Grandblue Environment (SH:600323) Minsheng Securities·2024-04-30 01:00Investment Rating - The report maintains a "Cautious Recommendation" rating for the company with a target price of 22.44 CNY per share, based on a PE of 12.0 times for 2024 [2][15]. Core Views - The company's energy business has shown year-on-year improvement, with solid waste operations contributing positively. The first quarter of 2024 saw a revenue of 2.716 billion CNY, a decrease of 3.08% year-on-year, while the net profit attributable to shareholders was 381 million CNY, an increase of 22.84% year-on-year [1]. - The energy segment's profitability is expected to remain stable due to improved gas sales margins, while the water services segment continues to provide steady cash flow [1]. - The company is actively expanding its waste treatment capacity, with a current operational capacity of 29,800 tons per day and additional capacity under construction, which is anticipated to enhance performance [1]. Financial Forecasts and Indicators - The company forecasts earnings per share (EPS) of 1.87, 2.11, and 2.29 CNY for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 10, 9, and 8 times [1][5]. - The total revenue is projected to grow from 12.541 billion CNY in 2023 to 14.624 billion CNY by 2026, reflecting a compound annual growth rate [5][16]. - The net profit is expected to increase from 1.430 billion CNY in 2023 to 1.870 billion CNY in 2026, indicating a positive growth trajectory [5][16].