China Tianying(000035)2024-10-14 04:40Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [3][4]. Core Views - The company announced a one-time tax payment of approximately RMB 186.23 million due to a recent tax audit, which is expected to impact the 2024 net profit [3][4]. - Despite the one-time impact of the tax payment, the long-term growth logic of the company remains intact, with strong growth anticipated in its overseas environmental business and renewable energy projects [4]. Summary by Sections Market Data - Closing price as of October 11, 2024: RMB 4.46 - Market capitalization: RMB 10,927 million - Price-to-book ratio: 1.0 - Dividend yield: 0.47% [1][2]. Financial Performance - Revenue for 2023 is projected at RMB 5,324 million, with a year-on-year decline of 20.6% - Expected revenue growth rates for 2024, 2025, and 2026 are 15.1%, 32.6%, and 45.4% respectively [5][7]. - Net profit for 2024 is revised to RMB 761 million, reflecting a growth rate of 125.6% compared to 2023 [5][7]. Operational Highlights - The company’s waste incineration capacity reached 21,600 tons per day by the end of 2023, with a 44% year-on-year increase in waste processed [4]. - The company has secured annual contracts exceeding RMB 1.1 billion in environmental services, with significant overseas projects contributing to revenue [4]. - A new integrated renewable energy project with a capacity of 1.8 GW is underway, including wind and solar energy components [4].