CPEP(SZ:000544) Tebon Securities·2024-09-01 12:01Investment Rating - The report maintains an "Accumulate" rating for Zhongyuan Environmental Protection (000544.SZ) [2][4] Core Views - The company reported a revenue of 2.916 billion yuan for the first half of 2024, representing a year-on-year increase of 15.67%, while the net profit attributable to shareholders was 704 million yuan, up 17.77% year-on-year [1][4] - In Q2 2024, the company experienced a revenue decline of 25.79% year-on-year, with a net profit decrease of 10.54% [1][4] - The wastewater treatment business continues to grow steadily, with a revenue of 1.253 billion yuan in H1 2024, an increase of 28.99% year-on-year, and a gross margin of 56.41% [3][4] - The company completed a significant asset acquisition for 4.51 billion yuan, enhancing its wastewater and sludge treatment capabilities [3][4] Financial Performance Summary - For 2024-2026, the projected revenues are 7.752 billion yuan, 7.878 billion yuan, and 7.980 billion yuan, with growth rates of -0.8%, 1.6%, and 1.3% respectively [4][5] - The net profit forecasts for the same period are 1.143 billion yuan, 1.297 billion yuan, and 1.407 billion yuan, with growth rates of 32.9%, 13.5%, and 8.5% respectively [4][5] - The company’s gross margin is expected to improve from 31.8% in 2024 to 35.1% in 2026 [5][6] Operational Highlights - The company’s wastewater treatment capacity is continuously improving, with several projects expected to commence operations [4][5] - As of June 2024, accounts receivable reached 5.513 billion yuan, an increase of 1.581 billion yuan from Q1 2024 [4][5] - The operating cash flow showed improvement, with a net cash flow of -390 million yuan in H1 2024 due to reduced expenditures from fewer ongoing PPP projects [4][5]