United Envirotech records 12% fall in Q2 profit but stays bullish on water treatment market

Water treatment solutions provider United Envirotech has posted an 11.7 per cent drop in second quarter net profit to $7.1 million.

Revenue for the three months to Sept 30 fell by 3.6 per cent to $52 million.

This was mainly due to a 17 per cent decrease in revenue from the engineering business segment to $36.5 million.

On a brighter note, revenue from the recurring water treatment business segment jumped 56.6 per cent to $15.5 million.

"The significant hike in our recurring water treatment business reflects the contribution from newly acquired treatment plants and increasing utilisation rates of our existing plants," said United Envirotech chairman and chief executive Lin Yucheng.

"We shall continue to concert our efforts to drive growth in this segment, particularly in securing more industrial wastewater treatment projects in China."

Earnings per share slipped to 1.2 cents from 1.69 cents previously while net asset value per share eased to 48.27 cents compared to 45.67 cents as at March 31.

United Envirotech said it remained positive in the outlook of the water treatment market in China.

Since the beginning of this financial year, the group has clinched three investment projects with the total treatment capacity of 130,000 cube metres per day and the total investment is estimated to be 491 million yuam.

Further, it has been awarded a 90 million yuan engineering procurement and construction project to upgrade a 100,000 cube metre per day industrial wastewater treatment plant in Jiangsu Province, China.

No interim dividend was proposed.