Company Quarterly Earnings Update – BWE VN – 2021 9M

Summary of the 2021 9M results of Binh Duong Water Environment JSC (BWE VN) 

9M/2021 result highlights

  • BWE’s net revenue declined slightly by 3.0% to VND 2,101bn in 9M/2021. Sales from its main business – clean water supply remained solid with a growth of 10.2% y/y as the total clean water volume increased by 6.0% y/y thanks to the ramping up of its new water plants. Water prices have risen by 5.0% y/y as scheduled. Other businesses posted negative growth in their sales due to COVID-19 and high bases from the previous year.
  • The gross margin improved to 44.3% versus 41.0% during the same period last year thanks to a higher sales contribution from the water supply segment which had a higher gross margin than waste management and others. Net financial expenses declined thanks to the dividend from an affiliate and the reverted provisional expenses from investment activity. All in all, net profit increased by 30.1% y/y to reach VND506bn in 9M/2021.


  • We maintain our positive outlook on water demand in Binh Duong province thanks to the rising demand from industrial clients and the solid organic growth from residential customers. With its new capacity, BWE is running at around 65-70% of its total capacity, giving the company significant room for expansion.
  • While the water demand for residential customers will continue to be healthy, we expect BWE’s water demand for industrial customers to increase steadily over the coming quarters as enterprises in Binh Duong province are reinstating their business activities. We believe the COVID-19 situation is improving in Vietnam thanks to the rapidly increasing vaccination rollout.
  • 9M/2021’s business results were not significantly different from our previous forecast, as we maintain virtually unchanged total water volume and revenue estimates. We project net profit to grow strongly by 34.3% y/y to VND723bn in 2021 and by 9.9% y/y to reach VND795bn by 2022.

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