Investment Rating - Maintains an "Overweight" rating for the company [2] - Target price remains at CNY 15.14 [2] Core Views - The company's non-GAAP net profit increased by 47% YoY in 2023, meeting expectations [2] - High-end environmental equipment business improved significantly, with sufficient orders on hand [2] - The company's water environment and solid waste businesses are actively expanding, driving growth [2] - The company's comprehensive gross margin was 29.38%, slightly higher than 2022, while the net profit margin was 14.58%, down 1.37 percentage points YoY [2] - Sales and management expense ratios decreased slightly, with financial expenses increasing by 1 percentage point due to convertible bond issuance [2] - R&D expenses increased by 0.25 percentage points to 2.71%, reflecting increased R&D investment [2] Financial Performance - Revenue in 2023 reached CNY 1.947 billion, up 53% YoY [2] - Net profit attributable to shareholders was CNY 283 million, up 40% YoY [2] - Non-GAAP net profit was CNY 274 million, up 47% YoY [2] - EPS for 2023 was CNY 0.67, with forecasts for 2024-2026 at CNY 0.98, CNY 1.18, and CNY 1.41, respectively [2] - Operating profit margin remained stable at 18.5% in 2023 [2] - ROE increased to 10.9% in 2023, with forecasts for 2024-2026 at 14.5%, 15.4%, and 16.1%, respectively [2] Business Highlights - The company secured new contracts worth CNY 4.457 billion in 2023, a significant increase [2] - In the water environment sector, 33 new projects were signed, totaling over CNY 2.4 billion [2] - In the environmental energy sector, 6 new waste-to-energy projects were added, with a total daily waste processing capacity of 4,500 tons [2] - High-end environmental equipment manufacturing revenue reached CNY 156 million, returning to growth [2] - The company established a new energy industry partnership fund to explore opportunities in distributed wind, solar, and hydrogen energy [2] Market and Valuation - Current market capitalization is CNY 3.782 billion [2] - The stock price ranged between CNY 7.19 and CNY 11.99 over the past 52 weeks [2] - P/E ratio for 2023 was 13.4x, with forecasts for 2024-2026 at 9.1x, 7.6x, and 6.4x, respectively [2] - EV/EBITDA for 2023 was 10.63x, with forecasts for 2024-2026 at 7.69x, 6.37x, and 5.34x, respectively [2] Industry and Competitive Position - The company is a comprehensive environmental governance service provider, specializing in leachate and high-difficulty wastewater treatment [5] - It holds multiple certifications and patents, with 44 patents and 8 core technologies [5] - The company has a strong competitive advantage due to its technical expertise, experience, and full-industry-chain service capabilities [2]
2023年报点评：在手订单充足，装备业务改善