Core Viewpoint - Citigroup reaffirms "Buy" rating for China Everbright Environment (00257) and raises target price from HKD 5 to HKD 5.4, citing improved free cash flow and reduced financing costs as key factors [1] Group 1: Financial Performance - The company is expected to achieve positive free cash flow for the first time, sufficient to cover financing costs and dividend distributions, which supports 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] Group 2: Investment Strategy - Capital expenditures are being managed more prudently, with a focus on overseas projects that offer higher returns compared to domestic projects [1] - The dual listing in A-shares is seen as a catalyst that could lead to a revaluation of H-shares [1] Group 3: Valuation Metrics - The stock is currently trading at a forecasted price-to-earnings ratio of 7 times, a price-to-book 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 US [1]
花旗：重申中国光大环境(00257)“买入”评级 上调目标价至5.4港元