WANGNENG(SZ:002034) Minsheng Securities·2024-03-27 16:00Investment Rating - The report maintains a "Cautious Recommendation" rating for the company, with a target price of 16.70 CNY per share based on a 10x PE for 2024 [10][18]. Core Views - The company's solid waste management business is progressing steadily and is expected to act as a stabilizing force for overall performance. However, the resource recycling business is under short-term pressure due to customer loss and inventory write-downs [10][18]. - The company reported a revenue of 3.195 billion CNY for 2023, a decline of 4.61% year-on-year, and a net profit of 590 million CNY, down 18.19% year-on-year [10][12]. - The company has initiated a share buyback plan, reflecting confidence in its long-term prospects [10]. Financial Performance Summary - Revenue for 2023 is projected at 3.195 billion CNY, with a growth rate of -4.6% [12]. - The net profit for 2023 is estimated at 590 million CNY, with a decline of 18.19% [10][12]. - Earnings per share (EPS) for 2023 is expected to be 1.37 CNY, with projections of 1.67 CNY and 1.91 CNY for 2024 and 2025 respectively [10][12]. - The company’s PE ratios are projected to be 10, 8, and 7 for the years 2023, 2024, and 2025 respectively [10][12]. Operational Highlights - The company has successfully launched several solid waste management projects, with a total operational capacity of 22,320 tons per day by the end of 2023 [10]. - The lithium battery recycling business faced challenges due to falling metal prices, leading to inventory and goodwill impairment provisions totaling 0.95 billion CNY [10]. - The company is working to restore customer relationships in its recycled rubber business, which is expected to improve as clients return [10].