Investment Rating - The report maintains a "Buy" rating for the company [3] Core Insights - The company reported a revenue of HKD 16.14 billion for the first half of 2024, a year-on-year decline of 4.2%, and a net profit attributable to shareholders of HKD 2.45 billion, down 11.9%, which aligns with expectations [3] - The company announced an interim dividend of HKD 0.14 per share, unchanged from the previous year, with a payout ratio of 35.1%, an increase of 4 percentage points from last year [3] - A significant decrease in construction service revenue was noted, primarily due to a decline in revenue from energy and environmental projects, particularly waste incineration [3] - The gross margin for the first half of 2024 was 38.7%, a decrease of 5.4 percentage points year-on-year, attributed mainly to a drop in the gross margin of construction services [3] - The company has successfully reduced costs, with financial expenses down by HKD 200 million and management expenses down by HKD 240 million, leading to an overall decrease in expense ratio by 1.9 percentage points [3] - The company’s free cash flow is expected to turn positive due to reduced capital expenditures, with construction service revenue significantly lower than in previous years [3] - The company has a substantial amount of receivables, totaling HKD 21.4 billion, with a large portion expected to be government subsidies, which could further improve cash flow upon collection [3] - Profit forecasts for 2024-2026 are maintained at HKD 4.14 billion, HKD 4.31 billion, and HKD 4.49 billion respectively, with corresponding PE ratios of 5.2, 5.0, and 4.8 times [3] Summary by Sections Financial Performance - Revenue for H1 2024: HKD 16.14 billion, down 4.2% YoY [3] - Net profit for H1 2024: HKD 2.45 billion, down 11.9% YoY [3] - Gross margin: 38.7%, down 5.4 percentage points YoY [3] Dividend and Shareholder Returns - Interim dividend: HKD 0.14 per share, unchanged from last year [3] - Dividend payout ratio: 35.1%, up 4 percentage points YoY [3] Cost Management - Reduction in financial expenses: HKD 200 million [3] - Reduction in management expenses: HKD 240 million [3] - Overall expense ratio decreased by 1.9 percentage points [3] Cash Flow and Capital Expenditure - Free cash flow expected to turn positive [3] - Significant decrease in construction service revenue impacting cash flow [3] Receivables and Subsidies - Total receivables: HKD 21.4 billion, with a large portion as government subsidies [3] Profit Forecasts - 2024-2026 net profit forecasts: HKD 4.14 billion, HKD 4.31 billion, HKD 4.49 billion [3]
光大环境：业绩符合预期，自由现金流预估转正