CROSBY Research – China Everbright Greentech (1257 HK/BUY): FY22 results preview

13 Jan 2023

CEG’s 1H22 revenue edged down by 2% YoY to HK$4,220m, and 1H22NP was down by 47% YoY to HK$372m. We expect 2H22 results could be worse than 1H22, on the back of i) deteriorating demand of its HWT business amid COVID-19, with lower volume treatment and ASP as its clients have less output thus less demand for HWT; ii) less construction activities in both its biomass and HWT segments due to the pandemic; iii) higher funding costs amid rising interests rates globally; and iv) collection pace of government subsidies would be slower with the ongoing COVID-19 situation.