China Everbright Environment Group (257) H1 2024 earnings summary

Executive summary

• Revenue for 1H2024 was HK$15,612 million, down 4% year-over-year; net profit attributable to equity holders fell 12% to HK$2,454 million; EBITDA declined by 11%.

• Interim dividend per share remained at 14.0 HK cents, with a payout ratio rising to 35%, up 4 percentage points from last year.

• The Group expanded both asset-light and asset-heavy models, secured 8 new projects, and operates in 227 cities across China and several overseas markets.

• Business indicators showed growth in waste treatment volumes, electricity generation, and equipment sales.

• Management efficiency improved through cost control, digitalisation, and enhanced procurement practices.

Financial highlights

• Gross profit: HK$6,046 million (-16% YoY); EBITDA: HK$6,550 million (-11% YoY); Net profit attributable to equity holders: HK$2,454 million (-12% YoY); Basic EPS: HK39.95 cents (-12% YoY).

• Total assets: HK$189,453 million; equity attributable to holders: HK$50,008 million (+4% from 2023 year-end); net asset value per share: HK$8.141 (+4%).

• Gearing ratio improved to 64% from 65% at year-end 2023; current ratio: 141%.

• Cash and bank balances: HK$8,274 million (-4% from year-end 2023); outstanding borrowings: HK$94,174 million.

• Dividend payout ratio increased to 35% (from 31% in 1H2023).

Outlook and guidance

• Focus on high-quality, sustainable development, cost control, efficiency, and technological innovation.

• Plans to diversify business models, accelerate new business transformation, and pursue overseas expansion.

• Emphasis on talent cultivation, digitalisation, and globalisation to support innovation-driven growth.