SIIC Environment rakes in 20% more profits

Thanks to recent acquisitions.

Industrial company SIIC Environment continues to be fueled by acquisitions, its growth mainly led by the purchase of Shanghai Qingpu (wastewater treatment), Shanghai Pucheng (waste to energy) and Dazhou Jiajing (waste to energy).

Maybank reports that SIIC’s reveneue jumped 34.8% year on year to CNY381.8 million as water-treatment revenue, a high-quality and recurring income source, grew 19.2% year on year. Maybank adds that SIIC’s future growth will depend on more acquisitions, with sufficient targets in its pipeline.

Here’s more from Maybank:

GPM decreased 5.1ppt to 27.4%. No cause for concern as the dip was due to higher contributions from the construction sector, which has a lower margin.

With its recent CNY700m share placement and strongest balance sheet among peers, it should have sufficient muscle to execute its acquisition plan.