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SIIC Environment Last:0.166 -

SIIC Environment Holdings Ltd

Some basics datas:

1. trailing p/e - 3.9X
2. dividend yield - 4.9%
3. nta - 72.0 cents
4. current price - 21.0 cents.
5. profit since 2018:
2018 - profits $112.4 mil
2019 - profits $126.0 mil
2020 - profits $131.3 mil

For info only. Dyodd.

205 for quite sometime. 205/210 good px. Today got buying. Engine starting again? 🤔

josephyeo ( Date: 15-Jun-2021 20:30) Posted:

(B) Renewal of 100,000 tonnes O& M project agreement in Zhejiang Province After the expiration
of Cixi City North WWTP and Artificial Wetland O& M Project Agreement, Cixi City Drainage Co. Ltd
decided to renew the agreement with the company, in consideration of the company&rsquo s successful
management of the project. The renewed O& M period shall last for 1 year. The project has a designed
capacity of 100,000 tonnes per day and a discharge standard of Class I Standard A.

The above projects are expected to contribute to the Group&rsquo s performance positively going forward.

Note - Above is a quote from the announcement

josephyeo ( Date: 15-Jun-2021 20:26) Posted:

https://repository.shareinvestor.com/rpt_view.pl/id/515439986.1/type/sgxnet/original_filename/1

(B) Renewal of 100,000 tonnes O& M project agreement in Zhejiang Province After the expiration
of Cixi City North WWTP and Artificial Wetland O& M Project Agreement, Cixi City Drainage Co. Ltd
decided to renew the agreement with the company, in consideration of the company&rsquo s successful
management of the project. The renewed O& M period shall last for 1 year. The project has a designed
capacity of 100,000 tonnes per day and a discharge standard of Class I Standard A.

The above projects are expected to contribute to the Group&rsquo s performance positively going forward.

Note - Above is a quote from the announcement

josephyeo ( Date: 15-Jun-2021 20:26) Posted:

https://repository.shareinvestor.com/rpt_view.pl/id/515439986.1/type/sgxnet/original_filename/1

The biggest issue with this sector and argudably the BOT model is the working capital cycles. Given the substantial capex upfront for the construction phase, the higher margin and recurring profit of managing the wastewater treatment plant don' t kick in till few years later. This explains why the industry leader, Beijing Water Enterprise (371.HK) is moving towards an asset-light model to setup a fund structure and pool in investments from state-owned funds and other financial investors which will relieve cash flow issues as well as alleviate balance sheet pressure (from gearing). Believe CEWL is also progressing towards this model but even for 371.HK, the transition will only gradually phase in from 2HFY22 or even FY23.

The secular trend and government support for the sector has always been there so it is more of a bottom-up issue for the incumbents. They will need to be able to access lower cost of capital to improve their margins and try to move towards more of an asset-light model over time to improve ROE, ROIC and margins. This will allow the major players such as 371.HK, CEWL and SIIC to play to their competitive strengths of being an operator and earn the management fees which are recurring in nature (not to mention that they will improve their free cash flow generation).

QUESTION RAISED BY HONG KONG SHAREHOLDER AT THE AGM

Question 1:
Is there a dividend policy in place at the Company? Will the Company consider
raising the amount of dividends when the company& rsquo s future performance grows, as it has always
reported declared the same amount of dividends?

Response to Question 1:
The Chairman expressed his gratitude to the shareholders of the Company for their long-term investment.
The Chairman replied that the declaration of the Companys dividend is based on the financial performance,
cash flow and business development needs. The declaration of dividends and the amount of dividends
declared will be carefully discussed and reviewed by the board at all times. In order to increase shareholder
returns, the board has distributed an additional interim dividend of S$0.01 in 2018. The companys three-year
profit gap in 2018, 2019 and 2020 are not very big and it maintains a continuous and stable growth rate of
6% to 11%. We will continue to work hard and expect the companys profits to rise continuously
in the future. The board would also consider the suggestion from shareholders into account when determining
the declaration of dividends. As the companys earnings grow, it will further increase the amount of
dividends by a certain percentage, giving investors with a level of stable expectations.

Personal notes:
1. from the management response I sense that the company' s financial result is going to improve further.
2. the response seem to imply that there is a fair chance of an interim dividend.

Above are just my feelings n I could be wrong. Pls dyodd. I am vested so my views could be bias

eater and waste treatment will grow as china GDP continue to expand at a faster pace. high chance for dividend to raise in future.

QUESTION RAISED BY HONG KONG SHAREHOLDER AT THE AGM

Question 1:
Is there a dividend policy in place at the Company? Will the Company consider
raising the amount of dividends when the company&rsquo s future performance grows, as it has always
reported declared the same amount of dividends?

Response to Question 1:
The Chairman expressed his gratitude to the shareholders of the Company for their long-term investment.
The Chairman replied that the declaration of the Company&rsquo s dividend is based on the financial performance,
cash flow and business development needs. The declaration of dividends and the amount of dividends
declared will be carefully discussed and reviewed by the board at all times. In order to increase shareholder
returns, the board has distributed an additional interim dividend of S$0.01 in 2018. The company&rsquo s three-year
profit gap in 2018, 2019 and 2020 are not very big and it maintains a continuous and stable growth rate of
6% to 11%. We will continue to work hard and expect the company&rsquo s profits to rise continuously
in the future. The board would also consider the suggestion from shareholders into account when determining
the declaration of dividends. As the company&rsquo s earnings grow, it will further increase the amount of
dividends by a certain percentage, giving investors with a level of stable expectations.

This stock is for long hold.

NAV - 72.1 cents
Current price - 21.5 cents

josephyeo ( Date: 13-Apr-2021 09:45) Posted:

Profit for SIIC Environment has been growing since 2018. See below:

2018 profit - S$112.4 mil

2019 profit - S$126.0 mil

2020 profit - S$131.3 mil

For info only. Vested

Hold long term for investment

SIIC bags wastewater treatment contract in Baoqing, China

SIIC Environment on Thursday said its indirect 58 per cent-owned subsidiary has signed a supplementary agreement for the upgrading and expansion of a wastewater treatment project in Baoqing, Heilongjiang province in China.

In a bourse filing before markets opened, the mainboard-listed wastewater treatment company said the project has a designed capacity of 20,000 tonnes per day with the discharge standard upgrading from Class I Standard B to Class I Standard A.

Expansion of the project has a designed capacity of 20,000 tonnes per day. It has a discharge standard of Class I Standard A.

The group further announced that it recently started commercial operations on seven wastewater treatment projects amounting to a total capacity of 250,000 tonnes.

These comprise two expansion projects in the cities of Zhaodong and Hegang, as well as five upgrading projects across Wuchuan, Heihe, Anda and Hegang.

Most have commenced commercial operations since late 2020 save for the upgrading project in Wuchuan, which started in January 2021.

The group expects these commercially operational projects to contribute positively to SIIC' s performance going forward, as will its newly-awarded project in Baoqing.

Why not much movement even with news ?

On current price of 23.5 cents, the company is trading at 1/3 its nta of 70.1 cents

and giving a dividend yield of 4,2%. P/e will be less than 4X going forward.

Am vested! Dyodd.

The NTA is RMB 3.50 , it's extremely under value.

Joelton ( Date: 11-May-2021 09:17) Posted:

SIIC Environment' s Q1 profit up 23.1% to 160.1m yuan

MAINBOARD-listed SIIC Environment Holdings on Monday posted a 23.1 per cent rise in first-quarter net profit to 160.1 million yuan (S$33.1 million), from 130.1 million yuan the previous year.

For the three months ended March 31, earnings per share rose to 6.16 fen, from five fen last year.

Revenue rose 54 per cent to 1.62 billion yuan, from 1.05 billion yuan in the prior year, boosted by revenue growth across all its businesses, particularly in construction income.

The group' s construction income increased over twofold year-on-year to 570.9 million yuan. This was due a lower base last year where fewer construction projects were undertaken due to the pandemic. Work began to normalise this year with a marked increase in number of projects in Q1, said the group.

Operating and maintenance income and financial income from service concession arrangements was up 19.3 per cent 981.5 million yuan as a result of increase in wastewater treatment volume and average treatment tariff.

Service income from non-service concession arrangements was up 26.6 per cent to 39.2 million yuan while other revenue, which consists mainly of installation works, was up 25 per cent 30.3 million yuan.

Chief executive officer Yang Jianwei said that the growth across all business segments signals that the group' s operations are back on the " fast growth track" .

The company will be focusing on its strategic development plan for the Yangtze River Delta and also the Guangdong-Hong Kong-Macao Bay Area by tapping its extensive experience, high quality of projects as well as support for national policies in environmental protection, said Mr Yang.

In line with the Chinese government' s efforts to prevent and control water pollution, the group will also look to continuously upgrade its existing facilities, expedite its pace to secure more water and environmental protection-related projects, and continue maintaining close cooperation with local governments to explore more high-quality new projects and new markets.