According to the research report released by Huayuan Securities, maintain a "buy" rating of EB Environment (00257). Considering the decline in construction revenue, the forecast for the company's net income attributable to mothers in 2024-2026 is lowered to HKD 4.14 billion, HKD 4.31 billion, and HKD 4.49 billion, respectively (before the adjustment was HKD 4.573 billion, HKD 4.715 billion, and HKD 4.84 billion). Assuming that the dividend yield in 2024-2026 remains at 30%, the dividend yields of the company in 2024-2026 will be 5.7%, 5.9%, and 6.2%, respectively.

With the changing macro environment at home and abroad, the bank analyzes that the market's re-pricing of risks may be the core driving force for sector rotation in the future. Low covariance and long-term assets are expected to continue to have an advantage. The profitability of waste incineration power generation is relatively stable, and the company's overall annualized ROE is maintained at around 10%. It is less affected by the economy, and the mainstream way after the expiration of the project franchise period is expected to be entrusted to operation, which basically conforms to the definition of low covariance and long-term assets. In addition, with the decrease of the projects under construction and the positive free cash flow, the company's profit and cash flow will be more matched. It is recommended to pay attention to the investment opportunities in the solid waste industry under the diffusion of low covariance industry. Moreover, from the perspective of dividend yield, the company has maintained an average dividend yield of about 30% per year, and the current dividend yield for 2024-2026 is maintained at 5.7%, 5.9%, and 6.2%. It is recommended to pay attention to the dividend value.