惠城环保：利润短期承压，期待废塑料项目发力

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company experienced stable revenue growth in H1 2024, achieving revenue of 590 million yuan, a year-on-year increase of 17.5%, while net profit decreased significantly by 59.4% to 34.96 million yuan due to rising costs [1] - The revenue growth was primarily driven by increased sales of catalysts and steam, as well as revenue from residual film recycling [1] - The company is advancing its self-developed mixed waste plastic deep cracking technology, with a 200,000 tons/year project underway in Guangdong, which is expected to become a new profit growth point [2] - The forecast for the company's revenue from 2024 to 2026 is 1.25 billion, 2.23 billion, and 2.84 billion yuan, with corresponding net profits of 190 million, 440 million, and 570 million yuan [2] Financial Summary - In H1 2024, the resource utilization business generated revenue of 230 million yuan, a year-on-year increase of 43.7%, while hazardous waste treatment services generated revenue of 340 million yuan, a year-on-year increase of 1.6% [1] - The overall expense ratio of the company increased, with a comprehensive gross margin decline of 9.4 percentage points to 24.1% [1] - The company’s financial metrics for 2024E include revenue of 1.25 billion yuan, net profit of 190 million yuan, and a P/E ratio of 42.1x [3][8]