, Singapore

SIIC Environment’s profit up 75% in Q3

Thanks to a one-off disposal gain.

Mainboard-listed water treatment firm SIIC Environment reported that its Q3 net profit surged 75% to $14.1m (RMB67m). Stripping out a forex gain and a one-off disposal gain, the firm’s core net profit stood at $10.8m (RMB51m).

According to DBS, SIIC Environment’s gross margin fell to 26% from 33% in 2Q13 and 27% in 2Q14, mainly due to lower construction margins for some projects in the quarter.

“SIIC is poised to continue to register positive growth on the back of strong industry dynamics. However, we trimmed FY14F/15F earnings by one percent after pacing out revenue recognition and raising interest income,” noted DBS.

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