CapitalECO-ProGroup(SH:600008) Huachuang Securities·2024-06-19 08:31Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 3.6 CNY, compared to the current price of 2.74 CNY [2][3]. Core Views - The company plans to sell its 100% stake in ECO Industrial Environmental Engineering Pte. Ltd. to focus on the domestic market. The sale price is approximately 3.199 billion CNY, based on the exchange rate at the time of the agreement [2][3]. - The transaction is expected to improve the company's cash flow and optimize its asset-liability structure, thereby reducing financing costs. It will also allow the company to concentrate resources on enhancing competitiveness in the domestic environmental protection market [3]. - The sale is projected to have a positive impact on the company's performance and cash flow in 2024, with the completion date anticipated around July 18, 2024 [3]. Financial Summary - Total revenue for 2023 is reported at 21.319 billion CNY, with a projected increase to 21.806 billion CNY in 2024, reflecting a year-on-year growth of 2.3% [4]. - The net profit attributable to the parent company for 2023 is 1.606 billion CNY, expected to rise to 1.752 billion CNY in 2024, indicating a growth rate of 9.1% [4]. - Earnings per share (EPS) is projected to increase from 0.22 CNY in 2023 to 0.24 CNY in 2024 [4]. - The company’s price-to-earnings (P/E) ratio is expected to be 11 in 2024, down from 13 in 2023 [4]. Company Data - The total share capital is approximately 734.06 million shares, with a total market capitalization of 201.13 billion CNY [7]. - The company's asset-liability ratio stands at 64.94% [7].