HK Stock Market Move | EB ENVIRONMENT (00257) rises more than 4% again, Citigroup is optimistic about strong free cash flow supporting stable dividend growth.

EB ENVIRONMENT (00257) rose by over 4%, as of press time, it rose by 3.86% to HKD 5.37, with a turnover of HKD 66.5029 million. Citibank released a research report stating that EB ENVIRONMENT's annual net profit increased by 16.2% to HKD 3.925 billion, of which the net profit in the second half of the year increased by 86.1% to HKD 1.718 billion. The full-year profit exceeded market expectations by 10%, mainly due to lower than expected financial costs and impairment losses. The bank believes that EB ENVIRONMENT's strong free cash flow can support stable and continuous dividend growth. Bank of America Securities stated that it is expected that the company's free cash flow will maintain a high level of around HKD 9 billion from 2026 to 2028. Low capital expenditure will become the new norm, and after deducting financing costs, the free cash flow yield will reach 20%. With earnings per share growth and strong free cash flow support, the bank expects dividends to continue to rise, and management also reiterated its commitment to shareholder returns. The suggestion that A-share listing may lead to a revaluation of the valuation.