WANGNENG(002034) Guotai Junan Securities·2024-08-31 17:36Investment Rating - The investment rating for the company is "Accumulate" [2][3] Core Views - The company's solid waste business is operating steadily, while the recycling resources segment is under pressure, negatively impacting overall performance [3] - The forecasted net profits for 2024-2026 are projected to be 739 million, 809 million, and 869 million yuan respectively, with corresponding EPS of 1.72, 1.88, and 2.02 yuan [3] - The target price is maintained at 18.53 yuan, with the current price at 13.45 yuan [2][3] Financial Performance - In H1 2024, the company achieved revenue of 1.59 billion yuan, a year-on-year increase of 3%, and a net profit attributable to shareholders of 363 million yuan, also up 3% year-on-year [3] - The operating cash flow for H1 2024 was 594 million yuan, reflecting a 27% year-on-year growth [3] - The company plans to distribute a mid-term dividend with a payout ratio of 23.69% [3] Business Segments - The solid waste business is performing well, with a daily operational capacity of 21,920 tons for waste incineration projects and a total waste input of 4.45 million tons in H1 2024 [3] - Revenue from solid waste operations increased by 15% year-on-year to 1.21 billion yuan, while kitchen waste operations also saw a 15% increase to 198 million yuan [3] - The recycling resources segment is facing challenges, with lithium battery recycling revenue at 24.94 million yuan and a net loss of 28.8 million yuan in H1 2024 [3] Market Data - The stock price range over the past 52 weeks was between 12.35 and 16.07 yuan, with a total market capitalization of 5.777 billion yuan [4] - The company has a total share capital of 429 million shares, with 427 million shares being tradable [4]