China Everbright Environment HY profit rises, helped by lower borrowing costs

China Everbright Environment

28/08/2026 05:16

Overview
Hong Kong waste management firm's half-year revenue declined 1% yr/yr
Profit attributable to equity holders rose 10% yr/yr
Company raised interim dividend to HK16.0 cents per share

Outlook
China Everbright Greentech completes RMB 1.0 bln green MTN at 1.61% for two years to repay debt and fund project
Everbright Water completes RMB 1.5 bln MTN at 1.80% for five years to repay existing bonds

Result Drivers
EXPIRING TAX INCENTIVES – Environmental energy net profit fell 3% as higher operating gross profit was offset by expired tax incentives
REVENUE MIX SHIFT – Operating-service revenue rose 8%, but construction-service revenue fell 54%, contributing to a 1% revenue decline
LOWER BORROWINGS – Finance costs fell to HK$1.09 bln from HK$1.25 bln as the group reduced its loan balance

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
HK$14.18 bln
 
H1 Net Income Attributable
 
HK$2.43 bln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the multiline utilities peer group is "buy."
Wall Street's median 12-month price target for China Everbright Environment Group Ltd is HK$6.40, about 24.9% above its August 27 closing price of HK$5.13
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 27 - Beijing Enterprises Environment's half-year revenue, profit rise
Aug 25 - China's Tianjin Capital Environmental Protection H1 revenue rises
Aug 27 - Canada's EverGen infrastructure Q2 revenue rises on higher tipping, carbon credit sales

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)