Core Viewpoint - The company maintains a "buy" rating despite a decline in revenue due to reduced income from BOT water service projects, while demonstrating significant savings in financial expenses and effective cost control [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 10.459 billion yuan, a year-on-year decrease of 8%, and a net profit attributable to shareholders of 0.897 billion yuan, down 20% [2]. - The revenue composition includes wastewater services (43%), water supply (14%), urban resource services (29%), and construction and technical service equipment sales (14%) [2]. - Gross margin improved by 1.98 percentage points to 39.95%, primarily due to an increase in the proportion of high-margin water treatment service revenue [2]. Cost Management - Management expenses decreased by 8% to 1.157 billion yuan, indicating effective cost control [2]. - Financial expenses reduced by 31% to 0.958 billion yuan, reflecting the company's ongoing efforts to optimize its debt structure [2]. Operational Stability - The company added 119,800 tons of water treatment capacity in H1 2025, all from entrusted operation projects, while exiting 558,800 tons due to project expiration [3]. - The total operational capacity stands at 43.3 million tons, with average contract prices for wastewater treatment at 1.56 yuan/ton and water supply at 2.15 yuan, unchanged from the end of 2024 [3]. Dividend and Capital Expenditure - The company plans to distribute an interim dividend of 0.0735 Hong Kong dollars per share, a 5% increase year-on-year [3]. - Capital expenditure in H1 2025 decreased by 40% to 0.943 billion yuan, with allocations for property, plant, equipment, and water plant construction [3].
北控水务集团(0371.HK)2025年中报点评：经营稳健 费用管控良好