Profit flows in for China Water Affairs Wednesday, July 28, 2010
Net profit at China Water Affairs (0855)
jumped 162 percent from a year ago to HK$301.57 million for the year ended March 31.
The stellar showing from the mainland water services operator came on the back of rising consumption and higher prices.
A final dividend of 3 HK cents per share was recommended. The firm's core business- urban water supply - saw
revenue increase 38 percent during the year to HK$908 million, about 65 percent of the total.
"We've raised water prices in five cities during the last [financial] year and hiked the price in three others since April," chairman Duan Chuanliang said. "Rising water price in mainland cities will improve our gross margin this year."
Duan said the company's current water handling capacity is four million tonnes per day. Its target is to expand daily capacity by 300,000 tonnes within this financial year. The firm is in talks with more than 10 urban water suppliers about possible acquisitions. It plans to use internal resources to support the acquisition, Duan said. China Water Affairs had HK$523 million cash in hand at the end of March this year.
The firm is also converting old water plants into real estate in up to six cities, with some developed projects already sold, Duan said.
The company expects to see more revenue generated by the real estate business in the long term.
Revenue from property development and investment was HK$50 million during the year, accounting for 3 percent of the total.
SOPHIE HE
http://www.thestandard.com.hk/news_deta ... 00728&fc=4
It's all about "how much you made when you were right" & "how little you lost when you were wrong"