Investment Rating - The report maintains a "Buy" rating for the company [3][4][5] Core Views - The company reported a revenue increase of 8.8% year-on-year to 1.882 billion RMB in 2023, with a net profit attributable to shareholders decreasing by 19.6% to 264 million RMB [3][4] - The company declared its first dividend post-listing, proposing a dividend of 0.03 HKD per share, resulting in an annual payout ratio of 21% [3] - The hazardous waste market is facing increased competition, leading to a decline in the unit price for industrial general hazardous waste disposal [3] - The company is focusing on enhancing cash flow quality and exploring new growth drivers, including medical waste disposal and alternative fuel businesses [3] Financial Summary - Revenue projections for 2024, 2025, and 2026 are 2.133 billion RMB, 2.545 billion RMB, and 3.173 billion RMB, representing year-on-year growth rates of 13.4%, 19.3%, and 24.7% respectively [2][3] - Net profit projections for the same years are 275 million RMB, 343 million RMB, and 475 million RMB, with growth rates of 4.0%, 24.7%, and 38.8% respectively [2][3] - The gross margin for 2023 was 47.5%, with a projected decline to 45.7% in 2024, before recovering to 46.9% by 2026 [2][6] - The company maintained a debt-to-asset ratio of approximately 60% [3][6] Operational Insights - The company experienced a 16.5 thousand ton increase in hazardous waste processing volume in 2023, totaling 94.1 thousand tons [3] - The average processing price for hazardous waste disposal decreased to 1,114 RMB per ton in 2023, with a further decline noted in the second half of the year [3] - The company reported a significant increase in operating cash flow, with a net cash flow from operating activities growing by 16.2% year-on-year to 630 million RMB [3][5]
经营现金流质量继续提高，首次派息