Investment Rating - The report assigns a "Hold" rating to the company with a target price of HKD 1.57 [1]. Core Insights - The company reported a 14% year-on-year decline in net profit for 2024, with revenue of HKD 6.85 billion, a 2% increase from the previous year. The earnings attributable to the parent company were HKD 1.02 billion, down 14% [3]. - The increase in revenue was primarily due to a higher proportion of construction service income, which rose by 28% and accounted for 39% of total revenue. However, operational income decreased by 9%, making up 41% of total revenue [3]. - The company has invested in five new projects in the first half of 2024, with a total investment of RMB 896 million. As of the end of last year, the company held 171 environmental projects with a total investment of approximately RMB 31.675 billion [4]. - The operating cash flow for 2024 was HKD 1.85 billion, a 40% increase year-on-year, with a receivables collection rate nearing 80% [4]. - The target price of HKD 1.57 is based on a projected 2025 earnings per share of HKD 0.39, reflecting a price-to-earnings ratio of 4.1 times and a dividend yield of 7.7% [5][11]. Financial Summary - The average price-to-earnings ratio for 2025 is estimated at 3.6 times, with an average price-to-book ratio of 0.37 times and an average dividend yield of 8.5% [2]. - The company’s revenue is expected to grow to HKD 7.39 billion in 2025, representing a 7.9% increase, while net profit is projected to rise by 18.7% to HKD 1.21 billion [5][7]. - The financial performance over the past few years shows fluctuations, with 2024 experiencing a decline in net profit despite a slight increase in revenue [7].
中国光大水务：2024年纯利下跌14%；派息率提高-20250227