TCEPC(SH:600874) Tianfeng Securities·2024-03-24 16:00Investment Rating - The investment rating for the company is adjusted to "Accumulate" [7] Core Views - The company achieved a revenue of 4.67 billion yuan in 2023, a year-on-year increase of 3.2%, and a net profit attributable to shareholders of 0.87 billion yuan, up 15.2% year-on-year [1][4] - The comprehensive gross profit margin increased by 5.1 percentage points to 39.0%, primarily due to a decrease in PPP project volume and strict cost control in wastewater treatment [1] - The company is focusing on the synergistic development of wastewater operations and distributed photovoltaic projects, which has positively impacted operating cash flow [5] Financial Performance Summary - In 2023, the company generated a net cash flow from operating activities of 0.99 billion yuan, an increase of 8.8% year-on-year, with cash received from sales of goods and services amounting to 3.89 billion yuan, up 6.7% [2] - The revenue breakdown by business for 2023 includes: - Wastewater: 3.38 billion yuan, up 5.8% year-on-year, with a gross margin of 42.9% [1] - Reclaimed water: 0.43 billion yuan, up 11.0% year-on-year, with a gross margin of 41.0% [1] - Cooling and heating supply: 0.25 billion yuan, up 2.3% year-on-year, with a gross margin of 13.3% [1] - Hazardous waste disposal: 0.16 billion yuan, down 33.7% year-on-year, with a gross margin of -0.2% [1] Future Profit Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 0.87 billion, 0.95 billion, and 1.05 billion yuan, representing year-on-year growth of 1.01%, 8.12%, and 11.28% respectively [3] - The diluted EPS for the same period is projected to be 0.56, 0.60, and 0.67 yuan, with corresponding P/E ratios of 9.85, 9.11, and 8.18 [3][6]