Group 1 - The core viewpoint of the report is that Bank of America Securities maintains a "Buy" rating for China Everbright Environment (00257), citing a projected doubling of free cash flow (FCF) to HKD 9 billion due to a down cycle in capital expenditures [1] - The expected increase in dividend per share, supported by an approximately 20% FCF yield and a forecasted annual compound growth rate of 11% in earnings per share from 2024 to 2027, is highlighted [1] - The proposed A-share issuance is anticipated to bring potential valuation reassessment, with the current price reflecting an attractive forecasted dividend yield of 5.7% [1] Group 2 - The report indicates that the company received RMB 3.6 billion in renewable energy subsidies last year, significantly higher than the RMB 1.9 billion expected in 2024, contributing to the increase in FCF [1] - Capital expenditures are projected to have halved year-on-year to approximately RMB 2.5 billion, with no acquisition targets, reflecting a disciplined approach to investment [1] - The company is estimated to have achieved a net profit increase of 9% to HKD 3.7 billion, supported by an 8% rise in operating profit, despite a 50% reduction in construction business profits [1] Group 3 - Bank of America Securities notes the company's disciplined approach in project bidding, as it opted out of seven waste-to-energy projects in Indonesia due to failure to meet internal return tests [2] - Capital expenditure forecasts for 2025 to 2027 have been reduced to between HKD 500 million and HKD 700 million annually, reflecting the company's investment discipline [2] - Earnings per share estimates for 2025 to 2027 have been lowered by 7% to 12% to account for the decrease in construction profits [2]
美银证券：升光大环境(00257)目标价至6.2港元 评级“买入”