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]

机构：国泰海通证券 参考可比公司估值（表1），给予公司2026 年8.3 倍PE，对应目标价5.64 港元，公司分红稳步提升逻辑 开始兑现，未来分红潜力持续释放可以预期，驱动公司价值重估。 业绩略超预期，建造收入大幅下降，运营稳健增长，供热量快速提升。1）2025H1 实现收入143.04 亿 HKD，同比下滑8%；归母净利润22.07 亿HKD，同比下滑10%；建造收入大幅下降以及汇兑损失导致业 绩下滑。2）分业务收入来看：①运营服务收入同比增加5%至99.43 亿HKD，其中环保能源、环保水 务、绿色环保运营服务收入分别同比增加6%、13%、1%至51.42、14.77、31.89 亿HKD；②建造服务收 入同比减少49%至18.44 亿HKD，建造服务收入占比下降至13%，其中环保能源、环保水务及绿色环保 建造服务收入分别同比下降70%、17%、74%至5.39、12.38、0.46 亿HKD。3）运营服务占比提升带动 综合毛利率同比提升5.53pct 至44.26%，净利润率同比改善0.84pct 至19.44%。资产负债率同比下降 0.97pct 至63.30%。4）经营数据方面：2025H1 公司 ...

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].

智通财经APP获悉，中金发布研报称，光大环境(00257)上半年营业收入同比下降8%，纯利跌10%，派 息同比增7%至0.15港元，派息比率达42%。该行预期，光大环境今明两年的资本开支保持稳健，但随着 中亚、东南亚地区的垃圾焚化项目拓展，海外业务资本开支占比或会有所提升。该行维持集团的盈利预 测，续予"跑赢行业"评级，又认为虽然集团中期盈利下滑，但自由现金流稳健，因此上调集团今年股息 预测至0.25港元，同比增长10%，并提升目标价8%至5.2港元。 （原标题：中金：升光大环境(00257)目标价至5.2港元 上调股息预测） ...

中金发布研报称，光大环境(00257)上半年营业收入同比下降8%，纯利跌10%，派息同比增7%至0.15港 元，派息比率达42%。该行预期，光大环境今明两年的资本开支保持稳健，但随着中亚、东南亚地区的 垃圾焚化项目拓展，海外业务资本开支占比或会有所提升。该行维持集团的盈利预测，续予"跑赢行 业"评级，又认为虽然集团中期盈利下滑，但自由现金流稳健，因此上调集团今年股息预测至0.25港 元，同比增长10%，并提升目标价8%至5.2港元。 ...

2025 Interim Results Presentation August 2025 China Everbright Environment Group Limited Forward-looking Statement This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of China Everbright Environment (Group) Limited ("Everbright Environment" or the "Company", together with its subsidiaries, collectively the "Group") and factors beyond the Company's control and are subject to significant risks and uncertainties ...

Investment Rating - The report maintains a "Positive" investment rating for the industry [8] Core Insights - Recent guidance from the Ministry of Finance emphasizes the need for local governments to fulfill payment obligations for existing PPP projects, which is expected to improve cash flow for waste incineration and water services [4][14] - As of August 22, 2025, 95% of the 2 trillion yuan quota for replacing hidden debts has been implemented, accelerating the issuance of local government special bonds [5][19] - The National Development and Reform Commission has reiterated the importance of adjusting public utility prices, with water and waste disposal fees being gradually increased across various regions [30][29] Summary by Sections Government Payment Implementation - The recent guidance on existing PPP projects highlights the necessity for local governments to include related expenses in their budget management and ensure timely payments [4][14] - The funding sources for these projects can include local government special bonds, central transfer payments, and local self-owned funds, which may strengthen the repayment guarantees for future PPP projects [15][14] Debt Replacement and Special Bonds - The issuance of special refinancing bonds has significantly accelerated, with 1.91 trillion yuan issued from January to August 2025, primarily aimed at replacing hidden debts [5][19] - Local governments are actively addressing existing hidden debt issues, which is expected to enhance liquidity for affected parties [19][22] Public Utility Price Adjustments - The report notes that many regions have been slow to adjust water and waste disposal fees, leading to financial losses for water supply companies [30][29] - Recent adjustments in water prices have been observed in cities like Guangzhou and Shenzhen, with average increases of 15.8% for residential water rates [30][34] Investment Logic - The combination of government payment implementation, debt replacement, and price adjustments is expected to positively impact cash flow in the waste incineration and water sectors [36][38] - The industry is experiencing stable growth, with improved cash flow and increased dividends, driven by market reforms and a shift towards direct sales to industrial and commercial clients [38][39]

Core Viewpoint - Bank of America Securities reports that China Everbright International (00257) experienced a 10% year-on-year decline in net profit for the first half of the year, but when excluding one-off items, the profit before tax (PBT) increased by 23%, significantly exceeding expectations [1] Financial Performance - The interim dividend increased by 1 Hong Kong cent, with a payout ratio reaching 42%, up 7 percentage points year-on-year [1] - The bank maintains a "Buy" rating for China Everbright International, forecasting an attractive annual return of 6.5% and anticipating potential upside in dividends [1] Earnings Forecast - Earnings per share (EPS) forecasts for 2025 to 2027 have been raised by 23% to 38% to reflect improvements in gross margins from waste-to-energy, green technology, and wastewater treatment businesses, alongside reduced impairment losses and lower debt costs [1] - The target price has been adjusted from HKD 4.5 to HKD 5.3 [1]

Core Viewpoint - Bank of America Securities reports that China Everbright Environment (00257) experienced a 10% year-on-year decline in net profit for the first half of the year, but when excluding one-off items, the profit before tax (PBT) increased by 23%, significantly exceeding expectations [1] Financial Performance - Net profit decreased by 10% year-on-year [1] - Excluding one-off items, PBT increased by 23% [1] - Interim dividend increased by 1 Hong Kong cent, with a payout ratio of 42%, up 7 percentage points year-on-year [1] Investment Outlook - Bank of America maintains a "Buy" rating for China Everbright Environment, expecting an annual return of 6.5% [1] - Anticipation of upward potential in dividends [1] Earnings Forecast - Earnings per share (EPS) forecasts for 2025 to 2027 have been raised by 23% to 38% [1] - Adjustments reflect improvements in gross margins for waste-to-energy, green technology, and wastewater treatment businesses, along with reduced impairment losses and lower debt costs [1] Target Price Adjustment - Target price increased from HKD 4.5 to HKD 5.3 [1]