运营业务稳中有升，设备出海战果斐然

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 11.72 CNY per share, based on a 15x PE valuation for 2024 [5][13] Core Views - The company has entered a steady-state operation period, with stable growth in operating income and significant progress in equipment exports [5] - Free cash flow has improved significantly, with expectations of increased dividends and potential M&A activities [5] - The company is expected to achieve net profits of 1.311 billion, 1.474 billion, and 1.625 billion CNY for 2024-2026, respectively [5] Financial Performance - Operating income reached 6.027 billion CNY in 2023, a slight increase of 0.1% YoY [8] - Net profit attributable to shareholders was 1.166 billion CNY in 2023, up 2.3% YoY [8] - The company's operating cash flow improved significantly, with net operating cash flow reaching 2.37 billion CNY in 2023 [5][7] Business Segments - Operating income from waste incineration reached 3.647 billion CNY in 2023, up 6.21% YoY [5] - Equipment sales revenue surged to 958 million CNY in 2023, a 115.62% YoY increase [5] - Engineering income declined to 1.271 billion CNY in 2023, down 37.57% YoY [5] Future Outlook - The company's revenue structure continues to optimize, with a shift from engineering to operations [5] - Three projects with a total capacity of 1,950 tons/day have been included in the 2024 subsidy list, which is expected to positively impact future performance [8] - The company's PE ratio is expected to decrease from 10.45x in 2024 to 8.42x in 2026 [5][9] Industry Position - The company is recognized as a leading player in the solid waste treatment industry with a complete industrial chain [5] - Significant progress has been made in equipment exports, particularly along the "Belt and Road" initiative, with new contracts exceeding 600 million CNY [5]