Zhi Tong Cai Jing·2025-09-09 03:07Core Viewpoint - The report from Guotai Junan indicates that Everbright Environment (00257) subsidiary Everbright Green Environmental Protection has received a total of 2.064 billion RMB in national subsidies, exceeding expectations for subsidy recovery progress, which is expected to enhance cash flow and drive value reassessment for the company [1][2] Group 1: National Subsidy Recovery - Everbright Green Environmental has received a total of 2.064 billion RMB in national subsidies for 33 project companies involved in biomass utilization, photovoltaic, and wind power projects [1] - The subsidy recovery amount surpasses the 1.534 billion RMB received in Q1 2024, indicating a faster-than-expected recovery progress [1] Group 2: Financial Performance - In H1 2025, the company reported revenue of 14.304 billion HKD, a decline of 8%, and a net profit of 2.207 billion HKD, down 10% due to a significant drop in construction revenue and foreign exchange losses [2] - The increase in operational services has led to a rise in overall gross margin by 5.53 percentage points to 44.26%, and net profit margin improved by 0.84 percentage points to 19.44% [2] - The asset-liability ratio decreased by 0.97 percentage points to 63.30% year-on-year [2] Group 3: Operational Efficiency - The company processed 28.57 million tons of municipal waste in H1 2025, a 2% increase year-on-year, with an increase in the incineration rate by 3% to 460 degrees [2] - The supply of external steam increased by 39% year-on-year, indicating improved operational efficiency [2] Group 4: Dividend and Cash Flow - The company increased its dividend per share (DPS) to 0.15 HKD in H1 2025, a 7% increase, with a dividend payout ratio of 41.76%, up from 35% in H1 2024 [2] - Capital expenditures have been reduced, leading to an improvement in free cash flow, which is expected to continue positively due to the improved subsidy recovery [2]