First 2 months of the year, TDM’s post-tax profit equals only 1/5 of Biwase

Biwase and TDM Water (Biwase's strategic partner) are the two major players in the clean water supply market in Binh Duong province. However, when it comes to scale and business efficiency, there is quite a significant difference between the two.


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In the first 2 months of 2024, Binh Duong Water Environment Joint Stock Company (Biwase, HOSE: BWE) recorded a 10% increase in water consumption, reaching nearly 31.5 million m3; achieving 16% of the annual plan. The water loss rate is maintained at 5%.

The total revenue is expected to reach VND 520 billion and after-tax profit of over VND 110 billion, an increase of 14% and 10% respectively compared to the same period last year. It should be noted that as of February, BWE has not recorded nearly VND 130 billion in revenue from waste treatment and wastewater treatment.

Compared to the 2024 Annual General Meeting plan, the company achieved nearly 13% of the revenue target (VND 4,100 billion) and 16% of the annual profit target (VND 700 billion).

As for Thu Dau Mot Water Joint Stock Company (TDM Water, HOSE: TDM), water consumption in the first 2 months of the year reached nearly 9.4 million m3, an increase of 4% compared to the same period last year and achieved 13% of the annual plan. The water loss rate decreased from 1.48% to 0.24%.

Finally, TDM expects to earn total revenue of over VND 66 billion, up 6% compared to the same period last year; focusing on the water production sector, contributing nearly VND 65 billion in revenue (accounting for 98% of the total revenue). After-tax profit increased by 9% to nearly VND 22 billion, but only one-fifth of BWE’s profit.

Therefore, the company achieved 13% of the revenue target (VND 520 billion) and 11% of the annual profit target (VND 193 billion) in the first 2 months of 2024.

The relationship between TDM and BWE began when BWE was one of the founding shareholders of TDM. At the time of its establishment in 2013, Mr. Nguyen Van Thien – Chairman of TDM’s Board of Directors, was also Chairman of the Board of Directors and General Director of BWE.

Before the equitization in 2016, BWE divested from TDM. This is also the time when TDM became a strategic shareholder of BWE and currently owns 37.42% of the capital. However, in terms of scale, BWE owns thousands of employees and tens of thousands of billion dong in assets, multiple times that of TDM.

In Binh Duong, BWE and TDM are the only companies responsible for providing clean water to the entire province. However, while BWE will distribute clean water to end consumers, all of TDM’s water production is distributed through wholesale channels to BWE.

Therefore, the business activities of TDM are very favorable when signing contracts to supply clean water through the master meter to the only customer, BWE, and having the output of the plants. Moreover, bringing in hundreds of billion dong in profit every year helps BWE continue to pay regular cash dividends to shareholders and naturally most of the dividends will flow into TDM’s pocket.

However, in the 2023 profit distribution plan, BWE plans to pay “paper dividends” to shareholders, which is one of the reasons why TDM has to lower the total revenue target to VND 520 billion, with an expected 82% decrease in financial revenue.

*TDM’s 2024 profit plan reduced by 32% due to the absence of cash dividends from Biwase

*Biwase wants to issue “paper dividends” for the first time since listing

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