BGE(603588) 国盛证券·2024-10-27 09:42Investment Rating - The report maintains a "Buy" rating for the company [3] Core Insights - The company experienced significant revenue growth of 52.9% year-on-year, reaching 11.45 billion yuan in the first three quarters of 2024, while the net profit attributable to shareholders decreased by 14.7% to 560 million yuan [1] - The decline in net profit is attributed to a decrease in the engineering segment's orders and increased financial expenses due to higher financing costs and exchange losses [1] - The company has improved its cash flow significantly, with a net operating cash flow of 220 million yuan, a substantial increase of 1.42 billion yuan year-on-year [1] - The resource recycling projects, particularly the Jiangxi Xinke project, are expected to enhance production capacity and profitability, with an internal rate of return projected at no less than 19.13% [1] - The environmental operation segment remains stable, with 13 waste incineration power projects currently in operation, achieving a daily processing capacity of 11,000 tons [1] Financial Performance Summary - Revenue for 2024 is projected to reach 15.896 billion yuan, with a year-on-year growth rate of 50.2% [2] - The net profit for 2024 is estimated at 783 million yuan, reflecting a year-on-year growth of 55.1% [2] - The company’s earnings per share (EPS) is expected to be 0.51 yuan for 2024, with a price-to-earnings (P/E) ratio of 10.2 [2] - The gross margin for the first three quarters of 2024 was 14.0%, down 4.9 percentage points year-on-year, while the net margin was 5.7%, down 3.6 percentage points year-on-year [1] Market Position and Outlook - The company is positioned as a leading player in the solid waste disposal sector, with significant advantages in the metal enrichment industry chain and technology [1] - The report anticipates continued high growth in performance due to effective management capabilities and the ongoing development of resource recycling projects [1]