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| HSI1 | 24,448.95 | -32.91 | 173.71B |
| HSCEI1 | 8,260.15 | -13.95 | 54.80B |
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2026-11-09 12:32:47 BofA Securities published a research report stating that EB ENVIRONMENT (00257.HK) disclosed progress on its A-share listing plan, intending to issue no more than 800 million shares on the Shenzhen Stock Exchange, representing about 13% of existing issued shares. Proceeds will be used for seven construction projects, mainly waste-to-energy projects in Dongguan, Uzbekistan and Vietnam, involving total capital expenditure of RMB8.6 billion. The broker noted that, as a state-owned enterprise, EB ENVIRONMENT (00257.HK) is required to issue A-shares at above 1x PB ratio. It estimated book value per share at end-2026 at HKD8.9. The broker understands that Mainland investors require a dividend yield above 4%, implying DPS needs to increase to about HKD0.37, up 38% YoY, implying a 7.5% dividend yield. The broker believes the DPS increase will offset around 9% EPS dilution and expects the dividend level to remain unchanged at least thereafter. To achieve DPS of HKD0.37 after the enlarged share capital, the payout ratio may need to reach about 55%. BofA Securities expected EB ENVIRONMENT (00257.HK) may only commit to a dividend payout ratio of no less than 40% to 50% over the next three years, but it remains confident that DPS will reach HKD0.37. It maintained the TP at HKD6.8 and reiterated the rating at "Buy". (gc/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |