China's Kangda International interim profit jumps on cost savings

Kangda International Environmental

12/08/2026 05:32

Overview
China wastewater treatment provider's interim revenue fell 9% yr/yr, mainly due to lower construction services
Profit attributable to owners of the parent rose 84% yr/yr, driven by cost savings and lower finance costs
Company did not recommend an interim dividend for the six months ended 30 June 2026

Outlook
Company expects gross profit margin to improve as wastewater treatment tariffs are adjusted upward
Kangda plans to accelerate divestment of underperforming projects to reduce debt and recover cash
Company expects to further reduce financial expenses by optimizing liability structure and replacing high-interest financing

Result Drivers
CONSTRUCTION SERVICES DECLINE - Co said revenue fell mainly due to lower revenue from construction services
COST SAVINGS - Co attributed higher gross profit margin and increased profit to cost-saving measures including energy conservation, supply chain optimization, and divestment of underperforming projects
LOWER FINANCE COSTS - Co said finance costs fell due to lower average borrowing interest rates and reduced total liabilities

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 1.06 bln
 
H1 Net Income Attributable
 
RMB 190 mln
 

Analyst Coverage
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-12/a1ae4d33-2929-41c6-90bf-9b600c8f58ad.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.)