Hi everyone, my name is Alon and I'm here to talk about sustainable water innovation. It was 2021 and I had just moved from the east coast of America where the water was dull, dark and lifeless. Worlds apart from the radiant blues of Abu Dhabi.Here the sea glittered under the sun so pure and inviting it looked drinkable. a gleaming expanse that covers 70% of our Earth's surface. It seems almost too convenient.The most essential resource on Earth for life is also the most abundant. Yet, despite this abundanc ...

Core Viewpoint - A new individual business named Huizhou Huiyang District Zhanlong Yiqingquan Drinking Water Service Center has been established with a registered capital of 10,000 RMB, focusing on various food and beverage services [1] Company Summary - The business operates under general projects including food sales (only pre-packaged food), delivery services, health food sales (pre-packaged), daily necessities sales, electronic product sales, and health consulting services (excluding medical services) [1] - The licensed projects include on-site drinking water sales, natural water collection and distribution, food sales, food internet sales, and urban delivery transportation services (excluding hazardous goods) [1] - The business is authorized to operate independently based on its business license, except for projects that require approval from relevant authorities [1]

Core Insights - The Zacks Utility - Water Supply industry is essential for providing clean water and sewer services, with demand fluctuating seasonally due to weather conditions [1][3] - Aging infrastructure poses challenges, but companies are investing in upgrades to ensure reliable service [2][6] Industry Overview - The industry consists of companies delivering drinking water and wastewater services across a vast network of approximately 2.2 million miles of pipelines [3] - Water utilities are capital-intensive and benefit from lower interest rates, which reduce borrowing costs for infrastructure projects [4] Trends Impacting the Industry - Falling interest rates, recently reduced by 100 basis points to 4.25%-4.50%, are expected to further decrease capital costs, aiding infrastructure investments [4] - The U.S. water industry is highly fragmented, with over 50,000 community water systems, leading to a need for consolidation to improve service quality and efficiency [5] Infrastructure Investment Needs - The American Society of Civil Engineers reports water main breaks occur every two minutes, highlighting the urgent need for infrastructure upgrades [6] - An estimated $1.25 trillion is required over the next 20 years for maintenance and expansion, with the Bipartisan Infrastructure Law committing $50 billion to these efforts [6] Industry Performance - The Zacks Utility Water Supply industry ranks 46 among over 244 Zacks industries, indicating strong prospects [7][8] - The industry has underperformed compared to the S&P 500 and the Utility sector over the past year, gaining 11.1% versus 11.4% for the S&P 500 [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA of 11.27X, lower than the S&P 500's 16.85X and the sector's 15.09X, suggesting it is undervalued [13] Companies to Watch - Companhia de Saneamento Basico do Estado de Sao Paulo plans to invest $10.6 billion from 2024-2029 to enhance its infrastructure [17] - Artesian Resources Corporation is set to invest $46.4 million in 2025 for infrastructure improvements [22] - Middlesex Water Company has a long-term earnings growth estimate of 6.1% and plans to strengthen its operations [27] - American Water Works Company aims to invest $3.3 billion in 2025 and $17-19 billion from 2025-2029 for infrastructure expansion [30]

Core Viewpoint - Middlesex Water Company reported a decrease in net income and diluted EPS for Q1 2025 compared to the same period in 2024, primarily due to a one-time recovery in the previous year, despite growth in operating revenue and customer base [2][3]. Financial Performance - Net income for Q1 2025 was $9.5 million, with diluted EPS of $0.53, down from $10.7 million and $0.59 in Q1 2024 [2][9]. - Operating revenue increased to $44.3 million, up $3.8 million from $40.5 million in the same quarter last year, driven by rate increases, higher consumption, and customer growth [3][14]. - Operating expenses rose to $32.7 million, an increase of approximately $2.0 million from $30.7 million in Q1 2024, mainly due to higher variable production costs and increased weather-related main break activity [4][14]. Growth Initiatives - The company completed the acquisition of Ocean View water utility assets for approximately $4.6 million, expanding its customer base by serving around 900 customers in Sussex County, Delaware [5][9]. - Middlesex plans to invest approximately $93 million in 2025 to upgrade and enhance its water and wastewater utility infrastructure, having already invested about $19 million in Q1 2025 [7][11]. Rate Applications and Revenue - Middlesex filed a third Distribution System Improvement Charge (DSIC) rate application expected to generate $1.9 million in annual revenues starting June 2025, in addition to existing revenues from previous DSIC filings [6][11]. Dividend Declaration - The Board of Directors declared a second quarter cash dividend of $0.34 per common share, to be paid on June 2, 2025, marking 52 consecutive years of dividend increases [10][11].