Investment Rating - The report assigns a "Buy" rating to the company [10]. Core Insights - Yuehai Investment is a Guangdong state-owned enterprise with a strong portfolio in water supply to Hong Kong, holding a 30-year concession for the Dongshen Water Supply Project, which accounts for 70%-80% of local freshwater usage. The company is expected to enter a stable dividend phase by 2025, with an estimated dividend yield of 6.77% [3][6]. Summary by Sections Company Overview - Yuehai Investment is primarily focused on water resources, with the Guangdong provincial government holding a 58.27% stake. The company operates five main business segments, with the water resources segment contributing 81% to the overall pre-tax profit. The Dongshen Water Supply Project is the core asset, providing stable cash flow [6][16]. Water Resources - The Dongshen Water Supply Project has a supply capacity of 2.423 billion cubic meters annually, supplying 70%-80% of Hong Kong's freshwater and over 50% of Shenzhen's water. The project is expected to generate 39% of its total supply to Hong Kong in 2024, contributing 81% to the project's total revenue [7][36]. Other Water Projects - Other water resource projects have entered a stable operational phase, with a design capacity of 5.895 billion tons/year for water supply and 1.221 billion tons/year for sewage treatment. Revenue from construction has declined significantly, indicating a shift to stable operations [8][30]. Other Business Segments - The performance of other business segments has stabilized after the removal of factors causing volatility. The contributions to pre-tax profit from various segments are 81% from water resources, 10% from property investment, and smaller percentages from other sectors [9][23]. Financial Analysis & Profit Forecast - The company is projected to achieve a sustainable net profit of HKD 4.1 billion in 2024, with a debt ratio of 30.9% by the end of 2024. The dividend payout ratio is expected to remain at 65% for 2023-2024, with forecasted net profits of HKD 4.54 billion, HKD 4.75 billion, and HKD 4.83 billion for 2025-2027, respectively [10][28].
粤海投资（00270）：深度：掌握对港供水资产的广东国企，2025年迈入稳健分红期