Dynagreen(SH:601330) Soochow Securities·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - In 2023, the company achieved operating revenue of 3.956 billion yuan, a year-on-year decrease of 13.39%, and a net profit attributable to the parent company of 629 million yuan, down 15.51% year-on-year [1] - The company's operational revenue grew steadily to 3.14 billion yuan, an increase of 11.36% year-on-year, while the operational gross margin was 46.39%, a decline of 4.31 percentage points [1] - The company has successfully expanded its waste incineration capacity to over 40,000 tons per day as of January 2024, with a focus on optimizing profit and improving cash flow [1] - The company reported a positive free cash flow for the first time in 2023, with a dividend payout ratio of 33.22%, an increase of 10.77 percentage points from 2022 [1] - The company has successfully applied for green certificates for its Changzhou project, positioning itself advantageously in the green trading market [1] Summary by Sections Financial Performance - In 2023, the total operating revenue was 3.956 billion yuan, with a year-on-year decline of 13.39% [1] - The net profit attributable to the parent company was 629 million yuan, down 15.51% year-on-year [1] - The company’s operational revenue accounted for 79% of total revenue in 2023, up from 62% in 2022, leading to an overall gross margin increase of 4.14 percentage points to 38.52% [1] Capacity and Projects - As of January 2024, the company’s waste incineration operational capacity exceeded 40,000 tons per day, with the addition of four new waste incineration power generation projects in 2023 [1] - The company processed 13.4468 million tons of household waste in 2023, a year-on-year increase of 17.98% [1] Cash Flow and Dividends - The operating cash flow for 2023 was 978 million yuan, a decrease of 19.17% year-on-year [1] - The company’s capital expenditure was 722 million yuan, down 41.48% year-on-year, leading to a positive free cash flow for the first time [1] - The dividend per share was 0.15 yuan, representing a year-on-year increase of 25% [1] Market Position and Future Outlook - The company is focusing on building a low-carbon environmental industrial park as a new business development direction [1] - The green certificate application for the Changzhou project is expected to enhance the company's position in the green trading market, with potential for future price adjustments [1]