Core Viewpoint - CICC reports that Everbright Environment (00257) will experience a slowdown in new project expansion in 2025, potentially impacting revenue performance, but significant optimization of existing assets is expected to improve asset quality and cash flow [1] Group 1: Financial Performance - The company is projected to achieve single-digit growth in profit year-on-year in 2025, with a substantial improvement in cash flow [1] - Core profit is steadily increasing due to a focus on optimizing existing assets, despite ongoing operational pressures in hazardous waste business and potential impairment risks [2] - The company anticipates a foreign exchange loss due to the continuous appreciation of the RMB, which rose by 4.2% throughout the year, impacting profit growth [2] Group 2: Capital Expenditure and Cash Flow - Capital expenditure is expected to decline, with a focus on overseas and water projects, potentially controlling capital expenditure within 3 billion yuan in 2025 [3] - Accelerated recovery of renewable energy subsidies in the second half of 2025 is expected to enhance cash inflow, supporting the company's positive free cash flow and increasing dividend potential [3] Group 3: Profit Forecast and Valuation - The profit forecast for 2025/26 has been revised down by 16.2%/7.5% to 3.58 billion yuan and 4.08 billion yuan, with a new forecast for 2027 at 4.46 billion yuan [4] - The current stock price corresponds to a price-to-earnings ratio of 7.3x/6.7x for 2026/27, with an expected dividend yield of 6.0%/6.6%, indicating strong cash flow and high dividend characteristics [4]
中金：维持光大环境跑赢评级 目标价5.2港元