Investment Rating - Maintains an "Overweight" rating for the company [2] Core Views - The company's capital expenditure has significantly decreased, leading to a substantial year-on-year decline in BOT construction revenue, resulting in fluctuations in the 2024 interim performance [4] - Operations remain stable, with water treatment business volume and prices increasing [4] - High dividend payout ratio with stable dividend distribution [4] Financial Performance - 2024 H1 revenue: 11.309 billion RMB, down 6% year-on-year [4] - 2024 H1 net profit attributable to shareholders: 1.122 billion RMB, down 18% year-on-year [4] - Construction service revenue: 1.642 billion RMB, down 49% year-on-year [4] - Operating income from sewage and water supply services showed steady growth [4] Water Treatment Business - Total water treatment design capacity: 44 million tons/day as of H1 2024 [4] - Sewage: 24.84 million tons/day - Water supply: 14.34 million tons/day - Recycled water: 4.52 million tons/day - Seawater desalination: 0.3 million tons/day - Sewage treatment volume increased by 5% year-on-year [4] - Average sewage treatment contract price: 1.51 RMB/ton, slightly up from 1.49 RMB/ton in 2023 [4] - Sewage treatment gross margin improved by 2 percentage points to 59% [4] - Water supply volume increased by 4% year-on-year [4] - Average water supply contract price: 2.16 RMB/ton, slightly up from 2.15 RMB/ton in 2023 [4] - Water supply gross margin decreased by 4 percentage points to 43% [4] BOT Construction - BOT construction revenue: 1.258 billion RMB, down 57% year-on-year [4] - Focus on light-asset projects, reducing investment in BOT water projects [4] Capital Expenditure and Dividends - 2024 H1 capital expenditure: 1.573 billion RMB, significantly down from 3.618 billion RMB in the same period last year [4] - Interim dividend: 0.07 HKD per share, same as last year, with a cash dividend payout ratio of 60% [4] - Trailing twelve-month (TTM) dividend yield: 7.04% [4] Market Data - Current price: 2.23 HKD [5] - 52-week price range: 1.50-2.78 HKD [5] - Current shares outstanding: 10,047 million [5] - Current market capitalization: 22,404 million HKD [5] Financial Forecast - 2024-2026 forecasted net profit: 1.966 billion, 2.040 billion, and 2.150 billion RMB respectively [4] - 2024-2026 forecasted EPS: 0.20, 0.20, and 0.21 RMB respectively [4]
北控水务集团：2024年中报点评：建造收入下滑导致业绩波动，稳定高分红