WEIMING(603568) HTSC·2025-04-20 06:56Investment Rating - The investment rating for the company is "Buy" [8] Core Views - The company achieved a revenue of 7.171 billion RMB in 2024, representing a year-over-year increase of 19.03%, and a net profit attributable to the parent company of 2.704 billion RMB, up 31.99% year-over-year, although this was below expectations due to slower project operation revenue growth [1] - The company is actively expanding its solid waste projects and has entered the trial production phase for its new materials business, which is expected to contribute to revenue and profit growth from 2025 to 2027 [1][2] - The company’s equipment revenue grew by 28.88% year-over-year to 3.759 billion RMB, with new orders totaling approximately 3.17 billion RMB [3] - Operating cash flow and dividends per share (DPS) both increased year-over-year, with a DPS of 0.48 RMB, reflecting a 92% increase [4] - The target price for the company is set at 28.39 RMB, based on a projected PE ratio of 15.1 for 2025 [5] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 7.171 billion RMB, a 19.03% increase from the previous year, and a net profit of 2.704 billion RMB, which is a 31.99% increase year-over-year [7] - The company’s Q4 revenue was 1.125 billion RMB, down 19.81% year-over-year and 41.76% quarter-over-quarter, attributed to a slowdown in equipment revenue growth and increased maintenance costs [1] Operational Highlights - The company processed 12.5438 million tons of household waste in 2024, a 12.0% increase year-over-year, and generated 3.618 billion kWh of electricity, a 14.6% increase year-over-year [2] - The company is expanding its collaborative business, including signing contracts for waste-to-energy operations and implementing resource utilization projects [2] Cash Flow and Dividends - The company’s net operating cash flow was 2.430 billion RMB in 2024, a 4.69% increase year-over-year, with a capital expenditure of 3.053 billion RMB, up 34.55% year-over-year [4] - The dividend payout ratio increased to 30.1%, reflecting a commitment to returning value to shareholders [4] Valuation and Price Target - The target price of 28.39 RMB is based on a revised earnings forecast, with expected EPS of 1.88 RMB, 2.19 RMB, and 2.45 RMB for 2025, 2026, and 2027 respectively [5] - The company is expected to benefit from increased capacity and growth in its new materials business, justifying a higher PE ratio compared to peers [5]