Citic Envirotech 2018 net profit rose 42 percent on higher engineering, membrane revenue

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Water-treatment player Citic Envirotech reported on Tuesday its net profit for 2018 rose 41.6 percent on-year to S$113.18 million on higher revenue from engineering and membrane system sales.

Revenue for the full year increased 46.9 percent on-year to S$994.47 million, it said in a filing to SGX after the market close on Tuesday.

Engineering revenue increased 39.6 percent on-year to S$511.5 million for the year, while membrane system sales doubled to S$255.1 million, Citic Envirotech said. Membrane technology is used for treating and recycling wastewater.

Treatment revenue increased 24.0 percent on-year to S$227.9 million, it added.

It proposed a final dividend of 0.75 Singapore cent, down from 1.50 Singapore cents a year earlier.

Citic Envirotech issued a positive outlook.

“China’s stringent policies to curb pollution will continue to be the backbone for opportunities in the environmental sector. CEL with its advanced technologies and proven track records is poised to tap on the growing market,” it said in the statement.

It noted that China remained a major revenue contributor due to a larger market and demand for the company’s membrane technology.

“The group continues its strong momentum in securing more environmental projects and to deliver comprehensive and sustainable solutions to tackle pollution affecting the environment,” it added.

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