Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Views - The company's operational service revenue has increased, optimizing its business structure. In H1 2025, operational service revenue reached 99.43 billion HKD, a year-on-year increase of 5%, accounting for 70% of total revenue [7]. - The company has achieved a significant scale in waste treatment, with a design capacity for municipal waste treatment exceeding 162,900 tons per day, and operational efficiency steadily improving [7]. - The dividend payout ratio has increased year-on-year, with an interim dividend of 0.15 HKD per share in H1 2025, up from 0.14 HKD in the same period of 2024, resulting in a payout ratio of 42% [7]. - The gross profit margin has significantly improved, reaching 44.26% in H1 2025, an increase of 5.53 percentage points year-on-year, while the net profit margin slightly increased to 19.44% [7]. Financial Performance - In H1 2025, the company reported a revenue of 143.04 billion HKD, a decrease of 8% year-on-year, and a net profit attributable to shareholders of 22.07 billion HKD, down 10% year-on-year [6]. - The company expects revenues for 2025-2027 to be 286.71 billion HKD, 276.40 billion HKD, and 275.91 billion HKD respectively, with net profits of 36.66 billion HKD, 39.24 billion HKD, and 42.65 billion HKD [9]. - The projected P/E ratios for 2025-2027 are 7.46, 6.97, and 6.41 respectively, indicating a favorable valuation [9]. Market Performance - The company's stock has outperformed the Hang Seng Index over various time frames, with a 1-month performance of 7.0%, 3-month performance of 18.4%, and a 12-month performance of 31.3% [4].

| 截至月份: | 2025年8月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 中國光大環境(集團)有限公司 (於香港註冊成立之有限公司) | | | 呈交日期: | 2025年9月1日 | | | I. 法定/註冊股本變動 不適用 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00257 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 6,142,975,292 | | 0 | | 6,142,975,292 | | 增加 ...

Investment Rating - The report maintains a "Positive" investment rating for the environmental protection industry [11]. Core Insights - The environmental protection sector showed a slight increase in net profit, with a year-on-year growth of 1.32% in the first half of 2025, despite a slight decline in revenue [6][22]. - The performance of waste incineration and water services remains stable, while the overall growth of the sector is hindered by declines in air quality and recycling resources [6][22]. - The industry is transitioning towards a ToB model, which is expected to accelerate valuation recovery [9]. Summary by Sections Performance Overview - In H1 2025, the environmental protection sector achieved revenue of 142.1 billion yuan, a decrease of 0.20% year-on-year, and a net profit of 13.7 billion yuan, an increase of 1.32% [6][22]. - The gross profit margin improved to 28.7%, up by 0.30 percentage points year-on-year [6][22]. Income Statement - The sector's net profit growth is primarily driven by stable performance in waste incineration and water operations, while the recycling and air quality segments experienced declines [22][24]. - Waste incineration saw revenue growth of 1.81% and net profit growth of 9.31% in H1 2025 [23]. - Water operations reported a slight revenue decline of 1.38% but a net profit increase of 1.79% [30]. Balance Sheet - The environmental protection sector's debt ratio was 57.7%, showing a slight increase of 0.27 percentage points year-on-year [7]. - Accounts receivable and related assets continue to rise, indicating potential cash flow challenges [7]. Cash Flow Statement - The cash collection ratio improved to 93.5%, up by 3.9 percentage points year-on-year, with net cash flow from operating activities reaching 10.44 billion yuan, an increase of 13.8% [8]. - Investment activities showed a net expenditure of 27.4 billion yuan, primarily directed towards waste incineration and water operations [8]. Investment Strategy - The report recommends continued investment in waste incineration and water services, highlighting that the sector can support a price-to-earnings ratio of 14x-16x, while many quality stocks are currently trading at 10x-12x [9]. - The report suggests potential growth opportunities in various segments, including testing services and energy conservation [9].

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but operational services showed stable growth, indicating a shift in revenue structure towards more stable income sources [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved a revenue of HKD 14.304 billion, a decrease of 8% year-on-year, and a net profit attributable to shareholders of HKD 2.207 billion, down 10% year-on-year [1]. - The interim dividend was set at HKD 0.15 per share, an increase from HKD 0.14 per share in the same period of 2024, with a payout ratio rising to 42% [2]. Group 2: Revenue Breakdown - Total revenue for the first half of 2025 was HKD 14.304 billion, with operational service revenue contributing HKD 9.808 billion, a year-on-year increase of 5.2%, while construction service revenue fell to HKD 1.823 billion, a decrease of 47.2% [1]. - The revenue composition shifted, with operational services accounting for 68.6% of total revenue, an increase of 8.9 percentage points year-on-year [1]. Group 3: Operational Highlights - The company processed 26.498 million tons of municipal waste in the first half of 2025, a 2% increase year-on-year, and generated 886.0 million megawatt-hours of electricity, a 6% increase year-on-year [1]. - Significant increases were noted in the processing of kitchen waste, sludge, and other waste, which rose by 177% year-on-year, contributing positively to overall operational performance [1]. Group 4: Financial Challenges - Asset impairment and foreign exchange losses negatively impacted the company's performance, with property, plant, and equipment impairments increasing by HKD 110 million and goodwill impairments rising by HKD 70 million [1]. - The company reported a foreign exchange loss of HKD 430 million in the first half of 2025, contrasting with a foreign exchange gain of HKD 230 million in the same period of 2024 [1]. Group 5: Future Outlook - The company anticipates improvements in cash flow for its subsidiary, Everbright Green Environmental Protection, following the release of new methodologies for biomass power generation and cogeneration projects [2]. - Profit forecasts for 2025 to 2027 estimate net profits attributable to shareholders at HKD 3.7 billion, HKD 4.1 billion, and HKD 4.2 billion, respectively, with corresponding price-to-earnings ratios of 7.4x, 6.7x, and 6.5x [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company's performance met expectations, with a mid-term dividend increase against the trend [8] - The decline in construction revenue and foreign exchange losses impacted profits, but operational service revenue increased significantly [8] - The company is focusing on refined management, leading to substantial growth in heating supply [8] - The increase in mid-term dividends reflects the company's commitment to enhancing shareholder returns [8] - The potential inclusion of biomass energy utilization in the third batch of CCER is expected to expand profit channels for the company [8] - The company is projected to have a low valuation with high dividend value, maintaining a "Buy" rating [8] Financial Summary - For 2023, the company is expected to generate revenue of 32,495.24 million HKD, with a year-on-year decline of 13.9% [7] - The net profit attributable to shareholders is projected at 4,429.16 million HKD, down 3.8% year-on-year [7] - The earnings per share (EPS) for 2023 is estimated at 0.72 HKD [7] - The company’s return on equity (ROE) is expected to be 9.2% for 2023 [7] - The price-to-earnings (P/E) ratio is projected at 3.52 for 2023 [7] - The company plans to distribute a mid-term dividend of 0.15 HKD per share, an increase from the previous year [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - In the first half of 2025, the company achieved a revenue of HKD 14.304 billion, a year-on-year decrease of 8%, and a net profit attributable to shareholders of HKD 2.207 billion, down 10% year-on-year. The interim dividend per share is set at HKD 0.15, compared to HKD 0.14 in the same period of 2024. The operational business remains stable, although construction revenue continues to decline, impacting the revenue structure. Asset impairment and foreign exchange losses are still dragging down the company's performance, while financial expenses continue to optimize. The interim dividend has slightly increased, with the payout ratio rising to 42%, and there are expectations for further dividend increases in the future [2][4][7]. Summary by Sections Revenue and Profitability - The company reported a total revenue of HKD 14.304 billion in the first half of 2025, with operational service revenue at HKD 9.808 billion, reflecting a year-on-year growth of 5.2%. However, construction service revenue fell to HKD 1.823 billion, a significant decrease of 47.2%. The operational services accounted for 68.6% of total revenue, while construction services and financial income made up 12.7% and 17.6%, respectively. The operational business's proportion increased by 8.9 percentage points year-on-year [2][7]. Asset Impairment and Financial Performance - The company faced asset impairments and foreign exchange losses that negatively impacted its performance. In the first half of 2025, property, plant, and equipment impairments increased by HKD 110 million, and goodwill impairments rose by HKD 70 million. The foreign exchange loss amounted to HKD 430 million, contrasting with a foreign exchange gain of HKD 230 million in the same period of 2024. Despite these challenges, the cash flow remains unaffected [7]. Dividend and Future Outlook - The interim dividend has been slightly increased to HKD 0.15 per share, with the payout ratio rising by 7 percentage points to 42%. The company anticipates that the cash flow of its subsidiary, China Everbright Green, will improve significantly following the release of new policy methodologies. This creates expectations for further increases in dividends in the future [7]. Earnings Forecast and Valuation - The company forecasts net profits attributable to shareholders of HKD 3.7 billion, HKD 4.1 billion, and HKD 4.2 billion for the years 2025 to 2027, respectively. The current market capitalization corresponds to price-to-earnings ratios of 7.4x, 6.7x, and 6.5x for the respective years. The estimated dividend for 2024 is HKD 0.23 per share, resulting in a current dividend yield of approximately 5.1% based on the closing price of HKD 4.50 on August 25, 2025 [7].

Core Viewpoint - The environmental industry is facing a significant challenge with insufficient waste for incineration, leading to operational difficulties for waste incineration companies like China Everbright International [2][3] Group 1: Company Performance - In the first half of 2025, China Everbright International reported revenue of HKD 14.304 billion, a decrease of 8% year-on-year, and a net profit of HKD 2.207 billion, down 10% [2] - The company processed nearly 29 million tons of waste, a year-on-year increase of nearly 2%, and generated approximately 14.8 billion kWh of electricity, up nearly 9% [2] - Construction service revenue fell to HKD 1.85 billion, accounting for 13% of total revenue, a decline of 48.3% compared to the same period in 2024 [4] Group 2: Industry Challenges - The waste incineration industry is experiencing a supply-demand imbalance, with an estimated 20% gap in waste collection and incineration ratios [3] - The industry is facing saturation, with a significant reduction in new projects and increasing competition affecting overall revenue [4] - The company is focusing on enhancing its waste collection capabilities and diversifying into industrial and aged waste to address capacity issues [3] Group 3: Financial Indicators - Despite a decline in revenue and profit, gross profit increased to approximately HKD 6.331 billion, a year-on-year growth of 5% [5] - The average electricity generation per ton of waste incinerated was approximately 460 kWh, a year-on-year increase of 3% [5] - Accounts receivable reached HKD 8.382 billion, an increase of nearly HKD 1 billion from the end of 2024, indicating ongoing challenges in cash flow management [7] Group 4: Strategic Initiatives - The company is actively engaging with government bodies to address issues related to accounts receivable and is leveraging policies to secure local debt and financial support [8] - A dedicated team has been established to enhance the collection of accounts receivable, with a focus on improving the efficiency of low-quality projects [9] - The company is expanding its international footprint, with investments in new projects in Uzbekistan, Thailand, and India [4]

Core Insights - Company reported 1H25 results in line with expectations, with revenue of HKD 14.3 billion, down 8% year-on-year, and net profit of HKD 2.2 billion, down 10% year-on-year [1] - The company declared an interim dividend of HKD 0.15 per share, up 7% year-on-year, with a payout ratio of 42%, an increase of 7 percentage points year-on-year [1] Environmental Energy - Construction revenue decreased to 9% of total revenue; operational efficiency improved, leading to a 12% increase in net profit [1] - New capacity added in 1H25 was 500 tons/day, totaling 139,000 tons/day; construction revenue fell 70% to HKD 0.5 billion, a decrease of 18 percentage points in segment share [1] - Operational metrics showed a 2% increase in waste processing volume, a 1.7 times increase in kitchen waste disposal, and a 3% increase in power generation per ton, with total operational revenue up 6% to HKD 5.1 billion [1] Water Services - Revenue growth driven by high water price projects, while profits were impacted by foreign exchange losses [2] - New sewage treatment capacity added was 700,000 cubic meters/day, totaling 6.92 million cubic meters/day; construction revenue decreased 17%, accounting for 46% of the segment [2] - Operational revenue increased 13% due to project upgrades and new projects, despite net profit declining 4% to HKD 0.4 billion due to rising foreign exchange losses [2] Green Environmental Services - Hazardous waste segment faced impairment due to insufficient capacity; however, net profit increased 30% driven by steam supply expansion [2] - No new biomass power generation or hazardous waste projects were launched in 1H25, with construction revenue dropping to HKD 0.05 billion [2] - Operational metrics showed a 4% decrease in biomass material processing and a 3% decrease in hazardous waste processing, but power generation efficiency improved with a 3% increase in grid electricity [2] Development Trends - Company expects stable capital expenditure from 2025 to 2026, with a potential increase in overseas investment proportion [2][3] Profit Forecast and Valuation - Profit forecasts remain unchanged, maintaining an "outperform" rating; despite a decline in earnings, the company demonstrated strong free cash flow and increased dividends [3] - The projected dividend per share for 2025 is raised to HKD 0.25, a 10% increase year-on-year, with the target price increased by 8% to HKD 5.2, indicating a 21.5% upside from the current stock price [3] - Current stock trades at 6.2x/6.0x P/E for 2025E/2026E, while the target price corresponds to 7.5x/7.2x P/E for the same periods [3]

Core Viewpoint - The company is experiencing a significant decline in construction revenue while maintaining stable growth in operational business and a rapid increase in heating supply. The dividend per share (DPS) is steadily increasing, indicating potential for future dividend growth and company value reassessment [1][2][3]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of HKD 14.304 billion, a year-on-year decline of 8%, and a net profit attributable to shareholders of HKD 2.207 billion, down 10% year-on-year due to a significant drop in construction revenue and foreign exchange losses [2]. - Operational service revenue increased by 5% to HKD 9.943 billion, with specific growth in environmental energy (6%), environmental water (13%), and green environmental services (1%) [2]. - Construction service revenue decreased by 49% to HKD 1.844 billion, accounting for 13% of total revenue, with notable declines in environmental energy (70%), environmental water (17%), and green construction services (74%) [2]. Group 2: Profitability and Efficiency - The increase in operational service revenue contributed to an overall gross margin improvement of 5.53 percentage points to 44.26%, and the net profit margin improved by 0.84 percentage points to 19.44% [2]. - The company's asset-liability ratio decreased by 0.97 percentage points to 63.30%, indicating improved financial stability [2]. - The volume of municipal solid waste processed increased by 2% to 28.57 million tons, and the steam supply volume grew by 39%, reflecting enhanced operational efficiency [2]. Group 3: Dividend and Cash Flow - The DPS for H1 2025 is HKD 0.15, up 7% from HKD 0.14 in the same period of 2024, with a payout ratio of 41.76% [3]. - The company is maintaining a trend of increasing total dividends despite declining performance, signaling optimism for future dividend potential [3]. - Capital expenditures are being reduced due to the significant drop in construction revenue, leading to an improvement in free cash flow [3].

Investment Rating - The report maintains a rating of "Buy" for the company [6]. Core Views - The company has shown a steady increase in dividends, signaling optimism despite a significant decline in construction revenue. Operational business remains robust with a rapid increase in heating supply [2][10]. - The company reported a decrease in total revenue by 8% year-on-year for H1 2025, with a net profit decline of 10%. The drop in construction revenue and foreign exchange losses contributed to this decline [10]. - The operational service revenue increased by 5% to 99.43 billion HKD, with specific segments like environmental energy and water services showing growth [10]. - The overall gross profit margin improved by 5.53 percentage points to 44.26%, and the net profit margin improved by 0.84 percentage points to 19.44% [10]. - The company’s dividend per share (DPS) increased by 7% to 0.15 HKD in H1 2025, compared to 0.14 HKD in the same period of 2024 [10]. Financial Summary - Total revenue is projected to decline from 30,258 million HKD in 2024 to 29,272 million HKD in 2025, with a further decrease to 28,972 million HKD by 2027 [4]. - Net profit is expected to recover from 3,377 million HKD in 2024 to 4,048 million HKD in 2025, reaching 4,288 million HKD by 2027 [4]. - The company’s price-to-earnings (PE) ratio is projected to improve from 7.0 in 2024 to 6.5 in 2025, indicating a potential increase in valuation [4]. Operational Insights - The company’s waste disposal volume increased by 2% to 28.57 million tons, and the supply of steam for heating grew by 39% [10]. - The capital expenditure has been reduced, leading to a positive trend in free cash flow, with only 3,000 tons of new waste projects added in H1 2025 [10].