China's Conch Venture H1 profit falls despite higher revenue on lithium cost pressure

China Conch Venture Holdings

27/08/2026 14:52

Overview
China environmental solutions firm's H1 revenue rose 23% yr/yr, net profit fell 35%
Company cites higher revenue from waste-to-energy and new energy businesses, but lower profit from associates
Board declared interim dividend of HK$0.15 per share, up from HK$0.10 last year

Outlook
China Conch Venture notes continued resilience in China's economy and rapid growth of new drivers
Company highlights focus on green transformation and environmental protection as ongoing strategic priorities

Result Drivers
WASTE-TO-ENERGY GROWTH - Co said revenue growth was driven by increased waste intake and higher on-grid electricity generation in municipal waste treatment projects
NEW ENERGY EXPANSION - New energy materials business expanded customer resources and optimised product performance, contributing to revenue growth
LITHIUM COST PRESSURE – New energy gross margin swung to negative 6.3% from positive 0.8% as lithium carbonate and other raw-material costs rose

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 3.79 bln
 
H1 Net Income Attributable
 
RMB 830.65 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy."
Wall Street's median 12-month price target for China Conch Venture Holdings Ltd is HK$14.76, about 71.4% above its August 27 closing price of HK$8.61
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Aug 27 - Beijing Enterprises Environment's half-year revenue, profit rise
Aug 25 - China's Tianjin Capital Environmental Protection H1 revenue rises
Aug 27 - China's Anchu Energy Storage half-year revenue surges

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-27/90f355e3-29da-4106-91ac-e1425fcd5217.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)