Bank of America Securities Forecasts Continued Dividend Growth for EB ENVIRONMENT (00257), Raises Target Price to HK$6.8

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昨天

Bank of America Securities has issued a research report projecting that EB ENVIRONMENT (00257) will achieve a net profit of HK$3.9 billion for 2025, surpassing the firm's expectations by 6%. The final dividend increased by 3 HK cents to 12 HK cents per share, which is 20% higher than the bank's forecast. The bank has reaffirmed its "Buy" rating, anticipating that free cash flow will remain at a high level of approximately HK$9 billion from 2026 to 2028. It expects low capital expenditure to become the new norm, with a free cash flow yield reaching 20% after financing costs. The bank predicts an attractive dividend yield of 6% for 2026 and has raised the target price from HK$6.2 to HK$6.8. Furthermore, supported by growth in earnings per share and strong free cash flow, the bank expects dividends to continue rising, with management reiterating its commitment to shareholder returns. A potential A-share listing could also lead to a valuation reassessment.

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