WANGNENG(SZ:002034) Guotai Junan Securities·2024-03-31 16:00Investment Rating - The report maintains a rating of "Accumulate" for the company, with a target price of 18.92 CNY, down from the previous target of 19.54 CNY [2][10]. Core Views - The company's solid waste business remains stable, but the recycling business is under pressure, leading to a projected decline in net profit for 2023 [10]. - The report anticipates a recovery in 2024, with expectations for improved performance in the recycling sector [10]. - The company reported a net profit of 5.90 billion CNY for 2023, an 18% decrease year-on-year, which is below market expectations [10]. Financial Summary - Revenue for 2023 is projected at 31.95 billion CNY, down 5% from the previous year [10]. - The company's EBIT for 2023 is estimated at 849 million CNY, reflecting a decrease of 5% compared to 2022 [10]. - The net profit attributable to shareholders is expected to be 5.90 billion CNY, with an EPS of 1.37 CNY [10]. - The company’s gross profit margin is projected to be 36.4% for 2022, slightly decreasing to 36.3% in 2023 [10]. Operational Insights - The company is a leader in the waste incineration power generation industry in China, focusing on environmentally friendly projects [10]. - The report highlights the company's ongoing operations in waste incineration and its expansion into kitchen waste treatment and sludge disposal [10]. - The company has faced challenges in its lithium battery recycling business due to declining metal prices and underutilization of capacity [10]. Market Performance - The stock has a 52-week price range of 12.35 to 17.97 CNY, with a current market capitalization of 5,777 million CNY [11][10]. - The average daily trading volume is reported at 2.93 million shares, indicating a high liquidity level [10].