Grandblue Environment (600323) 长江证券·2024-11-04 02:44Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a revenue of 87.31 billion yuan for the first three quarters of 2024, a year-on-year decrease of 2.58%, while the net profit attributable to shareholders increased by 18.82% to 13.85 billion yuan [4][5]. - The solid waste operation showed stable growth, while the engineering equipment business saw a significant decline in profit. The solid waste treatment business generated 45.11 billion yuan in revenue, down 2.10%, but net profit increased by 14.89% to 9.54 billion yuan [4][5]. - The company is addressing its accounts receivable, having resolved 7.87 billion yuan of outstanding accounts receivable in the first three quarters, with a target of 20 billion yuan for the year [5][6]. - The company is pursuing the acquisition of Guangdong Yufeng Environmental Protection, which is expected to enhance earnings per share (EPS) significantly [5][6]. - The company has a total of 35,750 tons/day of waste incineration projects in hand, with ongoing projects expected to contribute to future profits [6]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 29.07 billion yuan, a year-on-year decrease of 4.21%, while net profit was 4.98 billion yuan, up 4.65% [4]. - The energy business generated 27.84 billion yuan in revenue, down 6.11%, but showed improvement in operational conditions [4][5]. - The company’s operating cash flow for 2023 was 2.48 billion yuan, with projections for 2024 to reach 4.67 billion yuan [11]. Business Segments - The solid waste treatment segment's revenue was 45.11 billion yuan, with a net profit of 9.54 billion yuan, while the engineering and equipment segment saw a revenue drop of 61.98% [4][5]. - The company’s water supply business remained stable, with revenue of 7.09 billion yuan, while the drainage business grew by 12.91% to 5.03 billion yuan [4][5]. Future Outlook - The company expects to complete the acquisition of Guangdong Yufeng by the end of 2024, which could increase net profit by 3.89 billion yuan [5][6]. - Forecasted net profits for 2024-2026 are 16.9 billion yuan, 21.8 billion yuan, and 23.2 billion yuan, respectively, with corresponding price-to-earnings ratios of 11.1x, 8.6x, and 8.1x [6].