China Everbright Environment Group (257) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was HK$30.26 billion, down 6% year-on-year; gross profit fell 16% and EBITDA declined 21%.

• Profit attributable to equity holders dropped 24% to HK$3.38 billion; basic EPS decreased 24%.

• Total dividend per share increased 5% to 23 HK cents, with payout ratio rising to 41.8%.

• The group invested in 12 new projects (RMB1.764 billion) and signed asset-light contracts worth RMB1.835 billion, expanding in solid waste, water, and clean energy.

• International expansion included new agreements in Uzbekistan, Malaysia, Egypt, Indonesia, and India.

Financial highlights

• Revenue: HK$30.26 billion (-6% year-on-year); gross profit: HK$11.54 billion (-16%).

• EBITDA: HK$10.08 billion (-21%); profit attributable to equity holders: HK$3.38 billion (-24%).

• Return on equity: 7.01% (down 2.26ppt); gearing ratio: 64% (down 1ppt).

• Cash and bank balance: HK$8.04 billion; total assets: HK$186.03 billion (-2%).

• Final dividend per share: 9 HK cents (+13%); total dividend per share: 23 HK cents (+5%).

Outlook and guidance

• Strategic focus on high-quality development, technology-driven growth, and internationalisation.

• Emphasis on digital transformation, operational efficiency, and expanding synergistic and incremental businesses.

• Industry trends include a shift from construction to operational services and increased emphasis on green, low-carbon initiatives.

• Opportunities in energy transformation, resource recycling, and digitalisation; challenges from market saturation and stricter regulations.

• Continued prioritisation of risk management, safety, and receivables collection.