- 2022-11-17T00:00:00
- Sector Reports
We expect double-digit volume growth for BWE & TDM in 2023, which will be led by strong residential water demand despite a slower-than-expected recovery in industrial water demand in 2022. However, we lower our 2023F forecast water sales volume growth for BWE and TDM from 17% YoY to 12% YoY and 18% YoY to 14% YoY, respectively. We cut our volume growth forecasts for two reasons: 1) growth in so far in 2022 has been slower than we expected, and 2) the outlook for 2023 has deteriorated due to higher interest rates and expected slower global growth.
Water tariff in Binh Duong to increase after FY2023. We trim our water tariff increase assumption for 2023 from 1% to 0% due to delayed legal procedures in Binh Duong Province as there are requirements more paperwork and input data for total investment/new water tariff estimates. Nevertheless, we expect the water tariff to increase 3% p.a. in 2024-2027F vs our previous assumption of 1% p.a., which is based on BWE’s recent guidance.
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