BGE(603588) Changjiang Securities·2024-10-28 08:11Investment Rating - The investment rating for the company is "Buy" and is maintained [7][5]. Core Views - The company reported a decline in net profit attributable to shareholders by 11.23% year-on-year in Q3 2024, despite a revenue increase of 29.25% [3][4]. - The revenue for the first three quarters of 2024 reached 11.45 billion yuan, a year-on-year increase of 52.88%, while the net profit attributable to shareholders decreased by 14.69% [3][4]. - The company expects stable profitability from existing projects in the future as recent upgrades and operations stabilize [5][4]. Summary by Sections Financial Performance - Q3 2024 revenue was 3.905 billion yuan, up 29.25% year-on-year; net profit attributable to shareholders was 145 million yuan, down 11.23% [3][4]. - For the first three quarters, the company achieved revenue of 11.45 billion yuan, a 52.88% increase, with a net profit of 561 million yuan, down 14.69% [3][4]. - The net profit margin for Q3 2024 was 4.77%, a decrease of 0.34 percentage points year-on-year [4]. Business Segments - The hazardous waste resource utilization segment saw significant revenue growth, with 5.68 billion yuan, a 129% increase year-on-year, driven by the full production of the Jiangxi Xinke project [3][4]. - The environmental operation services segment generated 880 million yuan, a 9.1% increase, while the environmental engineering segment's revenue decreased by 16.8% to 990 million yuan due to project quality control and delays [3][4]. Profitability and Cash Flow - The company's gross profit margin for Q3 2024 was 13.3%, down 1.08 percentage points year-on-year, primarily due to the environmental engineering segment [4]. - Operating cash flow improved in Q3, with a net cash flow from operating activities of 219 million yuan for the first three quarters [4]. Dividends and Future Outlook - The company plans to distribute a cash dividend of 0.33 yuan per share, totaling 503 million yuan, with a semi-annual dividend payout ratio of approximately 120.91% [4]. - Future net profit forecasts for 2024-2026 are 726 million yuan, 841 million yuan, and 952 million yuan, with corresponding PE ratios of 10.8x, 9.4x, and 8.3x [5].