WANGNENG(002034) 华泰证券·2024-12-08 06:10Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 18.87 [1][4]. Core Insights - The company has demonstrated confidence through share buybacks, with a plan to repurchase shares worth RMB 100-200 million, aiming to buy back approximately 4.55-9.09 million shares, which represents 1.07-2.13% of the total share capital [2][3]. - All waste incineration projects have been put into operation or trial operation, which is expected to sustainably increase waste processing and heating capacity, leading to improved cash flow [1][3]. - The company is actively expanding its revenue sources by applying for waste subsidy fee adjustments and developing the heating market, with 14 projects achieving external heating alongside power generation [3]. Summary by Sections Share Buyback and Confidence - On December 4, the company repurchased 218,200 shares, accounting for 0.05% of the total share capital, with a total transaction amount of RMB 3.37 million [2]. Revenue Growth and Efficiency - As of mid-2024, eight subsidiaries are applying for adjustments to waste subsidy fees, and the company has launched four resource recycling projects with a combined daily processing capacity of 2,300 tons [3]. - The company has achieved a cumulative heating volume of 862,100 tons in the first three quarters of 2024 [3]. Financial Forecasts - The forecast for net profit attributable to the parent company for 2024-2026 is RMB 633 million, RMB 724 million, and RMB 774 million respectively, with EPS slightly increasing to RMB 1.48, RMB 1.70, and RMB 1.82 [4][5]. - The company's target price is based on a PE ratio of 11.1 times for 2025, aligning with the average of comparable companies [4].