Core Viewpoint - The company reported better-than-expected performance for 2025, with a decline in revenue but an increase in net profit, indicating effective operational transformation and cost control [1][2]. Financial Performance - Revenue for 2025 decreased by 9% to HKD 27.5 billion, while net profit attributable to shareholders increased by 16% to HKD 3.9 billion, surpassing expectations [1]. - The company maintained a dividend of HKD 0.27 per share, a 17% increase from HKD 0.23 in 2024, with a payout ratio of 42.3%, up by 0.5 percentage points year-on-year [1]. Segment Performance - Environmental Energy: Adjusted EBITDA rose by 3% to HKD 7.1 billion, with waste processing volume increasing by 3% to 53.7 million tons and electricity generation per ton of waste up by 1% to 467 kWh [1]. - Environmental Water: Adjusted EBITDA fell by 13% to HKD 1.9 billion, primarily due to a decrease in construction activities, with construction service revenue down by 56% to HKD 1.3 billion, although operational service revenue grew by 5% [1]. Development Trends - The company is focusing on operational transformation and accelerating cash flow, with the environmental energy and green environmental segments achieving record recovery rates in 2025 [2]. - The company is expanding non-electric businesses such as heating and steam supply, which is expected to enhance cash flow performance [2]. Profit Forecast and Valuation - The net profit estimates for 2026 and 2027 have been raised by 4.9% and 4.6% to HKD 4.3 billion and HKD 4.7 billion, respectively [2]. - The current stock price corresponds to a price-to-earnings ratio of 7.4 times and 6.8 times for 2026 and 2027, respectively, with a target price increase of 18% to HKD 6.16, indicating a potential upside of 20% from the current price [2].
光大环境(00257.HK)：FY25经营质量持续提升 派息再上新台阶