Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in operational revenue from direct drinking water, up 73%, with expectations for accelerated water price adjustments [1] - For FY2024, total revenue was HKD 12,859 million, a year-on-year decrease of 9.4%, while net profit attributable to shareholders was HKD 1,534 million, down 17.4% [2][6] - The direct drinking water revenue accounted for 13.4% of total revenue, reflecting a growth of 4.2 percentage points [2][6] Summary by Sections Financial Performance - FY2024 total revenue was HKD 12,859 million, down 9.4% year-on-year, while net profit was HKD 1,534 million, down 17.4% [2] - The company maintained a dividend payout ratio of 30%, distributing HKD 0.28 per share [2] - The direct drinking water segment saw revenue growth of 72.5%, with operational revenue reaching HKD 293 million [2][6] Segment Analysis - Urban water supply revenue was HKD 8,276 million, down 5.2%, with segment profit decreasing by 12.2% [2] - Pipeline direct drinking water revenue was HKD 1,722 million, up 31.4%, with segment profit increasing by 17.3% [2] - Environmental services revenue fell by 24.0% to HKD 1,072 million, with segment profit also declining by 24.4% [2] - Total construction revenue decreased by 31.0% to HKD 827 million, with segment profit down 23.4% [2] Future Outlook - The company expects net profit for FY2025 to be HKD 1,626 million, and for FY2026 to be HKD 1,789 million, reflecting adjustments due to currency fluctuations and declining construction activities [2][6] - The projected net profit for FY2027 is HKD 1,989 million, corresponding to a P/E ratio of 5.0 for FY2025, 4.6 for FY2026, and 4.1 for FY2027 [2][6]
中国水务：FY2024年报点评：直饮水运营性收入高增73%，水价调整节奏有望加速