WANGNENG(002034)2024-07-24 07:58Business Operations and Development - The company primarily operates in the municipal solid waste incineration and kitchen waste treatment sectors under a franchise model [2] - As of Q1 2024, the company has 21 operational power plants with a daily processing capacity of 21,920 tons, and the South Taihu Phase V project under construction with a capacity of 1,000 tons/day [2] - In kitchen waste treatment, 17 projects with a total capacity of 2,810 tons/day are operational, and 2 projects with 510 tons/day are under construction [2] - The company secured the Macau EPC+O project in May 2024 and won the Sanmenxia kitchen waste treatment project in July 2024 [2] - The South Taihu Phase V project uses ultra-high pressure reheat technology, increasing thermal efficiency from 22% to 30% and electricity generation from 350 kWh/ton to 700 kWh/ton [2] Lithium Battery Recycling - The lithium battery recycling business mainly operates on a processing basis, with Lixin New Materials producing 1,779.38 metal tons of cobalt, nickel, and lithium in 2023 [3] - Lixin was included in the fourth batch of qualified enterprises for new energy vehicle waste power battery recycling in 2022 [3] - The business remains unprofitable in 2024 due to low prices of lithium carbonate, nickel sulfate, and cobalt sulfate [3] Rubber Recycling - The company's 50,000-ton recycled rubber project is operational, and a 40,000-ton project is in trial operation [4] - The rubber recycling business has achieved carbon footprint certification and SBTi validation [4] - The company aims to achieve profitability in the rubber sector by 2024 [4] Financial and Dividend Policy - The company approved a three-year (2024-2026) shareholder return plan, committing to distribute at least 30% of average distributable profits in cash dividends [4] - In 2023, the company generated 1.26 billion yuan in operating cash flow [4] - The company's current P/E ratio is 9x and P/B ratio is 0.8x, significantly lower than industry averages [4] Future Development Strategy - The company will focus on waste-to-energy as its core business while expanding into upstream and downstream industries [5] - It plans to upgrade from simple waste incineration to comprehensive "urban mining" services [5] - The company has 14 projects providing both power generation and heat supply, with a total heat supply of 1.04 million tons in 2023 [5] - It is exploring international markets, particularly in Vietnam and Thailand, through strategic partnerships [5] - The company is developing resource utilization projects for fly ash and slag, with four slag resource utilization projects operational by the end of 2023, processing 2,300 tons/day [5]