Core Viewpoint - CICC reports that Everbright Environment (00257) is expected to experience a slowdown in new project expansion in 2025, which may impact revenue performance, but optimization of existing assets is showing significant results, leading to improved asset quality and cash flow [1] Group 1: Financial Performance - The company is projected to achieve single-digit growth in profit year-on-year for 2025, with a significant improvement in cash flow [1] - Core business indicators are continuously improving, although one-time factors may still disrupt profit performance in 2025 [2] - The company’s core profit is steadily increasing, with key metrics such as tonnage output and heating supply showing ongoing improvement [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 anticipated to enhance the company’s cash inflow [3] - The company is expected to maintain positive free cash flow and improve its cash capabilities, which will enhance dividend levels and shareholder returns [3] Group 3: Profit Forecast and Valuation - The company’s profit forecasts for 2025 and 2026 have been revised down by 16.2% and 7.5% to 3.58 billion yuan and 4.08 billion yuan, respectively, 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 for 2026 and 6.7x for 2027, with an expected dividend yield of 6.0% and 6.6% for the adjusted years [4]
中金：维持光大环境(00257)跑赢评级 目标价5.2港元