Canvest Environmental Protection Group Company (1381) H2 2024 earnings summary

Executive summary

• Revenue from continuing operations fell 15.4% year-over-year to HK$4,198.3 million, mainly due to a sharp drop in construction revenue as most WTE projects are now operational.

• Net profit attributable to equity holders decreased 13.5% to HK$866.1 million, with discontinued operations (smart car parking) contributing a loss.

• Gross profit margin improved to 48.3% (from 41.9%) and EBITDA margin rose to 62.8% (from 53.9%), reflecting a higher share of operational revenue.

• The Group operated 35 WTE projects with a daily MSW processing capacity of 52,540 tonnes, and expanded its environmental sanitation business, securing new contracts worth ~RMB2 billion.

• No final dividend was proposed for 2024.

Financial highlights

• Revenue from power sales and waste treatment increased 4.3% year-over-year to HK$3,575.6 million.

• Gross profit from continuing operations was HK$2,025.8 million, down 2.5% year-over-year.

• EBITDA from continuing operations was HK$2,635.3 million, down 1.3% year-over-year.

• Basic EPS from continuing operations was HK38.0 cents, down 9.7% year-over-year.

• Net cash generated from operating activities was HK$1,156.2 million, up from HK$1,078.5 million in 2023.

Outlook and guidance

• The Group will focus on optimizing operational efficiency, reducing costs, and exploring value-added services such as collaborative heat supply and carbon asset development.

• Policy support for green, low-carbon, and circular economy in China is expected to drive further industry transformation and sustainable growth.

• The Group aims to expand across the industry chain and enhance its role in smart city management and environmental services.