TCEPC (600874 CH/1065 HK): H-share Dividend Yield Likely to Reach 7.8% in 2026

TCEPC reported 3Q26 revenue of RMB1,198mn (-5.62% YoY, +8.85% QoQ) and attributable NP of RMB230mn (+0.40% YoY, +8.41% QoQ), in line with our previous forecast of RMB212-268mn. For 9M26, revenue reached RMB3,447mn (flat YoY), attributable NP reached RMB718mn (+2.34% YoY), and recurring NP reached RMB674mn (+12.72% YoY). As facilities under construction come online, we remain positive on the potential for sewage water processing volume and price increases. With robust free cash flow supporting dividend payouts, we estimate a 2026E H-share dividend yield of 7.8%, an appealing rate. Maintain BUY on both the A and H shares. The company's core business is water treatment and water resource utilization;