CITIC Envirotech’s profits skyrocket 586% to $22.8m in Q2

All three business segments raked in the big bucks.

Citic Envirotech Ltd (CEL) saw a strong close to 2Q16, as the firm saw a whopping 586% surge in net profit after tax (NPAT) to $22.8m despite gross margin slipping to 48% from 2Q15’s 53%. 

According to a report by OCBC, revenue for Q2 skyrocketed 67% YoY, thanks to revenue boosts in all its three business segments—engineering surged 105% YoY, membrane jumped 78% YoY, while treatment climbed 24% YoY.

For the first half of the year, overall revenue spiked 65% YoY to $239.4m, while NPAT soared 221% YoY to $34.9m.

Going forward, management remains upbeat about China’s water treatment industry, propped up by the government’s continued push towards stricter environmental protection policies. Besides the water and wastewater sector, CEL is also encouraged by the burgeoning focus on sludge treatment.