Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][6]. Core Views - The company is the largest waste-to-energy operator globally, with a significant focus on environmental energy, water services, and new energy sectors. In 2022, it generated revenue of HKD 37.321 billion, with environmental energy contributing 59% [2][14]. - The company is transitioning from external growth to internal growth, as operational revenue has increased significantly, indicating a shift towards a more stable operational phase [2][18]. - The company's cash flow is expected to improve due to subsidy recoveries, enhancing its dividend yield, which has been around 30% historically [2][22]. Summary by Sections 1. Company Overview - The company, under the Everbright Group, has developed into the world's largest waste-to-energy operator since its establishment in 1993, with a focus on environmental energy, water services, and new energy [2][14]. - As of June 2023, the company has 188 waste-to-energy projects with a daily processing capacity of 157,200 tons of municipal waste [14][15]. 2. Operational Performance - The operational revenue ratio has increased, with 49% in 2022 and 57% in the first half of 2023, indicating a shift towards operational maturity [2][18]. - The company has reduced capital expenditures, leading to a positive outlook for free cash flow as it transitions from a high capital expenditure phase to a mature operational phase [2][20]. 3. Financial Performance - The company is projected to achieve revenues of HKD 37.475 billion, HKD 36.002 billion, and HKD 36.650 billion for 2023-2025, with corresponding net profits of HKD 4.090 billion, HKD 4.115 billion, and HKD 4.250 billion [2][6]. - The current price-to-earnings (PE) ratio is low compared to peers, enhancing the attractiveness of its dividend yield, projected at 6.6%, 6.7%, and 6.8% for 2023-2025 [2][6]. 4. Sector Analysis - The waste-to-energy sector is transitioning from rapid expansion to a focus on operational efficiency, with the company leading in waste processing capacity, which increased from 14.27 million tons/year in 2017 to 46.79 million tons/year in 2022 [2][24]. - The company has strategically positioned itself in economically developed regions, enhancing its operational metrics and profitability [2][30]. 5. Water Services and Green Energy - The water services segment has shown stable growth, with wastewater treatment capacity increasing to 5.77 million tons/day by the end of 2023 [2][35]. - The green energy segment, primarily focused on biomass power generation, is expected to benefit from improved cash flow as government subsidies are anticipated to be received [2][22].
全球最大垃圾发电运营商高股息彰显投资价值： 光大环境