经营质量持续提升，新能源业务扬帆起航

Investment Rating - The report maintains a "Buy" rating for the company, which is a leader in the air pollution control sector, and is expected to experience rapid growth due to its collaboration with Zijin Mining in the "Energy Storage + Green Electricity from Mining" initiative [3][18]. Core Insights - The company's environmental business remains a solid foundation, with a significant increase in contract quality. In 2023, the company secured new environmental engineering contracts worth 10.29 billion yuan, a year-on-year increase of 5.1%, with the power sector accounting for 58.1% and non-power sectors for 41.9% [2]. - The company is projected to achieve substantial profit growth, with expected net profits of 1.14 billion yuan, 1.60 billion yuan, and 2.00 billion yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 123.3%, 40.6%, and 25.1% [3][4]. - The new energy business is off to a strong start, with significant contracts in the pipeline, including a 5GWh lithium iron phosphate energy storage cell project that commenced production in January 2024 and a 2GWh energy storage battery module production line that began operations in August 2023 [16]. Financial Performance Summary - In 2023, the company reported a revenue of 10.97 billion yuan, a decrease of 7.6% year-on-year, primarily due to declines in the environmental equipment manufacturing and project operation segments. The net profit was 509 million yuan, down 36.7% year-on-year, largely due to goodwill impairment provisions totaling 361 million yuan [15]. - The company’s operating cash flow significantly improved, reaching 1.71 billion yuan in 2023, a year-on-year increase of 104.4%, attributed to increased cash receipts from sales and reduced cash payments for purchases [27]. - The comprehensive gross margin improved by 0.3 percentage points to 23.7%, driven by enhanced contract quality control and improved margins in environmental equipment manufacturing [27].