首创环保（600008）：水价稳步上调，DPS同增70%

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 3.63 [7][8]. Core Views - The company achieved a revenue of RMB 20.05 billion in 2024, a year-on-year decrease of 6%, while the net profit attributable to shareholders increased by 120% to RMB 3.53 billion, primarily due to investment gains from the disposal of the Singapore ECO company amounting to RMB 1.78 billion [2][4]. - The company has seen a steady increase in water prices, with the comprehensive water price for sewage treatment rising by 1.14% to RMB 1.77 per ton, and for tap water by 0.87% to RMB 1.94 per ton, contributing to revenue growth [3][4]. - The company reported a significant increase in dividends per share (DPS), which grew by 70% to RMB 0.17, resulting in a dividend payout ratio of 35.37% and a dividend yield of 5.5% [4][5]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of RMB 20.05 billion, down 6% year-on-year, while the net profit attributable to shareholders was RMB 3.53 billion, up 120% year-on-year [1][2]. - The fourth quarter revenue was RMB 6.18 billion, a decrease of 14.12% year-on-year but an increase of 30.67% quarter-on-quarter [1]. Cash Flow and Dividends - The operating cash flow increased by 19.3% year-on-year to RMB 4.08 billion, with accounts receivable rising by 22% to RMB 14.7 billion [4]. - The company’s DPS reached RMB 0.17, marking a 70% increase year-on-year, with a dividend yield of 5.5% based on the closing price as of April 11 [4][5]. Price and Earnings Forecast - The company’s EPS for 2025-2027 is projected to be RMB 0.23, RMB 0.25, and RMB 0.26 respectively, with a downward adjustment of 11.5% and 10.7% for 2025 and 2026 [5][6]. - The target price is set at RMB 3.63, based on a PE ratio of 15.8 times for 2025, reflecting the company's quality assets and expected continuous increase in water prices [5][6].