Guangdong Investment 9M revenue rises on water resources strength
Overview
Hong Kong water resources firm's nine-month revenue from continuing ops rose 10% yr/yr, driven by water resources
Net income attributable to owners from continuing ops increased 7.3% yr/yr
Company completed special dividend distribution of GD Land shares in January
Outlook
Company did not provide specific financial guidance for future quarters or full-year forecasts in the press release
Result Drivers
WATER RESOURCES GROWTH – Higher water-resources revenue drove the Group's 10.0% revenue increase; other water projects rose 16.5% to HK$6.54 bln
FINANCE COST SAVINGS – Net finance costs fell to HK$201 mln from HK$263 mln, supporting profit before tax growth
ENERGY COST PRESSURE – Higher coal prices cut GDH Energy's profit before tax 14.1% despite a 10.5% increase in electricity sales
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Revenue from Cont Ops | HK$15.71 bln | ||
9M Net Income Attributable from Cont Ops | HK$4.36 bln |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the water & related utilities peer group is "buy."
Wall Street's median 12-month price target for Guangdong Investment Ltd is HK$9.50, about 9.6% above its October 27 closing price of HK$8.67
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Oct 26 - Guangdong Land nine-month revenue drops 20% on lower property sales
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Oct 27 - China's Hengrui Pharma nine-month profit rises on out-licensing gains
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)