Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$4.40, indicating a potential upside of 10.3% based on the current price of HK$3.99 [4][9]. Core Insights - The company's revenue structure has changed, leading to a significant increase in gross margin, which rose by 11.1 percentage points to 41.8% in FY23. However, total revenue decreased by 39.6% year-on-year to HK$4.98 billion, primarily due to the depreciation of the RMB and a reduction in project development [2][3]. - The company aims to maintain its capacity in FY24, which is expected to enhance future dividend payout ratios and further support gross margin improvements as construction revenue decreases [3][4]. - The sanitation business is developing rapidly, contributing to revenue diversification. In FY23, sanitation and other service revenues increased by 50.7% to HK$340 million, and the report anticipates this segment's revenue share will reach 9.0% by 2025 [4]. Financial Summary - For FY23, the company reported a net profit of HK$1.00 billion, a decline of 24.8% year-on-year, with an expected recovery to HK$1.27 billion in FY24 and HK$1.38 billion in FY25 [2][4]. - The earnings per share (EPS) for FY23 was HK$0.41, with projections of HK$0.52 for FY24 and HK$0.57 for FY25 [4][7]. - The company’s total revenue for FY23 was HK$4.98 billion, with forecasts of HK$4.67 billion for FY24 and HK$4.71 billion for FY25, reflecting a downward trend in revenue generation [4][7].
收入结构改变，毛利率大幅提升