营收业绩稳增，资本开支有望收窄

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 17.60 CNY per share based on a 10x PE for 2024 [5][30]. Core Insights - The company's operating revenue continues to increase, with 2023 revenue reaching 6.522 billion CNY, a year-on-year growth of 2.61%. The net profit attributable to shareholders was 1.075 billion CNY, up 1.78% year-on-year. However, Q1 2024 saw a revenue decline of 10.74% and a net profit drop of 27.33% [1][4]. - The proportion of operating income has risen significantly, with solid waste management, water treatment, and highway operations contributing 2.665 billion CNY, 313 million CNY, and 1.439 billion CNY respectively, accounting for 68% of total revenue, up from 56% previously [1][4]. - The company has fully operationalized its daily waste incineration capacity of 28,600 tons, with future capital expenditures expected to decrease as the high investment phase has passed [1][4]. - The dividend payout ratio has improved, with a proposed dividend of 0.25 CNY per share, totaling 162 million CNY, resulting in a payout ratio of 15.05% and a dividend yield of 2.22% [1][4]. - Profit forecasts indicate a net profit of 1.130 billion CNY for 2024, with projected growth rates of 5.1% for 2025 and 5.3% for 2026 [1][4]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 6.522 billion CNY, with a growth rate of 2.6%. The EBITDA was 3.030 billion CNY, and the net profit was 1.075 billion CNY, reflecting a growth rate of 1.8% [8][10]. - The gross margin improved to 40.20% in 2023, with expectations to reach 41.6% in 2024 [8][10]. Capital Expenditure and Investment - The company has completed the construction of its waste incineration projects, with no new projects planned in water supply and highways, indicating a potential reduction in future capital expenditures [1][4]. - The ongoing projects include hazardous waste and sewage treatment, with capacities of 251,000 tons per year and 22,100 tons per day, respectively [1][4]. Dividend and Financing - The company plans to distribute a total dividend of 162 million CNY for 2023, with a significant increase in the dividend payout ratio compared to the previous year [1][4]. - Various financing tools have been utilized to lower financial costs, including the issuance of short-term financing bonds at a low interest rate of 2.65% [1][4].