Grandblue Environment (SH:600323) Guotai Junan Securities·2024-07-23 14:01Investment Rating - The report maintains an "Accumulate" rating for the company [4][5]. Core Views - The acquisition plan for Yuefeng Environmental has been announced, with a transaction price not exceeding 10.354 billion RMB, and the acquisition is progressing rapidly [4]. - The report forecasts net profits for 2024-2026 to be 1.55 billion, 1.69 billion, and 1.78 billion RMB respectively, corresponding to EPS of 1.90, 2.07, and 2.18 RMB [5]. - The target price remains at 33.49 RMB, unchanged from previous forecasts [5]. Summary by Sections Transaction Details - The transaction involves a cash payment of 4.90 HKD per share to planned shareholders and 0.51 HKD per option to option holders, with a total transaction price of 110.91 billion HKD if all options are not exercised, or 111.01 billion HKD if all but one option are exercised, equivalent to approximately 10.354 billion RMB [5]. - The payment structure includes a capital increase of 4.02 billion RMB from Hanlan Solid Waste and a merger loan not exceeding 6.1 billion RMB [5]. Strategic Implications - The acquisition will enhance the company's position in the waste incineration sector, with Yuefeng Environmental holding a market share of 73% in Dongguan and 21% in Guangdong, and a total waste incineration capacity of 54,540 tons/day [5]. - Post-acquisition, the combined waste incineration capacity will rank among the top three in the industry, leveraging high-quality assets and expanding regional advantages [5].