BWE – Brief – [NONRATED] – 3Q25: Awaiting the water tariff hike story

In 3Q25 revenue posted VND903bn (-4% yoy and -32% qoq, figure 1), mainly due to the downturn in the waste treatment segment and other segments.

Breakdown by business segment:

• Clean water production and distribution: In 3Q25, revenue reached VND689bn (+12% yoy, figure 1). We estimate that the average selling price improved significantly even though production fell to 48mn m³ (-3% yoy, figure 2). As a result, gross profit (GP) came in at VND435bn (+23% yoy, figure 4).
• Waste treatment: We assess this segment as consistently stable, with revenue and GP recorded at VND90bn (-38% yoy, figure 1) and VND31bn (+342% yoy, figure 4), respectively.
• Wastewater treatment: BWE did not record revenue or GP from wastewater treatment in 3Q, whereas previous quarters had recorded contributions.

GP rose 27% yoy to VND502bn, equivalent to a gross margin (GM) of 55.6% (+13.7%p yoy, figure 4), as BWE significantly cut fixed costs by ~VND60bn (-14% yoy).

Consequently, NPAT reached VND281bn (+47% yoy, figure 6), driven by: (i) improved GM as mentioned above (figure 4); (ii) selling expenses decreasing by VND4bn (-4% yoy); (iii) G&A expenses down by VND9bn (-13% yoy); and (iv) financial income surging by VND64bn (+121% yoy), mainly from deposit interest and income recognized from partial divestments at Biwase – Long An Water JSC and Biwelco, generating total net gains of VND39bn (figure 5).

Project progress of BWE

For Biwase Long An, the Company will launch a project to increase the capacity of Nhi Thanh Water Plant by 60,000 m³/day, bringing the total capacity to 120,000 m³/day and put into operation from August 2025 (table 2).