cent 30.3 million yuan.

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Chief executive officer Yang Jianwei said that the growth across all business segments signals that the group's operations are back on the "fast growth track".

The company will be focusing on its strategic development plan for the Yangtze River Delta and also the Guangdong-Hong Kong-Macao Bay Area by tapping its extensive experience, high quality of projects as well as support for national policies in environmental protection, said Mr Yang.

In line with the Chinese government's efforts to prevent and control water pollution, the group will also look to continuously upgrade its existing facilities, expedite its pace to secure more water and environmental protection-related projects, and continue maintaining close cooperation with local governments to explore more high-quality new projects and new markets.

Shares of SIIC Environment ended Monday flat at 24 Singapore cents.