Investment Rating - The report has downgraded the investment rating to "Hold" [4] Core Views - The company's net profit for 2023 was HKD 3.122 billion, a decrease of 34.5% year-on-year, with earnings per share at HKD 0.48. The total dividend for 2023 is HKD 0.31, resulting in a dividend payout ratio of 65%, which is below expectations [4] - The decline in profit is primarily attributed to a property impairment of HKD 1.81 billion, while the company's revenue for 2023 was HKD 24.2 billion, reflecting a year-on-year increase of 4.3% [4] - The water business remains stable, contributing approximately 85% to the pre-tax profit, with a pre-tax profit of HKD 5.706 billion for 2023, consistent with 2022 [4] - The company is facing pressure from the real estate sector, which may continue to suppress profits in the future [4] - The company has adopted a new dividend policy, reducing the dividend payout ratio from 84% in 2022 to 65% in 2023, indicating uncertainty in future dividends due to ongoing real estate pressures [4] Financial Data and Earnings Forecast - Revenue for 2023 was HKD 24.2 billion, with a year-on-year growth rate of 4% [5] - The net profit forecast for 2024 and 2025 has been adjusted to HKD 3.692 billion and HKD 3.737 billion, respectively, down from previous estimates of HKD 4.289 billion and HKD 4.455 billion [4][5] - The projected earnings per share for 2024, 2025, and 2026 are HKD 0.56, HKD 0.57, and HKD 0.54, respectively [5] - The price-to-earnings ratio for 2024, 2025, and 2026 is projected to be 6.2, 6.1, and 6.5 times, respectively [5]
业绩公告点评：水务主业稳健，地产压力影响公司股息