Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company's performance in 2023 slightly exceeded expectations, with a revenue of HKD 32.09 billion, a year-on-year decrease of 14%, and a net profit of HKD 4.43 billion, down 4% year-on-year. The actual performance was better than Bloomberg's consensus estimate of HKD 4.34 billion and Wind's median estimate of HKD 4.01 billion [2][6] - The company is expected to see a turning point in free cash flow in 2024, with dividends likely to increase to a higher level. The current dividend yield is 8.07% [2][6] - The company has a strong operational performance, with a waste incineration capacity of 134,000 tons per day and a waste disposal volume of 48.6 million tons, reflecting a 7% year-on-year increase and a capacity utilization rate of 99% [2][6] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of HKD 32.09 billion, a decrease of 14% year-on-year, and a net profit of HKD 4.43 billion, down 4% year-on-year. The decline in revenue was primarily due to a reduction in new projects and construction revenue [2][6] - The company's gross profit margin improved by 4.55 percentage points to 43.04%, the highest in the past eight years, while the net profit margin increased by 1.69 percentage points to 16.30% [2][6] Future Outlook - The company is expected to see a positive turning point in free cash flow in 2024, driven by a reduction in capital expenditures and optimistic signals regarding national subsidies [2][6] - The company has a total cash dividend of HKD 1.351 billion in 2023, with a dividend payout ratio of 30.51%, indicating stable dividend payments consistent with the past three years [2][6]
2023年报点评：自由现金流拐点将在2024年出现