China Everbright (1257.HK) Q3 2024 Earnings Report

China Everbright Greentech (1257.HK) reported QQ3 2024 revenue of HKD 1.736 billion, a modest YoY decline of 3.5% and QoQ decline of 0.98%, with gross profit of HKD 389.4 million and a gross margin of 22.4%. Operating income stood at HKD 259.7 million, delivering an operating margin of 14.96% and a positive EBITDA of HKD 580.2 million (EBITDA margin ≈ 33.4%). However, the company posted a net loss of HKD 279.7 million for the quarter, with income before tax negative at HKD 459.1 million and a substantial negative contribution from non-operating items (total other income/expenses net) of HKD -718.7 million. These non-cash/non-operating items weigh on the bottom line despite solid operating performance. Free cash flow was HKD 96.7 million in the quarter, and operating cash flow was HKD 234.2 million, underscoring a company that generates cash from core activities but faces high financing costs and a heavy balance sheet burden. Net debt remains elevated (HKD 19.39 billion), with total debt around HKD 21.03 billion and a debt-to-capitalization of 0.646, indicating a leveraged capital structure. Liquidity metrics show a current ratio of 1.25 and a cash ratio of 0.159, signaling tighter near-term liquidity despite positive operating cash generation. The stock screens attractively on price-to-book (≈0.14) and price-to-sales (≈0.93), but the negative earnings and high leverage justify a cautious stance. The company’s outlook hinges on its ability to stabilize earnings, reduce non-operating charges, and monetize its substantial project pipeline in a policy environment favorable to renewables and waste-to-energy ventures in China. Management commentary from the earnings materials was not provided in the data set; as a result, this summary relies on disclosed quarterly metrics and balance sheet signals to frame the investment thesis. Investors should monitor debt refinancing risk, working capital dynamics (DSO ~536 days), project execution cadence, and any cadence changes in policy incentives affecting biomass and waste-to-energy projects.