CEVIA(000885) 中原证券·2024-09-06 09:30Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected increase of over 15% relative to the CSI 300 index within the next six months [1][15]. Core Insights - The company, Chengfa Environment, reported a revenue of 2.891 billion yuan for the first half of 2024, a year-on-year decrease of 10.66%, with a net profit attributable to shareholders of 490 million yuan, down 17.44% year-on-year [1]. - The report highlights an increase in the proportion of revenue from environmental operations, with significant growth in waste treatment and water treatment businesses, indicating a positive outlook for these segments [1][4]. - The company has fully operationalized its solid waste treatment projects, which are expected to improve cash flow and enhance future dividend payouts [5]. Summary by Sections Financial Performance - In the first half of 2024, the company experienced a revenue decline of 345 million yuan, primarily due to a significant drop in integrated environmental service revenue, which fell by 63% year-on-year [1]. - The gross profit margin for solid waste treatment and environmental operations was reported at 43.4%, with a notable increase in the contribution from high-margin businesses [1][5]. Business Segments - The environmental operations segment saw a revenue increase of 318 million yuan (24.65%) in solid waste treatment and a 47 million yuan (33.18%) increase in water treatment, leading to a 17.9 percentage point rise in their combined revenue share [1][4]. - The company has established a water supply project processing capacity of 30.5 million tons per day and a wastewater project capacity of 679,100 tons per day, with significant year-on-year growth in treated wastewater and water supply volumes [4]. Future Outlook - The company is expected to focus on integrated water supply and drainage innovations and explore light-asset operations in waste-to-energy projects, alongside international business expansion through partnerships with state-owned enterprises [5]. - Profit forecasts for 2024-2026 project net profits of 1.037 billion yuan, 1.101 billion yuan, and 1.167 billion yuan, respectively, with corresponding earnings per share of 1.61, 1.71, and 1.82 yuan [5][11].