Core Insights - China Water Affairs reported a revenue of approximately HKD 11.657 billion for the fiscal year ending March 31, 2025, representing a year-on-year decline of 9.4% [1] - Net profit was approximately HKD 1.075 billion, down 29.9% year-on-year [1] - Adjusted EBITDA increased by 1.8% year-on-year to HKD 5.26 billion [1] Financial Performance - The company proposed a final dividend of HKD 0.15 per share, maintaining an annual dividend of HKD 0.28 per share, with a payout ratio of 42.4% [1] - Total revenue decline was attributed to a decrease in construction-related capital expenditure, which fell by 36.9% from HKD 4.6 billion to HKD 2.9 billion [1] - Expected capital expenditure for the fiscal year 2025-2026 is projected to be no more than HKD 2 billion [1] Business Segments - Performance of water supply projects improved, with urban water supply operating revenue reaching HKD 3.53 billion, a year-on-year increase of 6.5%, and a profit margin of 32.6% [1] - Direct drinking water revenue was HKD 393 million, up 23.7% year-on-year, with a profit margin of 36.9% [1] - Environmental operations revenue surged by 69.9% year-on-year to HKD 640 million, with profits increasing by 56.9% to HKD 560 million and a profit margin of 35.3% [1] Strategic Developments - The company is actively optimizing its development strategy to address challenges, focusing on improving investment returns from core businesses, reducing capital expenditures, and enhancing the efficiency of existing projects [1] - Long-term investors, including Orix Group and Great Wall Life Insurance, increased their stakes by 7.62% and 5.04%, respectively [1] - Taikang Asset Management made a strategic investment of HKD 1.5 billion in subsidiary Beijing Yinlong, indicating confidence in the company's future prospects [1] Market Outlook - The government is expected to stabilize and expand domestic demand, with a positive national development trend [1] - Low inflation and market-driven water fee adjustments are anticipated, with water price increases becoming a consensus, as seen in Guangzhou's recent water fee hike, which is likely to benefit the profitability recovery of the water services industry [1]
中国水务：25财年收入降9.4%，获欧力士等增持