The Zhitong Finance App learned that Citibank released a research report stating that it expects the dividend per share of Everbright Environment (00257) to increase 12.1% year-on-year to $0.325 in 2027, driven by steady profit growth and increased dividend ratio to offset the dilution of the proposed A-share listing; the bank raised its 2026-2028 profit forecast by 2% to 7%, and the target price was raised by 3.4% to HK$6 from HK$5.8, confirming the “buy” rating.

The bank expects Everbright Environment to promise a minimum dividend ratio within three years after the A-share listing. The bank assumes no less than 40%. The bank pointed out that the increase in profit forecasts was mainly due to the increase in construction revenue from the pipeline project and the exchange benefits of the appreciation of the RMB against the Hong Kong dollar; the increase in target prices and the reconfirmation of the rating was due to an average compound annual growth rate of 7.9% in profit from 2026 to 2028, and the expansion of free cash flow, which supported sustainable dividend per share growth. Furthermore, the stock's valuation is attractive. In 2027, the price-earnings ratio is 6.8 times, the market account ratio is 0.6 times, and the dividend ratio is 6.3%.

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