Dynagreen(SH:601330) Soochow Securities·2024-08-31 18:07Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved an operating revenue of 1.661 billion yuan in H1 2024, a year-on-year decrease of 22.46%, with a net profit attributable to the parent company of 303 million yuan, down 16.76% year-on-year [1] - The company's operational revenue grew steadily, with a 10.66% year-on-year increase in operational income to 1.44 billion yuan, while interest income slightly decreased by 0.49% [1] - The company has released a three-year dividend plan, with a first-time interim dividend payout ratio of 46% in H1 2024, indicating strong cash flow and commitment to shareholder returns [1] Summary by Sections Financial Performance - H1 2024 operational income was 1.44 billion yuan, with a gross profit margin increase of 8.68 percentage points to 44.63% [1] - The net profit margin improved by 1.75 percentage points to 19.50%, while the expense ratio increased by 5.40 percentage points to 20.45% [1] - The company processed 7.0073 million tons of municipal solid waste, a year-on-year increase of 11.27%, and generated 2.499 billion kWh of electricity, up 12.85% [1] Cash Flow and Dividends - The net cash flow from operating activities was 543 million yuan, an increase of 88.86% year-on-year, leading to a positive free cash flow of 326 million yuan [1] - The company plans to distribute at least 40%, 45%, and 50% of its distributable profits as dividends in 2024, 2025, and 2026, respectively [1] Earnings Forecast and Valuation - The forecast for net profit attributable to the parent company for 2024-2026 has been adjusted to 591 million, 664 million, and 739 million yuan, respectively, corresponding to P/E ratios of 13, 12, and 11 times [1] - The projected dividend yields for 2024-2026 are estimated at 6.5%, 8.1%, and 10.2% based on the company's dividend payout ratios [1]