BGE(SH:603588) INDUSTRIAL SECURITIES·2024-04-29 02:33Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - In 2023, the company achieved revenue of 10.58 billion yuan, a year-on-year increase of 20.58%, while the net profit attributable to shareholders was 505 million yuan, a decrease of 27.13% [1]. - The first quarter of 2024 saw a significant revenue increase of 80.10% year-on-year, reaching 3.125 billion yuan, with a net profit of 194 million yuan, down 5.95% year-on-year [1]. - The company announced a cash dividend of 0.10 yuan per share for 2023, totaling 154 million yuan, with a cash dividend payout ratio of 30.46% [1]. Summary by Sections Revenue and Profitability - The solid waste and hazardous waste resource utilization segment generated revenue of 6.468 billion yuan in 2023, up 59.50% year-on-year, but the gross margin fell by 5.73 percentage points to 8.29% due to the lower margin characteristics of deep resource projects [1]. - The environmental operation services segment reported revenue of 1.628 billion yuan, an increase of 11.71% year-on-year, with a gross margin of 46.57%, up 4.95 percentage points [1]. - The environmental engineering segment's revenue decreased by 23.84% to 2.484 billion yuan, with a gross margin of 25.51%, down 1.85 percentage points [1]. Cash Flow and Future Expectations - The company's operating cash flow improved, with a net cash flow of -953 million yuan in 2023, compared to -446 million yuan in 2022, primarily due to an increase in inventory [1]. - The company expects improved cash flow and profitability as the Jiangxi Xinke project reaches full production [1]. Profit Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 853 million yuan, 962 million yuan, and 1.057 billion yuan, representing year-on-year growth rates of 69.1%, 12.7%, and 9.9% respectively [1][9]. - The corresponding PE ratios for 2024-2026 are projected to be 11.9x, 10.5x, and 9.6x [1].