洪城环境（600461）：营收利润双增，产业链持续完善支撑业绩增长

Investment Rating - The report maintains a "Buy" rating for the company [5][7] Core Views - The company achieved revenue and profit growth in 2024, with revenue reaching 8.23 billion and net profit at 1.19 billion, representing year-on-year increases of 2.2% and 9.9% respectively [1] - The company is focused on enhancing its operational efficiency and reducing costs across its various business segments, including water services and waste disposal [4] - The company has a robust cash flow, with net cash flow from operating activities at 1.97 billion, which is 14.2% higher than the previous year [3] Financial Performance - Revenue from the water supply business was 990 million, up 2.7% year-on-year, while wastewater treatment revenue was 2.5 billion, up 4.2% year-on-year [1] - The comprehensive gross margin for 2024 was 31.7%, an increase of 1.0 percentage points year-on-year, driven by improvements in gross margins across various segments [2] - The company plans to distribute 600 million in cash dividends for 2024, which is 50.1% of the net profit attributable to shareholders [3] Business Development - The company is actively developing a "factory-network integration" operational model to enhance wastewater treatment efficiency [4] - It is expanding its clean energy initiatives, including distributed photovoltaic projects at wastewater treatment plants [4] - The company is also focusing on solid waste disposal and environmental governance, aiming for a zero-emission, green circular industry system [4] Future Outlook - The company has significant growth potential in its core businesses, with projected net profits of 1.28 billion, 1.36 billion, and 1.44 billion for 2025, 2026, and 2027 respectively [5] - The expected earnings per share (EPS) for the next three years are 1.00, 1.06, and 1.12, with corresponding price-to-earnings (P/E) ratios of 9.8X, 9.3X, and 8.8X [5]