ZHEFU(002266) 长江证券·2024-10-31 10:25Investment Rating - The investment rating for the company is "Accumulate" [7] Core Views - The company achieved a revenue growth of 0.77% year-on-year in Q3 2024, with a significant increase in net profit attributable to shareholders of 22.00% year-on-year, driven by increased investment income [3][5] - The company focuses on hazardous waste disposal and resource recovery, possessing an integrated technology and facility for hazardous waste management, which enhances the stability and certainty of its performance [7] - The company plans to repurchase shares to incentivize core employees, with a total repurchase amount not less than RMB 100 million and not exceeding RMB 200 million [6] Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of RMB 15.258 billion, a year-on-year increase of 6.97%, while the net profit attributable to shareholders decreased by 21.37% to RMB 776 million [3] - In Q3 2024, the company achieved a revenue of RMB 4.947 billion, a year-on-year increase of 0.77%, and a net profit of RMB 291 million, reflecting a year-on-year increase of 22.00% [3][5] - The company’s cash flow remains strong, with a cash collection ratio of 110.3% in Q3 2024, although the net cash flow from operating activities decreased by 35.87% year-on-year [6] Investment Income - The increase in net profit in Q3 2024 was significantly influenced by investment income, which amounted to RMB 24.08 million, an increase of RMB 191 million year-on-year [5] - The fair value changes and disposal gains from financial assets and liabilities contributed positively to the investment income [5] Research and Development - The company has increased its R&D expenditure, with the R&D expense ratio rising to 4.94%, indicating a focus on enhancing capabilities in nuclear power and hazardous waste resource recovery [5] Future Outlook - The company expects net profits attributable to shareholders to be RMB 910 million, RMB 1.0 billion, and RMB 1.36 billion for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 19.3x, 17.4x, and 12.9x [7]