惠城环保：业绩短期承压，废塑料项目蓄势待发

Investment Rating - The report maintains a "Buy" rating for the company [5]. Core Views - The company has experienced stable revenue growth in the first three quarters of 2024, with revenue reaching 860 million yuan, a year-on-year increase of 10.1%. However, the net profit attributable to shareholders has decreased by 68.1% to 40 million yuan [1]. - The decline in profit is attributed to reduced acceptance of ash, lower catalyst prices, increased depreciation and labor costs from new projects, and rising costs related to project development [1][2]. - The company is making progress in its waste plastic project, which is expected to drive significant future growth. The project involves a 200,000 tons/year mixed waste plastic resource utilization demonstration project in Guangdong, with strategic partnerships established with several companies [2]. Financial Summary - For the first three quarters of 2024, the gross margin was 24.8%, down 9.7 percentage points year-on-year. The operating cash flow was 4.207 million yuan, a decrease of 97.9% year-on-year due to increased cash outflows for goods and services [2]. - The company forecasts revenues of 1.22 billion yuan, 2.23 billion yuan, and 2.84 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 150 million yuan, 430 million yuan, and 560 million yuan for the same years [3][4]. - The projected P/E ratios for 2024, 2025, and 2026 are 115.1x, 40.1x, and 30.8x respectively [3]. Project Development - The waste plastic project is progressing steadily, with significant technological breakthroughs in the deep cracking of mixed waste plastics. This project is expected to have a milestone impact on global chemical recycling and provide new profit growth opportunities for the company [2].