Rising China Everbright profit beats expectations

Environmental protection firm's profits for 2012 rise by 40 per cent, pushing up its share price

PUBLISHED : Friday, 01 March, 2013, 12:00am
UPDATED : Friday, 01 March, 2013, 5:53am

China Everbright International's net profit surged 40 per cent to HK$1.12 billion last year, beating a Bloomberg consensus estimate of HK$982 million.

The environmental protection company's share price in Hong Kong rose 3.4 per cent to HK$5.16 yesterday.

Everbright's turnover from continuing operations dipped 2 per cent to HK$3.41 billion.

The company has discontinued its operation of a mainland toll bridge, the revenue from which plunged 58.4 per cent to HK$73.56 million.

Everbright hopes to benefit from the mainland government's 12th five-year plan for waste treatment, issued in May last year. Under the plan, the mainland's daily processing capacity of waste to energy is expected to grow at an annual rate of 28 per cent from 89,625 tonnes in 2011 to 307,155 tonnes in 2015.

The company will seize opportunities in environmental protection and alternative energy

"In expectation of the great market potential underscored by favourable national policies, the company will seize opportunities in environmental protection and alternative energy. With stronger supporting policies from the State, we can realise the full potential of exciting opportunities for future development," Everbright said.

"2013 is a year of opportunities and crises. While we embrace these opportunities, the company will respond to crises in a prompt and timely manner. Facing continued turmoil in external economic environments and a slowdown in China's economy, the company will develop its business with a prudent and risk-averse approach."

Last year, Everbright gained eight waste-to-energy projects and a hazardous-waste landfill project, with a combined investment of 4.7 billion yuan (HK$5.9 billion).

At the end of last year, Everbright had a cumulative total of 66 environmental protection and alternative energy projects, with a total investment of 16.49 billion yuan, of which 5.48 billion yuan of projects are at the planning stage and 2.88 billion yuan of them are under construction.

The firm will pay a final dividend of 3 HK cents per share for last year, higher than the 2.5 HK cents per share it paid in 2011.