Grandblue Environment (600323) 长江证券·2025-03-14 11:10Investment Rating - The report maintains a "Buy" rating for the company [10]. Core Views - The company is a leading national waste incineration enterprise with a current operational capacity of 30,600 tons/day and an additional 5,150 tons/day under construction or planned. The operational efficiency is among the best in the industry. The proposed privatization of Guangdong Feng Environmental Protection will increase the company's stake to 52.4%, potentially adding 350 million yuan to profits, which represents 24.5% of the 2023 net profit attributable to shareholders. The company has announced multiple dividend increases, with the dividend payout ratio expected to rise to 39.6% in 2024, leading to a projected dividend yield of 3.76% [2][8]. Summary by Sections Company Overview - The company is based in Nanhai District, Foshan, and is a state-owned environmental platform enterprise. Its main business includes solid waste treatment, gas supply, sewage treatment, and water supply, with a focus on waste incineration power generation [5][20]. Waste Incineration - The company has incinerated 12.56 million tons of waste in 2023, with a capacity utilization rate of 115.5%. The revenue per ton of waste is 260 yuan, placing it in the top tier of the industry. The company has a strategic focus on "big solid waste" and expects new projects to contribute to growth over the next three years [5][40][45]. Financial Analysis and Profit Forecast - The company is expected to achieve net profits of 1.645 billion yuan, 1.843 billion yuan, and 2.302 billion yuan for 2024-2026, with year-on-year growth rates of 15.1%, 12.0%, and 24.9%, respectively. The three-year compound growth rate is projected at 17.2%, with corresponding PE ratios of 10.5x, 9.4x, and 7.5x [8][25]. Acquisition of Guangdong Feng Environmental Protection - The acquisition is expected to enhance the company's earnings per share (EPS) significantly. The operational capacity of Guangdong Feng is 43,700 tons/day, with a projected profit increase of 350 million yuan for the company [7][36]. Dividend Policy - The company has announced several dividend increases, with the payout ratio expected to reach 39.6% in 2024, resulting in a dividend yield of 3.76% based on the closing price on March 13, 2025 [8][11].