Investment Rating - The report maintains an "Outperform" rating for the company [5][12][3] Core Views - The company's revenue and profit are under pressure due to a decline in construction income and impairment factors, with a 2024 revenue of HKD 30.258 billion, down 5.71% year-on-year, and a net profit of HKD 3.377 billion, down 23.75% year-on-year [1][6] - The company has increased its dividend payout ratio to 41.8%, the highest in its history, with a total dividend of HKD 1.41 billion for 2024, reflecting improved cash flow and a commitment to returning value to shareholders [2][12] - The report projects a slight downward adjustment in profit forecasts but expects net profit growth from 2025 to 2027, with estimates of HKD 3.836 billion, HKD 4.129 billion, and HKD 4.298 billion respectively [3][12] Summary by Sections Financial Performance - In 2024, the company reported a revenue of HKD 30.258 billion, a decrease of 5.71% from the previous year, primarily due to a reduction in new projects [1][6] - The net profit for 2024 was HKD 3.377 billion, reflecting a decline of 23.75%, attributed to reduced construction profits and increased impairment provisions [1][6] - The gross profit margin for 2024 was 38.13%, down 4.91 percentage points from 2023, while the net profit margin was 13.13%, down 3.38 percentage points [1][6] Segment Performance - Environmental Energy Segment: Revenue of HKD 15.916 billion, down 8% year-on-year, with operational income increasing by 5% but construction income decreasing by 41% [1][8] - Environmental Water Segment: Revenue of HKD 6.847 billion, up 2% year-on-year, with construction income increasing by 17% [2][8] - Green Environmental Segment: Revenue of HKD 6.974 billion, down 6% year-on-year, with construction income significantly declining by 65% [2][8] Dividend Policy - The company has enhanced its dividend policy, with a payout ratio rising to 41.8% and a dividend of HKD 0.23 per share for 2024, compared to 30.5% in 2023 [2][12] - The absolute dividend value increased from HKD 1.35 billion in 2023 to HKD 1.41 billion in 2024, corresponding to a dividend yield of approximately 6.6% based on the closing price on March 26, 2025 [2][12]

华夏时报（www.chinatimes.net.cn）记者 王悦 北京报道 灯工厂"技术，取消夜班值守。5个污水处理厂获批上调水价。绿色环保深挖燃料本地资源化，节约相关成本，探 索生物质资源化、高值化利用，加快业务转型发展。 值得一提的是，在积极盘活存量业务，着力提升运营质效的同时，光大环境也在不断调整收入结构，实现运营服 务收益占比进一步提升。 具体而言，光大环境2024年的运营收入为194.3亿元港币，建造收入为57.4亿元港币，财务收入为50.9亿元港币； 而各类收益占比变化趋势来看，运营服务收益占比已由2020年的32%上升至64%，建造收益自2021年持续下降， 由54%占比降至19%，财务收入占比水平在近五年内稳中有升，由2020年的占比9%上升至17%。 应收账款回款率提升 3月25日，光大环境公布了2024年年度业绩，公司录得收益约港币302.58亿元，毛利约港币115.36亿元，除利息、 税项、折旧及摊销前盈利约港币100.75亿元，公司权益持有人应占盈利约港币33.77亿元，每股基本盈利为54.98港 仙。 值得一提的是，光大环境拟派末期股息每股9港仙，同比增长12.5%；全年股息每股23 ...

证券研究报告 光大环境 (257 HK) 港股通 自由现金流转正，DPS 和派息比例双增 | 华泰研究 | | 年报点评 | | --- | --- | --- | | 2025 年 3 月 | 27 日│中国香港 | 废物管理 | 光大环境发布年报，2024 年实现营收 302.58 亿港币（yoy-5.71%），归母 净利 33.77 亿元（yoy-23.75%），低于华泰预期（38.09 亿港币），主要原因 系建造服务收入下降和危废业务减值大于预期。近年来，公司投运产能增加， 运营收入占比持续提升，由 2020 年 32%提升至 2024 年 64%，建造服务收 入占比由 2020 年 59%下降至 2024 年 19%。自 2003 年以来自由现金流首 次转正并达到 40.4 亿人民币，DPS 和派息比例双增，体现环保运营资产的 稳健回报属性。我们认为公司自由现金流仍有提升空间，维持"买入"评级。 生活垃圾量和发电量均保持增长 2024 年公司生活垃圾处理量约 5,600 万吨（yoy+7%），垃圾发电项目综合 厂用电率约 15.4%，垃圾发电入厂吨发突破 400 度，入炉吨发 461 千瓦时， 较 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of HKD 30.258 billion for 2024, a year-on-year decrease of 6%, and a net profit attributable to shareholders of HKD 3.377 billion, down 24% year-on-year. The annual dividend per share is set at HKD 0.23, an increase from HKD 0.22 in the same period of 2023 [2][4]. - The operational business showed stable growth, with a 7% year-on-year increase in the amount of municipal solid waste processed and an 8% increase in electricity generated [2][7]. - The company plans to maintain a dividend of HKD 0.23 for 2024, with a payout ratio increasing by 11.3 percentage points to 41.8%, indicating potential for further dividend increases in the future [2][7]. Summary by Sections Financial Performance - The company achieved a total revenue of HKD 30.258 billion in 2024, with operational service revenue at HKD 19.430 billion, a 1% increase year-on-year, while construction service revenue fell by 25% to HKD 5.743 billion [7]. - The total amount of municipal solid waste processed reached 52.06 million tons, reflecting a 7% increase, and the electricity generated was 17.042 million MWh, up 8% [7]. Asset Impairment and Financial Costs - Asset impairment negatively impacted the company's performance, with property, plant, and equipment depreciation increasing by HKD 220 million to HKD 600 million, and intangible asset depreciation rising by HKD 487 million to HKD 697 million [7]. - The company's borrowing costs decreased to a range of 2.20% to 3.35%, down from 2.70% to 3.50% in 2023, leading to a reduction in financial expenses by HKD 520 million [7]. Dividend and Cash Flow - The company announced a cash dividend that exceeded expectations, with a payout ratio of 41.8%. The company received approximately RMB 1.534 billion in renewable energy price subsidies, contributing to improved cash flow [7]. - The projected net profits for 2025 to 2027 are estimated at HKD 3.7 billion, HKD 4.1 billion, and HKD 4.3 billion, respectively, with corresponding price-to-earnings ratios of 5.75x, 5.19x, and 5.03x [7].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 30,258,009,000, a decrease of 6% from HKD 32,090,207,000 in 2023[3] - EBITDA for the year was HKD 10,074,731,000, down 21% from HKD 12,827,961,000 in the previous year[3] - Profit attributable to equity holders was HKD 3,377,200,000, a decline of 24% compared to HKD 4,429,160,000 in 2023[3] - Gross profit for the year was HKD 11,535,959,000, down from HKD 13,811,291,000 in 2023[4] - Total comprehensive income for the year was HKD 1,488,406,000, compared to HKD 2,581,444,000 in the previous year[6] - The company reported a basic and diluted earnings per share of HKD 0.5498, down from HKD 0.7210 in the previous year[4] - The company reported a pre-tax profit of HKD 3,377,200,000 for the year, down 23.7% from HKD 4,429,160,000 in 2023[41] - The consolidated gross profit for 2024 was HKD 11,535,959,000, down 16% from the previous year, with a gross profit margin of approximately 38.1%, a decrease of 4.9 percentage points[129] - The net profit attributable to equity holders for 2024 was HKD 3,377,200,000, a decline of 24% compared to 2023[129] Dividends - The final dividend per share increased to HKD 0.09 from HKD 0.08 in the previous year, with total annual dividends per share at HKD 0.23, up from HKD 0.22[3] - Proposed final dividend per ordinary share increased to HKD 0.09 from HKD 0.08 in 2023[40] - The board proposed a final dividend of HKD 0.09 per share for the year ending December 31, 2024, compared to HKD 0.08 per share for the previous year[157] Assets and Liabilities - Non-current assets totaled HKD 138,252,572,000, a decrease from HKD 142,029,678,000 in 2023[7] - Current liabilities decreased to HKD 35,731,838,000 from HKD 41,184,880,000 in the previous year[8] - The net asset value increased to HKD 66,416,576,000 from HKD 65,523,221,000 in 2023[8] - The company’s total liabilities decreased to HKD 119,610,448 from HKD 123,659,603, a reduction of approximately 3.3%[25] - The total outstanding loans as of December 31, 2024, were HKD 91,669,439,000, down HKD 2,954,705,000 from HKD 94,624,144,000 at the end of 2023[133] Revenue Breakdown - The segment revenue from Environmental Energy projects was HKD 16,004,953, down from HKD 17,472,414, representing a decline of 8.4%[21] - The Environmental Water segment reported revenue of HKD 6,851,918, consistent with the previous year's HKD 6,704,684, indicating a slight increase of 2.2%[21] - The Green Environmental segment's revenue decreased to HKD 6,976,892 from HKD 7,416,973, reflecting a decline of 5.9%[21] - Revenue from external customers in Mainland China was HKD 29,371,234, down from HKD 31,388,415, a decline of approximately 6.4%[28] - Revenue from environmental energy project construction services was HKD 2,537,007,000, down 41.5% from HKD 4,332,798,000 in 2023[31] - Revenue from environmental water project construction services increased by 17.2% to HKD 2,933,926,000 from HKD 2,502,809,000 in 2023[31] - Operating service revenue from environmental energy projects was HKD 9,720,110,000, up 5.2% from HKD 9,241,305,000 in 2023[31] Segment Performance - Adjusted EBITDA for the Environmental Energy segment was HKD 6,886,316, down from HKD 9,078,517 in the previous year, representing a decrease of approximately 24.5%[23] - The total reported segment profit from external customers decreased to HKD 9,803,001 from HKD 12,930,295, a decline of about 24.5%[23] - The operating profit before interest, tax, depreciation, and amortization for the environmental water services segment was HKD 2,196,829,000, a decrease of 11% compared to 2023[105] Investments and Projects - The company invested HKD 802,724 in property, plant, and equipment during the year, compared to HKD 1,149,071 in the previous year, a decrease of about 30.2%[23] - The group has expanded its business to 26 provinces and regions in China, covering 229 cities and counties, with overseas markets in Germany, Poland, Vietnam, and Mauritius, and has invested in 604 environmental projects totaling approximately RMB 162.425 billion[68] - The group has implemented 193 waste-to-energy projects with a designed daily processing capacity of 159,900 tons of municipal solid waste[68] - In 2024, the group invested in 12 new projects with a total investment of approximately RMB 1.764 billion and signed various light asset business contracts totaling approximately RMB 1.835 billion[71] Environmental Impact and Achievements - The group processed 56,162,000 tons of municipal waste, generating 27,678,000,000 kWh of green electricity, equivalent to the annual electricity consumption of approximately 23,065,000 households[78] - The group treated 1,763,000,000 cubic meters of wastewater, reducing COD emissions by 7,478,000 tons[78] - The group received multiple awards, including ranking first in the "Top 50 Environmental Enterprises in China" and "Top 10 Influential Solid Waste Enterprises in China" for the 14th consecutive year[80][82] Corporate Governance and Management - The company has adopted the Corporate Governance Code as its standard for corporate governance practices[153] - The company has established a comprehensive safety and environmental management system, ensuring compliance with national environmental regulations[150] - The company conducted multiple training sessions covering ESG, procurement management, cybersecurity, and other topics to enhance management and employee skills[144] - The company identified key risks including accounts receivable risk, environmental compliance risk, and market competition risk, which will be detailed in the 2024 annual report[146] Future Outlook - The group aims to enhance its core competitiveness and solidify its industry-leading position while focusing on the "14th Five-Year Plan" strategic blueprint[127] - The company plans to enhance its operational management and financial coordination to improve efficiency and reduce costs[60] - The company is focusing on technological innovation and the establishment of a "research ecosystem" to drive business development[60]

丨证券研究报告丨 港股研究丨公司点评丨光大环境（0257.HK） [Table_Title] 光大环境跟踪点评：运营业务稳定，减值对业绩 或仍有拖累 报告要点 [Table_Summary] 2024 年公司资本开支进一步下降，工程收入下行带来收入结构改善，后续业绩稳定性更强。 绿色环保发布业绩预告，预计 2024 年亏损 5.0-5.1 亿港币，预计光大环境 2024 年业绩受减值 影响拖累仍存。公司全年现金流转正预期充分， 中报每股分红维持稳定（分红比例所有提升）， 持续兑现分红逻辑。多重固废协同处置成为趋势，供热化改造也将带来业绩增量。无需过多担 心行业现金流。 分析师及联系人 [Table_Author] SAC：S0490517090001 SAC：S0490518070001 SAC：S0490520070003 SAC：S0490524080004 SFC：BUV415 SFC：BUZ393 徐科 任楠 贾少波 李博文 盛意 请阅读最后评级说明和重要声明 %% %% %% %% research.95579.com 1 光大环境（0257.HK） cjzqdt11111 [Table_Title ...

证券研究报告·海外公司点评·环保 光大环境（00257.HK） 减值拖累业绩，自由现金流增厚趋势不改 2025 年 02 月 06 日 买入（维持） | [Table_EPS] 盈利预测与估值 | 2022A | 2023A | 2024E | 2025E | 2026E | | --- | --- | --- | --- | --- | --- | | 营业总收入（百万元） | 37750 | 32495 | 31031 | 29633 | 29311 | | 同比(%) | (24.89) | (13.92) | (4.50) | (4.51) | (1.08) | | 归母净利润（百万元） | 4602 | 4429 | 3270 | 3867 | 4105 | | 同比(%) | (32.37) | (3.75) | (26.17) | 18.23 | 6.17 | | EPS-最新摊薄（元/股） | 0.75 | 0.72 | 0.53 | 0.63 | 0.67 | | P/E（现价&最新摊薄） | 4.57 | 4.74 | 6.42 | 5.43 | 5.12 | [Table_Tag] [T ...

Investment Rating - The report assigns an "Outperform the Market" rating to the company, with a target price range of 4.48 to 4.73 HKD, indicating a potential upside of 14% to 20% from the current stock price [7][46][51]. Core Views - The company is recognized as the world's largest waste-to-energy operator, with a significant market presence and a robust project pipeline. The report highlights a decline in capital expenditures, leading to positive free cash flow in 2024H1, which is expected to enhance the company's dividend capacity [46][55][166]. - The report emphasizes the company's operational income growth, which is projected to increase as construction income declines, suggesting a shift towards more sustainable revenue streams [7][46][173]. - The company faces challenges due to complex accounting practices and diversified business operations, which may suppress its valuation in the market [46][123][173]. Financial Performance - The company achieved revenues of 32.09 billion HKD in 2023, with a projected decline to 28.74 billion HKD in 2024, reflecting a year-on-year decrease of 10.4% [47][189]. - The gross profit margin is expected to improve from 41.5% in 2024 to 44.4% by 2026, indicating a positive trend in profitability [47][189]. - The net profit attributable to the parent company is forecasted to be 3.70 billion HKD in 2024, down from 4.43 billion HKD in 2023, but is expected to recover to 4.14 billion HKD by 2026 [47][189]. Business Segments - The company's revenue is primarily derived from three segments: Environmental Energy, Environmental Water, and Green Environmental Services. The Environmental Energy segment contributes the most, accounting for 51% to 66% of total revenue [97][100]. - The Environmental Water segment has shown stable performance, with revenues of 6.73 billion HKD in 2023, expected to decline to 5.70 billion HKD in 2024 [5][179]. - The Green Environmental Services segment has faced profitability challenges, with a significant drop in net profit in recent years, primarily due to market conditions and government subsidy delays [136][137]. Valuation Metrics - The report indicates that the company's current P/E ratio is approximately 5.5, which is significantly lower than the industry average, suggesting that the stock may be undervalued [47][195]. - The absolute valuation method estimates the company's fair value at around 4.73 HKD per share, while the relative valuation method suggests a target price of 4.48 HKD, both indicating potential upside from the current market price [190][195]. Market Position - The company holds a leading position in the waste-to-energy sector, with a total waste processing capacity of 15.89 million tons per day, the highest in the industry [46][116]. - The report notes that the company has a diversified project portfolio across various regions, which enhances its operational resilience [46][68][120].

Financial Performance - Revenue for the first half of 2024 was HK$15,612,133, a decrease of 4% compared to HK$16,297,167 in the same period of 2023[13]. - Profit attributable to equity holders was HK$6,550,295, down 11% from HK$7,376,488 in the previous year[13]. - Return on shareholders' equity decreased by 12%, from HK$2,784,923 in 2023 to HK$2,453,917 in 2024[13]. - Basic earnings per share for the first half of 2024 was 5.00 HK cents, a decline of 12% from 5.82 HK cents at the end of 2023[13]. - For the first half of 2024, the Group recorded total revenue of HK$15,612,133,000, a decrease of 4% compared to HK$16,297,167,000 in the same period of 2023[21]. - Profit attributable to equity holders decreased by 11% to HK$6,550,295,000 from HK$7,376,488,000 year-on-year[21]. - Basic earnings per share fell by 12% to HK$39.95 compared to HK$45.34 in the first half of 2023[21]. - Environmental energy reported an EBITDA of HK$4,015,260,000, a decrease of 15% compared to the first half of 2023, and a net profit attributable to the Group of HK$2,300,608,000, down 16% year-on-year[78]. - Everbright Water's environmental water sector contributed an EBITDA of HK$1,199,661,000, a decrease of 7% compared to the first half of 2023[94]. - The greentech sector contributed an EBITDA of HK$1,108,460,000, a decrease of 13% compared to the first half of 2023, and a net profit attributable to the Group of HK$107,638,000, a decrease of 45%[111]. Asset and Liability Management - Total assets increased slightly to HK$189,452,994, compared to HK$189,182,824 in 2023, reflecting a 0% change[13]. - Total liabilities decreased by 2% to HK$121,766,703 from HK$123,659,603 in the previous year[13]. - The gearing ratio improved to 8.141% from 7.837%, indicating a 4% increase[13]. - As of June 30, 2024, the Group's total assets amounted to approximately HK$189.45 billion, with net assets of HK$67.69 billion, representing a net asset value per share of HK$8.141, an increase of 4% from HK$7.837 at the end of 2023[138]. - The Group's gearing ratio as of June 30, 2024, was 64%, a decrease of 1 percentage point from 65% at the end of 2023[138]. - Cash and bank balances as of June 30, 2024, were HK$8.27 billion, a decrease of 4% from HK$8.63 billion at the end of 2023[138]. - Outstanding interest-bearing borrowings as of June 30, 2024, were HK$94.17 billion, similar to HK$94.62 billion at the end of 2023[138]. Operational Efficiency and Development - The Group focused on diversifying its asset-light and asset-heavy businesses, enhancing its operational development quality[17]. - Technology research and development continued to empower all business sectors, with ongoing progress in the commercialization of technology research results[17]. - A dedicated task force was established to enhance operational efficiency, focusing on increasing waste intake and improving the efficiency of slag management[39]. - The Group aims to enhance project operation efficiency and financial management to support high-quality development and cost control[135]. - The Group plans to diversify its business models and accelerate the transformation of new businesses, particularly in overseas markets[135]. - The Group will focus on technological innovation and digitalization to improve cost control and operational efficiency[135]. - The Group is committed to enhancing its risk management culture and has updated its risk factor list to strengthen its risk management system[146]. - The Group has implemented a comprehensive management structure to ensure compliance with safety and environmental standards, securing stable operations of various environmental protection projects[146]. Environmental Contributions and Projects - The Group processed 28,035,000 tonnes of household waste, generating 13,634,000,000 kWh of green electricity, sufficient to meet the annual electricity needs of 11,361,000 households[44]. - Cumulatively, the Group has processed 298,400,000 tonnes of household waste since 2005, generating 144,985,000,000 kWh of green electricity, equivalent to the annual consumption of 120,820,000 households[48]. - The Group treated 835,360,000 m³ of wastewater, reducing chemical oxygen demand (COD) discharge by 416,000 tonnes during the review period[44]. - The Group's environmental contributions include avoiding CO2 emissions by 14,646,000 tonnes through the processing of agricultural and forestry waste, which totaled 3,883,000 tonnes[44]. - The Group organized environmental education activities, attracting approximately 9,500 offline visitors and 80,000 online participants, promoting ecological protection and sustainable development[50]. - The Group's Gansu Wuwei Waste-to-energy Project was successfully registered as an International Verified Carbon Standard (VCS) Project, enhancing its sustainability credentials[63]. - The Group received multiple awards for its environmental initiatives, including recognition as one of the Top 10 Influential Enterprises in China's Water Industry for the seventh consecutive year[53]. - The Henan Nanyang Waste-to-energy Project and others were recognized as "National AAA-level Municipal Solid Waste Incineration Plants," highlighting operational excellence[56]. - The Group's cumulative environmental contributions since 2005 include avoiding CO2 emissions of 127,661,000 tonnes through the processing of 46,517,000 tonnes of agricultural and forestry waste[48]. - As of June 30, 2024, the environmental energy sector has invested in 281 projects with a total investment of approximately RMB 98.324 billion, achieving an annual household waste processing capacity of 53,782,750 tonnes[67]. New Projects and Investments - The Group invested in and secured a total of 8 new projects with a total investment of approximately RMB1.611 billion, covering areas such as waste water treatment, biomass integrated utilization, construction of zero-carbon industrial parks, and energy storage[33]. - The designed treatment/supply capacities of the new projects include 200,000 m³/day for waste water treatment, 70,000 tonnes/year for biomass raw materials, 260,000 tonnes/year for heat and steam supply, and 39.66 MW for solar power and energy storage[36]. - The Group signed various new asset-light businesses with a total contract value of approximately RMB392 million during the review period[33]. - In the first half of 2024, Everbright Water secured 3 new projects with a total investment of approximately RMB1.371 billion and undertook various asset-light businesses with a total contract value of approximately RMB30.25 million[90]. - Everbright Greentech secured 5 new projects with a total investment of approximately RMB240 million, designed to process 70,000 tonnes of biomass annually and have a solar power and energy storage capacity of 39.66 MW[104]. Risk Management and Compliance - The Group's accounts receivable risk has increased due to impaired payment capabilities of governments, leading to high accounts receivable from national subsidies and treatment fees[152]. - Accounts receivable risk remains high due to decreased fiscal payment capabilities of various government levels, increasing the likelihood of delayed payments for national subsidies and waste treatment fees[154]. - The Company established a long-term mechanism for accounts receivable management, including special teams, ledgers, incentives, and assessments[153]. - The Company implemented the 2023-2024 Accounts Receivable Incentive Measures to enhance employee participation in accounts receivable recovery[156]. - Strict supervision of pollutant emissions has become normalized, with higher local emission standards in regions like Jiangsu and Henan, increasing operational management requirements[159]. - A Three-Year Action Plan (2024-2026) was formulated to address work safety issues, focusing on improving safety management and employee safety capabilities[161]. - The Company reinforced process control through intensified inspections, focusing on dangerous operations and ensuring accountability at all levels[163]. Human Resources and Employee Management - The Group employed approximately 11,700 employees as of June 30, 2024, with employee benefits including medical insurance and a mandatory provident fund scheme[151]. - Staff placement risk is heightened due to total remuneration constraints and the remote locations of new projects, impacting employee retention[164]. - The company is strengthening multi-level communication channels to understand employee needs and prevent talent loss[171]. - The company is optimizing its selection and appointment system to effectively address vacancies in key management positions[171]. - The company is committed to building a high-performance culture by allocating resources to high-performing employees and key positions[171]. Market Expansion and Business Strategy - The company is actively exploring new business sectors and has secured new projects in these areas, although overall competitive advantages are still being formed[168]. - The company is expanding its waste-to-energy market in Southeast Asian countries and asset-light businesses in Africa and the Middle East[171]. - The company is focusing on deepening its traditional business and extending the industrial chain to create a business development pattern of "one principal business and multiple specialized businesses"[171]. - The company is actively studying policies related to carbon neutrality and ecological protection to discover new development opportunities[174]. Procurement and Cost Management - The company has implemented a series of management systems to strengthen compliance in procurement, including guidelines against bid rigging and collusive bidding[178]. - The company is enhancing its training and supervision of procurement personnel to prevent non-compliance and improve procurement practices[178]. - The Company aims to achieve cost reduction and consumption reduction through in-depth benchmarking of operation and management, utilizing production and operation data[188]. - The Company plans to leverage centralized procurement advantages to effectively reduce procurement costs by increasing the number of qualified suppliers and exploring long-term supplier relationships[188]. - The green technology sector is optimizing fuel usage and managing fuel prices by developing local biomass fuel markets and establishing township storage centers[188]. - A working group for increasing revenue and reducing costs has been established, with a detailed plan for 2024 to enhance operational efficiency while ensuring safe operations and compliance with emission standards[188].

Investment Rating - The report maintains an "Accumulate" rating for the company [1][4][5] Core Views - The company has seen an improvement in the proportion of operational revenue, indicating an optimization in revenue structure. Operational service revenue, construction service revenue, and financial income accounted for 61%, 23%, and 16% of total revenue respectively in the first half of 2024 [4][5] - The company is actively expanding its market presence, having implemented 8 new investment projects with a total investment of approximately 1.611 billion HKD, covering areas such as wastewater treatment and biomass utilization [4][5] - The company’s cash flow has improved significantly, with a notable recovery of government subsidies, and a high dividend payout ratio, making it an attractive investment option [5][6] Summary by Sections Financial Performance - In the first half of 2024, the company reported a revenue of 15.612 billion HKD, a decrease of 4% year-on-year, and a net profit attributable to shareholders of 2.454 billion HKD, down 12% year-on-year. The board declared an interim dividend of 0.14 HKD per share, unchanged from the previous year, with a payout ratio of 35%, up 4 percentage points [3][4] Operational Metrics - The company processed 28 million tons of municipal solid waste, a 9% increase year-on-year, and generated approximately 13.6 billion kWh of electricity, a 5% increase year-on-year. The company also saw a 60% increase in heating and steam supply [4][5] Market Position - The company remains a leader in the industry, with a total of 600 environmental projects implemented, amounting to approximately 162.272 billion HKD in total investment. The company has 191 waste-to-energy projects designed to process 158,900 tons of municipal solid waste daily [4][5] Profitability and Valuation - The company's gross margin for the first half of 2024 was 38.73%, a decrease of 5.41 percentage points year-on-year. The report forecasts revenues of 31.868 billion HKD, 31.965 billion HKD, and 30.616 billion HKD for 2024, 2025, and 2026 respectively, with net profits of 4.202 billion HKD, 4.372 billion HKD, and 4.385 billion HKD for the same years [5][6][7]