Investment Rating - The report maintains a "Neutral" rating for the company with a target price adjusted to HKD 4.00, reflecting a downside potential of 9.7% from the current price [4][11]. Core Insights - The company's FY24 interim results fell short of expectations, with a 27.1% year-on-year decline in net profit attributable to shareholders, amounting to HKD 450 million. This decline was primarily due to the absence of construction service revenue, a one-time impairment loss in the smart parking business, increased interest expenses, and a rise in tax expenses [2][3]. - Despite the revenue drop of 28.5% to HKD 2.13 billion, operational income continued to grow, with electricity sales and waste processing volumes increasing by 4.6% and 7.6%, respectively [3][8]. - The gross profit margin significantly improved from 38.0% in 1H23 to 48.5% in 1H24, attributed to the lack of low-margin construction service revenue. The full-year gross margin is expected to rise from 41.8% in FY23 to 53.1% in FY24 [3][9]. Financial Summary - The company's total revenue for FY24 is projected at HKD 4.199 billion, down from HKD 4.980 billion in FY23, with a forecasted growth of 10.6% to HKD 4.642 billion in FY25 [4][9]. - The net profit for FY24 is expected to decrease by 6.9% to HKD 932 million, with a recovery projected for FY25 to HKD 1.207 billion, reflecting a growth rate of 29.4% [4][9]. - The earnings per share (EPS) is forecasted to decline to HKD 0.38 in FY24, with a potential increase to HKD 0.49 in FY25 [4][9]. Operational Performance - The company reported a significant increase in electricity sales volume to 2.78 million MWh and waste processing volume to 8.7 million tons in 1H24, indicating operational resilience despite the overall revenue decline [3][8]. - The company did not declare an interim dividend for FY24, contrasting with previous years, which may impact investor sentiment [2][3].
粤丰环保：FY24中期业绩逊预期，但运营收入保持增长