瀚蓝环境拟私有化粤丰环保，增厚盈利&可持续现金流，协同增效空间广阔

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 15% in the next six months [1]. Core Views - The company plans to privatize Guangdong Yufeng Environmental Protection with a valuation of HKD 11.9 billion, which will result in a combined ownership of approximately 92.77% post-transaction [1]. - The acquisition is expected to enhance earnings and sustainable cash flow significantly, with potential earnings growth of 28% to 45% depending on the ownership stake post-acquisition [1]. - The report highlights the company's strong integration capabilities and the strategic benefits of acquiring high-quality waste incineration projects, positioning it among the top players in the industry [1]. Summary by Sections Financial Performance - In 2023, the company reported a net profit of HKD 1 billion (approximately RMB 907 million) and a total revenue of HKD 4.478 billion [1]. - The projected net profit for 2024 is estimated at RMB 1.6 billion, reflecting a growth of 9.9% from the previous year [1]. - The report forecasts a significant increase in sustainable free cash flow by 167% post-acquisition, with expected free cash flow reaching RMB 16 billion in 2024 [1]. Debt and Cost Savings - The company aims to reduce financial expenses by HKD 200 million through debt restructuring, with a potential decrease in interest expenses if the average interest rate aligns with its peer [1]. - The report details the current debt levels, with the company holding HKD 15.1 billion in interest-bearing debt and an interest expense of HKD 514 million at an average rate of 3.4% [1]. Market Position and Growth Potential - Post-acquisition, the combined waste incineration capacity will exceed 90,000 tons per day, positioning the company as a leader in the A-share market [1]. - The report emphasizes the geographical coverage of the acquired projects, which span 12 provinces, with a significant portion located in Guangdong [1].