The Board of Directors of Binh Duong Water - Environment Joint Stock Company (stock code BWE) has approved the policy of expanding and raising its capacity of Phuoc Vinh Water Treatment Plant and Dau Tieng Water Plant. These are 2/17 water supply branches of Biwase. This decision is based on the actual demand of these two areas. "The increase of its capacity is highly necessary and urgent" according to the General Director’s report which is submitted to the Board of Directors. By the end of the third quarter, based on financial report, cash equivalents and deposits are approximately VND 445 billion.

Each day earns VND 2.4 billion thanks to water supply, which continues to increase thanks to its increasing capacity

Business performance of the first 9 months shows a strong growth of demand. Biwase earns VND 1,777 billion from its main business activities. In particular, gross profits of clean water production and sales are VND 1,171 billion and VND 599 billion, respectively. The clean water is also noted as the highest gross profit margin, i.e every VND 100 of revenue will bring nearly VND 51.2 of gross profit to BIWASE. In contrast, gross profit margin of solid waste and waste water treatment is only 18.6% and 25%. Binh Duong is considered as the industrial capital where 28 industrial parks are located; as a result, Biwase is also one of strong enterprises in terms of size and annual profit.

In addition, according to the explanation from the business leaders, the water tariff sold in the last period was also increased according to the plan. In the third quarter, despite of great turnover from business activities, profit still went down because of stock provision. However, in the first 9 months, Biwase gross profit was VND 357 billion, up by 39% YoY. Meanwhile, the set target is modest (only 10%).

Handover of 4 projects to the province, long-term receivables of VND 976 billion

Biwase has been equitized since the end of 2016 and listed on the stock exchange in mid-July 2017. Becamex IDC State shareholder (code BCM) currently owns 25% of Biwase capital. At the same time, Biwase's largest shareholder position has been transferred to Thu Dau Water JSC with 38.5% of the capital.

Total assets of Biwase as at 30/9/2019 were approximately VND 6,190 billion. Since the second quarter of 2019, Biwase's asset size has sharply decreased due to the transfer of 4 sub-projects of domestic waste water collection and treatment. Nearly VND 6,900 billion of long-term unfinished assets have been moved from Biwase. Remarkably, the company records VND 976 billion of long-term receivables which are the funds granted to the handed over projects.

Thanh Thủy

Abstracted from Investment Newspaper