Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company's operational business remains stable, with a continuous improvement in revenue structure. The construction revenue has decreased by 42% to approximately 7.7 billion HKD in 2023, accounting for about 24% of total revenue. It is expected that capital expenditures will further decline in 2024, which may impact revenue and profit but will lead to a more stable performance [5][6]. - The company has achieved positive cash flow expectations for the year, bolstered by the recovery of biomass national subsidies, with a total of approximately 1.534 billion RMB received from the State Grid Corporation for renewable energy price subsidies [5]. - The debt structure is continuously optimized, with a projected decrease in funding costs for the year. The proportion of RMB loans increased by 17 percentage points to 87% by the end of 2023, and the capitalized borrowing cost has decreased from 3.9%-4.8% in 2022 to 2.7%-3.5% in 2023 [5][6]. - The trend of multiple solid waste collaborative disposal is emerging, and the transformation of waste incineration projects into heating supply will also contribute to performance growth [5]. Summary by Sections Revenue and Profitability - The company’s construction revenue has decreased significantly, leading to a shift in revenue structure towards more stable operational income. The expected decline in capital expenditures in 2024 will further enhance this stability [5][6]. Cash Flow and Financial Health - The company is expected to achieve positive cash flow for the year, supported by the recovery of biomass subsidies, which will improve asset credit status and potentially increase dividends [5]. Debt Management - The company is actively optimizing its financing structure, resulting in a lower overall debt ratio and reduced borrowing costs, which is expected to continue in the future [5][6]. Market Trends - The company is positioned to benefit from the increasing trend of collaborative solid waste disposal and the potential for additional revenue from heating supply transformations [5].
光大环境跟踪点评：运营业务稳定，收入结构持续改善