Water Oasis: Lockdown Affected H1 FY22, Improving H2
Equity Bottom-Up
430 Views, 23 Jun 2022 23:12
EXECUTIVE SUMMARY
Water Oasis (1161 HK) reported a tepid H1 with profits coming in at 26 mn HKD, down 56.2% YoY. This was below our expectations as the company received no subsidies.
No interim dividend was paid as the profit in H1 was minuscule, and business had commenced on the 21st of April, impacting a month of H2.
Save for another lockdown in HK, we see a substantial improvement in profitability for Water Oasis (1161 HK) in H2, along with subsidies that are being paid retrospectively.