Citigroup raised the target price of EB ENVIRONMENT to 5.8 yuan with a rating of "Buy"

Citi published a research report stating that EB ENVIRONMENT (00257.HK) saw a 16.2% year-on-year increase in net profit last year to HKD 3.925 billion, with net profit in the second half of the year rising 86.1% year-on-year to HKD 1.718 billion. The full-year profit exceeded market expectations by 10%, mainly due to financial costs and impairment losses being lower than expected. The bank believes that EB ENVIRONMENT has strong free cash flow, which can support continuous and stable dividend growth; it has raised its net profit forecast for 2026 to 2027 by 4% to 7%, and its target price has been adjusted from HKD 5.4 to HKD 5.8, maintaining a "Buy" rating