Infore Environment Technology (SZ:000967) Xin Lang Cai Jing·2025-04-29 02:43Core Viewpoint - The company reported its annual and Q1 financial results for 2024, showing a slight increase in revenue and net profit, but overall performance was below expectations due to credit impairment losses. The company maintains a strong position in the urban services and environmental equipment sectors, with significant growth potential driven by market reforms and policy support [1][2][3]. Financial Performance - In 2024, the company achieved operating revenue of 13.118 billion yuan (+3.85%) and a net profit attributable to shareholders of 514 million yuan (+3.04%), impacted by credit impairment losses of 262 million yuan [1]. - For Q1 2025, the company reported operating revenue of 3.182 billion yuan (+6.15%) and a net profit of 181 million yuan (+4.74%), meeting expectations [1]. Urban Services Sector - The urban services segment experienced robust growth, with revenue reaching 6.441 billion yuan in 2024, representing a year-over-year increase of 14.41%. The company secured new annual contracts worth 1.486 billion yuan, ranking second in the industry [1]. - As of the end of 2024, the total contract amount for operational projects was 61.285 billion yuan, with an annualized contract amount of 7.172 billion yuan and a backlog of 39.383 billion yuan, indicating a solid project reserve for sustainable development [1]. Environmental Equipment Sector - The environmental equipment sector faced short-term pressure, but sales of new energy environmental equipment grew against the trend. The company maintained its position as the industry leader, with revenue from environmental equipment at 5.187 billion yuan in 2024 (+2.01%) [2]. - The company achieved a market share of 30.5% in new energy environmental equipment, with sales of 2,691 pure electric environmental vehicles, maintaining the top position in the industry for three consecutive years [2]. Dividend Policy - The company plans to distribute a cash dividend of 1.89 yuan per 10 shares (including tax) for the 2024 fiscal year, amounting to approximately 599 million yuan in total cash dividends, with a dividend payout ratio of about 116.56% and a current dividend yield of approximately 3.3% [3]. Investment Outlook - Due to impairment risks, the company has adjusted its net profit forecasts for 2025-2026 to 759 million yuan and 880 million yuan, respectively, while introducing a new forecast of 993 million yuan for 2027. The current market capitalization corresponds to price-to-earnings ratios of 24, 21, and 18 for 2025-2027 [3]. - Given the company's strong market position in environmental equipment and services, along with evident synergy benefits, the investment rating is maintained at "overweight" [3].