Investment Rating - The investment rating for the company is "Buy - A" with a target price of 19.95 CNY over the next six months [2][7]. Core Insights - The company operates the only urban solid waste comprehensive treatment plant in Changsha, with significant contributions to profits from its waste incineration projects [1]. - In 2023, the company processed 3.2354 million tons of waste, achieving a year-on-year growth of 2.01% [1]. - The gross profit margin for the first phase of the waste incineration power generation business reached 64.81%, an increase of 4.43 percentage points year-on-year, while the second phase reached 69.15%, up by 3.85 percentage points [1]. - The company reported a revenue of 1.8574 billion CNY in 2023, a year-on-year increase of 18.26%, and a net profit of 514 million CNY [3]. - The company maintains a high dividend payout ratio, with a proposed cash dividend of 369 million CNY in 2023, resulting in a dividend ratio of 71.8% [28]. Financial Performance - The company is expected to achieve revenues of 1.924 billion CNY in 2024, with a growth rate of 3.6%, and net profits of 547 million CNY, reflecting a growth rate of 6.2% [7]. - The projected revenue for 2025 is 1.9217 billion CNY, with a slight decline in growth rate, followed by an increase to 2.0291 billion CNY in 2026 [7]. - The company’s operating cash flow reached 869 million CNY in 2023, a year-on-year increase of 10% [28]. Market Expansion - The company has secured the entire market share for waste incineration power generation in Liuyang and Pingjiang, with new projects expected to contribute significantly to revenue upon completion in 2024 [27]. - An agreement was signed with the Kyrgyz Republic for a waste incineration project with a planned capacity of 3,000 tons per day, indicating potential for overseas market growth [27].
技改推动毛利率提升，持续高分红