洪城环境：业绩稳健增长，提质增效打造完整产业链

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming months [2][3]. Core Insights - The company achieved steady growth in both revenue and profit in H1 2024, with adjusted revenue of 3.95 billion yuan, a year-on-year increase of 1.9%, and a net profit attributable to shareholders of 600 million yuan, up 3.4% year-on-year [1]. - The company is focusing on enhancing its operational efficiency and expanding its complete industrial chain, with significant growth in its engineering business, which saw a remarkable increase of 97.1% year-on-year [1]. - The company is actively cultivating new business growth points, particularly in water supply, wastewater treatment, clean energy, and solid waste disposal, to support sustained performance growth [2]. Financial Performance Summary - In H1 2024, the company reported a comprehensive gross margin of 32.2%, an increase of 0.3 percentage points year-on-year, driven by improved margins in solid waste treatment and water supply [1]. - The company's operating expenses management has improved, with total expense ratios decreasing to 9.0%, down 1.0 percentage points year-on-year [1]. - The projected net profit for 2024-2026 is estimated at 1.18 billion yuan, 1.25 billion yuan, and 1.32 billion yuan respectively, with corresponding EPS of 1.0 yuan, 1.0 yuan, and 1.1 yuan per share [2][6]. Business Segment Performance - The water supply business generated 450 million yuan in revenue, up 2.6% year-on-year, while the wastewater treatment business brought in 1.24 billion yuan, a 1.6% increase year-on-year [1]. - The clean energy segment reported a revenue of 1.43 billion yuan, down 9.9% year-on-year, and the solid waste disposal segment saw a significant decline in revenue to 390 million yuan, down 41.5% year-on-year [1]. Market Position and Valuation - The company is well-positioned for value re-evaluation, with a high dividend yield and a solid business growth framework combining organic growth and external expansion [2]. - The company's P/E ratios for the projected years are 11.4X for 2024, 10.7X for 2025, and 10.2X for 2026, indicating a favorable valuation compared to its earnings growth [6].