Grandblue Environment (SH:600323) Changjiang Securities·2024-07-10 02:31Investment Rating - The report maintains a "Buy" rating for the company [14][19]. Core Views - The company is expected to achieve a year-on-year increase of approximately 28.37% in net profit attributable to shareholders for the first half of 2024, driven by a one-time recognition of electricity revenue from the Jining project [20][21]. - The acquisition of a controlling stake in Yuefeng Environmental is anticipated to sustain high growth in performance [21]. - The company has a total order scale of 35,750 tons/day for waste incineration power generation projects, with 29,800 tons/day already in operation [8]. Summary by Sections Financial Performance - The company reported a net profit of approximately 7.69 billion yuan for the first half of 2024, reflecting a year-on-year growth of 11.4% when excluding one-time impacts [20]. - The projected net profits for 2024-2026 are estimated at 17.2 billion yuan, 21.8 billion yuan, and 23.4 billion yuan respectively, with corresponding P/E ratios of 10.9x, 8.6x, and 8.0x [8]. Project Developments - The company has initiated the acquisition of Yuefeng Environmental, which is expected to enhance earnings per share (EPS) and leverage synergies for cost reduction [21]. - The overseas projects in Thailand, including the Bangkok Agricultural Reclamation Phase II and Annu projects, are set to contribute positively to investment returns [8]. Market Position - The company’s operational capacity and project locations are considered advantageous, with a utilization rate of 104% for its waste incineration projects [21]. - The report highlights the company's stable growth trajectory and robust operational performance in the solid waste management sector [20].