United Envirotech net profit dipped 1% to $8.4m

Blame it on these two culprits.

According to OCBC Investment Research, due to higher depreciation and interest charges, United Envirotech's net profit eased 1% YoY (+17.8% QoQ) to S$8.4m.

Here's more:

United Envirotech Ltd (UEL) posted 3QFY14 revenue of S$64.3m, up 23% YoY and 24% QoQ, driven mainly by the increase in water treatment revenue of S$10.9m (+117% YoY, +30% QoQ); this also led to an increase of gross margin to 47.0% versus 46.2% in 2QFY14 and 42.4% in 3QFY12.

9MFY14 revenue grew 16% to S$160.3m, meeting 82% of our full-year forecast, while net profit slipped 5.3% to S$21.3m, or just 62% of our FY14 estimate.

We will be speaking to management shortly to get more colour on its order book as well as the integration of the recently-acquired membrane business from Memstar.