惠城环保：短期业绩下滑，无碍未来成长

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 83.25 billion [1][3] Core Views - The company experienced a decline in net profit by 59.37% year-on-year, despite a revenue increase of 17.49% in the first half of 2024, primarily due to increased costs and competitive pricing pressures in the catalyst market [2][3] - The company is actively developing a 200,000-ton mixed waste plastic resource utilization project, which is expected to significantly enhance future profitability once operational [2][3] Summary by Sections Financial Performance - In the first half of 2024, the company reported revenue of 594 million, with a year-on-year growth of 17.49%, while net profit attributable to shareholders was 35 million, reflecting a 59.37% decline [1][2] - The second quarter revenue was 296 million, showing an 11.94% increase year-on-year but a slight decrease of 0.53% quarter-on-quarter [1][2] Project Development - The company is focusing on the construction of a 200,000-ton waste plastic utilization project, with the office building completed by August 8, 2024, laying a solid foundation for production by year-end [2] - Strategic partnerships have been established to enhance the sorting and utilization of low-value recyclable materials, which is expected to contribute to future revenue growth [2] Earnings Forecast - The revenue projections for 2024-2026 are adjusted to 1.286 billion, 2.450 billion, and 4.523 billion respectively, with net profit forecasts of 106 million, 478 million, and 1.141 billion [3][5] - The expected EPS for the same period is 0.54, 2.45, and 5.85, with corresponding PE ratios of 76, 17, and 7 [3][5]