Core Viewpoint - Xingrong Environment has demonstrated steady growth in its 2024 annual report, with significant increases in revenue and net profit, showcasing its robust business model in the water supply and environmental protection sectors [1][2][4]. Financial Performance - In 2024, the company achieved operating revenue of approximately 9.049 billion yuan, a year-on-year increase of 11.90% [1]. - The net profit attributable to shareholders reached 1.996 billion yuan, reflecting a growth of 8.28% [1]. - Earnings per share were reported at 0.67 yuan, up by 8.06% compared to the previous year [1]. - From 2020 to 2024, the compound annual growth rates for operating revenue and net profit were 13.93% and 11.35%, respectively [1][2]. Business Segments - The wastewater treatment service revenue was approximately 3.641 billion yuan, marking a 20.42% increase, with a gross margin of 41.63% [4]. - The company processed 1.384 billion tons of wastewater, a 9.72% increase year-on-year [4]. - In the water supply segment, the company sold 1.15 billion tons of water, a 7.62% increase, generating revenue of 2.620 billion yuan [4]. - The revenue from waste incineration power generation grew by 10.51%, with a gross margin of 48.07% [5]. Strategic Initiatives - The company has launched a dividend plan for 2024, proposing a cash dividend of 1.87 yuan per 10 shares, a 10% increase from 2023 [3]. - Xingrong Environment is expanding its market presence by initiating new water supply and drainage projects in various regions and acquiring projects related to kitchen waste disposal [5][6]. - The company is focusing on digital transformation and innovation, with a significant increase in R&D investment, amounting to 54.88 million yuan, a 355.05% increase from 2023 [8]. Future Outlook - The company is expected to continue its growth trajectory with several projects set to commence operations in the coming years, including new water treatment facilities and waste incineration projects [6]. - Xingrong Environment aims to enhance its operational efficiency and management through the implementation of smart technologies and standardized processes [9][10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - In 2024, the company achieved total revenue of 9.049 billion yuan, an increase of 11.90% year-on-year; the net profit attributable to shareholders was 1.996 billion yuan, up 8.28% year-on-year; and the net profit excluding non-recurring items was 1.963 billion yuan, an increase of 8.82% year-on-year [2][9] Financial Performance Summary - Total revenue forecast for 2023A is 8.087 billion yuan, with a year-on-year growth of 5.99% - Forecasted total revenue for 2024A is 9.049 billion yuan, with a year-on-year growth of 11.90% - Forecasted net profit attributable to shareholders for 2023A is 1.843 billion yuan, with a year-on-year growth of 13.97% - Forecasted net profit attributable to shareholders for 2024A is 1.996 billion yuan, with a year-on-year growth of 8.28% - Forecasted EPS for 2024A is 0.67 yuan per share, with a P/E ratio of 10.53 [1][10] Business Segment Performance - Water supply revenue reached 2.620 billion yuan, up 7.26% year-on-year, with a gross margin of 45.57% - Wastewater treatment revenue reached 3.641 billion yuan, up 20.42% year-on-year, with a gross margin of 41.63% - Revenue from waste incineration reached 774 million yuan, up 10.51% year-on-year, with a gross margin of 48.07% [9][10] Future Outlook - The company is expected to maintain growth momentum in the water and solid waste sectors, with significant cash flow generation potential and dividend growth opportunities [9][10]

Core Viewpoint - The company reported positive growth in both operating revenue and net profit for 2024, with operating revenue reaching 9.049 billion and net profit at 1.996 billion, reflecting year-on-year increases of 12% and 8% respectively [2] Group 1: Financial Performance - The company achieved an operating revenue of 9.049 billion, with a year-on-year growth of 12% [2] - The net profit attributable to shareholders was 1.996 billion, representing an 8% increase year-on-year [2] - The company’s main business segments, including wastewater treatment, water supply, and waste incineration, showed strong profitability, with wastewater treatment revenue growing by 20% to 3.641 billion and a gross margin increase of 1.48 percentage points to 41.63% [2] - The net cash flow from operating activities increased by 8.61% year-on-year due to improved management of accounts receivable [2] Group 2: Business Expansion - The company is expanding its business scale, focusing on Chengdu while actively developing projects outside the province, with a total operational, under-construction, and planned capacity of approximately 9.3 million tons per day for water supply and drainage projects [3] - The company has secured over 50 water and environmental protection concession projects across nine provinces and regions, with concession periods typically ranging from 25 to 30 years [3] - In 2025, the company plans to operationalize several key projects in Chengdu, which are expected to enhance operational performance as capacity expands [3] Group 3: Market Outlook - The market outlook is promising, with government policies aimed at improving urban wastewater management and increasing treatment rates, such as the goal to eliminate direct discharge points by 2027 [4] - Chengdu's "14th Five-Year" water development plan emphasizes the integration of supply and drainage systems and the enhancement of water infrastructure [4] - The long-term trend of stable development in the water and environmental protection industry is expected to continue, supported by various policy initiatives that present growth opportunities for the company [4] Group 4: Profit Forecast - The company is projected to achieve operating revenues of 9.878 billion, 10.808 billion, and 11.851 billion for 2025-2027, with year-on-year growth rates of 9.17%, 9.41%, and 9.65% respectively [5] - The net profit attributable to shareholders is expected to reach 2.257 billion, 2.511 billion, and 2.800 billion for the same period, with growth rates of 13.06%, 11.28%, and 11.48% respectively [5] - Based on the closing price on April 17, 2025, the corresponding PE ratios are projected to be 9.43, 8.47, and 7.60, with EPS estimates of 0.76, 0.84, and 0.94 [5]

丨证券研究报告丨 公司研究丨点评报告丨兴蓉环境（000598.SZ） [Table_Title] 兴蓉环境2024A点评：归母净利润同比增8.3%， 自来水爬坡+污水提价有望延续增长 报告要点 [Table_Summary] 兴蓉环境 2024 年实现营收 90.49 亿元，同比增 11.9%；归母净利润 19.96 亿元，同比增 8.28%。 2024 年公司经营侧稳健，核心运营板块自来水制售、污水处理服务、垃圾焚烧发电稳健增长， 自来水业务产能爬坡，和污水处理价格提升，有望延续公司业绩增长。 分析师及联系人 [Table_Author] 徐科 任楠 贾少波 李博文 盛意 SAC：S0490517090001 SAC：S0490518070001 SAC：S0490520070003 SAC：S0490524080004 SFC：BUV415 SFC：BUZ393 请阅读最后评级说明和重要声明 %% %% %% %% research.95579.com 1 2025-04-18 兴蓉环境（000598.SZ） cjzqdt11111 [Table_Title 兴蓉环境 2024A 2] 点评：归母净利润同 ...

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 7.55 [6][7]. Core Views - The company achieved a revenue of RMB 9.049 billion in 2024, representing a year-over-year increase of 11.90%, and a net profit attributable to shareholders of RMB 1.996 billion, up 8.28% year-over-year [1][2]. - The growth in revenue and profit is driven by increased business volume, price adjustments, and operational efficiency improvements in its main business segments [2][3]. - The company is expected to continue its revenue and profit growth from 2025 to 2027, supported by increased operational capacity and price hikes [1][4]. Summary by Sections Financial Performance - In 2024, the company's wastewater treatment revenue reached RMB 3.641 billion, up 20.4% year-over-year, driven by a 9.72% increase in wastewater treatment volume to 138.4 million tons and higher treatment prices in Chengdu [2]. - The water supply revenue was RMB 2.626 billion, a 7.3% increase, with sales volume of 1.15 billion tons, and a gross margin increase of 1.11 percentage points to 45.57% [2]. - The revenue from waste incineration power generation was RMB 774 million, with a gross margin of 48.1%, reflecting a 7.9 percentage point increase [2]. Cost and Cash Flow - The company reported an increase in R&D expenses to RMB 53 million, primarily due to more R&D projects [3]. - Financial expenses rose to RMB 391 million, mainly due to interest expenses from completed projects [3]. - The net operating cash flow for 2024 was RMB 3.681 billion, an increase of 8.61% year-over-year, with a dividend per share (DPS) of RMB 0.187, up 10% year-over-year [3]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been adjusted, with expected EPS of RMB 0.74, RMB 0.81, and RMB 0.88 for the respective years, reflecting downward adjustments of 6% and 8% for 2025 and 2026 [4]. - The target price of RMB 7.55 is based on a price-to-earnings (PE) ratio of 10.2 times for 2025, aligning with the average PE of comparable companies [4][11].

Core Insights - The company reported a robust financial performance for 2024, with total revenue reaching 9.049 billion yuan, an increase of 11.90% year-on-year, and a net profit attributable to shareholders of 1.996 billion yuan, up 8.28% year-on-year [1][2] Financial Performance - The company achieved earnings per share of 0.67 yuan, reflecting an 8.06% increase year-on-year [1] - Operating cash flow net amount reached 3.681 billion yuan, growing by 8.61% year-on-year [3] - Total assets increased to 48.448 billion yuan, marking an 11.24% year-on-year growth [1] Business Segments Performance - The wastewater treatment segment generated 3.641 billion yuan in revenue, a significant increase of 20.42% year-on-year, driven by operational enhancements and fee adjustments [2] - The water supply segment saw a 7.62% increase in water sales volume to 1.150 billion tons, with revenue reaching 2.620 billion yuan, up 7.26% year-on-year [2] - The waste incineration power generation segment achieved revenue of 774 million yuan, growing by 10.51% year-on-year, with a gross margin increase of 7.84 percentage points to 48.07% [2] Cost Management and Shareholder Returns - The company effectively managed accounts receivable and optimized financing structures to mitigate cost pressures associated with business expansion [3] - A cash dividend of 1.87 yuan per 10 shares is proposed, representing a 10% increase in total dividends year-on-year, reflecting management's confidence in future performance [3] Expansion and Capacity Growth - The company is focusing on consolidating regional advantages while expanding its national market presence, with new projects in multiple locations and successful acquisitions [4] - Total operational and under-construction water supply project capacity reached approximately 9.2 million tons per day, with waste incineration capacity at 12,000 tons per day [4] - The company is also expanding into emerging sectors such as reclaimed water utilization and kitchen waste disposal, with a current reclaimed water business scale of 1.3 million tons per day [4] Innovation and Technology - The company significantly increased R&D investment by 355% year-on-year to 54.88 million yuan, launching 57 projects and obtaining 33 new patents [5] - A smart management platform is being developed to enhance operational efficiency across various functions [5] Environmental and Social Responsibility - Several projects have been recognized as industry benchmarks, including a kitchen waste resource utilization project selected by the UN [6] - The company received multiple awards for its ESG practices, highlighting its commitment to social responsibility and environmental sustainability [6] Future Outlook - Industry experts anticipate growth opportunities for the company in 2025, driven by supportive policies and market reforms in the environmental sector [7] - The company is well-positioned with a strong project pipeline and a solid financial structure, supported by technological innovation and smart operations [7]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's main business gross margin is on the rise, indicating a steady improvement in operational quality [1] - In 2024, the company achieved operating revenue of 9.049 billion yuan, a year-on-year increase of 11.9%, and a net profit attributable to shareholders of 1.996 billion yuan, up 8.3% year-on-year [1][2] - The company plans to distribute a dividend of 1.87 yuan per 10 shares, resulting in a dividend yield of 2.46% based on the closing price on April 17 [2] Summary by Sections Business Performance - The water supply business sold 1.15 billion tons in 2024, a year-on-year increase of 7.62%, generating revenue of 2.62 billion yuan, up 7.26% year-on-year, with a gross margin of 45.57% [4] - The wastewater treatment business processed 1.384 billion tons, a year-on-year increase of 9.72%, with revenue of 3.641 billion yuan, up 20.42% year-on-year, and a gross margin of 41.63% [4] - The environmental protection business generated 994 million kWh of waste incineration power, a year-on-year increase of 2.88%, with a gross margin of 48.07% [4] Financial Metrics - The company reported a net cash flow from operating activities of 3.681 billion yuan in 2024, an increase of 8.61% year-on-year [4] - Accounts receivable increased by 21.55% year-on-year to 3.28 billion yuan, with a turnover period of 118.94 days, an increase of 11 days year-on-year [4] - The company expects to achieve operating revenues of 9.687 billion yuan, 10.592 billion yuan, and 10.983 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 2.192 billion yuan, 2.492 billion yuan, and 2.538 billion yuan [5][6] Growth Potential - The company is expected to continue expanding its water supply market in Chengdu, with new projects set to come online in 2025 [5] - The company has a robust pipeline of projects, with a total capacity of over 9 million tons per day, which is expected to contribute to revenue growth in the coming years [5]

证券研究报告 公司研究 [Table_ReportType] 公司点评报告 [Table_StockAndRank] 兴蓉环境(000598.SZ) | | | 上次评级 买入 [Table_A 左前明 uthor 能源行业首席分析师 ] 执业编号：S1500518070001 联系电话：010-83326712 邮 箱：zuoqianming@cindasc.com 郭雪 环保联席首席分析师 执业编号：S1500525030002 邮 箱：guoxue @cindasc.com 吴柏莹 公用环保行业分析师 执业编号：S1500524100001 邮 箱：wuboying@cindasc.com 信达证券股份有限公司 CINDA SECURITIES CO.,LTD 北京市西城区宣武门西大街甲127号金隅大厦 B座 邮编：100031 [Table_Title] 主营业务毛利率上行，经营质量稳步提升 [Table_ReportDate] 2025 年 4 月 18 日 [Table_S 事件：2025 ummar年y]4 月 17 日晚，兴蓉环境发布 2024 年度报告。2024 年公司 实现营业收入 90. ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a total revenue of 9.049 billion yuan for 2024, representing a year-on-year growth of 11.9%, and a net profit attributable to shareholders of 1.996 billion yuan, with a year-on-year increase of 8.3%, which aligns with expectations [6] - The adjustment of sewage prices in Chengdu has significantly boosted sewage income, while the water supply and solid waste sectors are developing steadily [6] - The company has improved its cost control, resulting in an increase in gross profit margins across various segments [6] - Operating cash flow has steadily increased, and capital expenditure growth has slowed down [6] - The company maintains a dividend payout ratio of 28%, with an expected dividend yield of 2.62% [6] - The company is positioned as a state-owned platform for water and solid waste management in Chengdu, with potential for capacity expansion and improved free cash flow [6] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 9.996 billion yuan, with a year-on-year growth of 10.5% [5] - Net profit attributable to shareholders is projected to be 2.216 billion yuan for 2025, reflecting an 11.0% year-on-year increase [5] - Earnings per share are expected to be 0.74 yuan in 2025 [5] - The company’s gross profit margin is forecasted to be 41.0% for 2025 [5] - The price-to-earnings ratio is projected to be 10 for 2025 [5]

Core Viewpoint - Xingrong Environment reported a strong financial performance for 2024, with significant growth in revenue and net profit, driven by core business segments such as wastewater treatment and waste-to-energy projects [1] Financial Performance - The company achieved an operating revenue of 9.049 billion yuan, representing a year-on-year increase of 11.9% [1] - The net profit attributable to shareholders reached 1.996 billion yuan, up 8.28% compared to the previous year [1] - Operating cash flow amounted to 3.681 billion yuan, reflecting an increase of 8.61% [1] - Earnings per share grew to 0.67 yuan, and the company proposed a cash dividend of 1.87 yuan per 10 shares, a 10% increase from 2023 [1] Business Expansion - The company successfully expanded its market presence with new water supply and drainage projects in locations such as Wenjiang and Dayi, and completed the acquisition of a kitchen waste disposal project in Xi'an [1] - Xingrong Environment is diversifying into areas such as reclaimed water utilization, direct drinking water, and solid waste resource recovery, aiming to create multiple growth drivers [1] Project Development - Ongoing construction projects include the Qilong Water Plant and the Phoenix River Reclaimed Water Plant, which are expected to be operational within the year [2] - Other projects, such as the Chengdu Water Plant Phase III and the Qionglai Kitchen Waste Disposal Plant, are in testing or trial operation stages, with capacity expected to be released by 2025 [2] - The company is advancing its construction projects, including the Wanxing Environmental Power Plant Phase III and the Chengdu Central District Kitchen Waste Treatment Phase III, which will enhance processing capacity [2] Innovation and Management - The company is implementing a comprehensive management system through its "Five Centers" smart platform, promoting standardized operations across multiple subsidiaries [2] - Xingrong Environment aims to leverage opportunities in the digital era by integrating data-driven management and smart technology to achieve high-quality development [2]