United Envirotech’s profit surged 145% to $18m in Q2

Thanks to higher engineering revenue.

United Envirotech reported a sterling set of results for the second quarter. Its core net profit surged 145% year-on-year to $18m, while revenue surged 102.8% to $105.4m.

According to Maybank Kim Eng, United Envirotech’s growth was broad-based. Engineering revenue leapt 104% year-on-year thanks to rich contract wins last year. Water-treatment revenue grew 63% year-on-year from newly-acquired concessions.

“We are now more positive. We were previously cautious about its order-win momentum, given that it relies heavily on third-party contracts. However, its partnership with Chengdu Xingrong announced a month ago could potentially pave the way for a new growth model. By leveraging Chinese SOE partners’ strong local presence, UENV can gain exposure to much bigger markets as well as focus more on its expertise in membrane and engineering solutions. More importantly, we believe this business is replicable. Discussions with a potential buyer could also usher in a powerful strategic investor, helping UENV source projects,” noted Maybank Kim Eng.