Investment Rating - The report maintains an "Accumulate" rating for the company [5][13]. Core Views - The company's net profit attributable to shareholders decreased by 12% year-on-year in H1 2024, primarily due to a decline in capital expenditure and construction revenue [4]. - Free cash flow has turned positive for the first time in recent years, with a mid-year cash dividend payout ratio increased to 35% [4][5]. - The company reported a revenue of HKD 15.612 billion in H1 2024, a 4% decline year-on-year, with construction revenue dropping 13% to HKD 3.584 billion [5]. - Operational revenue remained stable at HKD 9.459 billion, with operational and financial income accounting for 77% of total revenue, indicating improved earnings quality [5]. Summary by Sections Financial Performance - The company slightly adjusted its net profit forecasts for 2024-2026 to HKD 4.200 billion (previously HKD 4.467 billion), HKD 4.321 billion (previously HKD 4.541 billion), and HKD 4.456 billion (previously HKD 4.620 billion), respectively, with corresponding EPS of HKD 0.68, HKD 0.70, and HKD 0.73 [5]. - The company achieved a free cash flow of HKD 970 million in H1 2024, marking its first positive free cash flow [5]. Operational Highlights - The company launched a new waste incineration project with a capacity of 3,700 tons in H1 2024, bringing the total operational capacity to 138,000 tons, with 5,700 tons under construction [5]. - The amount of municipal waste processed reached approximately 25.98 million tons, a 9% increase year-on-year, while heating and steam supply increased by 60% [5]. - The average power generation efficiency of waste-to-energy projects was approximately 446 kWh per ton of waste [5]. Dividend Policy - The company plans to distribute a mid-term dividend of HKD 0.14 per share, corresponding to a cash dividend payout ratio of 35%, an increase from 31% in the previous year [5].
光大环境：2024年中报点评：自由现金流如期转正，分红率提升至35%