Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [9]. Core Insights - The company is a leading player in waste-to-energy in Hunan Province, focusing on stable revenue growth with a compound annual growth rate (CAGR) of 19.5% in revenue and 11.0% in net profit from 2019 to 2024 [9][18]. - The company has a strong cash flow that supports high dividend payouts, with a commitment to maintain a cash dividend ratio of no less than 50% in the long term [9][27]. - The integration of waste incineration and IDC (Intelligent Data Center) presents significant collaboration potential, especially in the Changsha project and overseas market expansion [9][57]. Summary by Sections 1. Hunan Province Waste-to-Energy Leader - The company has established itself as a leader in solid waste treatment, focusing on waste incineration power generation, with operational capacity reaching 11,800 tons per day as of Q1 2025 [14][30]. - The company achieved a revenue of 2.43 billion yuan in 2024, with a net profit of 536.28 million yuan, reflecting a stable growth trajectory [9][18]. 2. Cash Flow and Dividend Policy - The operating cash flow has shown a steady increase, with a CAGR of 7.5% from 2019 to 2024, reaching 971 million yuan in 2024 [22][27]. - The company has maintained a high dividend payout ratio, with total dividends exceeding 1.2 billion yuan from 2022 to 2024 [27][29]. 3. Domestic and International Expansion - The company has a significant market share in Hunan, with a 46.31% share in the waste incineration market as of 2023, and is expanding its international footprint with projects in Kyrgyzstan [30][34]. - The acquisition of 63% of Renhe Environment enhances the company's operational capabilities and market reach, allowing for better integration of waste management services [52][54]. 4. Profitability and Competitive Advantage - The company benefits from high electricity prices and efficient operations, with a gross profit margin of 68.45% in 2024, significantly higher than industry peers [41][42]. - The average electricity price in Hunan is 0.45 yuan per kWh, ranking second nationally, which contributes to the company's strong profitability [41][42]. 5. Synergy with IDC - The collaboration between waste incineration and IDC is expected to enhance energy efficiency and reduce operational costs, with a focus on sustainable and clean energy solutions [57][60]. - The company is well-positioned to leverage government policies promoting green computing and energy efficiency, aiming for a PUE of 1.3 by 2030 [75].
军信股份（301109）：龙出湘江：长沙固废一体化龙头，先发布局垃圾焚烧+IDC