China Everbright Environment Group (257) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 14% YoY to HK$32,090m; EBITDA was flat at HK$12,828m and profit attributable to equity holders declined 4% to HK$4,429m.

• Operation service revenue reached HK$19.18bn, or 60% of total revenue, supporting a more recurring revenue mix.

Financial highlights

• Revenue was HK$32,090m versus HK$37,321m in 2022 (-14%); gross profit was HK$13,811m (-4%) and EBITDA HK$12,828m (flat).

• Profit attributable to equity holders was HK$4,429m (-4%); basic EPS was HK72.10 cents (-4%).

• Total dividends were HK22.0 cents per share, down 8% YoY; final dividend was HK8.0 cents, down 11%.

Outlook and guidance

• Near-term priorities: improve project operating efficiency, steadily expand domestic and overseas markets, accelerate innovation, address accounts receivable collection, and strengthen risk control.

• Long-term plan targets balanced asset-heavy and asset-light growth, operation service revenue as the main revenue source, management-led development, and technology-driven competitiveness.