BGE(603588) 国泰君安·2024-08-23 06:41Investment Rating - The report maintains an "Accumulate" rating for the company [3][8]. Core Views - The company's performance in H1 2024 is generally in line with expectations, with significant profit release from the hazardous waste resource utilization projects. The operating cash flow turned positive, and the interim cash dividend ratio is 121% [1][8]. - The resource utilization segment saw a revenue increase of 129% year-on-year, indicating strong operational performance [8]. - The company plans to distribute a total cash dividend of RMB 5.03 billion to all shareholders, reflecting a commitment to enhancing shareholder returns [8]. Financial Summary - For H1 2024, the company achieved revenue of RMB 7.545 billion, a 69% increase year-on-year, while the net profit attributable to shareholders was RMB 416 million, a 16% decline year-on-year [8]. - The net cash flow from operating activities was RMB 1.1 billion, a significant improvement from a negative RMB 1.361 billion in the same period last year [8]. - The company forecasts net profits of RMB 908 million, RMB 997 million, and RMB 1.084 billion for 2024, 2025, and 2026, respectively, with corresponding EPS of RMB 0.59, RMB 0.65, and RMB 0.71 [8][9]. Market Data - The current stock price is RMB 4.51, with a target price maintained at RMB 9.70 [3][4]. - The company has a total market capitalization of RMB 6.923 billion and a P/B ratio of 0.7 based on the current price [4][5]. Operational Highlights - The resource utilization segment's revenue reached RMB 5.676 billion in H1 2024, with a gross margin of 8.76%, despite a year-on-year decline of 2.90 percentage points [8]. - The environmental operation service segment reported revenue of RMB 883 million, a 9% increase year-on-year, with a gross margin of 47.12%, up 5.61 percentage points [8].