Grandblue Environment (600323) 长江证券·2024-07-24 10:01Investment Rating - The report maintains a "Buy" rating for the company [5][4]. Core Insights - The acquisition of Yuefeng Environmental is expected to enhance the company's earnings per share (EPS) significantly, with projected net profits for 2024-2026 being 1.72 billion, 2.18 billion, and 2.34 billion RMB respectively, corresponding to price-to-earnings (PE) ratios of 10.4x, 8.2x, and 7.7x [4][5]. - The company is progressing with its waste incineration projects, with a total order capacity of 35,750 tons/day as of Q1 2024, and ongoing projects in Thailand expected to contribute to future profits [18]. Summary by Sections Acquisition Details - If the acquisition is completed, Hanlan Environment will hold a 52.4% stake in Yuefeng Environmental, leading to an expected consolidated profit of approximately 492 million RMB from Yuefeng's net profit of 1 billion HKD [3][4]. Financial Projections - The projected net profits for Hanlan Environment are 1.77 billion RMB for 2024, 2.18 billion RMB for 2025, and 2.34 billion RMB for 2026, indicating a strong growth trajectory [4][32]. Project Developments - The company has made significant progress in its waste-to-energy projects, with operational capacity increasing and new projects in Thailand expected to enhance investment returns [18][27].