Core Insights - The company expects a 16% year-on-year increase in net profit for 2024, with over 2.4 billion in receivables collected, leading to a 32% increase in net cash flow from operating activities [1] Financial Performance - The company maintains an "overweight" rating, slightly adjusting net profit forecasts for 2025-2026 to 1.735 billion (previously 1.795 billion) and 1.806 billion (previously 1.920 billion), while introducing a forecast of 1.882 billion for 2027, corresponding to EPS of 2.13, 2.21, and 2.31 respectively [2] - In 2024, the company achieved operating revenue of 11.886 billion, a decrease of 5% year-on-year, while net profit attributable to shareholders was 1.664 billion, an increase of 16% year-on-year [2] - The net cash flow from operating activities reached 3.273 billion, a 32% increase year-on-year, with the company actively collecting receivables [3] Business Segments - The solid waste management business generated revenue of 6.008 billion, a 7% decrease year-on-year, but net profit increased by 4% to 1.025 billion, with an operating net profit of 1.004 billion, up 10% [3] - The gas business revenue decreased by 7% to 3.758 billion, influenced by a decline in sales price and slight decrease in sales volume, although the gross margin improved [3] - The company is actively expanding its heating business, with a 34% year-on-year increase in heating volume to 1.48 million tons, having signed 17 external heating agreements [3] Strategic Initiatives - The acquisition of Yuefeng Environmental is progressing, with expectations to complete the acquisition by mid-2025 after meeting all preliminary conditions [4] - The acquisition is anticipated to lead to a significant increase in incineration capacity and gradual realization of synergies [4]

Transaction Overview - The company plans to transfer 95% equity of Shandong Zhiyou Network Security Technology Co., Ltd. and related debts through public listing to optimize asset structure, improve cash flow, and enhance asset operation efficiency [1] - The total transfer price is set at no less than RMB 20,530,001 [1] Transaction Progress - The public listing commenced on April 16, 2025, and will end on May 18, 2025, with the starting price based on the assessed value [1]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company experienced a significant improvement in cash flow and an increase in dividend payout ratio, despite facing pressure on Q4 performance due to increased impairment losses and reduced investment income [1][2] - The company plans to distribute a total dividend of 11.2 billion, maintaining stability in dividend payout [1] - The construction business structure continues to optimize, with strong performance in energy engineering and water infrastructure sectors [1] Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 2,187.148 billion, a decrease of 3.5% year-on-year, and a net profit attributable to shareholders of 461.87 billion, down 14.9% year-on-year [5] - The quarterly breakdown shows revenue growth of +5% in Q1, +1% in Q2, but declines of -14% in Q3 and -6% in Q4 [1] - The overall gross margin for 2024 was 9.86%, a slight increase of 0.02 percentage points year-on-year [2] Business Segments - Revenue from construction, infrastructure, and real estate segments for 2024 was 13,218 billion, 5,509 billion, and 3,062 billion respectively, with declines of 5%, 1%, and 1% year-on-year [1] - The construction sector saw an increase in public building orders, with the share of residential business decreasing from 25% to 22% [1] Cash Flow and Investment - The company reported a net inflow of operating cash flow of 15.774 billion, an increase of 4.7 billion year-on-year, and a significant reduction in net outflow from investment activities to 2.511 billion, down 24 billion year-on-year [3] - The total net cash inflow from operating and investment activities was 13.3 billion, an increase of 28.7 billion year-on-year [3] Future Outlook - The company expects net profits for 2025, 2026, and 2027 to be 44.8 billion, 45.4 billion, and 45.6 billion respectively, with corresponding EPS of 1.09, 1.10, and 1.10 [3] - The current stock price corresponds to a PE ratio of 5.0 for 2025 [3]

Core Viewpoint - The company reported a revenue of 771.9 billion yuan for 2024, a year-on-year increase of 1.74%, while the net profit attributable to shareholders decreased by 1.81% to 23.4 billion yuan [1][2]. Revenue and Profit Analysis - The company's revenue for 2024 reached 771.9 billion yuan, reflecting a 1.74% increase year-on-year; however, the net profit attributable to shareholders was 23.4 billion yuan, down 1.81% year-on-year, and the net profit excluding non-recurring items was 19.812 billion yuan, down 8.44% year-on-year [1][2]. - The gross profit margin was 12.29%, a decrease of 0.3 percentage points compared to the previous year [2]. Business Segment Performance - Revenue from infrastructure construction grew by 2.3% year-on-year, with significant growth in the Hong Kong, Macau, and overseas regions at 16.4% [2]. - Revenue by business segment included: infrastructure construction (681.4 billion yuan, +2.3%), infrastructure design (36.3 billion yuan, -23.3%), dredging (59.4 billion yuan, +11.1%), and other businesses (26.0 billion yuan, +34.7%) [2]. - Gross profit margins for these segments were 11.09%, 20.05%, 12.79%, and 11.63%, respectively, with varying changes year-on-year [2]. Regional Performance - Revenue from mainland China and Hong Kong, Macau, and overseas regions was 636.7 billion yuan and 135.3 billion yuan, respectively, with year-on-year changes of -0.9% and +16.4% [2]. - The gross profit margins for these regions were 12.76% and 10.04%, indicating a faster growth rate in the Hong Kong, Macau, and overseas regions, which now account for 18% of total revenue [2]. Order Backlog and New Contracts - The company has a robust order backlog, with new contract amounts for 2024 reaching 1.88 trillion yuan, a year-on-year increase of 7.3% [3]. - New contracts by business segment included: infrastructure construction (1,700.582 billion yuan, +9.12%), infrastructure design (52.646 billion yuan, -5.94%), dredging (116.017 billion yuan, -2.67%), and other businesses (11.940 billion yuan, -38.98%) [3]. - The growth in new contracts is primarily driven by increased demand in overseas projects, urban construction, water conservancy projects, and energy engineering [3]. - The company’s unexecuted contract amount as of the end of 2024 is 3.49 trillion yuan, which is 452% of the expected revenue for 2024 [3]. Future Outlook - The company aims for a new contract amount growth target of no less than 7.1% and a revenue growth target of no less than 5% for 2025 [4]. - The company’s expense ratio for 2024 was 6.01%, a decrease of 0.26 percentage points, benefiting from enhanced cost control [4]. - The net increase in cash and cash equivalents for 2024 was 18 billion yuan, primarily due to a net cash inflow from operating activities of 12.5 billion yuan [4].