After 2 years of equitization, Binh Duong Water and Environment Joint Stock Company (Biwase, stock code BWE) has reached the 50 best listed companies in Vietnam voted by Forbes magazine on 6/2019.

“Sweet fruit” after capitalization

For the first time, Biwase is in the top 50 listed companies on the stock exchange. This is a spectacular step for Biwase, especially in the context of many difficulties for businesses in the same sector.

Mr. Nguyen Van Thien, President of Biwase, recalled that although Biwase's equitization was slower than some businesses in the same industry, it quickly achieved the expected results.

Inauguration of Binh Duong waste treatment complex.

Specifically, on 3/6/2016, the Company determined its value. In the first IPO, Biwase shares received the attention of many investors. The number of shares registered to buy was 3.5 times the number of shares offered with a total of 283 investors registered to buy. The average successful auction price is 14,227 VND per share. The total value collected for the state is over 846 billion VND.

So far, the state has divested twice, 10% and 16% respectively. State capital is 25%.  BWE shares are listed on Ho Chi Minh City Stock Exchange (Hose).

With the efforts and determination, hard work in the past 2 years, the company has created a strong and reputable brand in the market thanks to the stable annual growth of production and business results, responsible and professional management, gradual increase of dividends (7% in 2017, 9% in 2018).

 “On the stock exchange, the company is highly interested by investors, average 100,000 to 300,000 shares are traded per day. The company's products also steadily increased, the average annual turnover increased by 24%, of which clean water production increased by 26.4%/ year. Garbage collection and treatment increased by 27% /year. Waste water collection increased by 51.11%/ year” said Mr. Thien.

Recently, Biwase announced its consolidated financial statements for the second quarter of 2019 with an increase of 2.3% in turnover compared to past period, equivalent to VND 641.7 billion. In the first 6 months, net revenue is VND 1,113 billion, up by 8% YOY . Profit before tax reaches VND 242.2 billion. Profit after tax is double over the same period, equivalent to VND 207.4 billion. EPS reaches 1,106 VND

Minister of Natural Resources and Environment, Mr. Tran Hong Ha visited Biwase's project.

Towards sustainable development

Mr. Thien said, in order to please investors, the expectations of workers and society, the executive management has made continuous efforts to serve its customers, and always search for potential project according to the increasing demand for clean water both in higher quantity and quality.

For example, in the past 2 years, Biwase invested VND 505 billion in water supply to increase the plant's capacity to 450,000m3/day, of which the investment capital in rural communes was VND 120.12 billion, contributed to newly rural development. The waste treatment complex was invested 290 billion to increase its capacity of waste treatment from 900 ~ 1,000 tons/day to 1,700 tons/day (domestic waste) and 700 tons/day (industrial waste)

Biwase's ODA projects are always completed about 1 to 2 years beyond its deadline. It is believed that early operation give us opportunities to accumulate revenue for debt repayment and good project performance. As a result, we satisfied ODA’s sponsors but also domestic commercial banks  as they are very confident about us. Therefore, Biwase's financial resources are always stable.

BIWASE’s waste management project

Typically, the "Compost municipal waste treatment project" funded by Finland plus the company's fund. Thanks to the selection of contractors with fast execution capacity. After a very short time, the company successfully produced compost products. Currently, the company has marketed fertilizer products labeled "Con Voi" which is trusted by farmers for their fruit trees, coffee trees, rubber trees, etc.

 “From here, we have been successfully transferred technology, assembled and operated the second composting plant with a capacity of 420 tons/day. The Finnish government and ADB have highly appreciated Biwase's efficient management of fund” Mr. Thien stated.

Biwase does not forget its responsibility for the environment

 “After equitization, Biwase does not forget its crucial task to ensure clean water to all users in Binh Duong, to ensure a sustainable environment. In addition to continuous investment in water treatment plants, collection and treatment of domestic wastewater, the company receives and treats nearly 3,000 tons of waste every day. Binh Duong is growing fast for industrialization and urbanization which result in bigger task to BIWASE. However, no matter how much pressure Biwase will do at its best and not to forget its responsibility for the environment” asserted by Mr. Nguyen Van Thien.

Vinh Sơn

Abstracted form Investment Newpapers