Yonker(SZ:300187) CHINA DRAGON SECURITIES·2024-04-09 16:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [9]. Core Views - The company is transitioning from traditional environmental protection services to new energy business, with a focus on dual-carbon initiatives. The expected net profit for 2023 is projected to be between 0.6 to 0.85 billion yuan, indicating a turnaround from previous losses [5][41]. - The company has established a comprehensive environmental protection industry chain and is actively expanding its distributed photovoltaic and user-side energy storage businesses, which are expected to become new growth drivers for its performance [41]. Summary by Relevant Sections Financial Forecasts - Revenue (in million yuan): - 2022A: 713.35 - 2023E: 846.42 (growth rate: 18.65%) - 2024E: 1,135.16 (growth rate: 34.11%) - 2025E: 1,400.32 (growth rate: 23.36%) [2][10] - Net profit (in million yuan): - 2022A: -387.03 - 2023E: 80.19 (growth rate: 120.72%) - 2024E: 150.05 (growth rate: 87.12%) - 2025E: 181.57 (growth rate: 21.01%) [2][10] - Return on Equity (ROE): - 2022A: -40.10% - 2023E: 7.67% - 2024E: 12.55% - 2025E: 13.18% [2][10] Business Performance - The company has seen a decline in traditional hazardous waste disposal and soil remediation services, but is now focusing on new energy projects such as waste incineration power generation and distributed photovoltaic systems, which are beginning to yield results [5][41]. - The solid waste treatment business relies on two waste incineration power plants, with a combined waste disposal capacity of 2,400 tons per day. The company achieved a revenue of 1.88 billion yuan from waste treatment in 2022 [8][41]. New Energy Initiatives - The company has been actively acquiring new projects in distributed photovoltaic and energy storage since 2023, with significant contracts signed in various regions including Hunan, Jiangxi, and Guangdong [35][41]. - The average gross margin in the photovoltaic industry is around 60%, which is significantly higher than the company's overall gross margin of 25.1% in the first three quarters of 2023. This indicates potential for improved profitability as new energy assets come online [35][41].