United Envirotech shocks competitors with 114% jump in revenue

Including a 68% leap in profits.

According to a release, United Envirotech Limited (UEL) reported 2QFY13 revenue +114% YoY to S$53.9m, and +68% QoQ, as it undertook more projects over the quarter. Net profit also more than doubled to S$8.1m, and was also up 37% QoQ.

For 1HFY13, revenue grew 87% to S$86.0m, meeting 72% of our full-year forecast, while net profit jumped 93% to S$14.0m, or 78% of our FY13 estimate.

By segments, Engineering jumped 125.5% YoY and 73.9% QoQ to S$44.0m, again largely due to EPC work to upgrade the Liaoyang TOT project (60% of the RMB104m contract value was recognised in 2QFY13).

Treatment revenue rose 73.7% YoY and 45.6% QoQ to S$9.9m – recall that UEL had earlier added several operating TOT projects in Shandong to its portfolio over the past few months.

Going forward, UEL continues to remain bullish on the water and waste-water treatment market in China, where it believes that the demand for membrane-based
services will continue to grow.

Upgrading of old water treatment plants also holds great promise, and UEL has embarked on several of its existing plants. Management also aims to maintain its growth trend in 2HFY13.