HONGCHENG WATERWORKS(SH:600461) Tai Ping Yang·2024-04-14 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [5][7]. Core Views - The company is expected to achieve steady growth in 2023, with a focus on high dividends and multiple business segments contributing to high-quality development [11][19]. - The company plans to maintain a cash dividend payout ratio of no less than 50% for the years 2024-2026, reflecting a commitment to returning value to shareholders [17]. Summary by Sections Energy and Gas Business - The company operates the largest urban gas operator in Jiangxi Province, serving 1.3286 million natural gas users with a pipeline length of 7,414 kilometers and a gasification rate of 82.3% [3]. - In 2024, the company aims to establish a comprehensive energy demonstration site integrating oil, gas, electricity, and photovoltaics, with a total installed capacity of 100 MW for solar power [3]. Water Supply and Wastewater Treatment - The company holds the exclusive operating rights for urban water supply in Nanchang, with 11 water plants and over 8,000 kilometers of supply pipelines, serving a population of 4 million [17]. - The company has invested over 3.7 billion in wastewater treatment projects, achieving a total design capacity of 3.6985 million cubic meters per day [6]. Solid Waste Disposal - The company is enhancing its solid waste business through stock integration and actively seeking new projects to strengthen its solid waste industry system [17]. - The solid waste business includes garbage incineration, combined heat and power generation, and treatment of leachate and kitchen waste [17]. Financial Performance - The company reported a revenue of 8.048 billion in 2023, a year-on-year increase of 3.43%, and a net profit of 1.083 billion, up 12.59% from the previous year [15][18]. - Forecasted net profits for 2024, 2025, and 2026 are 1.165 billion, 1.293 billion, and 1.428 billion respectively, with corresponding EPS of 0.95, 1.05, and 1.16 [7][18].