Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.34 [5][9]. Core Views - The company reported a decrease in revenue by 8.4% year-on-year to HKD 14.304 billion for H1 2025, with a net profit attributable to shareholders of HKD 2.207 billion, down 10.1% year-on-year [1][3]. - The company has shown operational resilience with a 9% increase in electricity generation and a 32% increase in heating supply for H1 2025 [1]. - The interim dividend has been increased to HKD 0.15 per share, up from HKD 0.14 per share in H1 2024, reflecting a stable growth in shareholder returns [3][9]. Summary by Sections Financial Performance - The company achieved a revenue of HKD 14.304 billion in H1 2025, a decrease of 8.4% year-on-year, while the net profit was HKD 2.207 billion, down 10.1% year-on-year [1]. - The interim dividend payout was HKD 0.15 per share, with a dividend payout ratio of 41.8%, compared to 35.0% in H1 2024 [1][3]. Operational Highlights - The company processed nearly 29 million tons of waste, a 2% increase year-on-year, and generated 14.8 billion kWh of electricity, a 9% increase year-on-year [1]. - The heating supply increased by 32% year-on-year, indicating strong operational performance [1]. Market Expansion - The company is actively expanding into Central Asia with two new waste-to-energy projects in Uzbekistan, with a total investment of approximately RMB 2.2 billion [2]. - It has also secured equipment supply contracts in Thailand and Malaysia, indicating a strategic move towards international markets [2]. Cash Flow and Shareholder Returns - The company reported a free cash flow of RMB 4.04 billion for 2024, marking the first positive cash flow since its inception in 2003 [3]. - The stable cash flow and improved free cash flow position the company well for future shareholder returns [3]. Earnings Forecast - The report forecasts a net profit attributable to shareholders of HKD 3.392 billion for 2025, with a slight downward adjustment of 3% from previous estimates [4]. - The expected earnings per share (EPS) for 2025 is HKD 0.55, with a projected price-to-earnings (PE) ratio of 9.7 times [4][8].
光大环境（00257）：H1发电量同比增长9%，中期股息提升1港仙