CICC published a research report stating that EB Environment (00257) recorded a year-on-year decline of 8% in revenue and a 10% drop in net profit for the first half of the year. The company declared a dividend of HK$0.15, representing a 7% increase compared to the same period last year, with a payout ratio of 42%.

The firm expects EB Environment's capital expenditure to remain stable over the next two years. However, with the expansion of waste incineration projects in Central Asia and Southeast Asia regions, the proportion of overseas business capital expenditure may increase.

CICC maintains its earnings forecast for the group and continues to assign an "outperform" rating. Although the group's interim earnings declined, the firm noted that free cash flow remains robust. Consequently, CICC has raised its dividend forecast for this year to HK$0.25, representing a 10% year-on-year increase, and lifted the target price by 8% to HK$5.2.