CITIC SEC maintains a "buy" rating on EB ENVIRONMENT (00257) with a target price of HK$4.1.

CITIC SEC released a research report stating that they have maintained a "buy" rating for EB ENVIRONMENT (00257), but have lowered the forecasted EPS for 2024 to 0.52/0.61/0.64 Hong Kong dollars (previously forecasted at 0.68/0.69/0.71 Hong Kong dollars). The target price is set at 4.1 Hong Kong dollars. The subsidiary company CEB GREENTECH (01257), with a 69.70% stake held by the company, announced that they expect a 66-69% increase in net loss for 2024, due to the continuous intense competition in the hazardous waste industry. This is expected to negatively impact the company's performance in 2024. However, the company's revenue structure continues to improve, and cash flow remains in a positive trend. The company has potential as a high-quality dividend target, assuming that the mid-term dividend payout can be sustained, with the dividend payout ratio expected to increase to 42% in 2024.