Grandblue Environment (SH:600323) Soochow Securities·2024-08-27 09:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - In H1 2024, the company achieved revenue of 5.824 billion yuan, a decrease of 1.74% year-on-year, while net profit attributable to shareholders increased by 28.59% to 0.887 billion yuan [2] - The significant increase in net profit is attributed to the recognition of electricity fee income and improvements in gas procurement and sales margins [2] - The company’s gross profit margin for H1 2024 was 31.18%, an increase of 5.26 percentage points, and the net profit margin was 15.23%, an increase of 3.59 percentage points [2] - The company is expected to maintain normal profitability in 2024, driven by stable growth in solid waste operations and recovery in gas profitability [2] Financial Performance Summary - Total revenue for 2022 was 12.875 billion yuan, with a forecast of 12.733 billion yuan for 2024, reflecting a year-on-year growth of 1.53% [1] - Net profit attributable to shareholders was 1.142 billion yuan in 2022, with a forecast of 1.679 billion yuan for 2024, indicating a growth of 17.41% [1] - The latest diluted EPS is projected to be 2.06 yuan for 2024, with a P/E ratio of 10.11 [1] - The company’s operating cash flow for H1 2024 was 0.941 billion yuan, a significant increase of 250% year-on-year [2] - The company plans to acquire Yuefeng Environmental Protection, which is expected to enhance profitability and cash flow [2]