中国水务(00855.HK)2022财年股东净利同比增11.9%至18.94亿港元，业绩符合预期

See the last page for disclaimer Page 1 of 3 Equity Research Equity Research Report 证 券 研 究 报 告 Flash Note 股票研究 快讯 [Table_Info2] 中国水务 China Water Affairs (00855 HK) [Table_Info1] 环保行业 Environmental Protection Sector 证券研究报告 [Table_Title] Flash Note: China Water Affairs (00855 HK) Gary Wong 黄家玮 (852) 2509 2616 快讯： 中国水务 (00855 HK) gary.wong@gtjas.com.hk 28 June 2022 [Table_Summary] FY2022 Shareholders’ Net Profit Increased 11.9% YoY to HK$1,894 Million; Results Were in Line 2022财年股东净利同比增11.9%至18.94亿港元，业绩符合预期  What happened: China Water Affairs ("CWA", or the "Company") announced its FY2022 results. Table 1: CWA’s FY2022 Results Key Fundamentals (HK$) FY2022 YoY(%) 2HFY2022 YoY(%) Net Revenue 12,950 million +25.2 6,477 million +24.2 Gross Profit 4,962 million +14.4 2,437 million +9.4 Shareholders’ net profit 1,894 million +11.9 874 million +0.9 EPS 1.171 +10.4 0.534 (1.7) Source: the Company.  China Water Affairs’ (00855 HK) FY2022 revenue increased 25.2% YoY to HK$12,950 million. Shareholders’ net profit increased 11.9% YoY to HK$1,894 million. Overall results were basically in line with expectation. During the period, revenue of city water supply operation and construction increased 21.1% YoY to HK$10,347 million, of which revenue of city water supply operation increased 20.3% YoY to HK$3,361 million, revenue of the newly launched direct drinking water operation increased substantially by 4.4x YoY to HK$143 million. Revenue of environmental protection operation increased 3.8% YoY to HK$1,251 million, of which revenue of Sewage treatment and drainage operation services increased 18.2% YoY to HK$389 million. Revenue of property development and investment increased 59.6% YoY to HK$531 million. Revenue of other businesses increased 2.1x YoY to HK$820 million. Overall gross margin dropped by 3.6 ppts YoY to 38.3%, mainly due to increase in electricity costs and increase in revenue contribution from lower gross margin other businesses. Selling expenses ratio decreased 0.1 ppts YoY to 2.2%, administrative expenses ratio decreased 0.7 ppts YoY to 6.8%, finance costs ratio stayed flat YoY at 3.6%; effect of economies of scale persisted. In addition, the Company raised its dividend per share by 9.7% to HK$0.340, even with much capital expenditure pending, showing that the Company has full confidence on its cash flow.  FY2022 results showed that the Company’s core water supply business maintained steady growth, of which the newly launched direct drinking water business even showed very fast growth. We think under the continuous driving of urban-rural integrated water supply and other policies, the Company’s room for growth in low-tier cities is still abundant. The Company can increase its construction and connection services income. Current valuation of under 6x FY2023 PER appears very low. We will review the Company’s earnings estimates and TP in the next Company Report, and maintain "Buy". 股票报告网 Flash Note See the last page