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].

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） ...

Core Viewpoint - CICC reports that Everbright Environment (00257) experienced an 8% year-on-year decline in revenue and a 10% drop in net profit for the first half of the year, while increasing its dividend by 7% to HKD 0.15, with a payout ratio of 42% [1] Financial Performance - Revenue decreased by 8% year-on-year [1] - Net profit fell by 10% [1] - Dividend increased by 7% to HKD 0.15 [1] - Payout ratio reached 42% [1] Future Outlook - CICC expects stable capital expenditure for Everbright Environment in the next two years [1] - Anticipated increase in overseas capital expenditure proportion due to expansion of waste incineration projects in Central Asia and Southeast Asia [1] Earnings Forecast - CICC maintains its profit forecast for the group despite the mid-term profit decline [1] - Free cash flow remains robust, leading to an upward revision of the dividend forecast to HKD 0.25 for the year, a 10% increase year-on-year [1] - Target price raised by 8% to HKD 5.2 [1]

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 ...

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]

消息面上，光大环境发布中期业绩，该集团期内取得收益143.04亿港元，同比减少8%；公司权益持有 人应占盈利22.07亿港元，同比减少10%；每股基本盈利35.92港仙；拟派发中期股息每股15港仙。花旗 认为，上半年净利润10.1%的跌幅并不是大问题，主要受汇兑损失拖累；剔除该因素后，税前利润实际 按年增长11.2%。另外，公司的盈利质量持续改善，营运收入占比按年升9个百分点至70%。同时，中期 息按年增长7.1%，超出市场预期，自由现金流上半年按年倍增达20亿元，且下半年有望按季增长。 光大环境(00257)绩后涨超6%，截至发稿，涨5.14%，报4.5港元，成交额2.41亿港元。 美银证券则表示，光大环境上半年净利润同比跌10%。若剔除一次性项目，税前利润(PBT)按年增长 23%，大胜预期。中期息增加1仙，派息率达42%，按年升7个百分点。该行重申光大环境"买入"评级， 预期全年收益率达6.5%，具吸引力，预计料派息存在上行空间。将2025至27年每股盈利预测上调23至 38%，以反映垃圾发电、绿色科技及污水处理业务的毛利率提升、减值损失减少和债务成本下降。 ...