Grandblue Environment (SH:600323) ZHESHANG SECURITIES·2024-07-09 08:02Investment Rating - The investment rating for the company is "Buy" (首次) [25] Core Views - The acquisition of Guangdong Yufeng Environmental Protection Power Co., Ltd. is expected to make the company the largest publicly listed waste incineration company in A-shares, with a projected total capacity of 90,290 tons/day post-merger [12][11] - The indicative cancellation price for the acquisition is set at HKD 4.90 per share, representing a 20.69% premium over the announcement date, with the total equity valued at HKD 11.954 billion (approximately RMB 11.124 billion) [11] - The company aims to enhance operational synergy and significantly increase production capacity through this acquisition [24] Financial Summary - As of the end of 2023, the company reported a main business revenue of HKD 4.98 billion, a year-on-year decrease of 39.61%, and a net profit attributable to shareholders of HKD 1.001 billion, down 24.88% year-on-year [11] - The company’s current stock price is RMB 22.54, with a total market capitalization of approximately RMB 18.38 billion and a total share count of 815.35 million [4] - The projected net profits for 2024, 2025, and 2026 are estimated to be RMB 1.61 billion, RMB 1.72 billion, and RMB 1.88 billion respectively, with corresponding earnings per share of RMB 1.97, RMB 2.11, and RMB 2.31 [24]