产能投产24Q1业绩高增，期待潜在整合空间

Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 7.70 CNY and a reasonable value estimated at 11.41 CNY [37]. Core Insights - The company achieved a revenue of 7.813 billion CNY in 2023, a slight decrease of 0.5% year-on-year, while the net profit attributable to shareholders increased by 20.5% to 860 million CNY. The significant profit growth is attributed to the commencement of several wastewater treatment and upgrade projects [11][16]. - The company's operating cash flow turned positive at 16.87 million CNY, and the gross profit margin improved to 47.2% [11]. - The report highlights a trend of increasing revenue from stable high-margin wastewater and sludge operations, while PPP project revenues are expected to decline significantly starting in 2025 [11][16]. Financial Summary - In 2023, the company reported a net profit of 860 million CNY, with an expected growth of 29.3% in 2024, reaching 1.112 billion CNY [12][40]. - The EBITDA for 2023 was 2.305 billion CNY, with projections of 2.792 billion CNY in 2024 [12]. - The company’s asset-liability ratio stood at 77% at the end of 2023, with accounts receivable increasing by 96% year-on-year to 4.1 billion CNY [11][12]. Business Segments - The report indicates that the revenue from PPP projects decreased by 10.5% year-on-year to 4.907 billion CNY in 2023, marking the beginning of a contraction trend [11]. - The wastewater and sludge treatment segments showed robust growth, with revenues of 2.1 billion CNY and 438 million CNY, respectively, reflecting increases of 25.8% and 36.2% year-on-year [11]. Shareholder Insights - The major shareholder, Zhengzhou Public Utilities, holds significant environmental assets, including water supply and waste incineration capacities, indicating potential for future integration [11]. - The company declared a dividend of 175 million CNY in 2023, with a payout ratio of 20.4%, resulting in a current dividend yield of 2.3% [11].