Hong Kong Stock Movement | EB ENVIRONMENT (00257) Rises Over 4% in Afternoon Trading; Company Initiates A-Share Listing Tutoring, Citigroup Foresees Accelerated Profit Growth

Stock News
01/07

EB ENVIRONMENT (00257) surged more than 4% in afternoon trading. As of the time of writing, the stock was up 4.53%, trading at HK$4.85, with a turnover of HK$48.3331 million. On the news front, on December 26, the website of the China Securities Regulatory Commission indicated that EB ENVIRONMENT has completed the registration for listing tutoring with the Shenzhen Securities Regulatory Bureau, marking the initiation of its listing tutoring process. EB ENVIRONMENT is a prominent domestic waste-to-energy enterprise. Its 2024 annual report reveals it is China's largest environmental company and the world's largest investor and operator in waste-to-power. Citigroup issued a research report reiterating its "Buy" rating on EB ENVIRONMENT. The rating is based on expectations that the company achieved positive free cash flow growth last year, which is for the first time sufficient to cover financing costs and dividend payments, thereby supporting sustained dividend growth; more prudent capital expenditures, primarily directed towards overseas projects with returns higher than domestic projects; and the catalyst of a potential A-share dual listing, which is expected to drive a re-rating of the H-share value. The bank believes that the company's profit growth this year is expected to accelerate year-on-year.

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