Grandblue Environment (600323) 东吴证券·2024-10-29 12:49Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - For the first three quarters of 2024, the company achieved a revenue of 8.731 billion yuan, a year-on-year decrease of 2.58%, while the net profit attributable to the parent company was 1.385 billion yuan, an increase of 18.82% year-on-year [1] - The decline in revenue is primarily due to a decrease in solid waste engineering income, while natural gas revenue slightly decreased but improved the sales margin [1] - The company is expected to enhance profitability and cash flow through the acquisition of Yuefeng Environmental [1] Financial Performance Summary - Revenue and Profit: In Q1-Q3 2024, the company reported a revenue of 8.731 billion yuan, with a net profit of 1.385 billion yuan. The revenue for Q3 alone was 2.907 billion yuan, showing a year-on-year decrease of 4.21% [1] - Business Segments: - Solid Waste: Revenue of 4.511 billion yuan, down 2.10%, with net profit of 0.954 billion yuan, up 14.89% [1] - Energy: Revenue of 2.784 billion yuan, down 6.11%, with natural gas sales volume of 729 million cubic meters, down 3.36% [1] - Water Supply: Revenue of 709 million yuan, flat year-on-year, with water sales volume of 340 million tons, up 0.75% [1] - Drainage: Revenue of 503 million yuan, up 12.91%, with sewage treatment volume of 200 million tons, up 7.34% [1] - Cash Flow: Operating cash flow for Q1-Q3 2024 was 1.343 billion yuan, a decrease of 17.66% year-on-year [1] - Profitability Metrics: The gross margin for Q1-Q3 2024 was 31.44%, an increase of 4.36 percentage points year-on-year, while the net profit margin was 16.13%, an increase of 2.81 percentage points year-on-year [1] Earnings Forecast and Valuation - The report forecasts net profits attributable to the parent company for 2024, 2025, and 2026 to be 1.679 billion yuan, 1.739 billion yuan, and 1.881 billion yuan respectively, corresponding to a P/E ratio of 11, 11, and 10 times [1]