In "The Big Banks," CICC raises the target price of EB ENVIRONMENT to 5.2 yuan and adjusts the dividend forecast

CICC published a research report indicating that EB ENVIRONMENT (00257.HK) saw a year-on-year decline in operating revenue of 8% in the first half of the year, with net profit dropping by 10%. The dividend increased by 7% year-on-year to HKD 0.15, with a payout ratio of 42%.

The firm expects that EB ENVIRONMENT's capital expenditure will remain stable in the next two years, but with the expansion of waste incineration projects in Central Asia and Southeast Asia, the proportion of overseas business capital expenditure may increase. The firm maintains its profit forecast for the group, reiterating an "outperform industry" rating, and believes that although the group's mid-term profits have declined, free cash flow remains robust. Therefore, it has raised the group's dividend forecast for this year to HKD 0.25, a year-on-year increase of 10%, and increased the target price by 8% to HKD 5.2