Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company achieved a revenue of 2.431 billion RMB in 2024, representing a year-over-year increase of 30.86%, with a net profit attributable to shareholders of 536 million RMB, up 4.36% year-over-year. The results are in line with expectations [1][4]. - The company completed the acquisition of Renhe Environment and initiated the Pingjiang project, which is expected to drive growth through enhanced operational capacity and integration [2][3]. - The company has maintained a high dividend payout, with a dividend per share (DPS) of 0.90 RMB, reflecting a dividend yield of 4.6% based on the closing price as of April 22 [3][4]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 675 million RMB, a year-over-year increase of 39.73%, and a net profit of 129 million RMB, up 16.75% year-over-year [1]. - For 1Q25, the company achieved a revenue of 767 million RMB, representing a year-over-year increase of 54.23%, with a net profit of 173 million RMB, up 39.41% year-over-year [1]. Operational Highlights - The company processed 3.2026 million tons of waste in 2024, a slight decrease of 1.01% year-over-year, while the electricity generated was 1.473 billion kWh, an increase of 0.82% year-over-year [2]. - The integration of Renhe Environment is expected to significantly enhance the company's operational capacity and drive revenue growth in 2025 [2]. Cash Flow and Dividends - The company's operating cash flow for 2024 was 971 million RMB, an increase of 11.78% year-over-year, with capital expenditures reaching 920 million RMB, up 61.78% year-over-year [3]. - The company has a long-term dividend policy to maintain a cash dividend payout ratio of no less than 50% [3]. Valuation and Price Target - The target price for the company is set at 24.57 RMB, based on a projected price-to-earnings (PE) ratio of 18.9 for 2025, reflecting the company's strong asset quality and leading position in the industry [4][6]. - The report has adjusted the net profit estimates for 2025 and 2026 to 733 million RMB and 782 million RMB, respectively, indicating a growth trajectory [4].
军信股份（301109）：维持高分红，并购和业务拓展驱动成长