Core Viewpoint - Citigroup reaffirms "Buy" rating for China Everbright Environment (00257) and raises target price from HKD 5 to HKD 5.4 based on expected positive free cash flow and other favorable financial metrics [1] Financial Performance - The company is expected to achieve positive free cash flow sufficient to cover financing costs and dividend distributions, supporting sustainable dividend growth [1] - Net profit forecasts for the next two years have been increased by 2% to 3% due to lower financing costs [1] - Earnings growth is anticipated to accelerate this year, benefiting from reduced foreign exchange losses, financing costs, and impairment losses [1] Investment Strategy - Capital expenditures are being managed more prudently, focusing on overseas projects with higher returns compared to domestic projects [1] - The dual listing on A-shares is seen as a catalyst for the revaluation of H-shares [1] Valuation Metrics - The stock is currently valued at a forecasted P/E ratio of 7 times, a P/B ratio of 0.5 times, and a dividend yield of 5.8%, indicating attractive valuation in the context of monetary easing in mainland China and interest rate cuts in the U.S. [1]
花旗：重申中国光大环境“买入”评级 上调目标价至5.4港元