Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's main business revenue for H1 2025 was HKD 9.428 billion, a year-on-year decrease of 0.6%, while the net profit attributable to shareholders was HKD 2.682 billion, an increase of 11.2% year-on-year [2][7] - The water resources segment showed stable revenue growth, contributing HKD 7.184 billion in H1 2025, with specific contributions from mainland China and Hong Kong water supply [7] - The company has maintained a dividend payout ratio of 65%, with an interim dividend of HKD 0.2666 per share, reflecting an increase of 11.22% [7] Financial Summary - Total revenue forecast for 2023A is HKD 24.355 billion, with a projected decline of 24.02% in 2024A, followed by a slight recovery in subsequent years [1][8] - The net profit attributable to shareholders is expected to be HKD 3.142 billion in 2024A, increasing to HKD 4.274 billion in 2025E, representing a growth of 36.01% [1][8] - The earnings per share (EPS) is projected to be HKD 0.48 in 2023A, increasing to HKD 0.65 in 2025E [1][8] - The price-to-earnings (P/E) ratio is forecasted to be 14.43 in 2023A, decreasing to 10.54 in 2025E [1][8]

Group 1 - The company, Zhangzhou Development, announced a plan to issue A-shares to specific investors, including its controlling shareholder, Zhanglong Group, with a total issuance not exceeding approximately 297 million shares [1] - The total capital raised from this issuance is expected to be no more than 1.05 billion yuan, allocated to various projects including ecological restoration, water plant expansion, and a photovoltaic power generation project [1] - The company’s total share capital is approximately 991 million shares, and the issuance price will be no less than 80% of the average trading price over the previous 20 trading days [1] Group 2 - For the year 2024, the revenue composition of Zhangzhou Development is as follows: water resource development accounts for 45.95%, new energy for 27.95%, fuel vehicle sales for 22.78%, and other industries for 3.33% [2] - The current market capitalization of Zhangzhou Development is 5.5 billion yuan [3]