Grandblue Environment (600323) 华泰证券·2024-07-02 07:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 25.56 [14][35][50] Core Views - The company is expected to see continuous improvement in free cash flow, with a clear dividend plan for 2024-2026 [14][35] - The resolution of the revenue dispute related to the Jining power generation project is anticipated to enhance profits from solid waste operations for 2024-2026 [35][51] - The company plans to increase its dividend per share (DPS) by no less than 10% year-on-year for 2024-2026, with corresponding dividend yields expected to be no less than 2.5%/2.7%/3.0% [52] Financial Performance Summary - The company's revenue for 2024 is projected to be RMB 13,023 million, with a year-on-year growth of 3.84% [4][37] - The net profit attributable to the parent company for 2024 is expected to be RMB 1,741 million, reflecting a growth of 21.76% [4][37] - Earnings per share (EPS) for 2024 is forecasted at RMB 2.13, with a return on equity (ROE) of 12.57% [4][37] Adjustments to Key Indicators - Revenue estimates for solid waste management have been increased by 2.1% for 2024-2026, with gross margin adjustments of 0.22-0.23 percentage points [35][36] - The company's capital expenditures are expected to decrease, leading to an expansion of free cash flow, which will support an increase in dividend payouts [52][35] Comparative Company Valuation - The company is valued at a price-to-earnings (PE) ratio of 10.07 for 2024, which is lower than the average PE of comparable companies at 14 times [35][40] - The report indicates that the company's price-to-book (PB) ratio is 1.30 for 2024, compared to an average of 1.27 for peers [35][40]