HST(600817) 华泰证券·2024-12-11 04:10Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 13.94 [1] Core Insights - The company is positioned to benefit from the electrification of sanitation vehicles and debt reduction policies, with a significant increase in sales of new energy sanitation vehicles by 49% year-on-year from January to October, achieving a market share of 20.3% [1][2] - The sanitation service and equipment business primarily operates on a fiscal payment model, which is expected to improve cash flow due to debt reduction policies, enhancing the company's financial recovery and growth prospects [1] Summary by Sections Sales Performance - From January to October, the company's new energy sanitation vehicle sales increased by 49%, with a penetration rate of 68%, up by 25 percentage points year-on-year [2] - The overall market for sanitation vehicles saw a decline of 10%, primarily due to a drop in fuel vehicle sales, while the company maintained a market share of 20.3% in the new energy segment [2] Strategic Focus - The company announced the sale of a 51% stake in Zhengzhou Lvyuan Catering Company for RMB 69.9264 million, which is seen as a strategic move to focus on its core business and optimize asset structure [3] Financial Projections - The company forecasts a net profit attributable to shareholders of RMB 2.39 billion, RMB 2.77 billion, and RMB 3.25 billion for the years 2024, 2025, and 2026 respectively [4] - The target price is based on a projected PE ratio of 26.8 times for 2025, reflecting the anticipated growth in new energy sanitation vehicle sales and the overall market trend towards electrification and intelligence [4]