WANGNENG(002034) Guotou Securities·2024-09-03 14:38Investment Rating - The report maintains a "Buy-A" investment rating for the company with a target price of 16.6 CNY over the next six months [4]. Core Insights - The company reported a revenue of 1.59 billion CNY for the first half of 2024, reflecting a year-on-year growth of 3.25%. The net profit attributable to shareholders was 363 million CNY, also showing a growth of 3.3% [1]. - The solid waste business remains robust, driven by quality improvement and efficiency enhancement, leading to steady performance growth. The company has invested in various waste incineration power generation projects, with a total capacity of 22,920 tons/day [2]. - The company is enhancing cash flow management and plans to implement a mid-term dividend, proposing a cash dividend of 2 CNY per 10 shares, totaling approximately 85.9 million CNY, which represents 23.7% of the net profit for the first half of 2024 [3]. Financial Performance - The company achieved a net operating cash flow of 594 million CNY in the first half of 2024, a significant increase of 26.6% compared to the previous year [3]. - The revenue from the company's main operations in municipal solid waste and kitchen waste processing reached 1.21 billion CNY and 198 million CNY, respectively, with year-on-year growth rates of 15.49% and 15.18% [2]. - The projected revenues for 2024-2026 are estimated at 3.31 billion CNY, 3.44 billion CNY, and 3.57 billion CNY, with growth rates of 4.2%, 4.0%, and 3.7% respectively [9]. Market Position - The company has a total market capitalization of approximately 5.84 billion CNY, with a circulating market capitalization of about 5.81 billion CNY [4]. - The stock price as of September 3, 2024, was 13.59 CNY, with a 12-month price range of 12.35 to 16.07 CNY [4].