Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to HKD 5.10 from HKD 4.43 [3][7]. Core Views - The company is expected to enter a positive free cash flow cycle due to a decrease in construction scale and continuous improvement in operational capacity. The net profit forecasts for 2024-2026 are HKD 41.48 billion, HKD 42.82 billion, and HKD 43.91 billion respectively, with a price-to-earnings ratio of 7.5 times for 2024 [3][6]. Summary by Sections Project Developments - The completion of the Hue waste-to-energy project in Vietnam was reported, which can process approximately 220,000 tons of waste annually and generate around 80 million kWh of green electricity [4]. - The company signed a contract for the first phase of the sewage treatment project in Anyang, Henan, with an estimated total investment of approximately RMB 663 million [5]. Financial Performance - The company is expected to see an increase in waste processing volume in 2024, enhancing operating cash flow. The reduction in construction projects is anticipated to lead to a decrease in capital expenditures, further improving free cash flow [6]. - The company declared a final dividend of HKD 0.08 per share for 2023, with a total annual dividend of HKD 0.22, resulting in a payout ratio of 30.5% and a dividend yield of 5.5% as of July 2 [6]. Earnings Forecast - Revenue projections for the company are as follows: HKD 37.32 billion in 2022, HKD 32.09 billion in 2023, and HKD 29.99 billion in 2024, reflecting a decline of 25.20%, 14.02%, and 6.53% respectively [10][13]. - The net profit attributable to the parent company is forecasted to be HKD 4.60 billion in 2022, HKD 4.43 billion in 2023, and HKD 4.15 billion in 2024, with corresponding growth rates of -32.37%, -3.75%, and -6.34% [10][13].
光大环境：越南顺化项目竣工，签约安阳污水项目