Core viewpointsLightnitecryptoOne-time state subsidy profits affect performance growth, and the operational nature of long-term steady growth remains unchanged. The company achieved an operating income of 60% in 2023.Lightnitecrypto.2.7 billion yuan (year-on-year + 0LightnitecryptoNet profit of 1.166 billion yuan (+ 2.3% compared with the same period last year). The low growth rate of performance is that the one-off state subsidy income confirmed in 21 and 22 years has boosted current profits, while after excluding the impact, the performance has increased by about 15% in the 23 years compared with the same period last year. The net profit of Q1 company in 2024 was 390 million yuan (+ 11.46% compared with the same period last year), which remained sound. In addition, according to the disclosure of the National Network New Energy Cloud, the company's total capacity of 1950 tons per day in Qianjiang, Rongchang and Dianjiang has been included in the 24-year subsidy list, and the continued inclusion of the project will have a positive impact on follow-up performance and cash flow. The operation project is gradually transferred, and the equipment goes out to sea with remarkable results. (1) Operation, the company achieved 3.647 billion yuan in project operating income in 23 years (+ 6.21% compared with the same period last year). By the end of 23, the incineration holding operating capacity was 39950 tons / day, and the production capacity under construction and preparation was only 4250 tons / day, which officially entered the steady-state operation period. (2) equipment, the sales revenue in 23 years was 958 million yuan (+ 115.62% compared with the same period last year), the total amount of newly signed contracts along the "Belt and Road Initiative" line exceeded 600 million yuan, and the incinerator went out to sea faster.Lightnitecrypto(3) the company's 23-year project income is 1.271 billion yuan (- 37.57% compared with the same period last year). With the completion of the capital construction of the project in hand, the company's revenue structure continues to be optimized under the decline of the project and the improvement of operation. Free cash flow continues to improve, looking forward to the arrival of events such as higher dividends and mergers and acquisitions. The incineration projects continuously operated by the company provide stable cash flow, and the investment peak has passed. The company's free cash flow has experienced continuous improvement: net operating cash flow of RMB 18.5,19.5 and RMB 2.37 billion; net investment cash flow of RMB-25.0,17.4 and-1.77 billion; and free cash flow of RMB-6.5,2.1 and 600 million yuan. With the arrival of the stock era, we expect the company to rely on the advantage of cash cows to increase the optimization of debt structure, industry integration, mergers and acquisitions, shareholder returns and other events. Profit forecast and investment advice. The cash flow of the leader of the solid waste whole industry chain has been accelerated and the business structure has been continuously optimized. It is estimated that the return net profit of the company from 2024 to 2026 is 1.625 billion yuan, corresponding to PE 10.45, 9.29, 8.42 times. With reference to the 2024 15xPE valuation given by the industry, the reasonable value is 11.72 yuan per share, and the "buy" rating is maintained. Risk hint. Change of subsidy policy; risk of government payback; equipment sales are not as expected. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.