EIT(SZ:300815) Minsheng Securities·2024-04-26 07:00Investment Rating - The report maintains a "Cautious Recommendation" rating for the company, with a target price of 16.20 CNY per share based on a 10x PE for 2024 [10]. Core Insights - The company reported a revenue of 6.161 billion CNY for 2023, representing a year-on-year growth of 14.22%. The net profit attributable to shareholders was 521 million CNY, up 5.42% year-on-year [1]. - The company has a strong order backlog, with the urban operation segment achieving a revenue of 5.067 billion CNY in 2023, a growth of 17.19% year-on-year. The total value of new contracts signed reached approximately 11.832 billion CNY, a significant increase of 220.74% [1]. - The report highlights the company's strategic move towards automation and smart solutions in sanitation services, with 20 new contracts for unmanned sanitation projects totaling 1.57 billion CNY [1]. Financial Forecasts - The company expects earnings per share (EPS) of 1.62 CNY and 1.86 CNY for 2024 and 2025, respectively, with a projected EPS of 2.08 CNY for 2026 [1][3]. - The report forecasts a revenue growth rate of 14.22% for 2023, with expected growth rates of 18.01% and 17.90% for 2024 and 2025, respectively [12]. - The net profit is projected to grow by 5.42% in 2023, with further increases of 23.56% and 15.08% anticipated for 2024 and 2025 [12]. Market Position and Strategy - The sanitation service industry is expected to see steady market growth, supported by a robust order backlog and advancements in smart and electric sanitation solutions [1]. - The company is actively pursuing a strategy of integrating smart technologies into its operations, which is anticipated to enhance efficiency and reduce labor costs in the long term [1].